237Compendium of State Government Policies on Renewable Energy Sector in India

GOVERNMENT OF RAJASTHANPolicy for Promoting Generation of Electricity from Biomass, 2010

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Description Summary

1. Order EnergyDeptt.NotificationNo.F20(10)Energy/09dated26.02.2010

2. Title Policy for Promoting Generation of Electricity from Biomass, 2010

3. Objective To promote generation of electricity from Biomass

4. Enforcement From26.02.2010tillsupersededormodified.

5. Use of Power for Captive Purposes/ Sale

• PowerProducertousepowerforcaptiveconsumptionorforsaletothirdparty/licenseeincluding Discoms

• MinimumRenewablePowerPurchaseObligationofStateDiscomstopurchaseenergygenerated from Biomass based power plant to be as per the Order of Rajasthan Electricity Regulatory Commission (RERC).

6. Grid Interfacing Grid interfacing arrangements to be made by power producers / RVPN/ Discom as under:

(i) Generating Plant Sub Station.

To be developed and maintained by Power producer as per the grid code and entire cost to be borne by developer.

(ii) Receiving Station

Producer to terminate their 33 kV (minimum voltage level) power evacuation feeder to nearby RVPN’s132/33kVor220/132/33kVGSSoranyotherRVPNS’sGSS in consultationwithRREC.

(iii) Grid Connectivity

• ProducertopaygridconnectivitychargestoRVPN/DiscomasfinalizedbyRERCwithin3 months of PPA.

• Chargestoincludecostofcompletelinebayanditsinterconnectionwithexistingelectricalsystem at RVPN GSS.

(iv) Transmission from Gene rating Plant Sub Station to Receiving Station

• EvacuationsystembeyondGeneratingPlantSubStationtillthenearestRPVN’s220/132/33kV or 132/33 kV grid sub station to be developed by Producer as per RERC regulation dated 23.1.2009 and amendments.

• IflinebayandgridconnectivityhasbeenmadebyRVPNataparticularvoltage(33kV)and power producer on later date wants to supply the power on higher voltage, then on feasibility and consent of RVPN, this will be done by RVPN as a deposit work on behalf of the Producer.

• IfPowerProducerfirstconnectshisfeedertoDiscom’ssubstationandlateronwantstoconnecthisfeedertoRVPN’ssubstation,thenadditionallineworktobedonebyProducerand the addition of line bay in RVPN sub station to be done by RVPN as deposit work on behalf of Producer.

(v) Transmission &Distribution Net work Augmentation

To evacuate power from receiving station, RVPN/ Discom to develop / augment the necessary transmission / distribution net work within mutually agreed time frame.

• RVPN/DISCOMtoprovideinterconnectionfacilityonemonthbeforeCODasintimatedbythe Power Producer.

• ProducertoinstallnecessarycurrentlimitingdevicessuchasThyristorinthegeneratingequipment, if required.

• Capacitorofsufficientratingtobeprovidedtoensurethataveragepowerfactorismaintainedas per the requirement of State Load Despatch Centre, measured at metering point.

• PowerproducertocomplywithGridCodeincludingLoadDespatchandSystemOperationCode, Metering Code, Protection Code etc. as applicable in the State of Rajasthan.

7. Power Purchase Agreement (PPA)

• Saleofelectricity toDiscom tobegovernedby thePPAexecutedbetweenconcernedDiscom and the Power Producer as per the order of RERC.

• ForthirdpartysaleorforcaptiveusewithintheState,ProducertoexecuteawheelingAgreement with Discom.

• WheelingAgreementwithRVPNtobeexecutedseparatelyiftheProducerintendstouseRVPN system for wheeling of power.

• DraftPPAtobefinalizedbyRRECinconsultationwithRVPN/Discom.

8. Settlement of Accounts

All transactions between the Producer and Discom/ RVPN regarding price of power and wheeling charges to be settled on monthly basis.

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9. Incentive by the State Government

9.1 Exemption from Electricity Duty

Consumption of power for Captive use to be exempted from Electricity Duty @ 50% for a period of 7 years from COD.

9.2 Grant of Incentives Available to Industries

To be treated as eligible industry under the scheme administered by Industries Department and incentives available to industrial units under such scheme to be available to the Producer.

9.3 Availability of Water for Power Generation

• AllowedtousewaterfromWaterResourceDepartment(WRD)forpowergeneration.Incase of use of ground water, permission to be obtained from Ground Water Department/ WRD. Producer to intimate estimated water requirement to RREC along with source of water.

• Modification(s)ifany,intheexistingcanalsystemtobedonebyWRDatthecostofpowerproducer.

• GroundwaterdepartmenttoaccordsimilarstatustoBiomasspowerPlantusing“aircooledtechnology” as granted to drinking water scheme while granting NOC for drilling bore well/ tubewellforfulfillingwaterrequirementoftheprojects

9.4 Land on Concessional Rate

Government land to be allotted to Producer at concessional rate of 10% of District Level Committee (DLC) rates.

10. Nodal Agency Rajasthan Renewal Energy Corporation (RREC) be Nodal Agency to play the role of facilitator for:(i) Execution of PPA/WBA with RVPN/ Discoms;(ii) Loans from IREDA/PFC/REC/Financial Institutions/ Commercial Banks;(iii) Allotment of revenue land;(iv) Water allocation from concerned department;(v) Approval of power evacuation plan and allocation of bays etc.(vi) Arranging other statutory clearances/ approvals;(vii) Various clearances related to energy plantation for use as supplementary fuel in Biomass

Power Plant.

11. Registration of Power Project

• Biomassprojectupto20MWcapacitytobeeligible.• Providedthatprojectoflessthan5MWcapacitycanbesetupwithinthereservedareaof

any plant capacity of 5 MW and more with the permission of RREC. Further no area to be kept reserved for projects less than 5 MW.

• ProducertosubmitapplicationwithRRECintheprescribedPerforma(Form-A)appendedwithpolicyasAppendix‘F’alongwiththerequireddocumentsasapplicable.

(i) Certifiedcopyofthememorandum&ArticleofAssociationoftheCompany.(ii) Certifiedcopyoftheregistrationcertificate.(iii) Certifiedcopyofthepartnershipdeed.(iv) CertifiedcopyoftheAuthorityconferringpowersontheperson(s)whoarecompetentto

execute the MOU/ the agreement with GoRI RREC/ RVPN/ DISCOM.(v) Biomass Assessment Report.(vi) Pre Feasibility Report (PFR)/ Detailed Project Report (DPR).(vii)ProcessingfeeintheformofDDpayabletoRRECatJaipur.(viii) Annual report of the Company for last three years.• ProducertodepositRs.25000-perMWalongwithapplicationwithRRECtowardsprocessing

fee, which is not refundable. Service taxes and cess etc payable extra as applicable.• RRECto issueacceptance to theprojectwithinonemonth from thedateof receiptof

complete application.• IfPowerproducersubmitanapplicationforaspecificareawithoutPFR/DPRandBiomass

assessment report, an application registration number (ARN) will be given by RREC and area will be booked for that power producer.

• OnsubmissionofDPRandBiomassassessmentreportwithin6monthsfromthedateofregistration of application, project will be registered with RREC.

• IfDPRandBiomassAssessmentReportarenotsubmittedwithinthestipulatedperiodof6monthstheapplicationshallbedeemedtobecancelledandthatspecificreservedareato be free for any other power producer.

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• IfProducerwantstochangethelocationofpowerplantduetoinsufficientavailabilityofBiomass, the application for change to be given within 3 months from the date of submission of application (ARN). RREC to reserve new available area within 15 days, but DPR and Biomass assessment report for new site have to be submitted within 8 months of the date of allotment of ARN, otherwise application would deemed to be cancelled.

• BiomassPowerplantscommissionedunderearlierpoliciesofStateGovernment shallcontinue to be governed by the relevant policies in operation at the time of commissioning of the project.

• PlantforcaptiveusewithoutusingStategridhastoregistertheprojectwithRRECandtotake approval of the State Government for setting up the project.

12. Approval of Power Projects

• SiteforBiomasspowerplanttobechosenbytheProducerafterascertainingavailabilityof Biomass, required water and power evacuation facilities etc.

• RRECtoforwardlandallotmentapplication,gridinterfacingplan,waterrequirementetctothe concerned authorities.

• PrivatelandtobeprocuredbytheProducerdirectlyfromtheprivateparties.• Projectmeeting the following requirement to be considered as “in principle cleared”

project.(i) For Government land, the land allotment is approved by the Revenue Department.(ii) For private land, the land has been procured by Power producer & land conversion done

by the competent authority.(iii) Grid interfacing arrangement approved by RVPN/Discom.(iv) Allocation of water is approved by the concerned Department.• The“Inprinciplecleared”projectproposalsmeetingtheaboverequirementstobeputup

for single window clearance before the State Level Empowered Committee (SLEC) headed by Chief Secretary.

13. Reservation of Area for Biomass Power Plants

No other Biomass Power Projects to be permitted within the reserved area of existing/ approved/ earlierregisteredprojectsasspecifiedunder:SI. No. Capacity in MW Area Reserved (Radius in km]

1 5 602 More than 5 and up to 7.5 753 More than 7.5 and up to 10 804 More than 10 and up to 12.5 855 More than 12.5 and up to 15 906 More than 15 and up to 20 100

Provided that:(a) State Government shall have the right to review the Biomass availability and accordingly

reserve the right to change the reservation area.(b) The reservation of area for plants commissioned/ approved and registered under earlier

policiestobegovernedbytheprovisionsasspecifiedaboveprovidedthatsuchreservationof already commissioned / approved and registered power plants does not overlap with the reserved area of any other power plants commissioned/ approved and registered under any policy. In the event of overlapping of reserved areas, the area reservation shall continue to be governed by the respective policy under which the same is registered.

14. Fuel for Biomass Power Plant

• Biomass,i.e.,forestrybased&agrobasedindustrialresidues,energyplantation,forestryandagro-residuestobeutilizedasfuelforBiomasspowerproject.

• BiomassproducedwithinRajasthansuchasWheathusk,Millethusk,Barleyhusk,Jwarhusk etc. not allowed to be used as fuel.

• AsperRERCorderdated17.08.2009,Biomassproducerstobeallowedtousefossilfuel(such as coal, lignite, natural gas, municipal waste) up to 15% during the lean period in some years.

15. Security Deposit • ProducerstodepositsecurityamountRs.1lakh/MWwithin2monthsfromthedateofissueof PRN.

• Securityamounttoberefundedtothepowerproducerwithin2monthsofcommissioningof the project after recovery of penalty if any.

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16. Time frame for Completion of Different Activities subject to Force Majeure Condition

• Depositofsecurityamount(Rs.1lakh/MW)-within2monthsfromthedateofissueofPRN.

• Finalizationofland,powerevacuationplanandavailabilityofwater-within4monthsfromthe date of issue of PRN

• For non compliance of above condition, the extension in time limit to be granted onsubmission of application to RERC along with extension fee as follows:

- For extension up to 2 months - @ Rs.15000/- per MW- For extension of more than 2 months up to 4 months @ Rs.25000/-per MW- No further extension beyond this limit and- project to be treated as cancelled and security

deposit to be refunded by RREC within 15 days of expiry of time limit• Producer tocommission theprojectwithin24months from thedateofapprovalof the

project. However extension in time schedule to be granted by SLEC on case to case basis after depositing penalty amount as under:(a) For delay up to 3 months Rs.25,000/- per MW(b) For delay more than 3 months but up to 6 months Rs.50,000/- per MW (c) For delay more than 6 months but up to 9 months Rs.75,000/- per MW (d) For delay more than 9 months Rs. 1,00,000/-per MW

• PowerProducertofurnishmonthlyprogress/statusreportofprojectfromthedateofapprovalof the project. Non compliance leads to forfeiting of security money and cancellation of project approval.

• Copyofworkorderalongwithcost,deliveryscheduleofsupplies,civilworksexecutionand erection & commissioning schedule to be supplied by the producer within 3 months of SLEC approval.

• Financialclosuretobecompletedwithin4monthsfromtheSLECapproval• IncentivesforearlycompletionasperRERCtarifforder.• Aftercompletionoftheprojectandbeforecommissioning,producertofurnishthecomplete

up dated project report. Representatives of RREC to be present during commissioning of the project and commissioning report to be issued by RREC.

• ObligationofthePowerProducertobeexcusedfortheperiodofforcemajeure.

17. Price of Power and Other Charges

• Priceofpowertobesoldbythepowerproducertoconsumer/licenseeotherthanDiscomstobe determined by the mutual understanding/ agreement between seller and purchaser.

• PriceofpowertobesoldtoDiscomsandothercharges/conditionstobespecifiedbytheCommission. The feed in tariff and other charges for mustard husk based project for F.Y. 2009-10 & 2010-11 to be as per Appendix-A appended with the policy.

• Powerproducer intending tosetupBiomasspowerprojectwithnonmustardBiomassincludingProsopis-Julifloraasaprimaryfuelsource,toseekseparatetariffdeterminationby the Commission.

18. Promotion of Development of Prosopis- Juliflora / other Energy Plantation on Govt. land for use as Supplementary Fuel in Biomass Power Plants

Categories of land available for development of Prosopis- Juliflora/ other Energy Plantation:(i) DegradedforestlandthroughJFMcommittee.(ii) Govt, waste land/barren land/ saline land, Panchayat waste/barren land/ saline land through

concerned Gram-Panchayat.Development of Prosopis- Juliflora/ other Energy Plantation on private land:DevelopermaydevelopProsopis-Juliflora/otherEnergyPlantationonprivateKhatidarilandtobeobtainedonleasebasisfor30yearsorpurchaselandwhichisbarrenandunutilizedforuse as supplementary fuel for generation of electricity from Biomass power plant in excess of ceiling limit prescribed in the Ceiling Act, 1973.

18.1 Eligibility Criteria Facility available to Power plant who intends to supply 100% to State Discoms and those Power plants which are commissioned under earlier policies of the State Govt, and are supplying 100% power to State Discoms.

18.2 Identification of Suitable Land

(i) EligibleproducertoidentifysuitablelandfordevelopmentofProsopis-Juliflora/otherEnergyPlantation within the reserved area of power plant registered with RREC after approval of the project.

(ii) Maximum 500 Hectare/ MW land in all categories to be permissible for development of Prosopis-Juliflora/otherEnergyPlantation.

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18.3 Application for Permission for Development of Prosopis-Juliflora/ other Energy Plantation on the Identified Land

(i) EligibleproducertoapplytoRRECforidentifiedlandfordevelopmentofProsopis-Juliflora/ other Energy Plantation in the prescribed format Appendix-G of the policy

(ii) For non forest land producer to furnish resolution of the concerned Gram Panchayat in the prescribed format Appendix-B of the policy

(iii)FordegradedforestlandproducertofurnishresolutionoftheconcernedJFMcommitteein the prescribed format Appendix-C of the policy

18.4 District Level Empowered Committee (DLEC)

A committee under the Chairmanship of District Collector and members of concerned departments to be constituted.

18.5 Grant of Permission * LandtobemadeavailabletotheConcernedGramPanchayat/JFMcommitteeforaperiodof 20 years and can be extended by DLEC for a period of another 10 years

* AfterapprovalofDLEC,atripartiteagreementbetweenconcernedGramPanchayat,ZillaParishad(CEO)andPowerProducertobeexecutedwithrespecttotheidentifiedlandinthe format at Appendix-D of Policy.

* FordegradedforestlandatripartiteagreementtobeexecutedbetweenJFMcommittee,Forest department and Power Producer in the format at Appendix-E of Policy.

* The produce of approved land to be made available to Biomass Power Producer by theGramPanchayat /JFMcommitteeon thepriceasper termsand conditionof theagreement.

18.6 Determination of Sale Price by DLEC

(i) PriceofBiomassproducedfromProsopis-Juliflora/otherEnergyPlantationtobedeterminedbyDLECforeveryfinancialyearonthebasisoffuelcostprescribedbyRERC

(ii) Responsibility of cutting uprooting and transporting of Biomass produce from plantation site to the plant site rest with power producer. 40% of the fuel cost prescribed by RERC to be taken as cost towards cutting uprooting and transportation on lump sum basis.

(iii) Producer to establish weighing facility at the plant site under the direction of DLEC.(iv)ProducertomaketheannualpaymenttoGramPanchayat/JFMcommitteeaspertheprice

determined at clause (ii) above in four equal quarterly installments as per schedule given in the policy.

18.7 One time Uprooting/ Harvesting of Prosopis-Juliflora from Degraded Forest Land

Prosopis-Julifloragrownondegradedforestlandwhichisidentifiedbyforestdepartmentforone time uprooting/ harvesting falling within the reserved area of Biomass Power Plant to be made available to the plant on priority.

18.8 One time Uprooting/ Harvesting of Prosopis-Juliflora from Government/ Panchayat Land

Prosopis-JulifloragrownonGovernment/PanchyatlandwhichisidentifiedbyGramPanchyatfor one time uprooting/ harvesting falling within the reserved area of Biomass Power Plant to be made available to the plant on priority.

18.9 Withdrawal of Permission for Development of Prosopis-Juliflora/ other Energy Plantation

If Power Producer fails to install/ commission the power plant, the permission given for developmentofProsopis-Juliflora/otherEnergyPlantationontheidentifiedlandandallthegrants allowed above shall stand cancelled.

19. EA-2003/ CERC/ RERC Regulation to Prevail

Not withstanding anything contained in this policy the provision of the Electricity Act-2003 and the applicable CERC / RERC Regulations/ Orders issued to prevail for the purpose of implementation of this policy.