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Jharkhand solar power policy 2013

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Official Jharkhand solar power policy 2013 Document.

This document is not a work of Headway Solar (http://headwaysolar.com/) and it has been released here for the benefit of the general public.

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Jharkhand solar power policy 2013

  1. 1. 1 Draft DEPARTMENT OF ENERGY GOVERNMENT OF JHARKHAND Jharkhand Solar Policy, 2013 Part-A GUIDING PRINCIPLES OF POLICY (1) Preamble - India is blessed with abundant solar energy and if harnessed efficiently, the country is capable of producing trillion-kilowatts of electricity. Solar energy is extremely beneficial as it is non-polluting and its generation can be decentralized. There is also need to take initiatives to bring in technologies for greater use of this energy source to combat climate change by reducing the emission of green house gases. Jharkhand has significant solar energy potential and an overwhelming response from Developers/ IPPs has already been received for establishing solar power projects in the State. The Jharkhand Government is fully committed to the promotion of solar energy and given the conducive Government of India Policy, it aims towards major achievements in the area of solar energy generation in the next 10-12 years. The current energy requirement of the state of Jharkhand is catered mostly by the conventional energy sources. The Government of Jharkhand (GoJ) recognizes the increasing concern related to climate change, global warming and the urgent need to address these issues. Accordingly, steps towards the promotion of Renewable Energy have been taken by the Government of Jharkhand, and Renewable Energy is increasingly becoming an integral part of energy security initiative in the state. The State of Jharkhand is endowed with high solar radiation with around 300 days of clear sun. The state offers good sites having potential of more than 4.5 to 5.5 kWh/ sq.m/ per day for installation of Solar based power projects. Considering the huge untapped potential of solar energy in Jharkhand, the need for an investor/ Developer friendly comprehensive
  2. 2. 2 policy has been felt for some time. By inclusion of all aspects of necessities of solar power sector, this policy has been formulated in which present statutory status of power generation and distribution as well as regulatoryframe work hasbeen considered. (2) Vision To ensure significant contribution of solar energy in the energy mix in Jharkhand and promotion and motivation of public sector involvement and public-private partnership toward the end. (3) Objectives of the Policy- The objectives of the Policy are as follows: a) To encourage participation of Private Sector to set up Solar Power based projects in the State & increase solar generation to 500 MW by 2017 and 1000 MW by 2022 in a phased manner. b) To define the incentives and benefits to be provided to the participants from the Private Sector in gridandoff-gridsolar applications inclearterms. c) To build a favourable atmosphere for setting up Solar Power projects. d) Lay down framework for policy implementation. e) Ensure energy security of the State by a stable and non-polluting means. f) To encourage the tiny/ small scale entrepreneurs in the State to help the State in meeting the energy needs and earning livelihood for themselves. (4) Operative Period - This Policy shall become operative from the date of its notification in the Jharkhand State Gazette and shall remain in force for 5 years from the date of notification or until modified or superseded by any other solar policy of the State, whichever is later. (5) Implementation Plan This solar policy proposes the implementation plan through following two strategies, which are being dealt in Part B and C of the policy. The legal and regulatory frame work to support the effective implementation of the policy proposals has been dealt in Part – D: - (i) Promotion of Grid Connected Projects : - a. Solar PV/ Solar Thermal Power Plants- The State Government desires to extend all possible support for setting up of Renewable Energy based power plants through various policy initiatives and
  3. 3. 3 incentives for investors / developers. Considering the huge untapped potential of solar energy in Jharkhand, the need for clear cut procedures and policies is being felt, and therefore, to cater to this aspect the procedure and policies for setting up of grid connected solar power plant has been dealt in Part B of this policy. b. Power Plants at Roof Top - A roof top SPV system could be with or without grid interaction. In grid interaction system, the DC power generated from SPV panels is converted to AC power using power conditioning unit and is fed to the grid either of 11 KV three phase line or of 220 V single phase line depending on the system installed at institution/commercial establishment or residential complex. They generate power during the daytime which is utilized fully by powering the captive loads and feeding excess power to the grid as long as grid is available. The policy provisions for setting up of roof top SPV system has been dealt in Part C of this policy. (ii) Promotion of off-grid solar applications: - The Government of Jharkhand will also promote decentralized and Off-grid solar applications, including hybrid systems as per guidelines issued by MNRE to meet various electrical and thermal energy requirements. All the off-grid projects will be recommended for release of capital subsidy as per the MNRE schemes. Some of the major applications of solar thermal technologies include solar water heaters, solar cooling systems, air drying, steam cooking. The policies and regulatory framework for promoting and ensuring their use has been dealt in Part D & E of this Policy respectively.
  4. 4. 4 Part-B GUIDING PRINCIPLES OF POLICY FOR SETTING UP OF GRID CONNECTED SOLAR POWER PLANTS 1. Applicability: a) All Solar energy based power project Developers (Solar PV/Solar thermal) and manufacturing units of equipments, ancillaries related to Solar Power projects shall be eligible for benefits under the Policy. b) The projects with new plant and machinery shall only be eligible for incentives under this Policy. 2. Participation- For the development of Solar power Projects under this policy, any Individual/ Firm/ Society/ Institution/ Registered Company etc. shall be eligible to apply. 3. Category of Solar Projects under the policy : The Government of Jharkhand in its endeavour to promote solar energy based projects in Jharkhand proposes the following categories. I. Category I Projects: Government of Jharkhand will promote setting up of Solar Power projects for direct sale to Jharkhand State Electricity Board or other Distribution License Holders. The total capacity under this category will be decided by the State Government keeping in view the available potential and Renewable Purchase Obligation (RPO) targets specified by Jharkhand State Electricity Regulatory Commission (JSERC) from time to time. Selection of these Solar Power projects shall be through tariff based competitive bidding process. The Government of Jharkhand shall invite proposals from time to time for selection of Solar Power projects through tariff based competitive bidding process. There shall be a set of qualification criteria fixed by the Government of Jharkhand for the prospective Developers of Solar projects. The necessary information regarding attributes to be evaluated, their inter-se Weightage (if any), guidelines for evaluation and other details shall be specified in the qualification document, which shall be prepared by Government of Jharkhand. Such companies, who have signed MoU with Government of Jharkhand, before the notification of this policy, may also be given the offer to set up solar power plant for certain capacities, at the weighted average rate of the successful bidders, whether they have been
  5. 5. 5 successful or not in the bidding process. Such offer will be made only in the first successful bidding process to be implemented by the State Government after the notification of this Policy. Such capacities to be allotted to such companies shall be the additional capacities than what has been obtained by them (if any), in the bidding process. However, the maximum capacity to be offered to each such company shall not exceed 50 MW or the capacity for which MoU has been signed, whichever is less. II. Category Il Projects; The Government of Jharkhand will promote Solar power projects of unlimited capacity for captive use or sale of power to 3rd party/states other than Jharkhand. III. Category III Projects: The Government of Jharkhand will promote Solar Power projects to set up Solar Power plants of unlimited capacity under renewable energy certificate mechanism. IV. Category IV Projects: The Government of Jharkhand will also promote setting up of Solar Power plants under the guidelines of Jawaharlal Nehru National Solar Mission (JNNSM). 4. Registration: Office of the Director, Jharkhand Renewable Energy Development Agency (JREDA), Government of Jharkhand shall be the nodal agency for registration and post development activities for the developers of the Solar Power Projects of category II, III & IV. The prospective bidders for Category - I are not required to register for participation in the bidding process. The companies who have signed the MoU with Government of Jharkhand are required to get registration as per provisions of this clause. The Developers/Investor shall submit the following documents for registration: i. Application in the given format; ii. Certified copy of Memorandum & Articles of Association of the company/ Certified copy of the bye- laws of the registered society; iii. Certified copy of partnership deed; iv. The balance sheet of last 3 years.
  6. 6. 6 5. Post-Registration activities: The following documents shall be submitted by the Project Developer:- i. Detailed Project Report (DPR); ii. Land related document (tagged/identified project site for the projects proposed to be set up on private land); iii. CPM/ PERT chart (for implementation of the proposed project); iv. Water allocation order on the basis of water availability at the project site (if applicable) and map presenting the grid situation for the solar thermal projects; 6.Tariff: a) Category I Projects: For the projects allotted under tariff based competitive bidding route for sale to Jharkhand State Electricity Board, or its successor companies or any other distribution licensee the Power Purchase Agreement will be executed between JSEB or its successor Discoms / other distribution licensee and successful bidders as per the provisions of bid/qualification document on the tariff arrived by the process of tariff-based bidding. However the rates shall not be more than the rates specified by the JSERC. b) Category II Projects: In case of third party sale/captive use/sale to other states, the Power Purchase Agreement will be executed between the Power Producer and the Procurer on mutually agreed rates. In such cases, a separate Agreement will be executed with JSEB or its successor Discoms for wheeling and banking of power. The wheeling agreement with JSEB or its successor Discoms or with other grid or network as appropriate will be executed separately. c) Category III Projects: In case of solar power projects established under renewable energy certificate mechanism, the Power Purchase Agreement as required, will be executed between solar power producers and the Procurer as per the Regulations/Orders of CERC and JSERCissued from time to time in this regard. d) Category IV Projects: In such cases, the Power Purchase Agreement will be executed between the solar power producer and the Procurer (NVVN or Solar
  7. 7. 7 Corporation of India) and/or JSEB or its successor Discoms as per Guidelines under JNNSM. 7.Metering: Metering equipment, as may be stipulated by JSEB or by respective Discom, shall be installed at the interconnection point which shall be line isolator of outgoing feeder on HV side of the pooling substation. Developers will install metering equipments at their own cost as per specifications and provisions of JSERC Regulations on metering. All officials of the respective Distribution Company authorized for the purpose shall be allowed access by the Developer to inspect the same. Meters shall comply with the requirements of CEA regulation on 'Installation and Operation of meters’ . 8. Grid evacuation & evacuation facility: a) The evacuation facility from solar power plant / switchyard to JSEB sub-station shall be approved by the JSEB after carrying out the system study. The power by solar power plant shall be injected at 33 KV. The transmission lines from switchyard of solar power plant to JSEB sub-station shall be laid by JSEB for category – I & IV projects. For category II & III projects the transmission lines from the switchyard of solar power plant to JSEB sub-station shall be laid by the developer. The interconnection arrangements shall be in accordance with the JSEB or distribution lines holder’s requirement, applicable as per JSERC and CERC Regulations as amended from time to time. b) The Developer shall be responsible for payment of all wheeling and transmission charges to the JSEB / respective Distribution Company in case of sale of power to Third Party Consumers/ Distribution Licensee/ JSEB or its successor Discoms utilizing their network. The payment shall be subject to the regulations of JSERC. 9. Land Use Permission : (a) Land requirement : Wherever any Government assistance for land acquisition / Government land transfer is required for setting up of Solar Power Plant in Jharkhand, the scale for land use will be at the maximum 2 Hectare per MW. (b) Stamp duty exemption on purchase of private land : In case the Developer purchase private land for the project, then they will be eligible for an exemption as specified in the Industrial Policy 2012 or Policy of the Revenue Department.
  8. 8. 8 10. Exclusive Jurisdiction of Jharkhand State Electricity Regulatory Commission (JSERC) a. The JSERC shall have exclusive jurisdiction on those provisions of this policy which are within its regulatory mandate for management of the Electricity Act, 2003, especially regarding notification of Electricity Tariffs for sale for power, power purchase agreements, wheeling, banking, distribution, transmission loss charges etc, Similarly, the JSERC shall have jurisdiction under the provisions of the Electricity Act, 2003 as regards promotion of non- conventional energy sources, facilities for transmission of energy and sharing of purchase of power amongst JSEB Transmission Licensee/ Distribution Licensee etc, Compliances ofGuidelines, Directives, Regulations, Rules etc. issued by the JSERC issued from time to time regarding these shall be binding on all concerned parties, b. In the event of any dispute in the interpretation of this policy or any terms and conditions of agreement/clauses between the Developer and any state govt. department or JSEB/ Transmission Licensee/ Distribution Licensee, the same shall be referred to the State Government or the JSERC as the case may be. General Provisions 11. Transfer of project: The Solar project Developer shall not be allowed to transfer the project of category-I before its commissioning. However, after commissioning of the project any such transfer shall not be carried out by the Developer/Investor without the prior approval of the Energy Department, Government of Jharkhand. Payment of fees (non-refundable) to be fixed by the Government of Jharkhand shall be applicable in case approval for such transfer is given by the Energy Department. 12. Other provisions: a) Fossil fuel usage: The usage of fossil fuel (coal, gas, lignite, naphtha, diesel, wood etc.) shall not be allowed in the grid connected solar thermal power projects. Hybrid systems shall be allowed as per the guidelines of the Ministry of New and Renewable Energy (MNRE). b) Project Inspection: Authorized Representatives of Government of Jharkhand not less than the rank of Executive Engineer shall, with prior written intimation,
  9. 9. 9 have the right of inspection of the power project to assess the safety of the project. The Developer shall render all requisite help and assistance in facilitating such inspection. c) The Developer shall maintain all records regarding capacity, generation, downtime, with relevant constraints etc. and make available all these records to the inspecting authority for inspection. d) Data monitoring and submission: All grid connected solar power plants registered with the Energy Department (Government of Jharkhand) will install equipments for regular monitoring of Solar irradiance (including DNI), ambient air temperature, wind speed and other weather parameters and for simultaneously monitoring of the amount of electric power generated from the plant. They will submit this data to the Government of Jharkhand on line-and/or through a report on regular basis (monthly) for the entire duration of Power Purchase Agreement as prescribed. e) Once the project is commissioned, the solar power project developer shall be required to submit the monthly and annual generation details duly certified by the concerned distribution/ transmission utility: both in hard copy and in soft copy (online), to Energy Department, Government of Jharkhand. f) Data bank : Energy Department, Government of Jharkhand will establish and maintain a technical library, a data bank and/ or information centre to collect and correlate information regarding solar energy sources. g) Reactive Power Charges : In case of drawl of Reactive Power for the Project, necessary charges shall be payable at the rates prescribed by JSERC. 13. If a Developer intends to generate and distribute electricity in a rural area, to be notified by the State Government, such a Developer shall not be required to obtain any License for distribution of electricity but shall be bound to comply with the criteria laid down by Central Electricity Authority as per Section 53 of Electricity Act, 2003. 14. High Powered Committee: The cases relating to removal of difficulties coming in the way of smooth implementation of the Projects and those in respect of Inter-departmental Coordination shall be referred to a High Powered Committee constituted under the Chairmanship of the Chief Secretary, Government of Jharkhand.
  10. 10. 10 Incentives 15. Electricity duty & cess exemption: All Solar power projects (including captive units) will be eligible for exemption from payment of 5 0 % electricity duty and cess for a period of 10 years from the date of commissioning of the project. The captive power plants will enjoy 50% exemption on electricity duty for a period of 5 years. 16. Wheeling Charges: Facility of wheeling will be available to all solar power projects through JSEB/ Discoms, as case may be, as per wheeling charges specified by JSERC for wheeling within the State or outside the State. For the above wheeling charges to be paid to JSEB or its successor transmission/ distribution companies, the Government of Jharkhand will provide a grant of four percent (4%) of wheeling charges in terms of energy injected and the balance wheeling charges, if any, shall be borne by the project developer, 17. Banking- Banking of 100% of energy in every financial year shall be permitted subject to the following conditions i. The figures of banked energy during the Financial Year shall be subject to verification by the officials of the JSEB or State Distribution Company. The Developer will be required to pay two percent (2%) of the banked energy towards banking charges to the concerned JSEB or its successor Discoms. ii. The return of banked energy shall be based on Regulations issued by JSERC from time to time. iii The balance energy, if any, at the end of a Financial Year after return of banked energy shall be purchased by the concerned State Distribution Company in accordance with the rules and directions of JSERC. 18. Contract demand reduction: The Industrial Consumers opting to buy power from Solar Power Project under category II and III shall be allowed corresponding pro - rata reduction in Contract Demand without any penal charges on a permanent basis but subject to the decision of JSERC in this regards. 19. Third party sale: Third Party sale within or outside the State of Jharkhand will be allowed as per Electricity Act 2003 and the Orders and /or Regulations issued by JSERC from time to time. 20. Industry status: The Solar projects implemented under this Solar Policy will have the status of industry and will be eligible for all benefits under Industrial Policy 2012
  11. 11. 11 (or subsequent amendments from time to time). In case of any inconsistency between the Industrial Policy 2012 and Solar policy, the provisions under the new Solar Policy shall prevail 21. Entry tax / VAT Exemption: The equipments purchased for installation of Solar power plants under the policy shall be exempted from VAT and entry tax. 22. Clean Development Mechanism (CDM) benefits: CDM benefits to the solar power project Developers/Investors shall be as per the provisions specified by JSERC. 23. If open access is granted to any developer or beneficiary, they shall have to pay the applicable open access charges and losses as approved by JSERC from time to time. 24. Regarding other facilities/incentives such as Open Access, Reactive Power and Renewable Purchase Obligation, the provisions specified by JSERC shall be applicable.
  12. 12. 12 Part – C Roof Top Power Plants Several cities and towns in the State are experiencing a substantial growth in their peak electricity demand. Municipal Corporations and the electricity utilities are finding it difficult to cope with this rapid rise in demand and as a result most of the cities/towns are facing severe electricity shortages. Various industries and commercial establishments e.g. Malls, Hotels, Hospitals, Nursing homes etc housing complexes developed by the builders and developers in cities and towns use diesel generators for back-up power even during the day time. These generators capacities vary from a few kilowatts to a couple of MWs. Generally, in a single establishment more than one generators are installed; one to cater the minimum load required for lighting and computer/ other emergency operations during load shedding and the others for running ACs and other operations such as lifts/ other power applications. Therefore, with an objective to reduce dependency on diesel gensets and to increase the use of solar energy, in addition to the benefits of MNRE Schemes, it is also proposed that - 1) Premises of Govt. Buildings : - The State Government proposes to initiate a programme under which all Public Buildings would be required to have generation facilities using appropriate technology options. Here, Build Operate and Own (BOO) model would be encouraged. As the load cycles of government offices match with that of solar plants, they are fitting cases of solar applications. Policy urges all concerned to make use of their roof tops and their premises for installation of solar plants to match maximum demand of the concerned office within a period of 3 years. A panel of implementing agencies and cost per kWh shall be prepared by JREDA and every office/ department shall be free to choose any implementing agency from such panel for implementing its scheme. 2) Premises of Non-Govt. buildings - For grid connected systems in Non-Government Buildings / Premises, the incentives shall be on the basis of net metering. Grid connected systems will be promoted for domestic consumers in phased manner after formulating grid connection standards for LT distribution.
  13. 13. 13 Part – D The off grid applications The Government of Jharkhand will promote decentralized and Off-grid solar applications, including hybrid systems as per guidelines issued by MNRE to meet various electrical and thermal energy requirements. All the off-grid projects will be recommended for release of capital subsidy as per the MNRE schemes. Some of the major applications of solar thermal technologies include solar water heaters, solar cooling systems, air drying, steam cooking. 1. The Off-Grid Solar Photovoltaic application include :-  Solar PV home lighting.  Powering all Government/ Private Hospitals, Nursing Homes and Govt. Buildings.  Powering Police Stations, Barracks of Police, Paramilitary Forces and Jails.  Powering small powered looms, solar inverters, solar PV pumps.  Powering computers in schools, ITI’s, Polytechnic’s and other educational institutes.  Hybrid systems for powering telecom towers, etc.  Irrigation Pumps. 2. The State will promote solar water heating system by adopting the key strategy of progressively making necessary policy changes for mandatory use of solar water heating systems in the following potential categories:- (a) All industrial buildings where hot water is required for processing. (b) All Govt./ Private Hospitals and nursing homes. (c) All hotels, resorts, motels, banquet halls, catering units and industrial canteens. (d) Individual residential buildings with an area of 3000 sqft and above within the limits of municipality/ panchyat/ corporations including complexes set up by group housing societies/ builders/ housing boards. (e) Hostels in educational institutions/ private hostels, testing labs/ laboratories of educational institutes/ hospitals. (f) Barracks of police/ paramilitary forces and jail.
  14. 14. 14 (g) Private/ government guest houses, govt. tourist inspection bungalows, circuit houses and retiring room of railways. (h) Health centers/ Sport Complexes. (i) All weather swimming pools. 3. The off-grid solar applications shall be promoted for replacement of diesel based generator sets. Guidelines and incentives issued by MNRE from time to time shall be followed in State for promotion of decentralized and off-grid solar applications. 4. The State will promote the use of solar steam systems for wider applications such as community cooking in residential institutions/ industrial mess/ Hotels/ Barracks/Hospitals/ Mid Day Meal Programme, etc.
  15. 15. 15 PART – E LEGAL & REGULATORY FRAME WORK 1. The Electricity Act, 2003 has been in force since June, 2003. In accordance with the provisions of this Act, any private individual or Agency is free to set up a Power Generation Plant and they shall have right to open access of the transmission facility. 2. Support the formulation of regulatory environment encouraging the common man more towards solar applications. 3. Legally enforcing use of electricity from solar source in specified sectors energy use. 4. A tariff incentive for consumers opting for solar generation shall be offered with respect to non solar consumption subject to prefixed level of usage. 5. Incentive for people’s representative / panchayat for promoting solar installation and street light optimization. 6. Incentive schemes for conversion of existing inverter installation to solar based ones. 7. Solar Purchase Obligation (SPO) Solar Procurement Obligation (SPO) will be mandatory for commercial consumers with LT Industrial connection with more than 50 kVa connected load and for all HT & EHT consumers. All such consumers have to procure 4% of their power from solar source. All such consumers will have a grace period of one year from the date of notification of this Policy for ensuring the compliance of these SPOs. This will include all such entities having scattered operations within the State but whose cumulative energy requirement is equal to or more than the above like the Telecom Towers. All such consumers have to declare their carbon foot prints twice a year. They may fulfill their SPO requirement by either of the following mechanism; a) By having captive solar generation but with a JSEB certified metering mechanism. b) Buying REC’s equivalent or more than their SPO from any solar power developer in the State of Jharkhand. c) Buying solar power from JSEB at solar tariffs. d) Buying equivalent to or more than their SPO, solar power from any developer in the State of Jharkhand.
  16. 16. 16 8. All new domestic buildings having floor area equal to or greater than 3000 sft will have at least 100 kw Solar PV system. In case of Housing Societies, 5% of energy usage should be from solar for common amenities. The Off –grid applications shall be promoted for replacement of diesel based generators sets. Non-compliance of the above condition after the grace period of 3 years shall attract penalty in the form of green cess to be decided by the Appropriate Authority. 9. In the potential categories to be notified like star hotels, hospitals, residential complexes with more than 50 kVA total connected load the use of solar water heating system shall be made mandatory. 10. Jharkhand Renewable Energy Development Agency (JREDA) being the nodal agency for the non-conventional/renewable energy in the State, shall act as a facilitator for the developer for the following:- (a) To act as a linking agency between all the stake holders in the matter related with this policy. (b) To empanel the system providers in the solar technologies and applications after the due process. (c) To act as the nodal agency for the off-grid applications in the State. (d) To facilitate in providing incentives and subsidies to the investor in the off-grid applications. (e) To be a part of the joint mechanism with JSEB in administration of roof top solar installations with grid connectivity. (f) To develop net metering mechanism. (g) JREDA will utilize its domain expertise of solar from time to time for fixing up Rate Contracts for all solar related applications through open bidding process and circulate the list of empanelled vendors along with the Rate Contract as well as the commercial and technical aspects. This will save the government departments from repetitive process of purchase/ procurement and the Government offices will be free to select any vendor of their choice from empanelled list. This will expedite the solarisation process in Government buildings. *****************************

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