Policy for Promoting Generation of
Electricity through Renewable
Notification rdThe 23 November, 2005
No. 22/69/2005 5P. This policy supersedes the earlier policy issued vide thnotification No. DNES/98/Policy/406, dated 10 February, 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.
The State Government 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 Project by 2012 as per Ministry of Non-
conventional Energy Sources, Government of India’s policy.
3. Measures to be Adapted:
(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 14MW of
power through biomass exists in the State. He State Government 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, Yamunanager, 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 insulation 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 application 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 I n 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 Government 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 L.T. 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
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 as
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 limited 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 at least 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 the captive use or to 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 from
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 presents 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
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 be
Licensee/Utilities of third party or for its captive use shall be exempted from the
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 Co-generation 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 renegotiated 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 an 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 proposals 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 Projects 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 Committed
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
20.5 Once the Proposal has been approved by the Board of Governors of
HAREDA/ High Powered Committee, HARDA 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 investor 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
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
21. Amendment / Relaxation/ Interpretation of Provisions of the
Government 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 Government Department / Agencies.
Financial Commissioner & Principal Secretary
Renewable Energy Department.
High Powered Committee Empowered for Sanction of Renewable
Energy Power Projects above 5MW
1. Chief Secretary, Haryana Chairman
2. Secretary, Finance Department Member
3. Secretary, Local Bodies Department Member
4. Secretary, Power Department Member
5. Secretary, Irrigation Department Member
6. Secretary, Agriculture Department Member
7. Secretary, Renewable Energy Department Member
8. Secretary, Industries Department Member
9. Secretary, Town & Country Planning Member
10. Secretary, Environment Department Member
11. Secretary, Forest Department Member
12. Director, Renewable Energy Department Member Secretary