Rajasthan Wind and Hybrid Energy Policy 2019

Rajasthan Wind and Hybrid Energy Policy 2019

Rajasthan Wind and Hybrid Energy Policy 2019

To create clean and green energy, the State of Rajasthan implemented Rajasthan Wind and Hybrid Energy Policy 2019. The policy was implemented to increase energy security and equity, reduce carbon emissions and pollution. The policy aims to provide support to the stakeholders by promoting Wind and Hybrid energy and protecting the interests of the consumer. The Wind and Hybrid Energy Policy would support to achieve the target of generating 175 GW Renewable Energy by the year 2022. The policy is monitored by the Department of Energy, Rajasthan. The policy is active from 18th December 2019.

Vision

  • To strengthen the transmission and distribution networks for the state of Rajasthan.
  • Provide support to increase the manufacturing of wind energy equipment.
  • Promote projects related to wind and hybrid energy and provide support to create storage systems.
  • Promote hybridisation to enhance wind and solar technologies to meet the challenges of the grid security
  • Create a stable utilisation of the land and transmission systems

Objectives

  • Increase Renewable Energy in the state of Rajasthan to meet the Renewable Purchase Obligation (RPO) RPO requirement.
  • Provide support to increase infrastructure and distribution network.
  • Create a platform to increase the use of power by obtaining a maximum share of renewables.
  • Utilise the unutilised land for creating Wind Energy Hubs.
  • Create a platform to attract investors and developers to set up  RE generation capacity for the state of Rajasthan and other states.
  • Provide investment opportunities for SMEs and MSMEs.
  • Create a framework supporting Wind-Solar Hybrid system for increased use of infrastructure and land.
  • Implement facilities to improve the technologies to generate more wind and solar power.
  • Create a platform to develop Wind and Solar projects from states other than Rajasthan

Targets by the Policy

The policy aims to accomplish the following targets:

  • To produce 2000 MW of wind power capacity for RPO by 2024-25.
  • Distribution Companies (DISCOMs) or Rajasthan Urjaq Vikas Nigam Limited (RUVNL) shall produce beyond the RPO requirement for commercial purposes.
  • The state shall produce 2000 MW for DISCOMs within and outside Rajasthan.

Tariff

  • The tariff shall be adopted through the bidding process. The process shall be framed by the Rajasthan Electricity Regulatory Commission (RERC).
  • The state shall promote to facilitate third party investors through contract demand.
  • 5% of the target from the RPO shall be produced by the DISCOMs. The tariff shall be set by the bidding process.
  • The state shall promote third party sale to promote Wind power projects with storage systems.
  • The minimum rates of the energy capacity of an Energy Storage System (ES) shall be calculated as X/2MWh.
  • The RPO for the DISCOMs shall be monitored by the RERC

Agreement of Power Purchase

The following is the mode of the power purchase agreement between the Developer or Power Producer and Procurer of the power:

  • Projects sanctioned for wind power plants under clause 8.1 shall be executed between the DISCOMs or RUVNL and successful bidders or power producers
  • For projects related to clause 8.2, 8.3 and 9.2, the developer or the power producer shall create a Wheeling and Banking Agreement with the DISCOMs.
  • If RVPN is used in the Wheeling and Banking Agreement, the Power Producer or the developer shall create a separate Transmission Agreement with RVPN.
  • Power Purchase Agreements (PPA) shall be allowed to assign partially or fully under the following conditions:
    • After the project is completed and the set up is connected to the grid
    • After the consent from RREC, RVPN or DISCOMs
    • After payment of Rs.2 lakh per application to RREC (GST applicable)
  • If the project is financed by any financial institution or lender, the name can be included in the PPA on request by the Developer or Power Producer.

Registration of the Wind Power Projects

  • As per the policy, all the projects installed in the state of Rajasthan should be registered with RREC.
  • Any wind energy projects registered under the 2012 policy shall be treated as registered in 2019 policy. The registration number shall remain the same.
  • The Developer or the Power Producer shall provide the registration fee to the state agency for projects created under the RE (Non-Solar) certificate mechanism.
  • The Developer or the Power Producer can transfer the registered facility by acquiring approval from the RREC. The Developer or the Power Producer shall also pay an amount same as 50% of the registration amount.
  • To participate in the bidding process, the policy does not require registration from the Developer or Power Producer.
  • Upon registration with the RREC, the Developer or Power Producer shall receive a certificate to initiate projects
  • Any wind power plants or projects that do not undergo the registration process with the RREC shall be discontinued from the grid.

Registration Fee 2019

The following is the non-refundable registration fee for the Wind Power Projects:

S. No.

Capacity

Fee

1

For Project Capacity < 100MWRs.50,000 per MW

2

For Project Capacity ≥

100MW

Rs.50 Lakh per project

The following is the non-refundable registration fee for the Hybrid Power Projects:

S. No.

Capacity

Fee

1

For Project Capacity ≤

10 MW

Rs.50,000 per MW

2

For Project Capacity >

10 MW and ≤50 MW

Rs.5 Lakh per project

3

For Project Capacity > 50 MW and ≤ 100 MWRs.10 Lakh per project

4

For Project Capacity > 100 MWRs.30 Lakh per project

Clearance of Wind Power Projects

The following criteria shall be evaluated and examined by the State Level Screening Committee for project clearance:

  • Detailed Project Report
  • Financial Capability of the power producer
  • Availability of land
  • Power evacuation system for the proposed project
  • Original Document of PPA stating the third party sale for the power exchange

Security Deposit

  • After the clearance of the project by the State Level Screening Committee, the Developer or the Power Producer should provide a security deposit of Rs.5 lakh per MW. The security deposit shall be provided in DD/RTGS within one month without any interest.
  • If paid within three months, the concerned party shall pay with an interest of 9% per annum.
  • If the Developer or the Power Producer fails to provide the security deposit within the stipulated time, the in-principle clearance shall be cancelled without prior notice.
  • After providing the security deposit, the Developer or the Power Producer should apply for the final approval within six months. Failing to apply within the stipulated time the in-principle clearance shall be cancelled without prior notice.
  • If the Developer or the Power Producer needs to withdraw 75% of the amount shall be refunded. The refund applies only to the projects registered under the 2019 policy.

Manufacturing Wind Energy Equipment

The following concessions shall be provided by the State of Rajasthan to promote manufacturing facilities:

  • SMEs and MSMEs can apply
  • 50% concessional rate in a land allotment in industrial areas
  • 100% exemption on stamp duty
  • Exemption of electricity duty for ten years
  • 90% Investment subsidy for energy equipment manufacturers for seven years

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Post by Peter

Peter is a Senior Content Writer and Copy Editor in Finance specializing in GST and Import & Export. He has also written articles on Medical, Philosophy, and Literature and published research papers in international journals.