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Promoting generation of electricity through renewable energy sources 2005

Date of issue

23 November 2005 (amended on 19 March 2008 and 29 March 2010)

Title of policy document

Promoting Generation of Electricity through Renewable Energy Sources

Nodal agency

Haryana Renewable Energy Development Agency (HAREDA)

Capacity target and period


Offtake arrangement

Power Purchase Agreement (PPA)

Yes, for minimum of 20 years or more depending on the plant’s life.

Use for captive

Licensee/Utilities will undertake to transmit on its grid the power generated by power producers using nonconventional energy sources as per the tariff approved by Haryana Electricity Regulatory Commission (HERC) time to time.

Sale to third party

Grid interfacing

Biomass Power Producer (BPP)

Power producer installs interfacing equipment (transformers, control and relay panels along with the requisite protection schemes, marshalling kiosks, kiosk protection, metering, High Tension inter connection points) from the points of generation to Haryana Vidyut Prasaran Nigam Limited (HVPNL), Uttar Haryana Bijli Vitran Nigam (UHBVN), Dakshin Haryana Bijli Vitran Nigam (DHBVN) and any other licensee, nearest High Tension (HT)/Low Tension (LT) lines, etc.

The maintenance of the lines will be as per the orders of HERC/Central Electricity Regulatory Commission (CERC)/Appellate Tribunal for electricity on Renewable Energy Tariff and other issues, as modified from time to time.

Utility to carry out the augmentation of transmission and distribution system of substation capacity 33/11 kV or higher capacity, if required, at the cost of power producers.

Two sets of meters will be installed on the high transmission side by the producer, as main meters and check meters. In case of cogeneration/captive power generation, two sets of separate meters will be installed, one for export of power and the other for import of power.

Wheeling charges

If HT /LT lines are required to be laid beyond Licensee/Utilities lines for wheeling the power at any desired point, then the cost of the same should be borne by the power producer.

Registration of projects

A Technical Appraisal Committee (TAC) shall scrutinize the techno-economic feasibility of the report. Project up to 5 MW capacity will be considered and approved by the Board of Governors of HAREDA on the recommendations of TAC within two months after submitting the proposals.

For the projects above 5 MW capacity, a high powered committee constituted by the State Government  under the chairmanship of Chief Secretary, Government of Haryana shall consider the report of TAC, shortlist, prioritize and approve/reject the investment proposals for allocation of sites for preparation of Detailed Project Reports (DPR) by the private investors within two months after the TAC recommendations.

After approval of proposal, HAREDA will enter into a Memorandum of Understanding (MoU) with the private investors for preparation of DPR within one month.

After approval of DPR by HAREDA, the private investors would enter into PPA with the concerned power utilities/licensee for the sale of power to it or to third party after getting necessary approval from HERC within two months from the date of providing the clearance on DPR.

Time schedule and penalty provisions

Delays in activities

If the applicant does not take effective steps (i.e. at least 10% of the total project cost should be incurred) to implement the project within six months from the date of signing of PPA, the Agreement could be terminated and the site shall be allocated to another applicant and the security deposited with HAREDA by the power producers shall be forfeited.

Incentives by State Government

Electricity duty

Exempted from electricity duty

Industrial grant

Yes, considered under Industrial Policy, 2005

Local area development tax

Exempted on plant, machinery, equipment of the renewable energy projects

Land allotment

The State Government will acquire land, if necessary, at the cost of BPP if a request to that effect is made.

Setting up of biomass project in the agriculture zone will be permitted by the Town and Country Planning Department without levying conversion charges.

Water availability


Fuel/raw material for cogeneration plants

The use of conventional fossil fuels (coal, diesel, etc.) in cogeneration projects may be necessary during the off-season period to augment the nonfossil fuels and, therefore, the use of same shall be allowed as per the Government of India policy from time to time.

Contact details

Haryana Renewable Energy Development Agency
Akshay Urja Bhawan
Institutional Plot No. 1
Sector 17, Panchkula 134 109
Tel: 0172 258 7233/ 0172 258 7833
Fax: 0172 256 4433

Policy document


* NA - Not Applicable
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Last updated on: May 20, 2016