Tapping potential of waste heat to power and energy conservation in India

1. Tapping potential of waste heat to power
and energy conservation
By:
khare legal chambers
advocates
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2. • Existing Laws regarding Co-generation are
confusing and are insufficient.
• Cogeneration from non-renewable sources
of energy should also be encouraged.
• Need for compressive review of all law
and policy regarding Co-Generation.
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3. Policy (Legislature) – Need to amend
Electricity Act
• Section 86 (1) (e) - The Section as it stands as of now:
86.Functions of State Commissions. – (1) The State Commission shall discharge the
following functions, namely:-
(e)Promote cogeneration and generation of electricity from renewable sources of
energy by providing suitable measures for connectivity with the grid and sale of
electricity to any person, and also specify, for purchase of electricity from such
sources, a percentage of the total consumption of electricity in the area of a
distribution licensee.”
• Amendment Proposed :
Option I:
(e)Promote and encourage cogeneration. Promote generation of electricity.......
Option II:
(e)Promote and encourage cogeneration irrespective of the source or fuel used
and promote generation of electricity.........
Option III:
(e)Promote and encourage cogeneration alongside generation of electricity from
renewable sources of energy

4. Century Rayon, Emami & Vedanta cases
• APTEL held that reference to co-gen at sec
86(1)e of the electricity act includes all co-gen
power produced irrespective of the source of
fuel.
• Thus, Co-Gen Power generating plants have
been treated on par with plants producing power
through renewable energy sources for the
purposes of exemption from Renewable Energy
Purchase Obligations.
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5. Regulatory (Implementation) –
Renewable Purchase Obligations
• In Pursuance of the Electricity Act and the
National Electricity Policy, the Central and State
Electricity Regulators are entrusted with function
to promote and Encourage Co-Generation.
• In accordance with the above duty, the State
Regulators have imposed purchase obligations
on distribution users, open access consumers
and captive consumers to purchase renewable
energy.

6. Co-Gen from Renewable Purchase
Obligations
State (2013-2014) Solar (%) Non-Solar (%) (%)
Maharashtra 0.5 8.5 9
Rajasthan 0.5 8.5 9
Karnataka 0.25 7-10%
(Depending upon
the type of
Utilities)
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Himachal Pradesh 0.25 10 10.25
Orissa 0.20 5.80 6.00
Andhra Pradesh 0.25 4.75 5
Tamil Nadu 0.05 8.95 9
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7. Renewable Purchase Obligations
• 22 states fail to meet their Renewable Purchase
Obligations. (Actual loss -18,300 million units)
• Worst performing states are -
 Delhi < 1%
 Maharashtra < 50%
 Punjab
 Andhra Pradesh
 Madhya Pradesh
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8. Ambuja Cements Vs Raj Electricity
Regulatory Commission
• Rajasthan High Court – Captive, Open Access
users liable to pay RPO penalties.
• Hindustan Zinc and Ambuja Cement may be
liable to pay as much as 913 million rupees ($
16.5 millions) based on power generation and
consumption figures from their latest annual
reports and penalty amounts at 3,300 and
13,400 for solar and non-solar respectively.
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9. Financial: Investment incentives
• Central Finance Assistance (CFA)
• Renewable Purchase Obligations (RPO)
• Preferential Tariff

10. Financial: Tariff Structure
• Preferential Tariff
In view of the high costs involved in generating
electricity from renewable energy sources, the
electricity generated from cogeneration should
be eligible for a preferential Tariff.
• Cross Subsidy Surcharge
In view of the high generating costs of co-generation,
the electricity generated from co-generation
should be exempted from levy of
cross subsidy surcharge (including sale to
discoms, utilities).

11. Technology and Expertise
Co-Generation from all sources should be
promoted and encouraged irrespective of
source of fuel used.

12. khare legal chambers
advocates
Mumbai New Delhi Pune
G-3, K –Building,
# 24, W. H Marg,
Ballard Estate, Fort,
Mumbai – 411 004.
A-5, Lajpat Nagar- III,
New-Delhi - 110 024.
D-1, Sai Nagari, Kalyani
Nagar, Pune – 411 006.
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Affiliate Offices
USA GREECE
Key Contact Person
Mr. Abhishek H Khare
9967539494
abhishek@kharelegalchambers.com