Policy for Promoting Generation of Electricity through Renewable

By Lloyd Johnson,2014-04-18 09:40
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Haryana Renewable Energy Development Agency (HAREDA) shall be the State Nodal Agency for co-ordinating all activities relating to Renewable

Policy for Promoting Generation of

    Electricity through Renewable

    Energy Sources

    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.

2. Target:

     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

    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 be

    Licensee/Utilities of 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 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.

    S.C. Chaudhary

    Financial Commissioner & Principal Secretary

    Government Haryana,

    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

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