Annexure -I
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
SCHEME FOR PROMOTION OF GRID INTERACTIVE POWER GENERATION PROJECTS BASED ON RENEWABLE ENERGY TECHNOLOGIES
The Ministry of New and Renewable Energy (MNRE) has been providing subsidy to grid-interactive power generation based on various renewable energy sources. Through this scheme, the Ministry would provide subsidy to projects in government/ private / joint / co-operative / NGO sector. to set up grid-interactive power generating projects based on the following renewable energy sources:
Biomass
Wind Power (only demonstration projects)
2. The subsidy for private sector, joint sector, cooperative sector etc. projects will be released after successful commissioning, and commencement of commercial generation and testing of the project, except in the case of cooperative/public and joint sector bagasse cogeneration projects. For Government projects only, subsidy would be released linked to physical progress.
3. The Ministry reserves the right towards grant of subsidy and to review/recall the sanctioned/released subsidy in the event of subsequent developments coming to its notice, which is in violation to this scheme or may adversely affect the project. The Financial Institution (FI) and the Developer shall be bound by the decision of the Ministry in this regard.
I. DEFINITION
Biomass: For the purpose of eligibility under this scheme, biomass will include wastes produced during agricultural and forestry operations (for example straws and stalks) or produced as a by-product of processing operations of agricultural produce (e.g., husks, shells, deoiled cakes, etc); wood produced in dedicated energy plantations or recovered from wild bushes/weeds; and the wood waste produced in some industrial operations.
Cogeneration: It is the process in which more than one form of energy (such as steam and electricity) is produced in a sequential manner by use of biowaste of a renewable nature, including bagasse and rice husk.
Bagasse Cogeneration: Cogeneration is combined heat and electricity (CHP) in the sugar mills using bagasse.
Biomethanation: Means a process which entails enzymatic decomposition of organic matter by microbial action to produce methane rich biogas.
Biomass Power using Advanced Technologies: This includes technologies such as Biomass Integrated Gasification and Combine Cycle (BIGCC); Integrated Pyrolysis Combine Cycle (IPCC); Fluidized Bed Gasification (FBG) and plasma.
Biomass Combustion: Biomass materials are burned to produce steam (Rankine Cycle)
Surplus Electricity: Quantum of installed electricity generation capacity which is over and above the captive requirement of the mill, colony etc.
Special category States and Islands: Seven States of NE Region, Sikkim, Himachal Pradesh, J&K, Uttaranchal and Island Uts.
II. ELIGIBILITY
A. Capacity and other Parameters
Projects with the following capacity/parameters will only be eligible under the scheme;
Biomass Based Project
Biomass Power (combustion)
:
· Minimum 62 bar steam pressure
· Maximum of upto 15% use of fossil fuel of total energy consumption in K.cals or as per DPR, whichever is less.
· For only new boilers and turbines
(capacity limited to in accordance with the estimated potential in a state)
Co-generation
:
· Minimum 40 bar steam pressure
· Maximum of upto 15% use of fossil fuel of total energy consumption in K. cals. or as per DPR, whichever is less, during crushing season.
Biomass power with advanced
technology
:
Wind Energy
(only for State Governments)
:
· WEG installed capacity greater than
500 KW
· not more than 1% of technical potential of the state or 6MW, which ever is less
· states where commercial activity has not yet been initiated. / taken off
III. SUBSIDY
Following subsidy is proposed to be provided to new grid connected power projects. The subsidy for the projects is linked to capacity(C in MW)of the project and the per MW subsidy will decrease with increase in capacity of the projects above I MW and vice versa.
|
|
Special Category States (NE Region, Sikkim, J&K, HP & Uttaranchal) |
Other States |
|
Biomass Based projects |
||
|
Biomass Power projects |
Rs 25 lakh X |
|
|
Bagasse Co-generation |
Rs 18 lakh X (C MW)^0.646 |
Rs 15 lakh X (C MW)^0.646 |
|
Bagasse Co-generation projects by cooperative/ public/joint sector
40 bar & above 60 bar & above 80 bar & above
|
Rs. 40 lakh * Rs. 50 lakh Rs. 60 lakh Per MW (maximum support Rs. 8.0 crore per project) |
Rs. 40 lakh * Rs. 50 lakh Rs. 60 lakh Per MW (maximum support Rs. 8.0 crore per project) |
|
Biomass Power using Advanced Technologies |
Rs. 1.2 crore X (C MW)^0.646 |
Rs. 1.0 crore X (C MW)^0.646 |
|
Wind Power projects |
Rs 3.00 crores X (C MW)^0.646 |
Rs 2.50 crores X (C MW)^0.646 |
*For new sugar mills (which are yet to start production and sugar mills employing backpressure route/seasonal/incidental cogeneration) subsidies shall be one-half of the level mentioned above.
(i) Subsidy for Renovation and Modernisation of old SHP projects and for completion of languishing SHP projects would be limited to 50% of the subsidy amount for new SHP projects. This support is only for the government sector.
(ii) Subsidy for identification of new potential SHP sites and preparation of perspective plan by State agencies and Water mills will be same as in the present scheme.
(iii) The activities of R&D, support for seminar/symposium, strengthening of technical institution etc will continue to be supported by the Ministry on case by case basis.
IV. QUALITY OF PROJECT
Quality of project and the equipment utilised therein is considered important for reliability and long-term operations. Project developers would be required to follow various international standards or national standards harmonized with the same as applicable to respective technologies. This would be an important criterion in granting subsidy for a project. The Ministry would issue list of such standards time to time.
Wind power projects must confirm to relevant international/national codes of practices, including the following standards:
|
Equipment |
Standard |
|
Wind Turbines safety and design |
IEC 61400 , IEC 61400-1 Ed2 IEC 61400-2 |
|
Power performance |
IEC 61400-12 |
|
Noise Measurement |
IEC 61400-11 |
|
Mechanical load Measurement |
IEC 61400-13 |
|
Wind Turbine Certification |
IEC 61400-22 |
|
Blade Structural Testing |
IEC 61400-23 |
|
Power Quality |
IEC 61400-21 |
The projects would also be required to be tested for performance as per DPR norms. For SHP projects, AHEC IIT, Roorkee would carry out the performance test and cost towards this would be borne by the developer whereas for wind projects C-WET will carry out the same at the cost of the developer.
Biomass and Cogeneration
Standards being issued separately.
V. SUBMISSION OF REQUEST FOR SUBSIDY
(i) Application for subsidy should be submitted in the prescribed format complete in all respects after erection and successful commissioning of the project in cases where subsidy is back ended. However, in case where part subsidy is upfront, application is required to be sent before commencement of the project with a copy to the concerned SNA. The prescribed format are enclosed.
(ii) For projects where loan is being availed, the application should be submitted complete in all respects through the lead FI.
(iii) The Developers/Agencies/State Government/Institutions/Industries setting up projects through their own resources may submit the application complete in all respects directly with a copy to the concerned SNA.
(iv) In case where there is upfront subsidy/part subsidy, the application, complete in all respects, should be submitted in the prescribed format after obtaining all necessary statutory clearances and financial closure. The application should clearly indicate the expected date of completion of the project, performance guarantee test and commencement of commercial generation of electricity.
(v) Mere submission of application, or in case additional information is sought by MNRE, the same would not tantamount to eligibility for subsidy.
(vi) All application should reach the respective divisions in MNRE as follows:
(i) Biomass and Cogeneraiton – Attention: Dr. J.R. Meshram
(ii) Wind – Attention: Dr. J.R. Meshram
VI. SANCTIONING OF SUBSIDY
VII. RELEASE OF SUBSIDY
Upfront subsidy/part subsidy
(i) For government sector projects, subsidy would be released as: 25% at the time of sanction, 50% with physical progress on ground and 25% after successful commissioning of the project as per DPR norms and performance testing.
(ii) For bagasse cogeneration projects in cooperative / public/ joint sector sugar mills 50% of eligible subsidy will be released to the FI after sanction of the loan towards reducing the loan amount. Balance 50% will be released after successful commissioning of the project as per DPR norms, and performance testing during which operations should be demonstrated for atleast 90 days and 100 per cent rated capacity for atleast 72 hours.
(i) Sanctioned subsidy amount shall be released in a single installment, on successful commissioning of the project and performance testing during which 80 per cent of rated capacity should be demonstrated for 90 consecutive days and 100 per cent rated capacity for atleast 72 hours. A certificate from the concerned SEB/transmission company (the authority designated in the State for signing PPA) will have to be produced to this effect. The subsidy would reduce the loan by an equivalent amount and would be deemed as a pre-payment of the loan by the developer. In case the project is set up by the developer through its own resources, the subsidy would be released directly to them.
For all projects
(i) The developer or his successor will be required to provide data on its generation performance on a six monthly basis to MNRE for a period of 10 years after it has commenced commercial generation.
(ii) The Ministry will have the right to publish case studies/success stories/ articles/ technical papers on projects provided subsidy/part subsidy.
(iii) Award of subsidy by the Ministry will not make it a party to any liability which may arise on account of operation of the project such as accidental injury to persons, damage to surroundings, rehabilitation of displaced persons etc. The promoters will have to expressly undertake at the time of application to absolve the Ministry in totality of all such liabilities.
VIII. INCENTIVES TO STATE NODAL AGENCIES
The State Nodal Agencies would be given an incentive/service charge @ 0.25% of subsidy in order to facilitate developers in setting up projects except in the case of SHP projects. This would be released after release of full subsidy amount.
IX. ONGOING SANCTIONED PROJECTS AND PENDING PROPOSALS
In order to rationalize incentives given by the Ministry under its old schemes for grid interactive renewable power, it is proposed that such projects which have been supported by the Ministry in past under its interest subsidy schemes would be given option to get the un-disbursed subsidy amount adjusted against the outstanding loan amount as one time support after successful commissioning of the project as above. The subsidy total amount as per the proposal will be equivalent to the original sanctioned interest subsidy amount, taking the appropriate discount factor used in the case of release of funds to IREDA. This would not lead to any additional outgo of funds as the same have already been released to IREDA / other FIs
X. The scheme would be applicable from date of its issue and would continue upto the end of 10th Five-Year Plan i.e. 31 March 2007.
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