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Draft Captive Power Policy for Industrial Sector
Government of UT of Jammu and Kashmir contemplates to create a
healthy and conducive climate for conduct of business and industrial
production so as to attract private investment in the sector. Towards this
objective, it is intended to encourage investment in establishing of captive
power plants in the UT. This will not only enable the industrialists to cater
their load demand as and when required but will also enable them to sell
surplus power in the grid, adding to the total installed capacity through
captive generation and will further strengthen the process of industrial
development. It will also be a step in bridging the gap between supply and
demand as a march towards supplying 24X7 quality power to industrialists.
Accordingly Captive Power Policy for Industrial Sector is drafted as under:
1. Captive Generating Plant (CPP): Captive generating plant means a power
plant set up by any person to generate electricity primarily for his own use.
Any industrialist may construct, maintain or operate a captive generating
plant and dedicated transmission lines within UT of J&K, provided that the
supply of electricity from the captive generating plant through the grid shall
be regulated in the same manner as the generating station of a generating
company. No license shall be required for supply of electricity generated
from a captive generating plant to any other industrial unit within the UT of
J&K in accordance with the provisions of Electricity Act, 2003 and the rules
and regulations made there under and to any consumer subject to the
regulations made under the act. Other provisions of the Electricity Act, 2003
and rules /regulations made there under pertaining to Captive Power Plants
shall also be applicable, together with role of the regulator like CERC as
operative in such processes
2. Right to Open Access: Every person, who has constructed a captive
generating plant and maintains and operates such plant, shall have the
right to open access for the purposes of carrying electricity from his captive
generating plant to the destination of his use. Such open access shall be
subject to availability of adequate transmission and distribution facility as
the case may be and such availability of transmission and distribution
facility shall be determined by the Central Transmission Utility or
Transmission Utility of UT of J&K, as the case may be. Provided further
that any dispute regarding the availability of transmission facility shall be
adjudicated upon by the Appropriate Commission.
3. Eligibility and Ceiling for Captive Power Plants: For establishing
Captive Power Plant, only those industrialists who are establishing their
industries within the UT of J&K would be eligible. Permission for CPP shall
be given to new industries as well as to existing industries who want to
expand and thus bring in additional investments in the UT of Jammu and
Kashmir. They would be permitted to install CPP to fulfill their
requirements and other desirous industrial units within the UT of J&K.
They shall also be allowed to sell power outside J&K. Permission for
additional capacity could also be granted. No wheeling charges shall be
payable in case power is sold within the UT of J&K.
4. Permission for Captive Power Plant:
(i) The capacity of Captive Power Plant (CPP) shall be upto 25 MW. The
permission for establishment of CPP shall be accorded by Jammu
Power Distribution Corporation Ltd./ Kashmir Power Distribution
Corporation Ltd. (JPDCL/KPDCL), with the consent of J&K Power
Corporation Ltd. (JKPCL)
(ii) If the Captive Power Plant owner intends to sell electricity to other
desirous industrial units within the UT of J&K, then subject to the
technical capacity of the transmission/distribution system of
JKPTCL/JPDCL/KPDCL, permission for transmission of power shall
be accorded.
(iii) If the Captive Power Plant owner intends to sell electricity to sister
concern within the UT of J&K, then subject to the technical capacity
of the transmission/distribution system of JKPTCL/JPDCL/KPDCL,
permission for transmission of power shall be accorded.
(iv) In case of excess power with captive power plant consumer, for any
reason, permission would be granted for selling such power to other
desirous industrial units within the UT of J&K and outside J&K.
However, selection of purchaser would be done by CPP owner only.
JPDCL/KPDCL in consultation with J&K Power Corporation Ltd.
shall facilitate such sale subject to technical feasibility.
(v) Jammu and Kashmir Power Corporation Ltd would not be under any
obligation to buy electricity produced by captive power plant.
(vi) Captive Power Plant owner consumer or consumer to whom the
power is being wheeled for use can increase or decrease the contract
demand as per the agreement signed with JPDCL/KPDCL for power
supply.
5. Interconnection Point: Expenses towards connecting the Captive Power
Plant with the system of JKPTCL/JPDCL/KPDCL, shall be borne by the
Captive Power Plant owner. This shall include the interconnecting line to the
nearest substation of the JKPTCL/JPDCL/KPDCL and line bay in the
substation of JKPTCL/JPDCL/KPDCL.
6. Metering Arrangement: If the Captive Power Plant owner runs his captive
power plant parallel to the system of JKPTCL or JPDCL or KPDCL, then
such consumer shall have to install meters at the captive power plant and
at interconnection point, with requisite standard and quality to measure
export and import of energy. Metering arrangements including its
installation, testing, operation maintenance, collection, transportation and
processing of data required for energy exchange shall be governed in
accordance with Central Electricity Authority (Installation and operation of
meters) Regulation 2006, its amendment from time to time and as per the
notification/directives issued by CEA/ JKERC/CERC, as the case may be,
from time to time and as per relevant provisions contained in JKEGC/IEGC
as amended from time to time.
7. Banking facility: The excess energy generated from CPP wheeled to the grid
can be banked for a period not exceeding two month from the date of
wheeling on mutually agreed terms.
8. Grid Discipline: The owners of CPP have to abide by grid discipline as per
JKSERC/CERC Grid Code Regulations and will not be entitled for any
compensation in the event of grid failure due to force-majeure conditions,
fluctuation in voltage, frequency or other reasons. The same condition will
apply for synchronization of CPP with JKPTCL or JPDCL or KPDCL as the
case may be.
9. Submission of application: The parties interested in installation of CPP
shall submit the applications to the concerned Managing Director of ,
JPDCL/KPDCL.
10. Time of completion of the project: The owner of the CPP to whom
approval has been granted by the concerned JPDCL/KPDCL shall
commission the CPP, and synchronize with JKPTCL/JPDCL/KPDCL grid
and put into commercial operation within period as per approved DPR.
11. Agreement: The owner of the CPP to whom sanction has been accorded
has to execute an implementation agreement with JPDCL/KPDCL as the
case may be.
12. Statutory requirements and clearances: For establishment of a Captive
Power Plant, all required statutory clearances would have to be obtained by
the industrialist. Arrangement for land, supply of fuel and water, etc.,
required for establishing Captive Power Plant would also have to be made
by CPP owner.
13. In case of any conflict between above policy and the Electricity Act, 2003
and the rules/ regulations made there under, Electricity Act, 2003, with
latest amendments, if any, shall prevail.
Incentives for Captive Power Plants
1. Permission for Captive Power Plant shall be given to new industries as well as to existing industries who want to expand and thus bring in additional investments in the UT of Jammu and Kashmir.
2. Facilitation for land acquisition.
3. License for Captive Power Plants not required.
4. Right to open access for the purposes of carrying electricity from his captive generating plant to the destination of his use.
5. Sale of power to sister concern and other industrial units
6. No wheeling charges shall be payable in case of sale of power within the UT of J&K.
7. Banking of energy generated from Captive Power Plants allowed for 2 months time period.
8. Any other incentive from GoJ&K/GoI, shall also be applicable.