GOA RELEASES SOLAR POLICY 2017

Goa Energy Development Agency (GEDA) has approved the solar policy for the year 2017.

The policy has been approved five months after the draft policy was released and shall be applicable form the date of notification up to 7 years whereas the PPA’s signed under this policy shall be valid for the period of the agreement. Under REC mechanism, solar power plants shall be set up and the power generated by them shall be sold to GED at the average power purchase cost.

Development of solar projects for sale of electricity to third party as well as GED shall be promoted by the state. The producer will have to pay the wheeling charges as per the rates determined by JERC. The state government shall reserve the right to procure 10% of the power so generated.

The prosumer/developer shall be given subsidy received from the Government of India as per MNRE guidelines and the state government shall grant 50% of the capital cost/ benchmark cost provided by MNRE, whichever is lower, for solar plants of upto 100 kW size. Role of department of electricity, Goa is to provide banking facility for solar energy, conduct feasibility study for evacuation facility, etc.

Time frame for implementation of project for solar projects beyond 100 kW capacity through reverse bidding:

 

 

The policy can be accessed here.

MOP DETERMINES GUIDELINES FOR FOR COMPETITIVE BIDDING FOR POWER PROCUREMENT FROM SOLAR PV PROJECTS

The Ministry of Power (MoP) has released the guidelines for procurement of power from grid connected solar PV power projects. The guidelines are applicable to solar PV projects of size 5 MW and above. The purpose of these guidelines is to provide a direction for proper electricity procurement by distribution licensees and to protect the interest of the consumers. Also to make this process transparent and uniform.

 

Following are the salient features of the guidelines:

 

  • The appropriate Commission shall be CERC only in case if the distribution licensee is located in more than one state

  • SERCs will be the appropriate commission in case if there is a single distribution licensee.

  • The conditions to be met by the procurer are as follows:

  • The bid document should be prepared in accordance with the guidelines of MoP and the Standard Bidding Documents.

  • Clearances need to be procured from the end procurer, the agency developing the solar park.

  • Procurer has to specify where the project has been set up.

  • The bid structure shall be as follows:

  • The bids will be designed in terms of packages where the minimum will be 50 MW and the bids may be in energy quantity or power capacity terms.

  • The procurer may opt for either ‘tariff as bidding parameter’ or ‘VGF as the bidding parameter’.

  • The PPA period should not be less than 25 years and it can be in terms of energy or power. Repowering will be allowed from time to time for the duration of the PPA.

  • In case of default by the power generator, it shall be liable to pay the solar power generator as written in the PPA. Also, in such a case, the lender shall be allowed to exercise their right to substitution as per the substitution agreement provided in the PPA.

  • In case if the procurer is at default, it shall give its part of the PPA to a third party in the given time. In case if that is not done, the solar generators have a choice to terminate the PPA.

  • Once the procurer calls for bids, a single stage bidding process shall be followed. The procurer can also chose if an e-reverse auction shall be held. It is the responsibility of the procurer to give the details of the bidding process in case of a Solar park specific project.

  • For bid submission and evaluation, the bidders may form a consortium and chose a leader who shall be the focal point of contact. Also, for evaluation of bids, the procurer may form a committee. The technical and price bids shall be submitted separately along with a bid guarantee. Minimum number of bidders should be two and a proper methodology shall be followed for bid evaluation.

  • A 30 day period shall be given for bid submission from the issuance of RfS document. A table containing the time table for bid process is given in the guidelines attached below.

  • Bank guarantees such as earnest money deposit and performance bank guarantee need to be submitted.

The guidelines can be accessed here.

UTTAR PRADESH RELEASES SOLAR POLICY 2017

Uttar Pradesh has released its solar policy for 2017 which will be effective from the date of notification.

 

The policy promotes solar rooftop and grid connected solar projects. As per the policy, the state aims to achieve 8% RPO by 2022 which is in keeping with the target of 4300 MW by then. Following are the salient features of the policy:

 

  • The state government is promoting the development of solar parks by providing land for its development. It also provides connectivity of solar parks to the nearest substation.

  • To promote third party sale, exemption on wheeling/ transmission charges for third party sale.

  • They will also be exempted from cross subsidy surcharge, transmission and wheeling charges.

  • Banking: Banking of 100% energy in every financial year shall be permitted.

  • Electricity duty for 10 years shall be exempted for sale to distribution licensee and solar PV projects will not have to take environmental clearance.

  • Building permission from local bodies will not be required for residential, industrial or commercial units.

  • Single window clearence will be taken for all solar power projects by UPNEDA.

The order can be accessed here.

CEA’S DRAFT NATIONAL ELECTRICITY PLAN

Central Electricity Authority  (CEA) published the Draft National Electricity Plan (NEP). Following are some of the main features of the report:

  • For the 12th plan (2013-2018), target capacity addition from renewable energy was set at 30,000 MW. However, in view of the revised target of adding 1,75,000 MW capacity of renewable energy sources by the year 2022, the capacity addition for every year has been revised. A target of 16,825 MW has been set for capacity addition in 2016-2017. As per the review, capacity addition from conventional sources is going to exceed its target by 115% and private players will play a big role in capacity addition. Coal based plants are likely to contribute around 39% of capacity addition.

  • Projections for peak demand and energy requirement has been done for utilities for which two scenarios have been considered in the report for the years 2021-22 and 2026-27. One is with the consideration of DSM, energy efficiency and conservation measures. As per calculations, both peak demand and energy requirement values reduce significantly in the scenario where DSM, energy efficiency and conservation measures are being considered.

 

  • The installed capacity from renewable energy sources was 42,849 MW as on 31.03.2016. The share of renewable energy sources in the same is about 13%. However, the share of renewables is estimated to increase as the government is giving a major thrust to renewable energy. India, as a country has vast solar and wind potential. It also has potential for biomass and small hydro projects.

 

  • The CEA carried out EGEAS studies to assess the kind of capacity addition that will be required to meet the projected demand for the year 2021-22. Hydro, gas and nuclear are given maximum priority. CEA has developed three scenarios which consider the different combinations of installed capacity from renewable sources so as to determine the capacity addition from 2017-22. From the study it can be concluded that no additional coal based capacity is required to fulfill the energy demands during the year 2017-22 if the capacity of hydro, gas and nuclear are 15,330 MW, 4,340 MW and 2,800 MW and additional renewable energy sources. However, coal based capacity of 50,025 is under construction in will probably be commissioned during 2017-22.

 

  • As per the report, Electric Power Survey Committee’s 19th report will come out in some time and on the basis of that, changes will be made to the final Electricity Plan. Due to shortage of natural gas in the country, except for the already existing plants, no new natural gas plants have been planned during 2017-22. Also, the coal based capacity of 50,025 MW that is under construction currently will be able to fulfill the capacity requirement for the years 2022-2027. As estimated, in the year 2021-22, generation from RES will be 20.3%. Imports from neighbouring countries is also estimated to increase from 5,100 MW in the years 2021-22 to 21,600 MW in the year 2026-27.

  • The compound annual growth rate of energy demand will grow from 4.42% between the years 2012-13 to 2015-16 to 6.34% from the years 2015-16 to 2021-22. This increase is significantly higher than that in the past considering the increase in demand and the increase due to implementation of PFA and other projects from the government of India between 2017-22. Therefore, as per the report, energy demand of 1611 BU and peak demand of 235 GW in March 2022 under CAGR= 6.34% look realistic and is likely to occur.

 

  • The CEA report has mentioned ambitious targets of achieving an installed capacity of 175 GW by 2022. The breakup of the energy derived by various sources has also been given in the report. The report also mentions the percentage of energy that will be derived from various sources and from different states. As per the report, 9 states will contribute almost 77% of installed capacity by 2022. The report also gives year-wise targets for achieving the desired target.

  • The targets set by the CEA will require strong indigenous manufacturing facility for equipments related to RES. Policy frameworks may be developed to encourage the same and this will also fall in line with the ‘Make in India’ policy.

 

  • At the end of the year 2021-22, the projected peak demand and the energy requirement is 235 GW and 1,611 BU respectively. As per the 18th EPS report, this is around 17% and 16.4% lesser respectively. Similarly for the years 2026-27, these values are 20.7% and 21.3% lower.

 

  • As for the capacity addition predicted from 2017-22, development of hydro, nuclear and gas based project is being given priority. Capacity addition estimated from gas, hydro and nuclear is 4,340 MW, 15,330 MW and 2,800 MW. The capacity addition from RES is predicted to be 1,15,326 MW. For the years 2022-27, similar trends as the previous 5 years will be followed. It is estimated that non-fossil based capacity is bound to increase by 46.8% at the end of 2021-22 and will further increase by 56.5% by the end of 2026-27. For the year 2017-22 and 2022-27, low hydro capacity addition of 11,788 MW and 5,000 MW has been estimated.

 

Haryana Solar Policy 2016

Recently Haryana has released its new Solar Policy dated 3 March 2016 effective from the date of notification.

 

The policy promotes both Ground mounted and Solar Rooftop installations. The Solar Purchase Obligation is also hiked to 3% by 2021-22, which may further increase to 8% under the ambitious plans of MNRE to promote Solar Generation by adding 100 thousand MW of Solar Power Nationwide, This would mean the installed capacity in Haryana would rise up to 3200 MW.

 

 

  • The Policy promotes development of Solar Parks through a joint Venture company has been formed by HSIIDC and HPGCL named “Saur Urja Nigam Haryana Limited” (SUN Haryana)

 

  • The Government of Haryana will also facilitate the lease/sub-lease of Panchayat land through SUN Haryana (Saur Urja Nigam Haryana) or directly for setting up of Solar Power Projects for minimum period of 30 years.

 

  • To harness the solar potential in the state the State Government shall provide Capital /generation subsidy/ incentives to Schools, Private and Public Institutes hospitals and commercial buildings for installation of rooftop solar power plants.

 

  • A total capacity of 1600 MW rooftop solar power plants shall be added by the Year 2021-22.

 

  • All new projects of MW scale generating solar energy will be treated as “Industry” in terms of Industrial Policy of the State. Thus all the incentives available to industrial units under the industrial policy from time to time, shall also be available to the solar power producers/units

 

  • Also the Solar Policy provides exemptions like Land use approval, External Development Charges, scrutiny fee and infrastructure development charges also Environment Clearance, Clearance from Forest Department, Stamp Duty for lease of land for projects

 

 

However the most progressive aspect of the solar policy is the Exemption on Electricity Duty Electricity Taxes & Cess, Wheeling, Transmission & distribution, cross subsidy charges, surcharges and Reactive Power Charges will be totally waived off for Ground mounted and Roof Top Solar Power Projects in the state of Haryana.

 

Banking

 

The banking facility shall be allowed for a period of one year by the Licensee Utilities and IPP will pay the difference of Unscheduled Interchange charges (UI Charges) at the time of injection and at the time of withdrawal. However, Withdrawal of banked power should not be allowed during peak and Time of Day (TOD) 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. The banking facility shall be allowed for the grid connected rooftop solar power Projects on the same pattern as per MW scale projects.

The Policy can be accessed here.

Orissa to Set up 1000MW Solar Power Park

The Orissa government plans to add aggregate clean energy capacity of 1,000 MW by establishing solar parks in the state by 2020. The target, fixed by the state government in its draft Orissa Solar Park Policy, 2014, primarily aims at facilitating accelerated deployment of solar energy in the state to support sustainable development and address the climate change issues.

The state government had set an ambitious target of adding 3,000 Mw of renewable energy capacity by 2022 in the draft policy. The park has been approved by Ministry of New and Renewable Energy which will likely involve investment of about Rs 6,500 crores.

A total of 5000 acres of land would be required for setting up of the solar park. Since it’s difficult to find this stretch of land in Orissa, the park would be developed in three to four Green Energy Development Corporation of Orissa Ltd (Gedcol) will be signing a pact with Solar Energy Corporation of India clusters, where Gedcol will act as the nodal agency.

The above update has been taken from Business Standard’s article published on 17th October, 2015 which can be accessed here.

Gujarat Solar Power Policy 2015

Gujarat came up with its new solar power policy on 13th August 2015, which would be operative up to March 31, 2020. This new policy intends to facilitate and promote large scale promotion of the solar power generation capacities in the state and the interests of all the investors, developers, consumers and various other stakeholders.

The main features of the Policy are as follows:

-The minimum size of a MW scale project shall be 1 MW and 1 Kw for KW scale projects.

-Any company or group of individuals shall be eligible for setting up a solar generating plant, irrespective of whether they or not fall under REC mechanism in accordance with Electricity Act 2003.

-There are project based provisions and incentives provided for Rooftop solar PV systems with net metering depending on the type of consumers. The same are listed in the table below (Click on the table for a larger view) :

The state is blessed with several natural resources of energy that augments its renewable energy growth. Through its proactive planning on capacity addition front it has successfully managed to eliminate the demand supply deficit. In sync with the solar power policy the Government has also launched the Industrial Policy 2015, through which Government would encourage private participation in all energy generation to meet the growing demands in the state.

The Gujarat power policy document can be accessed here.

The CEA installation and operations of meters regulation 2014 can be accessed  here.

The Industrial Policy document can be accessed here.

Maharashtra Renewable Energy Policy 2015

Maharashtra Government has finalized its final Renewable Energy Policy. The policy will be known as Maharashtra Renewable Energy Policy 2015. Regional committee will be established to monitor the overall progress of the policy and will be headed by the principal secretary of energy. The brief details of the guidelines and targets defined in the policy are given in the below-mentioned points:

Targets: The new policy announced, has set some ambitious targets for different Renewable Energy sources. The targets defined under the policy are listed in the table below:

Project Specific Guidelines and Incentives:

1. Wind Energy: A total of 5000 MW capacity of wind energy projects shall be commissioned, out of that initial 1500 MW will be used to fulfil RPO of distribution companies and the rest 3500 MW capacity of wind project can be utilized open access for interstate/ intrastate open access/captive consumption/REC etc.

Incentives:

  1. Wind generators will be given permission for re-powering.
  2. Land acquired for commissioning of the wind project will be deemed as Non-Agricultural land.
  3. Concessions will be granted for these projects to get NOC from pollution control board.
  4. Supervision charges for grid evacuation will be waived off.
  5. Wind energy projects can register themselves as industrial unit.

2. Sugarcane /Agricultural co- generation projects: Target of 1000 MW has been set for power generation through sugar co-gen/agricultural co-gen projects. Distribution companies shall have first right to fulfil their RPO at fix rate decided by MERC.

Incentives:

  1. Exemption from Supervision charges for grid evacuation.
  2. Exemption from E-duty for captive power plants for 10 years from the date of commissioning
  3.  Exemption from sales tax on purchase of sugarcane for all projects having capacity more than 3MW (35 lacs units).
  4. Promotional elements will be applicable on project which has got consent for infrastructure after the announcement of policy.
  5. MahaGenco will give consent for basic infrastructure and evacuation facility to establish co-gen project

3. Small Hydro projects: A target of 400 MW is set up for small Hydro projects. All the small hydro projects will be obligated to sale power firstly to any distribution company within Maharashtra so that they can fulfil their RPO at rates prescribed by MERC, after this they can go on interstate /intrastate third party power sale through REC route.

Incentives:

  1. Exemption from E-duty for captive power plants for 10 years from the date of commissioning
  2.  Promotional elements will be applicable on project which has got consent for infrastructure after the announcement of policy.
  3. MahaGenco shall give subsidy of Rs.50000 per KW to maximum up to Rs. 1. Cr from green energy fund.

4. Agricultural manures based power generation projects: Target of 300 MW is set up for Agricultural manures based power generation projects. MSETCL/MSEDCL will help developers with grid evacuation of LV/HV/EHV projects and Grid.

Incentives:

  1. Exemption from E-duty for captive power plants for 10 years from the date of commissioning.
  2.  Promotional elements will be applicable on project which has got consent for infrastructure after the announcement of policy.
  3. All projects shall get capital subsidy up to 1 Cr from green energy fund.

5. Solar Power:  A total of 7500 MW of Solar energy projects shall be commissioned, out of that 2500 MW will be used to fulfil RPO through Public private partnership in association with MahaGenco. And rest 5000 MW will be developed by other developers.

  1. A total 10 % of all PPP projects i.e. 250 MW will be established on canals, lakes and irrigation project. Minimum of project capacity will be 1MW.
  2. Minimum of project capacity will be 1MW.
  3. Development of Solar Park.

Incentives:

  1. Land acquired for solar projects will be granted deemed status of Non-agricultural land.
  2. Solar projects having capacity up to 2 MW can be given land 4 hectors as per availability and 50 % discount shall be given on rental/ lease charges. All such transactions will be governed as per Maharashtra land acquisition act.
  3. Government land if available requires for manufacturing of solar modules/panels/etc. shall also be given 50 % discount on lease/rental charges.
  4. Concessions shall be granted for these projects to get NOC from pollution control board.
  5. Solar project developers can sell electricity generated from solar projects to distribution companies /captive use/third-party sale/ REC.
  6. Open Access shall be granted for interstate as well as intrastate projects as per MERC regulations
  7. Exemption from Supervision charges for evacuation.
  8. Projects can register themselves as industrial units.
  9. Exemption from E-duty for captive power plants for 10 years from the date of commissioning.
  10. Developers will be given the necessary support for development solar projects, but there will separate provisions for interstate power transfer.

The Policy Document can be accessed here.

REConnect Newsletter Volume 52 (June 2015) – OPEN ACCESS

Dear Reader,

 We are please to present OPEN ACCESS – our monthly newsletter that covers important developments in the renewable energy markets. This month’s newsletter covers:

  • Detailed analysis of the 5th Amendment to REC regulations proposed by CERC. This amendment will have significant impact on renewable energy based CPPs and OA projects, and also on the market demand-supply situation down the road
  • Updates on regulatory changes from Gujarat, Telangana, MP, Mahasrashtra, JERC and Rajasthan
  • Analysis of the REC trading sessions in June. Demand was well below May trading volumes. However, the broad trend remains positive due to the SC order on RPO.

 The newsletter can also be downloaded by clicking here – or past newsletters from here.

We hope you enjoy reading the newsletter. Please send us comments and feedback.

 Regards,

 Team REConnect

Madhya Pradesh Proposes Policy for Solar Rooftop

The Madhya Pradesh New & Renewable Energy Department (MPNRED) in its latest notification has proposed a policy for Net Metering based Solar Rooftop systems. The policy will come in force from the date of its notification in the state official gazette. The Office of the Commissioner, New and Renewable Energy department, Govt. of MP will act as the nodal agency.

The main objectives of the policy are the promotion of the decentralized Soar Photo Voltaic (SPV) systems, job creation and reducing carbon emission.

Applicability and Eligibility: All solar photovoltaic technology based rooftop power plants adopting net-metering mechanism shall be covered under this policy. The policy allows all the consumer of the distribution licensee to avail the benefits defined under the policy by installing rooftop systems.

Capacity Cap.: A minimum capacity of 0.5 kW and a maximum capacity of 250 kW, beyond this capacity guideline as per “solar Policy 2012” shall be applicable.

Energy Settlement and accounting: The provisions for energy accounting and commercial arrangements will conform to MPERC Grid Connect Net Metering Regulations, 2014 and subsequent amendments thereof.

Incentives and Tax Exemptions:

1.     The Rooftop systems will be exempted from banking, wheeling, and cross-subsidy surcharges as per MPERC regulation and will also be exempted from payment of Electricity Duty.

2.    The SRPs installed under the policy shall be exempted from property tax and the equipment’s purchased for the installation of Solar Rooftop projects shall be exempted from VAT and entry tax.

3.    All the All Eligible Consumers can avail Central Financial Assistance from MNRE as per the applicable scheme for Solar PV systems.

The more details on the Policy can be read in the document here

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