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Kerala
Kerala renewable energy policy 2002

Date of issue

3 April 2002

Title of policy document

Kerala Renewable Energy Policy

Nodal agency

Agency for Non-conventional Energy and Rural Technology (ANERT)

Capacity target and period

NA

Offtake arrangement

Power Purchase Agreement (PPA)

PPA for a minimum period of five years between Kerala State Electricity Board (KSEB) and power producer

Grid interfacing

Biomass Power Producer (BPP)

BPP will undertake the cost of interfacing equipment (transformers, panels, kiosk, protection, metering, high tension lines etc.) as required from the point of generation to the nearest high tension (HT) lines. The maintenance of the equipment will also be done by the developer as per the specifications and requirements of KSEB. If developer requests KSEB for installation and maintenance of the equipment, the producer will pay the entire cost to the latter, at charges decided by the board.


BPP has to bear the cost of transmission lines from the substation to the project and all other related equipment such as metering arrangement and protection system, capacitor banks, etc.

Transmission and augmentation

KSEB will undertake to augment the substation capacity at its cost to receive the power generated by the producer. KSEB will also undertake the augmentation of transmission lines and laying of new lines if required.


ANERT to recover 50% of this expenditure from BPP and give it to KSEB.

Wheeling charges

KSEB to transmit on its grid the power generated by producer and make it available to him for captive use or for banking, at a uniform wheeling charge of 5% of the energy fed into the grid, including transmission loss.

Banking charges

  • 100% banking allowed for the period June-February in every financial year.

  • During March-June, the producers can bank power with KSEB.

  • Producer can take this banked power back only during the period June-February in the
        same financial year.

  • Accounting to be done at the end of every financial year.

  • If the banked energy is not utilized at the end of the financial year, it will lapse and the
        same can be purchased by KSEB at the average selling rate of KSEB
        electricity, applicable during the corresponding year.
  • Security package

    KSEB to provide facilities of an irrevocable, divisible, revolving and confirmed stand by Letter of Credit (LC) by any Nationalised Bank. The amount of LC to be equal to the expected payment for one month by the board.

    Time schedule and penalty provisions

    Sanctioned projects to be completed and commissioned within a period of 12-18 months, from the date of issue of formal sanction/approval. If the producer fails to maintain this time frame without sufficient and appropriate reasons, the approval/sanction to be cancelled and all facilities extended to the eligible producer to be withdrawn. Also, security deposit is to be forfeited.

    Incentives by State Government

     

    Electricity duty

    Exempted for its captive use or upon sale to a nominated third party.

    Industrial grant

    All new renewable energy (RE) projects to be given industry status under the schemes administrated by Industries Department, and incentives will be made available to eligible producers for establishing and running such power generation plants.

    Entry tax/ Octroi refund

    Exempted

    Statutory regulations for captive plants

    Large industries with 2000 kVA and above as connected load should produce at least 5% of their requirement through captive power plants using RE sources.

    Contact details

    Agency for Non-conventional Energy and Rural Technology
    Department of Power
    Opposite Police Parade Ground
    Thycaud, Thiruvananthapuram 695 014
    Tel: 0471 233 8077 / 0471 233 4122
    Fax: 0471 232 9853
    Email: director@anert.in
    Website: www.anert.gov.in

    Policy document

    Policy

    * NA - Not Applicable
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