Punjab released their renewable energy policy ‘New and Renewable Sources of Energy (NRSE) Policy – 2012’ on 26th December, 2012 with an objective to develop and promote new and renewable sources of energy based technologies and energy conservation measures as well as providing financial & fiscal assistance.
Punjab Energy Development Agency (PEDA) has been appointed as the nodal agency which will act as a single window facility for implementation of NRSE Policy.
Major focus :
- To attract private sector investment
- To provide decentralized RE energy particularly in rural areas and to improve quality of power and reduce T&D Losses.
- To give specific support to NSRE projects and conserve energy through energy efficiency.
- To support R&D, demonstration and commercialization of new technologies in RE sector.
The policy says that projects under REC mechanism may be allocated through competitive bidding based on percentage share of REC price. The power generated by projects under REC mechanism will be purchased by Punjab State Power Corporation Limited (PSPCL) / Licensee at APPC ( not yet announced in Punjab ). If PSPCL/Licensee refuse on purchasing power at APPC the bidding will be envisaged sale of power in the open access. This will be very interesting if implemented. It will encourage investors to set up RE plant as the options to sell RE power will be wide.
The policy also announced incentives like:
- Exemption of stamp duty and registration fee
- Exemption of Change of Land Use (CLU) fee
- External development charges (EDC)
- Other charges for NRSE projects.
Overall the policy looks attractive. The Government of Punjab has to wait and watch how many private players they can pull from their policy.