department of science, technology, environment and non ... nrse policy... · 1 department of...
TRANSCRIPT
1
DEPARTMENT OF SCIENCE, TECHNOLOGY, ENVIRONMENT
AND NON-CONVENTIONAL ENERGY
DRAFT NOTIFICATION
The ____ January, 2012
The Governor of Punjab is pleased to formulate a 'New and Renewable Sources of
Energy (NRSE) Policy – 2012’, to develop and promote new and renewable sources
of energy based technologies and energy conservation measures as well as
providing financial & fiscal assistance, thereby addressing the problems arising from
depletion of conventional sources of energy and environment pollution, as under:-
1.0 PREAMBLE
1.1 Availability of adequate amounts of energy at affordable prices and its
equitable access for all sections of society will be a defining characteristic of life in
the 21st century. Energy production using fossil fuels is the major contributor to
greenhouse gas emissions and associated devastating impact of climate change
has become an issue of critical importance. Hence, transitioning to a low-carbon
energy economy is the real solution for mitigation of the impacts of climate change
and energy generation through New & Renewable Sources of Energy (NRSE)
provide an excellent solution for such transition.
As a follow up, legislative, regulatory and governmental initiatives have been
taken, aimed at reforming the renewable energy sector and mitigating the impact of
climate change. These include the Central Electricity Regulatory Commission
(CERC) Renewable Energy Tariff Regulations, Renewable Energy Certificate (REC)
mechanism, Regulations on Renewable Purchase Obligation, Jawaharlal Nehru
National Solar Mission and National Action Plan on Climate Change including
National Mission for Enhancement Energy Efficiency (NMEEE) which have been
adopted by States including Punjab with or without modifications. All these have
given a new thrust to and accelerated the growth of renewable energy generation,
energy efficiency and conservation.
1.3 To give focussed thrust to renewable energy sector, Govt. of Punjab set up
Punjab Energy Development Agency (PEDA) in the year 1991. PEDA is presently
the state nodal agency in Punjab for
2
The promotion, development and allocation of Renewable Energy projects.
Implementation of Clean Development Mechanism (CDM) for claiming
carbon credits.
Implementation of the Energy Conservation Act 2001.
Accreditation of Renewable Energy Projects for Renewable Energy Certificate
(REC) mechanism.
1.4 Since its inception, PEDA has attempted to promote Renewable Energy in the
State in a number of ways. These include:
a. Encouraging the private sector to identify and develop small capacity projects
in mini hydel, bio mass, co-gen, biomethanation and wind respectively.
b. Promote emphasis on green energy and sustainable development.
c. Setup demonstration projects to establish cost effectiveness, economic
viability and reliability of various technologies.
d. Promote awareness and compliance with energy conservation and energy
efficiency standards.
1.5 PEDA has actively taken up implementation and development of RE projects
in various sectors, Energy Efficiency, Demand Side Management and CDM
activities. PEDA has set up eight Mini hydro, one Biomethanation and four Solar
power plants as demonstration projects on its own. It is facilitating RE projects
through participation of the private sector in solar, mini hydel, bio-mass, waste to
energy and co-gen.
1.6 To continue the initiative, This “New and Renewable Sources of Energy
(NRSE) Policy 2012” for the period 2012-2017 aims at systematic and faster
development of Renewable Energy sources to achieve a capacity addition of 800
MWs by 2017. The Policy charts a road map for putting such resources of state to
efficient usage in a time bound manner.The policy proposed contains some key
measures to address the constraints and ensure substantial capacity additions and
energy conservation in the next 5 years in particular such as:
Implementation of REC Mechanism.
Tariff changes under the PSERC notifications.
Concentration on incentivizing renewable energy.
3
Enhancing the share of renewable with renewed focus on Biomass,
Solar, Cogeneration, Mini Hydro’s and Biomethanation.
Explore and commercialize new RE technology fields.
Instituting provisions for establishment of green building code.
Incorporating knowledge and technology on renewable energy into
general education curricula.
Considering Energy cropping and plantation.
Enhancing efficiency in already existing plants.
Providing concessions or exemption in state taxes & levies.
Create an information network for advancing RE understanding
through communication, education and publicity.
Instituting provisions for establishment of Energy Conservation Building
Code (ECBC).
Encourage energy audit studies and implementation of energy
conservation measures.
Promoting BEE Star Labeled electrical appliances.
1.7 Renewable Purchase Obligation
As per Punjab State Electricity Regulatory Commission (PSERC) Regulations of
June 3, 2011 the Renewable Purchase Obligation (RPO) of the Obligated Entities
has been fixed for the State of Punjab in percentage terms of total energy
consumed at boundary of the state as under:
Year Total % Solar % Non Solar %
2011-12 2.4 0.03 2.37
2012-13 2.9 0.07 2.83
2013-14 3.5 0.13 3.37
2014-15 4.0 0.19 3.81
The projected energy consumption in the State is 43974MUs for the FY 2011-12 as
per Tariff Order and it is anticipated to be around 55,427 MU per annum by the year
2014-2015 with 8% annual growth. Based on these figures, the required quantum of
power purchase from the NRSE projects to meet the RPO of PSPCL works out as
under:-
4
Year Total Projected
Consumption
Total Power
Required
From Solar
projects
Total Power
Required From
Non-Solar
projects
MUs MUs MUs
2011-12 43974 13 1042
2012-13 47520 33 1344
2013-14 51322 66 1729
2014-15 55427 105 2111
2. MISSION & VISION
To enhance the contribution of renewable energy for Sustainable Development
and to mitigate the environment pollution caused by the fossil fuels.
To facilitate achievement of RPO by the state utility in Renewable Power by
efficient and coordinated usage of renewable energy resources.
To supplement rural energy needs through sustainable NRSE programmes.
To improve the quality of grid connected power supply through NRSE projects.
To bring in energy efficiency and conservation in all sectors of the economy.
3. OBJECTIVES
3.1 Punjab has considerable potential in NRSE sector which is being harnessed
with a view to maximize the utilization of these resources; this policy aims to achieve
the following objectives:
To provide decentralized renewable energy supply for agriculture, industry,
commercial and household sectors particularly in rural areas thereby
improving the quality of power and reducing transmission and distribution
losses.
To give support to specific NRSE projects and schemes for generating
electricity or energy and conserving energy through energy efficiency.
To support research and development, demonstration and commercialization
of new and emerging technologies in renewable energy sector such as fuel
cell, hydrogen and chemical energy, alternate fuel for transportation etc.
5
To support establishment of linkages for collaborative and cooperative
projects with national and international institutions.
To create conditions conducive for the involvement of private investors in
NRSE projects along with broader participation by public community/civil
society.
To set up its own demonstration projects in various sectors & sell renewable
energy so generated to the State Utility or distribution licencees.
To create direct and indirect employment opportunities for the youth in
appropriate NRSE projects in the State.
Enabling greater social equity through better access to energy, increase in
rural incomes and facilitate infrastructural development in rural areas.
Dissemination of information for creating public awareness on renewable
energy & energy efficiency technology through vigorous publicity drives in
print and audio visual media.
4. Targets
The State Government hereby lays down the following targets in the NRSE sector:
To add generation capacity of 1000 MW by the year 2020 bringing the share of
NRSE to the level of 10% of conventional power.
Given the current consumption per unit of economic and social activity, to
motivate all sectors of the economy to ensure conservation of energy to the
extent of 20% within the next 20 years.
To strive and facilitate the achievement of the Renewable Purchase Obligation by
the state Licensee as fixed by PSERC from time to time.
5. Performance and measures to be adopted in thrust areas
5.1 Given the geographical location of the State of Punjab, and its access to
various sources of energy, the State would promote investment through
private/public sector participation in the following areas:
5.1.1 Small/ Mini Hydel projects :
By virtue of its topographic location and agriculture base, the
State has an extensive irrigation canal network with estimated
6
total potential of over 250 MW at Canal falls, out of which 133
MW capacity projects are in operation and projects of 23 MW
capacities are under execution including hydel projects
undertaken by PSPCL. The State Government is committed to
exploit the total potential by the year 2020.
In addition to the sites already identified by PEDA in association
with PID and PSPCL, private investors can also apply for self
identified sites in case of small / mini hydel projects, which are
not included in the list of projects identified by PEDA.
5.1.2 Co-generation:
Since the state of Punjab has an established industrial base
which is expanding, Co gen plants have proved to be highly
beneficial for the industry. The sugar, paper, fertilizer, chemical,
textile and other industries are presently having an estimated
combined potential of 500 MW. A capacity of 314 MW has
already been added and projects of 50 MW capacity are under
execution. It is proposed to encourage the industry to set up co-
gen plants and achieve capacity addition of 500 MW by 2020.
These projects shall meet the qualifying criteria of MNRE under
topping cycle as adopted by CERC.
Cogeneration projects under bottoming cycle or based on back
pressure turbines and Tri-generation projects utilizing the waste
heat for heating/cooling/chilling purposes shall also be
encouraged.
5.1.3 Power generation from Biomass/Agro residue and waste :
Punjab is primarily an agrarian economy and holds tremendous
potential for energy generation from agro- residues like Cotton
stalks, Paddy Straw, Paddy Husk etc. Unlike the past, where
these were burnt in the fields, crop residue would now contribute
to farmer’s income and also lead to power generation. It is
estimated that huge quantities of surplus agro residues
(including rice straw) and agro industrial/processing waste is
7
produced annually which can generate de-centralized power of
more than 1500 MW. PEDA has so far allocated a total of 300
MW capacity Biomass Power Plants in the state and four
projects of total capacity 40 MW have been commissioned. The
State Government is committed to support and facilitate
harnessing the total potential by the year 2020. One IPP
Biomass project shall be allocated in a Tehsil (Taluka) in the
state so as to provide for a sufficient command area for biomass
resource as fuel for the project.
5.1.4 Energy Plantations/ Rice mills integrated small capacity
Biomass Plants:
Punjab has some tracts of degraded/waste lands, both in forest
and non-forest areas. In addition high quantities of rice straw are
available which could be used as fuel for these projects. This
could be used for raising dedicated plantations of fast growing
high yielding plant species such as Bambusa balcooa, melia
dubia etc. for supply of biomass for meeting decentralized
energy needs on sustainable basis in rural areas. Small capacity
biomass plants in IPP mode up to 5 MW capacity only based on
dedicated energy plantations or integrated in rice mills shall be
allowed to be setup with due approval of PEDA with the
condition that 50% of the biomass used has to be rice straw.
These projects can not infringe upon the command area of the
allocated Taluka based biomass IPP projects.
These small capacity projects can be set up in technology
neutral mode i.e. Rankin cycle, Gasification cycle or Otto cycle.
These type of projects shall only be allowed to be setup under
self identified category, on first come first serve basis.
5.1.5 Power Generation from Urban, Municipal and Industrial
Liquid / Solid Waste :
At present about 5000 Metric Tonnes of Municipal, Urban and
Industrial solid waste is being produced every day in the urban
8
areas of the State. Introducing scientific processing and
treatment of this quantity of waste would add to power
generation besides being environmentally benignant. Five such
projects shall be supported on different waste streams in the
State. PEDA shall act as a facilitator for Waste to Energy
projects, where Department of Local Government is directly
involved in projects allotment. PEDA will allot waste to energy
projects to private developers based on cattle dung, vegetable
waste, poultry waste for power generation through
biomethanation process on first come first serve basis as self
identified projects.
5.1.6 Power generation from Solar Energy :
Punjab is endowed with vast potential of solar energy with over
300 days of sunshine in a year and this key Renewable Energy
Source is being efficiently exploited by PEDA. A two MW Solar
PV project has already been commissioned in Village Awan,
Distt. Amritsar. Seven Solar Photovoltaic Projects have been
allocated to private developers on BOO (Build Own and
Operate) basis in the state under LT/11KV programme of
Jawaharlal Nehru National Solar Mission, Govt. of India. With
these projects located closer to the load at rural remote
locations, distribution losses will be reduced considerably and
voltage drop at peak day time load will be minimized. This form
of energy would mitigate carbon dioxide emissions and combat
climate change.
A major rooftop programme for Solar Photovoltaic Power
Project has been launched in the state under which the rooftop
SPV Power Projects are being setup at various important Govt.,
Institutional, and Religious buildings namely Punjab Raj
Bhawan, Punjab Civil Secretariat , Golden Temple, Wagah
Border, Punjab Agricultural University, Ludhiana and Pushpa
Gujral Science City , Kapurthala. Rooftop projects shall be
continued to be promoted in all sectors in order to enhance the
9
share of solar power in the state. PEDA shall also undertake a
solar rooftop programme in the state for the domestic and
commercial sectors through Grid interconnectivity by deploying
net metering in consultation with MNRE. In addition to facilitating
bundled power scheme of MNRE, IREDA and NVVN allocated
MW scale solar power projects under JNNSM, setting up of MW
scale solar power plants (both PV and thermal) upto 5MW
capacity only shall be allocated through tariff based competitive
bidding by PEDA. In order to utilize this abundant resource, it is
proposed to add 200 MW by the year 2020.
5.1.7 Wind Power :
Wind power potential is low in the State as the necessary wind
speed are not there. The state will support programs to set up
innovative technology based wind turbines which can generate
power at low cut-off speeds. Self identified projects in this sector
shall be promoted by allowing private developers to set up wind
power projects on first come first served basis.
5.1.8 Upcoming NRSE based Technologies
Lot of research is going on the world over for efficient and
economic transformation of available renewable sources of
energy for usage by the society. Fuel cells, Hydrogen energy,
geothermal energy, Bio fuels etc have great potential of
becoming tomorrows RE technologies. All such new NRSE
based technologies which can be beneficial to the state will be
adopted and facilitated by PEDA by signing MOUs with the
technology providers/Developers for setting up projects based
on such upcoming technologies after looping in other stake
holders in the process with a view to encourage the setting up of
such projects. Such new technologies based projects shall be
provided complete support by PEDA and these projects shall be
eligible for getting all incentives under the NRSE Policy.
10
5.1.9 Energy conservation :
Conservation of energy in domestic, commercial, agriculture,
transportation and industrial sectors can lead to major savings in
terms of reduced energy consumption thereby leading to
bridging the energy demand supply gap in the state. There is a
potential of saving of energy upto 20-25% in different sectors of
the economy in the state. Energy Conservation Measures shall
be implemented and enforced in the state in accordance with
the provisions contained in the Energy Conservation Act,2001
by PEDA, in consultation with Bureau of Energy Efficiency,
Ministry of Power, Govt. of India.
Punjab has issued notifications for mandatory use of CFL, Solar
Water Heating Systems, BIS approved & minimum 4 Star
Labeled pump sets and promotion of energy efficient buildings.
The Bachat Lamp Yojana to distribute the CFLs at the cost of
ordinary bulb for households in domestic sector has been
undertaken by PSPCL. The use of CFL alone will help reduce
the peak demand by 400 MW. Demo projects have been
initiated for development of energy efficiency in municipal street
lighting & water pumping in existing Govt. buildings. Use of BEE
Star Labeled electrical appliances in all government
organizations has also been mandated.
In order to ensure the participation of all depts., an energy
conservation action team has been constituted under the
chairmanship of Secretary , Science and Technology,
Environment and NCES which reviews implementation of
various schemes in depts. under their control. All Govt. depts.
have also been requested to create Energy Conservation Cells
to promote energy efficiency and reduce gap between demand
and supply.
5.1.10 In addition PEDA proposes to take up the following
initiatives during the Policy Period:
11
Energy literacy and integration of NRSE particularly Solar
technologies in energy curricula. eg M.Tech, B.Tech, Diploma
and certificate level courses in solar thermal as well as solar
photovoltaic technologies and National Solar Science Fellow
Programme of the Ministry of New & Renewable Energy for
which the Energy centre Punjab University is a designated
institution in state of Punjab.
To include energy conservation curricula in all the courses
above 10th standard.
Implementation of Energy Conservation Building Code (ECBC).
Encourage BEE Star labeling of commercial buildings as per
guidelines of BEE Govt. of India.
Implementing GRIHA rating system of the MNRE, GOI -to
exempt first 100 Govt. / Public Sector Buildings from paying
registration-cum-rating fee in advance at the time of registration.
State Level Energy Conservation Award for different categories
of consumers who are taking extra efforts for efficient utilization,
management and conservation of energy.
Encourage Renewable Energy transport by encouraging
relevant departments to reduce the parking fees for energy
efficient vehicles, and reduce vehicle registration charges.
Setting up a green transport mechanism for rented cycles in key
cities for university students as a pilot project.
Organizing competitions of school students to disseminate
information on usage of NRSE, energy efficiency and
conservation.
Promotion of BEE Star Labeled electrical appliances.
Initiate demo projects on energy efficiency in Municipal Street
Lighting, Water / Sewerage Pumping, Government / Public
Buildings, Waste Heat Recovery in industries including SMEs.
Energy newsletter on the lines of MNRE newsletter.
12
5.1.11 REC mechanism:
PSERC has designated PEDA as “state agency” for the purpose
of REC mechanism and its regulations for granting accreditation
to eligible NRSE based projects. PEDA will function in
accordance with the directions issued by the commission from
time to time and shall act in consonance with the procedures,
guidelines and rules drawn up by the Central Agency for
discharge of its functions under the REC regulations.
Various activities under the REC mechanism shall be
undertaken in “electronic form “ and facilitated by a single web
application service, PEDA has placed all the relevant
instructions , formats and guidelines on its web site. It has also
created infrastructure , hardware and manpower for processing
applications of RECs as mandated in the procedure.
5.1.12 Energy surveying , mapping and auditing in alliance with
private sector players
Creation of web based resource maps of different renewable
energy resources to facilitate speedy development of
projects and market expansion.
Maintaining Regional and Geographic Renewable energy
database in the state by construction of relevant information
systems based on surveys and assessment of renewable
energy resources in the state.
6 Assistance by PEDA and State Govt. :
These have been detailed out in “FISCAL AND FINANCIAL ASSISTANCE
CODE UNDER NRSE POLICY – 2012’ Annexure II attached.
7 CLEARANCE FOR NRSE PROJECTS:
Single Window Clearance Empowered Committee:
Setting up of NRSE projects involves sanctions/clearances from a number of
Government Agencies/Departments. The State Government shall provide the
clearances in a time bound manner through a single window mechanism
13
within a period of 60 days. The Detailed procedure for according
approvals/clearances and composition of empowered committee are annexed
at ANNEXURE-I.
8 ALLOTMENT OF PROJECTS :
Small Hydro, Biomass, waste to energy and Solar projects to be set up on
sites/locations identified by PEDA/State Govt. will be allotted thro’ reverse
tariff based competitive bidding route. The project developers shall sell all the
energy generated from the projects to PSPCL at the lowest tariff arrived after
tariff based competitive bidding after its due approval by PSERC.
A comprehensive tender document shall be designed for inviting bids listing
out technical and financial parameters of the potential eligible bidders, which
would be approved by the Board of Punjab Energy Development Agency.
Bids invited on the basis of such tender document would be evaluated by an
expert technical committee appointed by the Chief Executive, Punjab Energy
Development Agency. Complete transparency in allotment of the projects
shall be ensured for evaluation of tenders. Whole process of bidding will be
carried out under the guidance of PSERC for adoption of lowest bid tariff by
PSERC under section 63 of Electricity Act 2003.
In line with latest trends, E-Tendering process has been adopted to ensure
integrity of tendering system.
Self identified projects under the categories of Small Hydro, Co- gen, Energy
Plantation, Integrated rice mills based biomass projects, Solar, waste to
energy and other new technologies shall be allowed to be set up by PEDA on
first come first served basis. These projects will be paid at the PSERC
approved tariff for the energy sold to PSPCL.
9 Nodal Agency:
Punjab Energy Development Agency (PEDA) shall be the nodal agency for
the implementation of the NRSE Policy on behalf of the Govt. Of Punjab.
PEDA will be responsible for laying down the procedure for inviting of
proposals from NRSE project developers, evaluation of project proposals and
its award to successful bidder, project approvals and scrutiny of DPR, project
14
implementation and monitoring. All NRSE project developers in the state
(including Captive, Cogeneration, IPP and merchant power developers) will
be required to submit their project proposals with PEDA for approval and
validation and sale of power in or outside the state including NRSE CPP’s /
co-generators .
10. Amendments/ Relaxation/ Interpretation of Provisions of the Policies:
Government of Punjab, Department of Science, Technology, Environment and
Non-Conventional Energy shall take up the cases for amendment/
relaxation/ addition/ interpretation of provisions under the policy at the level of
State Cabinet.
11. Applicability
The Policy would be effective from the date of its notification in the official
gazette of Punjab Government for a period of five years. However, this policy
shall remain in operation till the Government notifies the new policy. For giving
effect to this policy, necessary amendments in various enactments, wherever
necessary, shall be expeditiously undertaken by the concerned departments.
Principal Secretary to Govt. of Punjab, Deptt. of Science, Technology, Environment &
Non-Conventional Energy Sources
15
ANNEXURE-I
CONSTITUTION OF EMPOWERED COMMITTEE
A. Composition of Empowered Committee :
The Empowered Committee of Administrative Secretaries for according
approvals/clearances is constituted as under:
I) Chief Secretary to Government of Punjab - Chairman
II) Secretary to Government of Punjab, - Member
Department of Science, Technology,
Environment and Non-Conventional Energy.
III) Principal Secretary to Government of Punjab, - Member
Department of Finance.
IV) Principal Secretary to Government of Punjab, - Member
Department of Irrigation.
V) Principal Secretary to Government of Punjab, - Member
Department of Power.
VI) Principal Secretary to Government of Punjab, - Member
Department of Forests.
VII) Principal Secretary to Government of Punjab, - Member
Department of Industries & Commerce.
VIII) Chairman cum MD, Punjab State Power - Member
Corporation Ltd.
IX) Chairman cum MD, Punjab State Transmission - Member
Corporation Ltd.
X) Advisor (concerned), Ministry of Non-Conventional - Member
Energy Sources, Government of India.
XI) Chief Executive, Punjab Energy Development - Convener
Agency.
The Committee may co-opt other Administrative Secretaries/ State
Government officials as and when required (e.g. Principal Secretary, Local Bodies,
Rural Development etc.) in respect of projects in their respective jurisdiction. The
Committee will also oversee implementation of this Policy by the other Departments/
Agencies.
B. Procedure for Clearances/Approvals :
Empowered Committee for Approval/Clearances for NRSE Projects :
With a view to provide continuity to the development of NRSE
programmes, Single Window Mechanism already working will continue. All
necessary and applicable approvals/clearances (viz. Environment, Forest,
16
Land, Change of land use, Pollution Control, water, use of NRSE resources
and Investment Clearance etc.) required for a project would be considered in
a time bound manner (within a period of 60 days from the date of submission
of complete application along with requisite fee as per the requirement of
approval /clearance issuing bodies / departments). The applications for NRSE
projects would be required to be submitted to the Secretariat of the aforesaid
Empowered Committee established in PEDA.
The Secretariat will forward the applications to the relevant Department
for their consideration and concerned department will convey their
approval/clearance or comments, if any within the stipulated time period of 45
days from the date of forwarding the application. In case, the concerned
department fails to respond within the stipulated time of 45 days necessary
concurrence/approval/clearance to the project will be deemed to have been
granted. Representative(s) of the concerned department will participate in the
meeting of Empowered Committee to elaborate their comments/observations,
if any, for consideration of the committee. The secretariat will bring up the
agenda items inclusive of the comments of the concerned Department if any
along with its internal assessment/note on the subject. The Empowered
Committee would take appropriate view and decision for according its
approval/clearances within the stipulated period. The decision of the
Empowered Committee shall be final and binding on all concerned
departments. Private developers shall file petition in the PSERC for tariff
approval, as required, within 15 days after signing of the implementation
agreement with PEDA and PSPCL/PSTCL shall sign the Power Purchase
Agreement within 45 days from the date of issue of tariff order by the PSERC.
Private developers shall have to sign Implementation agreements in all cases
for NRSE power sale either for generic tariff or APPC or for project specific
tariff or for third party sale within or outside the state. Signing of
Implementation agreement shall constitute the project status approval for
NRSE project categories at the Govt. /PEDA level. PPA with PSPCL/licensee
shall be signed after signing of Implementation agreement with PEDA.
17
ANNEXUE-II
FISCAL AND FINANCIAL ASSISTANCE
CODE UNDER NRSE POLICY – 2012
With the objective to promote and develop NRSE programmes/ projects, the
State Government will provide the fiscal and financial assistance for energy recovery
and power generation projects based on NRSE, to be set up in the State to the
eligible power producers as under:-
1. Eligible Producers:
Those generating electricity from non-conventional energy sources such
as small hydro projects upto 25MW, biomass combustion and
gasification, biomass and baggasse Co-generation process, Solar
Photovoltaic, Solar Thermal, Urban, Municipal and Industrial Waste, Wind
Electric Generators, Biomethanation and New NRSE technologies like
fuel cells/Hydrogen/Biofuel technologies of any capacity etc. will be
eligible to avail the assistance under the scheme. There will be no
restriction on generation capacity or supply of electricity to the State grid.
The state nodal agency, Boards/Corporations, Private developers,
Consortia or Co-operatives will also be eligible for availing incentives
under this scheme. In addition to the sites already identified by PEDA for
Micro Hydel Projects, private investors may also apply for self identified
sites, not included in the list of projects identified by PEDA. Self identified
projects in wind energy sector and waste to energy based on cattle dung
/ vegetable waste / poultry waste sector shall be promoted by allowing
private developers to set up such projects.
2. Grid Interfacing :
(i) Interfacing, including installation of transformers, panels, kiosks,
protection and metering equipment on LT/ HT side of the generating
station and its subsequent maintenance shall be undertaken by the
power producer/plant owner. Punjab State Power Corporation (PSPCL)
shall provide jumpers at the interconnection point as defined in
18
applicable regulations or tariff order. for evacuation of power to
PSPCL’s grid substation.
(ii) If the power is proposed to be sold to PSPCL on Preferential tariff or
Average Power Procurement cost on long term basis, then the
transmission line and associated bay at PSPCL grid substation along
with ABT compliant Check meters and associated equipment will be
provided by PSPCL. In all other cases, the private developer shall be
required to lay its own transmission lines from the switchyard of its
generation facility to the PSPCL grid sub-station at its own cost in
addition to all equipment required for evacuation of power in its own
generating facility switchyard. All Associated equipment(s) at the
PSPCL grid substation for accepting energy from the project including
up gradation required if any shall be provided by the PSPCL including
Check meters.
(iii) Two separate meters or one meter having two independent registering
facilities, one for the export of power to the grid and another for import
from the grid (Main Meter), will be installed on the HT side of Generator
transformer in the switch yard at interconnection point by the producer.
The meters and metering boxes will be sealed by the PSPCL/PSTCL.
The energy meter(s) and associated CTs/PTs etc. shall comply with
the requirements of State Grid Code and CEA guidelines.
(iv) Necessary current limiting devices will be installed in the generating
equipment by the producer. Producer shall generate matching MVARs
so that monthly average power factor does not exceed 0.9.
3. Facilities by Punjab State Power/Transmission Corporation Limited :
Subject to clause 7 below, PSPCL/PSTCL will provide following facilities
to NRSE projects:-
i) Wheeling: The PSPCL/PSTCL will undertake to transmit/wheel the
surplus power through its grid, and make it available to the producer for
captive use in the same company units located in the state or third
party sale within the State at a uniform wheeling charge of 2% of the
19
energy fed to the grid, irrespective of the distance from the generating
station.. Such wheeling and/or transmission of power shall be
governed by Open Access Regulations /procedures. The captive power
production and consumption by beneficiaries i. e. same group
companies shall meet the requirements laid down in Electricity Rules
2005.
(ii) Open Access: The NRSE Project developer as per entitlement
under the policy will also be allowed interstate open access in
accordance with the open access regulations of the appropriate
commission.
(iii) Tariff for Sale of Power:
The preferential tariff of sale of power to the PSPCL/PSTCL from NRSE
projects to be set up under this NRSE policy 2012 shall be as notified by
the PSERC for the year in which the scheduled date of commissioning of
the project falls.
In case of default condition by PSPCL/PSTCL except payment default,
the producer selling power to PSPCL will have option to sell the electricity
generated by him to a third party/power exchanges subject to the clause
3(i) above at a mutually agreed rate.
(iv) In addition to above the NRSE projects will also be given following
assistance:-
A) Banking: The banking facility for the power generated shall be allowed
for a period of one year by the PSPCL/PSTCL. However, power
banked during non peak hours will be allowed to be drawn during non-
peak hours only.
B) Injection Of NRSE power: PSPCL/PSTCL will accept the injection of
energy in full even during sustained high frequency hours to ensure full
utilization of non-conventional energy resources.
C) PSPCL will clear dues within 60 days. However if the Developer
requests for payment in 30 days or against LC, rebate of 1% or 2%
20
respectively, as the case may be, will be admissible to PSPCL. Delay
in payments will attract interest as per PSERC/CERC regulations.
D) Letter Of Credit: PSPCL/PSTCL will provide facility of irrevocable and
revolving, Letter of Credit issued by any nationalized bank. The amount
of the Letter of Credit shall be equal to the bill amount of one month on
the basis of average of last three months. All expenditures on Letter of
Credit shall be borne by the power producers.
E) PSPCL shall buy power at APPC tariff in order to encourage REC
regime in the state.
4. In addition to above, Govt. will provide assistance for the following:
(i) Government land if available will be leased out to the developer initially
for a period of 38 years (three years shall be considered as
construction period) or equal to the life of the project as per CERC
guidelines plus construction period applicable on different projects on a
notional lease rental of Rs. 1.00 per Sq. mt. per annum subject to
further renewal on mutually agreed terms and conditions among the
parties.
(ii) Wherever Irrigation land on canal banks along the identified hydel
project sites is available beyond their requirements, Punjab Irrigation
Department (PID) will transfer canal land to PEDA on notional lease
amount of Rs. 1.00 lac per annum per site. The leased canal land will
be subsequently transferred to the power producers for development of
Small Hydro Projects on Build, Operate and Own basis for 38 (three
years shall be considered as construction period) years on the same
terms and conditions set forth by PID subject to further renewal on
mutually agreed terms and conditions. Ownership of such land will
remain with PID. For setting up MHP on canals, wherever the Irrigation
Department executes the Deposit work inside the canal on behalf of
Private Developer, no Departmental Charges shall be paid to PID by
the private developer however, supervision charges on actual basis
shall be payable subject to maximum 5% of the deposit work executed
by PID. In case the work is executed by the private developer on his
21
own, these works shall be done after approval of the detailed design
and drawings by PID under the Supervision of Punjab Irrigation
Department and the Supervision Charges to be borne by the Private
Developer shall be on actual basis subject to maximum 5% of the total
work executed by the developer inside the canal.
(iii) Wherever the required land belonging to local bodies/ panchayats is
available, the State would encourage the local bodies/ panchayats to
provide the land for NRSE projects on the terms and conditions
specified in para (i) above.
(iv) The power producers setting up hydel projects will pay cess @ one
paisa per unit of electricity generated for use of river/ canal water.
(v) For canal based hydel projects, pondage of water upto Full Supply
Level in the upstream of canal shall be allowed for optimal utilization of
water resources. Chief Engineer Canals, Punjab Irrigation Deptt. is
empowered to revise the X-section of canal for optimum utilization of
resources for power generation.
(vi) The NRSE Power Generation and consumption by generators
themselves as a captive unit from NRSE projects shall be fully
exempted from levy of Electricity Duty.
(vii) 50% Electricity Duty for power consumed from state licensee during
construction and testing of the project shall be waived.
(viii) Octroi on NRSE fuels to be used for energy generation and NRSE
devices/equipment/machinery for NRSE Power Projects shall be fully
exempted. Similarly Octroi on self-consumption of power by captive
power plants in the same premises or thru wheeling by open access to
same group companies shall also be exempted.
(ix) To promote usage /generation from NRSE, manufacturing & sale of
NRSE devices/systems, and equipments / machinery required for
NRSE Power Projects shall be exempted from Value Added Tax (VAT)
and any cess thereupon.
22
(x) 100% Exemption from entry tax in respect of all supplies (including
capital goods, civil construction material and raw materials) made for
setting up and trial operations of the projects.
(xi) 100% exemption from payment of fee and stamp duty for
registration/lease deed charges for the land where the project is to be
set up.
(xii) Agricultural land shall be allowed to be used for setting up of
Renewable Energy Power Projects in the state and no CLU, EDC/or
any other charges/fees for the same shall be charged by the Town &
Country Planning Deptt. or Revenue Deptt or Local Bodies Deptt for
change of land use.
(xiii) Solar Power projects less than 5 MW capacities shall be exempt from
obtaining any NOC/consent under Pollution control laws from the
PPCB.
(xiv) All projects developed under this policy will be treated as industry in
terms of industrial policy of the state and all the incentives available to
new industrial projects will be applicable to Renewable power projects
set up under this policy as per industrial policy of the state.
(xv) Any benefits under any relevant policy such as Mega projects Policy of
State Government can be availed by the project covered under this
policy, subject to qualifications, if any, and subject to conditions as may
be prescribed on case to case basis.
5. Sale of Power :
5.1 In order to facilitate the fulfillment of RPO in the state, the NRSE project
developers (co generators and captive power producers having surplus
power) wishing to sell power under open access will have to sell a minimum of
50% of the surplus power generation capacity to the state Utility/Distribution
Licensee under a long term PPA on preferential tariff.
5.2 NRSE IPP’s set up under self identified category wishing to sell power
under open access shall be required to sell min 50% of the power generated
to state Utility/Distribution Licensee.
23
5.3 All other NRSE IPP’s shall sell power to PSPCL on long term PPA basis.
5.4 The State Utility/Distribution Licensee shall sign long term Power
Purchase agreements for useful life of the project from the date of
commissioning as notified by appropriate commission.
6. Facilitation Services by PEDA:
To provide major thrust to the commercialization and to encourage private sector
participation in the setting up of non-conventional energy based power generation
and other projects, PEDA shall provide complete project support and facilitation
services to private promoters, desirous of setting up non-conventional energy
based projects for which an agreement shall be required to be signed with PEDA.
PEDA will charge facilitation service charges @ 0.5% of the approved project cost
as per DPR with a maximum upto Rs. 10 Lakhs.
7. Clearance of Project proposals and implementation methodology :
i. The parties selected to set up projects on the basis of competitive bidding
or desirous of setting up NRSE projects under this policy will be required
to submit a comprehensive proposal to PEDA for appraisal.
ii. After appraisal and on determination of its techno-commercial feasibility,
PEDA shall forward the detailed project proposal to the Department of
Science, Technology, Environment and Non-conventional Energy
Sources, Punjab Government for concurrence.
iii. On concurrence of the Punjab Govt. ,the developer shall sign an MOU with
PEDA. The developer shall submit a detailed project Report (DPR) within
two months. The DPR should contain the details of generation technology,
fuel, fuel collection and sourcing, water and land utilization and complete
cost and financial analysis indicating tariff for the life of the project. PEDA
shall examine and give comments/approval within a time bound manner.
iv. The developer shall proceed ahead for obtaining all necessary applicable
clearances, forests, pollution control, land, water etc. PEDA shall examine
and submit the project proposal for consideration by the Empowered
Committee for necessary approvals/clearances by the State through a
Single Window Mechanism and in a time bound manner. The
24
clearance/approvals shall be accorded within 60 days from the date of
submission of completed applications on the required prescribed formats
of various clearance issuing bodies / departments along with the requisite
fees to the State Nodal Agency. Private developers shall however be
required to fulfill all statutory / legal requirements with regard to project
reports/documents submission as per requirement of approval/clearance
issuing bodies/organizations under the Govt. rules, regulations & Acts.
v. Punjab Irrigation Department/PSPCL will designate Officers who will
accord technical/feasibility clearances of drawings/technical specifications
within 30 days.
vi. The developer in technologies/resources where tariff has not been notified
by the PSERC, shall submit petition to the Commission for determination
of tariff.
vii. After issuing of all applicable statutory clearances and grant of tariff by
PSERC the Producer shall enter into an Implementation Agreement with
PEDA within a period of one month from the date of grant of applicable
statutory clearances/approval of the tariff for the project. The project
developer shall be required to submit a performance security in the shape
of Bank Guarantee of Rs 25 lacs per MW at the time of signing of
implementation agreement or as stipulated in bid document for bidding
process or as mentioned in the policy for self identified projects.
viii. PSPCL/PSTCL shall sign the Power Purchase Agreement within 45 days
from the date of date of order issued by Commission in case of fresh tariff
approval is to be given by PSERC. In case of already notified preferential
tariff and APPC, the PPA shall be signed within 30 days from the date of
signing Implementation agreement by PEDA.
ix. Project developer shall arrange fuel and water linkages for the project.
x. If the applicant does not take effective steps i.e. achieve financial closure
or commencement of construction to implement the project within six
months from the date of signing of the PPA, PEDA shall have the right to
terminate the implementation Agreement and withdraw all benefits availed
25
under this policy and their project proposal/allotment will be cancelled.
(i.e. at least 10% of the total project cost should be incurred).
xi. The private investors desirous of submitting applications for self identified
sites for hydro, wind power projects, waste to energy, small capacity
biomass power projects or with integrated rice mills, alternative/new
technologies and solar power projects shall submit so on the prescribed
application format which is available with PEDA along with requisite
EMD. The self identified sites in case of small/micro hydel / waste to
energy projects based on cattle dung/ vegetable waste / poultry waste
projects, small capacity biomass power projects or with integrated rice
mills, and solar power projects shall be allocated on first come first served
basis to private developers. However in case more than one application is
received from different private developers on the same day for the same
self identified site then competitive bidding shall be carried out among the
private developers for allocation of self identified site. The self identified
site shall be allocated to the private developer offering the highest energy
share over and above the minimum stipulated energy share.
xii. The project developer shall submit monthly statement for verification of
usage of fuel as detailed out in RE regulations and orders for
determination of generic tariff issued by CERC. In addition, monthly
information with regard to other parameter like energy generated, revenue
earned, power factor and plant load factor achieved, reasons for non
achievement of full generation etc as directed by PEDA shall also be
submitted so as to maintain and update data bank on NRSE generation in
the state for the purpose of meeting RPO regulations.
xiii. The applications for self identified sites should be complete in all respects
and supported with requisite documents and accompanied with the
earnest money deposit (EMD). EMD should be in the shape of bank
guarantee or demand draft payable at Chandigarh in favor of PEDA. EMD
shall be paid as per the following:-
Upto 1 MW capacity : Rs. 1 lacs
Above 1 MW upto 3MW capacity : Rs. 1.5 lacs
Above 3 MW capacity : Rs. 2.5 lacs
26
After the allotment of the project site(s) the allottee shall fulfill the
following pre-requisites:-
a) Submit the processing fee (non-refundable) of Rs. 25,000/- per
project.
b) Furnish performance security in the shape of a Bank Guarantee
valid uptill 3 years from the date of commissioning as per the
following :-
Upto 1 MW capacity : Rs. 1 lacs
Above 1 MW upto 3MW capacity : Rs. 5 lacs
Above 3 MW capacity : Rs. 10 lacs
Secretary to Govt. of Punjab,
Deptt. of Science, Technology, Environment &
Non-Conventional Energy Sources
___________________________________________________________________