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HARYANA
GOVERNMENT
RENEWABLE ENERGY DEPARTMENT
The 23rd
November,2005
POLICY FOR PROMOTING GENERATION OF ELECTRICITY
THROUGH
RENEWABLE ENERGY
SOURCES
No. 22/69/2005-5P. -This policy supersedes the earlier
policy issued vide notification No.DNES /98/Policy/4006 dated
10.2.1998.
1.
OBJECTIVE
OF THE POLICY
To create conditions conducive for the involvement
of private sector or public –private sector participation in Renewable
Energy Sources based power projects in the State.
2.
TARGET
The State Govt. aims to achieve a minimum of 10%(i.e. 500 MW
) of the total capacity
addition of 5000 MW of conventional power to be generated through
Renewable Energy Power Projects by 2012 as per Ministry of
Non-conventional Energy Sources, Govt. of India’s policy .
3. MEASURES
TO BE ADOPTED
i) To promote setting up of Biomass Based Power Projects.
ii) To promote
Co-generation Power Projects.
iii)
To promote
Small Hydro Power Projects
iv) To promote
Wind Energy Based Power Projects
v)
To promote
Solar Energy Based Power Projects.
vi)
To promote
Waste to Energy Power Projects based on Urban, Municipal and
Industrial Waste.
4. THRUST
AREAS
4.1 Power Generation from biomass
A potential of generation of 1400 MW of power
through biomass exists in the State. The State Govt. is committed to
exploit this potential.
4.2 Power Generation
through bagasse co-generation
To
harness the potential of cogeneration in cooperative / private
sector sugar mills which is estimated to be 100 to 150 MW.
4.3
Power Generation through small hydro power projects.
To harness
45 MW of power which can be generated through the water falls
available at various locations in canals of the State.
4.4 Municipal Solid
Waste
The
daily availability of Municipal Solid Waste in cities like Faridabad,
Gurgaon, Ambala, Sirsa,Yamunanagar, Panipat,Rohtak, Bhiwani, Sonepat,
Hisar is between 120 metric tonnes to 600 metric tonnes. Waste
to energy power plants or fuel palletisation plants based on
Municipal Garbage can be set up in these cities to generate about
17MW of power.
4.5
Solar Energy
The
solar insolation level in the State is in the range of 5.5 KWH
to 6.5 KWH per sq.mtr. of area and the State has about 320 clear
sunny days in a year. This offers a great potential for using
solar energy for various thermal and electrical energy applications
in the State.
4.6
Wind Energy
Sufficient
untapped wind energy power potential is available in the State
specifically in the Morni hill area of Distt.Panchkula and Aravelli
Hills in Southern Haryana. Wind Monitoring Stations are being
set up in Panchkula, Gurgaon and Mahendergarh districts to assess
the available wind potential for power generation in the State.
5. NODAL
AGENCY
Haryana Renewable Energy Development Agency (HAREDA)
shall be the State Nodal Agency for co-ordinating all activities
relating to Renewable Energy Development including generation of
power using non-conventional energy sources. HAREDA shall be responsible for laying down the procedure for
inviting the proposals from Independent Power Producers (IPPs), DPR
preparation, evaluation of project proposals, project approvals and
project progress monitoring etc.
It shall function as a single window clearing
Agency for all Renewable Energy Power Projects for facilitating
necessary clearances and approvals on behalf of the Govt. of Haryana.
6. OPERATIVE
PERIOD:
The scheme of promotional and fiscal incentives as
contained herein will come into operation with the date of its
notification in the official gazette and will remain in force till a new
policy is notified.
7. ELIGIBLE PRODUCERS:
Those who intend to generate electricity from
Non-conventional Energy Sources such as Solar, Wind-Electric Generators,
Biomass Combustion, Cogeneration, Municipal and Industrial Waste, Small
Hydro (upto 25 MW) and New Technologies like Bio-oil, Fuel Cell etc.
There will be no restriction on generation capacity or supply of
electricity to the grid.
There shall be no restriction on legal structure of
entrepreneur in generation of power. Companies, Cooperatives, partnerships, Local Self Governments,
State Nodal Agency, Boards & Corporations, Power utilities, Private
developers, Public – Private Partnership Companies,Consortia,
registered societies, NGOs, individuals etc. would all be eligible
producers provided they undertake to generate power from
non-conventional energy sources, and fulfil the laid down conditions.
8.
GRID
INTERFACING:
(i) Interfacing,
including transformers, C & R panels duly equipped with the
requisite protection schemes, marshalling kiosks, kiosk protection,
metering, High Tension inter connection points from the points of generation to HVPN, UHBVN, DHBVN and any other
licensee nearest Light/High Tension lines etc. as well as maintenance of
LT lines will be undertaken by the producer as per the specifications
and requirements of the licensee/ utilities for which he will bear the
entire cost. Alternatively,
those works and their maintenance could be undertaken by the Licensee/
Utilities on behalf of power producers at charges to be decided by the
Licensee/ Utilities and paid by the power producer.
High Tension lines shall be maintained by the power
utilities as licensee. After commissioning of the project, the power
producers shall transfer these lines to the concerned power utility as
transfer of assets for its maintenance by the power utility till the
validity of PPA.
(ii) Depending
upon the generation capacity, if the sub-station capacity at 33/11 KV or
higher levels, is required to be augmented for 66 KV or higher capacity,
transmission lines are to be provided. This will be undertaken by the
Licensee/ Utilities at the cost of power producers.
(iii) Two sets of
separate meters will be installed on the H.T.side by the producer, as
main meters and check meters. In case of co-generation/ captive power
generation two sets of separate meters will be installed, one for export
of power and other for import of power.
(iv) Necessary
current limiting devices will be installed in the generating equipment
by the producer. Capacitors
of sufficient rating will also be provided in the equipment to ensure
that the power factor is always maintained above 0.8.
(v) The plant
should have a capacity of atleast 1 MW or above that
9.
WHEELING CHARGES:
Licensee/ Utilities will undertake to transmit on its grid the power
generated by power producers using non-conventional energy sources and
make it available to the producer for captive use or o a Third Party
within the State as per approved tariff including surcharge, additional
surcharge, if any, notified
by HERC from time to time.
If H.T./ L.T. lines required to be laid beyond Licensee/
Utilities lines for wheeling the power at any desired point, then the
cost of the same shall have to be borne by the promoter/ power producer.
In case, the power is to be sold to a third party, the name of
such party shall be indicated by the power producer at the time of
making an application in the prescribed form of Licensee/ Utilities.
However, in respect of third party sale, licensee/ utilities
would have preference over the power generated by the power producers
and third party sale would be allowed when the surplus power is not
being evacuated by the licensee/ utilities.
10.
PURCHASE PRICE:
(i) New Projects
:
Licensee/ Utilities will purchase electricity
offered by the power producers in case of new projects set up after the
notification of the present policy at the rate to be decided by the
Haryana Electricity Regulatory Commission as per provisions in the New
Electricity Act,2003.
(ii) For old captive/co-generation
projects which are having surplus power to offer for sale to the power
utilities, the tariff shall
be negotiated tariff based on negotiation between the power producers
and the power utilities.
11. BANKING:
HVPNL/ DHBVN/ UHBVN/ licensee is to permit
electricity generated by eligible producers to be banked.
The banking facility shall be allowed for a period of one year by
the Licensee/ Utilities
free of cost. However, withdrawal of banked power should be allowed only
during non-peak hours. If the banked energy is not utilized within a
period of twelve months from the date of power banked with the concerned
power utilities/ licensee, it will automatically lapse and no charges
shall be paid in lieu of such power.
12. ELECTRICITY DUTY:
Non-conventional energy sources power generation
and its sale to the Licensee/ Utilities or third party or for its
captive use shall be exempted from the electricity duty.
13. WATER CHARGES:
Producer will be allowed to use the water for power
generation through micro/ mini/ small hydel plants. No royalty will be charged on the water used for power
generation for non-consumptive use.
14. LOCAL
AREA DEVELOPMENT TAX:
Local Area Development Tax will be exempted on plant, machinery,
equipment that has been capitalized in view of the provisions of section
5(f) of Haryana Act No.13 of 2000.
15. FUEL/ RAW MATERIAL FOR
COGENERATION PLANTS:
The co-generation projects should be designed to
use and should use non-fossil fuels such as bagasse, biomass, biogas,
agricultural waste such as rice husk, ground nut shells etc. The use of conventional fossil fuels in these cogeneration
projects may be necessary during the period of off-season to augment the
non-fossil fuels and therefore, the use of same shall be allowed as per
Ministry of Non-conventional Energy Sources, Govt. of India policy in
this respect from time to time.
The “fuel cost pass through” on this account
shall not be permitted as the tariff in these cases will be fixed taking
into consideration the normal availability of non-fossil fuel for 240
days per annum only.
16. OTHER
INCENTIVES:
All new projects will be treated as “Industry” in terms of
Industrial Policy , 2005 and all the incentives available to new
projects will be applicable as per Industrial Policy, 2005.
17. TENURE OF POWER
PURCHASE AGREEMENT:
The Power Purchase Agreement
(PPA) to be signed between IPP and concerned power utilities / licensee
shall be valid for a minimum period of 20 years or more depending on the
plant’s life. After this
period, this shall be re-negotiated between power producer and concerned
power utilities/ licensee. However,
power utilities shall have the first right to refuse in case, it does
not want to buy the power
for period beyond 20 years.
18. LAND FOR THE PROJECT
18.1 The State Govt. will acquire land if necessary at the cost of
Independent Power Producers (IPP) if a request to that effect is made.
18.2 Setting
up of Renewable Energy Power Projects in the Agriculture Zone will be
permitted by the Town & Country Planning Department without levying
of conversion charges.
19.
INVITATION OF PROPOSALS
19.1 A comprehensive bid document shall be designed for inviting
proposals from the Independent Power Producers, listing out technical
and financial parameters for evaluation of the bids. On the basis of
evaluation parameters contained in the tender document, bids shall be
evaluated by the Technical Appraisal Committee.
19.2 For the proposals for which the sites are identified by the
Independent Power Producers, the proposal with DPR will be submitted by
IPP to HAREDA for its consideration and sanction (in accordance with
clause No. 7 Part-III of the Electricity Act, 2003).
20.
PROCEDURE FOR SETTING
UP OF NRSE POWER PROJECTS IN HARYANA
20.1 HAREDA shall invite proposals from private national/international
investors through press advertisement.
20.2 A Technical Appraisal Committee (TAC) shall be constituted by the
State Govt. to appraise the proposals / bids in terms of technical and financial capabilities, scrutinizing
the techno-economic feasibility. The
TAC is authorized to seek any additional information from the bidders to
supplement the proposals and will submit its report within two months.
20.3 Project upto 5 MW capacity will be considered and approved by the
Board of Governors of HAREDA on the recommendations of TAC within two
months time.
20.4 For the projects above 5 MW capacity, a High Powered Committee
constituted by the State
Govt. under the chairmanship of Chief Secretary, Govt. of Haryana (Appendix-I ) shall consider
the report of Technical Appraisal Committee, shortlist,
prioritize and approve / reject the investment proposals for allocation
of sites for preparation of Detailed Project Reports (DPR) by the
private investors within two months time. The High Powered Committee can
co-opt any other members /experts as its member for a particular meeting
with the approval of the Chief Secretary.
20.5 Once the proposal has been approved by the Board of Governors of
HAREDA / High Powered Committee, HAREDA will enter into an MOU with the
private investors for preparation of DPR and implementation of the
project within one months time.
20.6 After approval of DPR by the HAREDA, the private
investors is required to enter into PPA with the concerned power
utilities/ licensee for the
sale of power to it or to the third party after getting necessary
approval from the Haryana Electricity Regulatory Commission(HERC)
20.7 The Power Producer and the concerned Power Utility/ licensee
shall make efforts to enter into Power Purchase Agreement within two months time from the date of providing the clearance.
In case there is delay beyond this period then either party can approach
the Haryana Electricity Regulatory Commission for decision in this
matter within another two months.
20.8 If the applicant does not take effective steps (i.e. at least 10%
of the total project cost should be incurred) to implement the project
within six months from the date of signing of PPA, the Agreement could
be terminated and the site shall be allocated to another applicant and
the security deposited with the HAREDA by the power producers shall be
forfeited.
21.
AMENDMENTS / RELAXATION
/ INTERPRETATION OF PROVISIONS OF THE POLICY
:
Govt.
of Haryana in Renewable Energy Department shall have the powers to amend
/ relax / issue clarification, if any, on any matter related to
interpretation of any provisions under the policy in consultation with
the concerned Govt. Departments / Agencies.
S.C.CHAUDHARY
Financial
Commissioner & Principal Secretary to
Govt.
Haryana, Renewable Energy Department.
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