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Uttar Pradesh
Biomass energy policy 2011 (draft)

Date of issue

26 February 2010

Title of policy document

Draft Biomass Energy Policy 2011

Nodal Agency

Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA)

Offtake arrangement

Power Purchase Agreement (PPA)

Yes, the distribution licensee will enter into PPA with the project developer at tariff rates fixed by Uttar Pradesh Electricity Regulatory Commission (UPERC).

Use for captive

Yes. Allowed to sell 10% of the total generation under open access to third party for next 10 years, provided the power producer does not reduce the existing capacity of power generation; or according to any amendment made from time to time by Uttar Pradesh Power Corporation Limited (UPPCL) in that respect.

Sale to third party

Grid interfacing

Biomass Power Producer (BPP)

BPP/ UPPCL will develop and maintain grid interfacing arrangements and generate plant substation as per the Grid Code.

Charges will be paid by the developer to UPPCL/UP Power Transmission Corporation Limited (UPPTCL)/DISCOM as the case may be within 3 months of signing the PPA.

Evacuation system beyond generating plant substation till the nearest UPPCL/UPPTCL/DISCOM 220/132/33 kV or 132/33 kV grid substation shall be developed by BPP as per UPERC/UPPTCL/ DISCOM regulation.

The wheeling charges will be as per UPPCL/UPPTCL/DISCOM existing norms or as decided by UPERC.


BPP/ UPPCL will bear the entire cost of generating the plant substation.

Transmission and distribution augmentation

Generating plant shall supply power to Distribution Licensee of its area through a 33
kV or higher voltage line terminating at the nearest 132 kV substation as per the voltage and capacity cited below:

  • Installed capacity up to 10 MW on 33 kV

  • Installed capacity between 11-14 MW may be connected at 33 kV with the
        permission of UPERC

  • Installed capacity above 15 MW on 132 kV
  • Transmission company

    The distribution Licensee or State Transmission Utility shall ensure the following:

  • The generation from small generating stations based on biomass up to 2 MW
        capacity may be terminated at 11 kV level at tail end substation, subject to the
        approval of UPERC.

  • Generating power plant based on municipal solid waste and industrial
        waste/effluent may be terminated at 11 kV substation, subject to the approval of
  • Registration of projects

    Registered with UPNEDA, whether captive or grid interactive.

    Incentives by State Government

    Electricity duty

    Exempted for a period of seven years from Commercial Operation Date (COD).

    Other grants

  • VAT on the equipment of biomass power projects will be 1% MW for only
        the first grid interactive biomass project in each of the districts; and also for the
        first captive use 5 projects in each district.

  • In case of private land, 50% exemption in stamp duty will be admissible at 1.5

  • Renewable Purchase Obligation (RPO) of State DISCOM/ UPPCL with regard to
        purchase of energy generated from biomass based power plant shall be up to
        90% at tariff rates fixed by UPERC.

  • Industrial grant


    Land allotment

    State Government shall facilitate land assembly as per the current state policy.

  • The government land will be leased to developer at Rs 1.00 per sq m for the period
        of 33 years.

  • There will be no conversion cost in land use change.

  • For private land, land cost would be fully borne by the developer.

    Single window clearance

    The Government of Uttar Pradesh (GoUP) will facilitate grants, permissions, approvals, no objection certificates, recommendations, etc. under the purview of the State Government. The developer shall be responsible for obtaining all statutory clearances/approvals, including approvals related to Foreign Direct Investment, if any as per law.

    Other promotional schemes

    Area reserved for earlier registered biomass projects:

  • 40 km radius area reserved for 5 MW and increases as the capacity of power plant
        increases. Maximum area 60 km for 15 MW.
  • Clean Development Mechanism (CDM) benefits:

  • 100% of the gross proceeds shall be retained by developer during the first year of
        commercial operation.

  • In second year, the share of the DISCOM/UPPCL/UPNEDA shall be 10%, which
        shall progressively increase by 10% every year till it reaches 50%, whereafter the
        proceeds shall be shared in equal proportion by the generating company and
        DISCOM/UPPCL/UPNEDA. The amount received by UPPCL/DISCOM will be
        shared with UPNEDA in equal proportion.

  • Contact details

    Uttar Pradesh New and Renewable Energy Development Agency
    Vibhuti Khand, Gomti Nagar,

    Lucknow 226 010

    Tel: 0522 272 0829 / 0522 272 0652,
    Fax: 0522 272 0779,

    Policy document


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