Renewable Energy Policy 2009-14

8/13/2019 Renewable Energy Policy 2009-14

1/31

Government of Karnataka

Department of Energy

KARNATAKA RENEWABLE ENERGYPOLICY 2!"#$

To %arne&& Green' C(ean Rene)a*(e

Energy +o,r-e& for Env.ronmenta(

*enef.t& / Energy +e-,r.ty

P,*(.&0e1 *y KREDL


2/31

PROCEEDING+ O T%E GO3ERN4ENT O KARNATAKA

Sub: Karnataka Renewable Energy Policy 2009-14-reg.

PREA4BLE5

Building on it current trengt! and a ca"acity o# 2400 $egawatt%

Karnataka intend to etabli! a dyna&ic renewable ector wit! e&"!ai on

di##erent #or& o# generation-wind% &ini !ydro% bio &a% co generation and olar.

'!ere i need to !a(e a clear "olicy #ra&ework to "ro(ide and utain e##ort int!i direction.

'!e energy conu&"tion in t!e State i antici"ated to be around )4%000 $*"er annu& by 201+. ,t "reent% renewable energy ource contribute to about

4)00 $* o# energy "er annu& 11.+/ out o# t!e total 40%000 $* a(ailable #ro&

(ariou intalled ca"acitie. 'o ac!ie(e a 20 !are% t!e renewable energy ourceare reuired to contribute 12%00 $* by 2014. '!i neceitate a renewable

energy ca"acity addition o# ))00 $ by 2014. , clear3cut "olicy i% t!ere#ore%

eential to regulate and enure "eedy de(elo"&ent o# renewable energy.

'ill now% t!e State did not !a(e a clearly "elt out "olicy #or de(elo"&ent

o# Renewable Energy. Karnataka Renewable Energy e(elo"&ent 5i&itedKRE5/ i "ro&oting RE "ro6ect t!roug! "artici"ation o# t!e "ri(ate ector in

wind% &ini !ydro% bio-&a% co-gen re"ecti(ely. e"ite igni#icant

ac!ie(e&ent% de(elo"er !a(e co&"lained o# &any i&"edi&ent in t!e uick

reolution o# t!e "ro6ect. ,eed againt our "otential in Renewable Energy% t!e

State can acco&"li! &ore ubtantial ac!ie(e&ent to &ake it t!e nu&ber one

Renewable Energy State in t!e 7ountry. '!e Renewable Energy Policy ai& atyte&atic and #ater de(elo"&ent o# Renewable Energy ource to ac!ie(e a

ca"acity o# ))00 $ by 2014.

8n it "art% KRE5 !a atte&"ted to "ro&ote Renewable Energy in t!e

State in a nu&ber o# way. '!ee include:

a. Encouraging t!e "ri(ate ector to identi#y and de(elo" &all ca"acity

"ro6ect in wind% &ini !ydel% bio &a% co-gen re"ecti(ely.

b. 7reate an in#or&ation network #or ad(ancing RE undertanding t!roug!

co&&unication% education and "ublicity.

c. Pro&ote e&"!ai on green energy% !arul e##ect o# global war&ing and

oone layer de"letion.

2


3/31

d. Start de&ontration "ro6ect to etabli! cot e##ecti(ene% econo&ic

(iability and t!e reliability o# (ariou tec!nologie eg. ind Pro6ect at

Sogi and $a(in!unda/.

e. reuent interaction wit! de(elo"er to enure ca"acity addition

e;"editiouly.

#. Pro&ote greater awarene and co&"liance wit! energy coner(ation andenergy e##iciency iue.

'!e new Renewable Energy Policy atte&"t to ti&ulate addition to

ca"acity generation by a &ini&u& o# 1000 $ eac! year.


4/31

KRE5 will acti(ely take u" i&"le&entation o# t!e RE Policy including Energy

E##iciency% 7oner(ation% e&and Side $anage&ent and 7$ acti(itie.

Se(eral conultation were !eld wit! take!older ,ociation. '!e dra#t

RE Policy !a been dicued at (ariou o##icial le(el% including t!e 7!ie#

Secretary on 22.10.2009. '!e dra#t "olicy wa circulated a&ong tec!nical e;"ert%#inancial conultant% renewable energy de(elo"er and ?o(ern&ent e"art&ent.

'!e o"inion and uggetion o##ered by (ariou e"art&ent !a(e been taken

care o# and t!ey !a(e been incor"orated uitably in t!e "olicy.

ADDITIONAL C%IE +ECRETARY

TO GO3ERN4ENT'

ECER? EP,R'$EC'

4


5/31


6/31

ate to

Energy+0 10 10 10 10 10 400

Tota( $2 98@ !@ 9@ 9@ 92@ 22

T0e fo((o).ng &0a(( *e &,*&t.t,te1 to t0e ta*(e

RE +o,r-eTarget

4W

Year ).&e propo&e1 -apa-.ty a11.t.on L.ke(y tota(

.nve&tment

=R& -rore& at

-,rrent

pr.-e&>

!"# #"## ##"#2 #2"#7#7"

#$

ind Power 29)9 )@0 )0 +@0 +@0 +99 1+)0

$ini and S&all

Aydro)00 100 100 1+0 1+0 100 2G00

7ogeneration in

Sugar


7/31

#=v...> Po)er P,r-0a&e Agreement =PPA>5 "

I'!e ale o# ele-tr.-.ty *y po)er pro1,-er& of energy &,pp(y -ompany ).(( *e governe1 *y t0e po)erp,r-0a&e agreement& ee-,te1 *et)een t0e po)er pro1,-er& an1 ).tne&&e1 *y Karnataka E(e-tr.-.ty Reg,(atory

Comm.&&.on6 Po)er Company of Karnataka L.m.te1 ).(( a&&.gn po)er p,r-0a&e agreement& to t0e E+CO4&).t0 *a-k"to"*a-k arrangement6

+0a(( *e rea1 a&

I'!e ale o# electricity by "ower "roducer o# Energy +,pp(y Company ).(( *e governe1 *yt0e Po)er P,r-0a&e Agreement ee-,te1 *et)een t0e po)er pro1,-er& an1 ).tne&&e1 *y Karnataka E(e-tr.-.ty

Reg,(atory Comm.&&.on6 T0e Government ).(( a&&.gn t0e Po)er P,r-0a&e Agreement& to t0e E+CO4& at t0e

t.me of a((otment6

#7=.> +trategy for ).n1 proe-t&

I'o a(oid locking o# !uge ca"acitie t!e wind "ro6ect allot&ent will be retrictedto +0 $ at a gi(en area eac! ti&e.


8/31

7o"y to:

1. '!e ,ccountant ?eneral ,E/% Karnataka% Bangalore.

2. '!e 7!ie# Secretary to ?o(ern&ent% Hid!ana Soud!a% Bangalore.

@. ,ll ,7SDPrinci"al SecretarieD Secretarie to ?o(ern&ent.

4. '!e Secretary to Aonble 7!ie# $initer% Hid!ana Soud!a% Bangalore.+. '!e Secretary% $initry o# Power% ?o(ern&ent o#


9/31

1. Hiion 1

2. $iion 1

@. 8b6ecti(e 1

4. Sco"e o# t!e Policy 1

+. ?oal 2+. i/ Renewable Energy Power ?eneration 2

Pro"oed 'arget #or Renewable Energy ?eneration%

2009-14

@

+.2 ii/ Energy 7oner(ation Energy E##iciency @

'arget #or Energy 7oner(ation 4

) ear wie Renewable Energy target and 7a"ital


10/31

10. ;/

10. ;i/

10. ;ii/

?rid tie "olicy and Cet $etering 10

E;e&"tion #ro& e&and 7ut 10

Security e"oit and Royalty 10

11. Policy on #inancial incenti(e 10

11. i/ ?o(ern&ent o#


11/31

To harness Green and clean Renewable Energy Sources in the state for environmentbenefits and Energy Security. To initiate energy efficiency measures in all sectors for

sustainable growth.

Mission:

1. To enhance the contribution of environment friendly Renewable Energysources, to the socio-economic development and supplement rural energy

needs through speedy and epeditious commissioning of sustainableRenewable Energy pro!ects.

". To create conditions conducive to private# public#community participationand investment in Renewable Energy power pro!ects.

$. To achieve commercial viability and epeditiously operationali%e theRenewable Energy &ro!ects

4. To enhance the contribution of Renewable Energy in the total installedcapacity of the state from 2400'( to about 6600'( by 2014.

+. To conserve 7901') *+ '( by 2014through the Energy Efficiency

Energy /onservation measures in all sectors.3. Objectives:

1. 0evelopment, propagation and promotion of Renewable Energy sourcesand Technologies.

". 0evelopment of Eco-friendly &ro!ects and arnessing of 2atural

Resources to avail Green &ower.$. 3cceleration of identification, development and implementation of new

Renewable Energy pro!ects.4. Encourage the industries, in addition to sugar industry, with

cogeneration potential to set up co-gen plants epeditiously.5. &rovision of 6single window6 service for technical consultation, sources of

finance and pro!ect clearance.

7. 0ecentrali%ed and micro level power generation through renewableenergy sources to provide energy supply to agriculture, industry,commercial and household sector.

8. /reation of suitable environment for private sector participation inRenewable Energy &ower Generation.

9. R0, &ublicity and &opulari%ation of Renewable Energy.+. To establish lin:ages with national and international institutions for

active collaboration in development, demonstration andcommerciali%ation of new and emerging Renewable Energy technologies.

1.To Ta:e /oncrete steps for Energy /onservation and Energy Efficiencyand /lean 0evelopment 'echanism */0'.

4. Scope of the Policy:The policy will be applicable for the development of all sectorsof Renewable energy Sources including Energy Conservation and Energy Efficiency.The policy is valid for a 5 year period up to 20!. This policy supersedes all the policyguidelines"instructions issued in this behalf from time to time. The provisions containedin this Renewable Energy#olicy will be applicable to all the Renewable Energy#ro$ects.This policy will be applicable to all the Renewable Energypro$ects sanctioned prior tothe commencement of the policy and those Renewable Energypro$ects in the process ofdevelopment including already commissioned Renewable Energy pro$ects. %nder thepolicy& 'overnment has the right to approve capacity allotment 'overnment (rder

11


12/31

essential to become eligible for availing the benefits for the renewable energy pro$ects.%nder this policy& it is obligatory to sell the electricity generated from the RenewableEnergy #ro$ects commissioned to the respective geographical ESC()s in which thepro$ects located& at the Tariff determined by *ERC& under a long term #ower purchaseagreement.The policy covers the Energy Efficiency and Energy Conservation along with+emand Side )anagement ,+S)- and Clean +evelopment )echanism ,C+)-

implementation. (nce the target fied under this policy is achieved& a new policy shall belaunched. /or Cogeneration in Sugar industries a separate policy will be brought out bythe Cooperation department and the ndustries and Commerce department forcomprehensive development of the sector. Similarly for 1io/uels the 1io/uel 1oard willcome out with a separate policy.

5. Goals:The policy sets twin goals of *i Renewable Energy power Generation and*ii Energy /onservation Energy Efficiency.

5.(i) ene!able "ne#$y po!e# Gene#ation:#resently Renewable EnergySourcescontribute about !300 )% of energy per annum ,.5 4- of the total !0000 )% availablefrom various installed capacities ,300 )6 including share from C'S- in the state. Theenergy demand is pro$ected to attain 0 4 growth. Committed to the green energy thestate has mandated& vide '( 7o E7 23 7CE 2003 dated 2.8.2009& to enhance theupper limit share of Renewable Energy mi to 204 in the total :uantum of energy. (verthe net five years the energy consumption is anticipated to be around 3!000 )% perannum. To attain 20 4 Renewable Energymi the Renewable Energysources re:uiredto contribute 200 )% by 20!. This sets the tone for doubling the installed capacity ofthe various RE sources combined together. Considering the average plant load factor ofvarious Renewable Energysources ,25 4- this necessitates the cumulative RenewableEnergycapacity addition of about 550 )6 by 20!. ;owever& the policy has a goal ofcommissioning !200 )6 additional capacity with accumulative Renewable Energycapacity addition of 6600)6 by 2014.

n the above bac


13/31

%nstalle& 'apacity P#opose& a#$ets fo# " Gene#ation* +,,- 14

RE +o,r-e Potent.a( 4W In&ta((e1

-apa-.ty 4W

Capa-.ty a11.t.on *y 2#$

4W

Target C,m,(at.ve

6ind #ower 2=50 83 2=3=!889

)ini and Small ;ydro 8000 !3 300 03

Cogeneration in Sugarndustry

500 585 2 3

1iomass"1iogas 000 800 8

6aste to Energy 85 50 50

Tota( #98 2$ $2 @@

There are about 20&000 industries which have boilers and turbines formanufacture of their products lis per rough estimate& about 2000 )6 ofpower can be generated from these industries by setting up cogeneration plants.

;owever& the tidal wave energy and 'eothermal energy are still in earlystages and Technology +emonstrations from laboratory scale Research ?+evelopment to /ield level will be encouraged by establishing #rototype+emonstration #ro$ects to produce Energy from Tidal wave and Geo-ThermalEnergy.

5.+ (ii) "ne#$y 'onse#vation "ne#$y efficiency: (ne unit of energysaved is e:uivalent to two units of energy generated. Energy Efficiency andEnergy Conservation is a cheaper option than 'eneration. The state governmentis committed to implement the Energy Conservation >ct 200 and accordinglyintroduce Efficiency measures in all sectors of economy and attain the EnergyConservation. (f the total energy consumption ma$or share of energy isconsumed by >griculture sector ,85 4-& other sectors consume ndustrial sector,2! 4-& Commercial sector ,! 4-& +omestic sector ,2 4-& )unicipal %tilitiesand others ,3 4-. The #lanning Commission of ndia estimated that the potential

for Energy Conservation in various sectors of economy is about 25 4 ,1ulletin onEnergy Efficiency:RE+>& volume @ Aanuary 200 page 3-. t is targeted toconserve 25 4 of energy consumed in each of the sectors. +uring the policyperiod it is targeted to conserve about 7901)% of energy as a cumulative of allthe ma$or sectors by 2014. The Energy conservation sector wise 'oals are asbelow.

Secto# /ise a#$et fo# ene#$y conse#vation &0#in$ the policy pe#io&* +,,-+,14:

1@


14/31

+6 No +e-tor

Con&,mpt.on Energy -on&ervat.on

Target =28 F> 4;

4; F -on&,mpt.on 4;

2! to #$

Per

Ann,m

1 3griculture 1914 $5 "8$ 54

" ;ndustries 8"7$ "4 1915 $7$$ 0omestic 77+ "1 178" $$4

4 /ommercial 47 14 11 "

5 'unicipal )tilitiesand others

"941 7 81 14"

Total $1714 1 8+1 158+

,Energy Consumption data SourceB *#TC Reports-

6. Year w!e Re"ewa#$e E"er%& Tar%e' a"( Ca)'a$ "*e!'+e"' 2009 ', 2014:

The year wise target for different Renewable Energy sources and the investmentnecessary during the policy period is given belowB

RE +o,r-e Target 4W

Year ).&e propo&e1 -apa-.ty a11.t.on L.ke(y tota(

.nve&tment

=R& -rore& " at

-,rrent pr.-e&>!"# #"## ##"#2 #2"#7 #7"#$

6ind #ower 2=3= 380 30 580 580 5== 530

)ini and Small ;ydro 300 00 00 50 50 00 2900

Cogeneration inSugar ndustry

2 53 53 53 53 59 20

1iomass"1iogas 800 30 30 30 30 30 200

6aste to Energy 50 0 0 0 0 0 !00

'otal $2 53 =03 03 03 23 22000

. (i) ene!able "ne#$y P#oject 2inancin$: t is estimated that from the targets ofadditional capacity of !200 )6 Renewable Energypower in the net 5 years by 20!entails an investment of about Rs 22&000" crores at current prices. +uring the previousyears& the investment in the various Renewable Energy developments has come fromthe private entrepreneurs. ;owever during the previous three years of RenewableEnergydevelopment& in the state& on an average annually about 800 )6 RenewableEnergycapacity additions brought in about Rs &00 crores investment by the privatesector. t is epected that the present policy initiative may bring in an additional

investment of Rs &300 crores annually by the private sector. 6ith this the private sectorinvestment would amount to Rs 9&000 crores during the policy period. The profit ma


15/31

F'reen Energy CessG of Rs 0.05 ,five paise- per unit would be levied on theelectricity supplied to commercial and industrial consumers. t is estimated togenerate about Rs 55 crores annually. (ut of the Rs 55 crores& 0 4 of this fundto the tune of Rs 5 crores will be set apart as contribution to Energy Conservation/und for Energy Conservation activities. The balance Rs 50 crores will be set

apart for Renewable Energy pro$ect financing. The A!a&a /a' N( willbe administered by *RE+ for promotion of Renewable Energy particularly in#ublic #rivate #articipation ,###- mode& decentraliHed generation anddistribution Renewable Energy pro$ects for the benefit of rural sector. The fundsmay also be utiliHed for land ac:uisition and land development activity forRenewable Energy pro$ects including 7et #resent Ialue and compensatoryafforestation& soil moisture conservation etc for forest land clearance.

6. 7an& Policy fo# ene!able "ne#$y P#ojects: The availability of suitableland and ma


16/31

from the date of applying for the same. 'overnment will review the applicablestamp duty.

6. (ii) Gove#n8ent. 9a##en lan&s 8eant fo# %n&0st#ial se:Thebarren 'overnment lands& reserved& as per the industrial planning forindustrial use& at declared Renewable Energysites& 04 of such lands willbe dministrative +epartment will monitor the reports in a time bound manner.6. (vi) stat0to#y clea#ances:Iarious statutory clearances that are essentialfor the development and commissioning of the Renewable Energypro$ects willbe dealt by the *arnata


17/31

speedy approvals and clearances within 90(a&!for all departments " agenciesand 120 (a&!in case of /orest clearance. The issues pending for longer periodswill be placed before the Kuarterly Review )eetings held at the level of the ChiefSecretary& 'overnment of *arnata


18/31

preceding :uarter before the allotment committee with due scrutiny"evaluationand recommendations. The >llotment Committee will be constituted andseparately notified.

-. (ii) 'lea#ance of ene!able "ne#$y P#ojects:Clearance of RenewableEnergypro$ects involves sanctions"clearances from a number of 'overnment

>gencies"+epartments. The concerned department will give necessary approvaland clearance within 90days of the application submitted. *RE+ will monitorwith the concerned departments.

-. (iii) Sin$le /in&o! 'lea#ance:> State evel Empowered Committee withthe Chief Secretary 'overnment (f *arnata


19/31

Regulatory Commission ,*ERC- guidelines. +ue grid strengthening will beundertand Renewable Energy.

1,. (v) oof op Sola# a#iff:The Roof Top 'rid connected solar *6p levelpro$ects of 5 *6p to 00 *6p will be allowed connecting at !5 I& 8 phase& *I level of distribution system of the licensee in such a manner that themaimum energy in$ection will not be more than 904 of the consumption fromthe distribution licenseeDs source by the Solar Roof Top consumer. >ny in$ectionin a billing period eceeding 904 of the consumption will be treated asinadvertent and will not be considered for commercial purpose@ neither the deficitis carried forward to net billing period. Such in$ection will be settled on 7et 1asiswith the consumption of the said consumer from the distribution licensees source

in each billing period. Roof Top 'rid connected solar power :uantum fed to the'rid will be eligible for a Tariff of Rs 8.!0 per *6h along with 7et )eteringfacility.f any incentives available from )inistry of 7ew and Renewable Energy'overnment of ndia& it will be passed on to the +eveloper. ;owever& Roof Topsystems will be additionally eligible for any other subsidies etended to the RoofTop #ro$ects. Solar #hoto Ioltaic systems below 2 *6p will be battery bacpplications.

1,. (vi) /heelin$ of "lect#icity:wheeling charges L 5 4will be applicablesub$ect to the *ERC norms.

1,. (vii) 9anin$ of "lect#icity:The ban


20/31

#urchase >greement eecuted between the #ower #roducer and witnessed by*arnatagreementwill be eecuted in a time bound manner. #ower Company of *arnatagreements to the ESC()s with bac< to bac) Settle8ents: >ll transactions between the *arnatae8ption f#o8 ;e8an& c0t:Eemption of demand cut to theetent of 504 of the installed capacity assigned for captive use purpose& will beallowed.1,. (>ii) Sec0#ity ;eposit an& oyalty:The 'overnment will determinesuitable Security +eposit for the Renewable Energy pro$ects to bring inearnestness in pro$ect implementation. The :uantum of royalty to be levied onenergy generation from Renewable Energy sources will be determined by the'overnment.

11. Policy on 2inancial %ncentives: /ollowing incentives will be etended toall the Renewable Energy#ro$ects.

11. (i) Gove#n8ent Of %n&ia %ncentives: The various concession andincentives allowed by )inistry of 7ew >nd Renewable Energy "'overnment (fndia regarding +etailed Survey ? nvestigation"+etailed #ro$ect Report&'eneration 1ased ncentive etc will ipsofacto continue to be passed on by theState 'overnment to the pro$ect developer through *arnata


21/31

11. (v) 7ette# of '#e&it: The ESC()s will etend the facility of etter ofCredit to the +eveloper for realiHing payment in scheduled period for theRenewable Energypower sold to the ESC(). The cost for opening the etter ofCredit shall be reimbursed to the ESC()S from >ct200. ,i- The )andatory use of solar water heating systems. ,ii- )andatory useof Compact /lorescent amp ,C/- in 'overnment 1uildings " aided institutions "1oards" Corporations. ,iii- )andatory use of S mar< Energy Efficient )otorpump sets& #ower capacitor& /oot valves in >griculture sector and ,iv- #romotionof Energy Efficient 1uilding design. 6ith a view to facilitate and enforce theimplementation of various provisions of Energy Conservation >ct200 and tota


22/31


23/31

2. )unicipal Energy Efficiency #rogram M mprovement of energy efficiencyin )unicipal 6ater #umping& Effluent Treatment and 6aste to Energy.

1+. (iii) "ne#$y 'onse#vation 20n&: n order to overcome the financialbarriers in the implementation of Energy Efficiency activities by energyconsumers in *arnata


24/31

would involve a total investment of Rs 530 Crores. To facilitate successful epeditiouscommissioning of the targeted wind pro$ects the various statutory clearances will becleared through single window mechanism. *arnata


25/31

processing unit residues ecluding 1aggasse out of which about 9 million metric tons isestimated to be surplus biomass as per the SC& 1angalore study. The state with 8million hectors of forest land offers /orest residues plus dry 1amboo biomass sources.+uring the policy period& it is targeted to harness 800 )6 of power through biomasspro$ects based on Ranll CityCorporations& )unicipalities will amend their bye M laws with due mandatoryprovisions for providing solar water heating facilities& right at planning"building

2+


26/31

stage& both for residential ? commercial categories. t will be mandatory for allthe public buildings to have solar devises to meet energy re:uirements and otherapplications.

13. (vii) i&al ene#$y an& Geothe#8al ene#$y:To harness and develop

the tidal wave energy Technology +emonstrations from laboratory scaleResearch ? +evelopment to /ield level will be encouraged along withestablishing #rototype +emonstration #ro$ects to produce energy from tidalwave. To eplore the possibility of harnessing and development of 'eothermalEnergy Research ? +evelopment assessment in collaboration with premierscientific and technological institutes will be eplored.

14. 9enefits 0n&e# 'lean ;evelop8ent Mechanis8 (';M): 'overnmentof *arnata


27/31

will e:uip itself with technical particulars& costs& approved and validatedRenewable Energy e:uipments and vendor particulars etc after duepre:ualification process. *arnata


28/31

Enterprises adopting such best practices will be recogniHed with state awardsevery year.

+,. 7ocal "8ploy8ent: The Renewable Energy pro$ects will provideemployment to the local people& in respect of all the uns high level nter +epartmental Review Committee will beconstituted to regularly monitor implementation of all provisions of the policy. Thiscommittee will also ensure issue of necessary 'overnment (rders by variousdepartments in relation to the policy without loss of any time for midcoursecorrections& if re:uired for smooth implementation of the #olicy.

+4. 8en&8ents@ela>ation@%nte#p#etation of the Policy: 'overnment

of *arnata


29/31

7oncurrence #or Solar 'ari## and Roo# 'o" Cet $etering.

2 inance e"art&ent

?o(ern&ent o#

Karnataka

7oncurrence #or le(y o# green 7e on


30/31

?o(ern&ent o#

Karnataka

7o&&ittee- Single indow agency%


31/31

K,RC,',K, RECE,B5E ECER? EHE58P$EC' 5

Documents

Renewable Energy Policy 2009-14