Non Conventional Energy Sources

Options for Renewable/ Captive/ IPPs etc.
EXTRACTS FROM ELECTRICITY ACT 2003
Para 3(1) NATIONAL ELECTRICITY POLICY AND PLAN:

The Central Government shall, from time to time, prepare
the national electricity policy and tariff policy, in consultation
with the State Governments and the Authority for
development of the power system based on optimal
utilisation of resources such as coal, natural gas, nuclear
substances or materials, hydro and renewable sources of
energy.
EXTRACTS FROM TARIFF POLICY
Para 6.3 Harnessing Captive Generation
• Captive generation is an important means to making competitive power

available. Appropriate Commission should create an enabling
environment that encourages captive power plants to be connected to
the grid.
• Such captive plants could inject surplus power into the grid subject to
the same regulation as applicable to generating companies.
• The prices should be differentiated for peak and off-peak supply and the
tariff should include variable cost of generation at actual levels and
reasonable compensation for capacity charges.
• Alternatively, a frequency based real time mechanism can be used and

the captive generators can be allowed to inject into the grid under the
ABT mechanism.
EXTRACTS FROM TARIFF POLICY
Para 6.4 : Non-conventional sources of energy generation
Pursuant to provisions of Section 86(1)(e) of the Act, the
Appropriate Commission shall fix a minimum percentage for
purchase of energy from such sources taking in to account
availability of such resources in the region and its impact on
retail tariffs.
Para 6.4 contd…

It will take some time before non-conventional technologies can
compete with conventional sources in terms of cost of electricity.
Therefore, procurement by distribution companies shall be done
at preferential tariffs determined by the appropriate commission.
Non Conventional Energy Sources
POSSIBLE OPTIONS FOR SALE OF ENERGY:
- Short Term Open Access

- Unscheduled Interchange(UI)
- Through Tariff determined by Regulator
ISSUES OF IMPORTANCE IN CASE OF NON-
CONVENTIONAL (Renewable) ENERGY SOURCES
- FAVOURED ACCESS / WHEELING CHARGES

- POSSIBILITY OF BANKING
- EXEMPTION FROM MERIT ORDER
- MUST RUN STATUS
- ENABLING TARIFF BY STATE COMMISSIONS
POSSIBLY SIMILAR TREATMENT IS TO BE MOOTED TO SUCH
OTHER RENEWABLE SOURCES VIZ. MINI / MICRO HYDEL ETC.
ESC TO EXIT
SALE OF NON CONVENTIONAL ENERGY THROUGH STOA:
- CAN NOT BE DISPATCHED/ REGULATED

ON A REAL TIME BASIS;
- AVAILABLE ON SEASONAL BASIS;
- TO BE TAPPED WHENEVER AVAILABLE
- APPLICATION OF ACCESS CHARGES
(Access Charges could very from 10 -25 %)
HENCE POSSIBILITY OF SELLING N.C. ENERGY

THROUGH STOA IS NOT VERY ENCOURAGING.
SALE OF WIND ENERGY THROUGH UI
- CANNOT REGULATE THE GENERATION

DEPENDING ON FREQUENCY
DETAILS
AVG. UI RATE COMES IN THE RANGE OF AROUND Rs.

2.00 – 3.00 Per unit
HENCE POSSIBILITY OF SELLING THROUGH UI MAY

NOT BE ENCOURAGING ALL THE TIME
EXTRACTS FROM APERC ORDERS IN THE
MATTER OF DETERMINATION OF TARIFF IN
RESPECT OF RENEWABLE SOURCES OF
ENERGY.
YEAR AVG.UNIT
RATE(RS.)
2002-03 3.31
2003-04 3.48
2004-05 3.04
2005-06 3.04
EXTRACTS FROM KERC ORDER DATED 18TH
JAN 2005 IN THE MATTER OF DETERMINATION
OF TARIFF IN RESPECT OF RENEWABLE
SOURCES OF ENERGY.
TYPE UNIT
RATE(RS.)
MINI HYDEL PROJECTS (10 YEAR PERIOD) 2.80
WIND PROJECTS (10 YEAR PERIOD) 3.40

CO-GENERATION PROJECTS (1ST YEAR AND 2% 2.80
PER ANNUM ESCALATION FOR NEXT 9 YEARS)
BIO MASS PROJECTS (1ST YEAR AND 2% PER 2.85
ANNUM ESCALATION FOR NEXT 9 YEARS)
ACCESS CHARGES UNDER STOA
GENERATOR
CONSUMER
DISCOM 1
STU
DISCOM 2
CASE 1
WHEN BOTH GENERATOR AND CONSUMER ARE
EMBEDDED CUSTOMER OF DISCOMS
CONSUMER
GENERATOR
STU DISCOM 2
CASE 2
WHEN ONLY CONSUMER IS EMBEDDED CUSTOMER
OF DISCOM
CONSUMER
GENERATOR
STU
CASE 3
WHEN BOTH GENERATOR AND CONSUMER ARE
DIRECTY CONNECTED TO STU
CAPACITY BREAKUP OF WIND INSTALLATIONS
• Tamil Nadu –2036 MW

• Karnataka – 410.7 MW
• Andhra - 120.6 MW
• Gujarat – 253.5
• Rajasthan- 284.8
• Maharashtra – 456.3 MW
• M.P.- 28.9 MW
• Kerala –2 MW
• W.Bengal – 1.1. MW
Renewable Sources of Energy
EXTRACS FROM ELECTRICITY ACT 2003 Section 86(1)(e)

State Commission shall promote congenration &
generation of electricity from renewable sources of
energy by providing suitable measures for
connectivity with the grid and sale of electricity to any
person, and also specify, for purchase of electricity
from such sources, a percentage of the total
consumption of electricity in the area of a distribution
licence.

Non Conventional Energy Sources

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Non Conventional Energy Sources

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Options for Renewable/ Captive/ IPPs etc.

EXTRACTS FROM ELECTRICITY ACT 2003

Para 3(1) NATIONAL ELECTRICITY POLICY AND PLAN:

• Captive generation is an important means to making competitive power

• Alternatively, a frequency based real time mechanism can be used and

Para 6.4 contd…

POSSIBLE OPTIONS FOR SALE OF ENERGY:

- Short Term Open Access

- FAVOURED ACCESS / WHEELING CHARGES

- CAN NOT BE DISPATCHED/ REGULATED

HENCE POSSIBILITY OF SELLING N.C. ENERGY

- CANNOT REGULATE THE GENERATION

AVG. UI RATE COMES IN THE RANGE OF AROUND Rs.

HENCE POSSIBILITY OF SELLING THROUGH UI MAY

MINI HYDEL PROJECTS (10 YEAR PERIOD) 2.80

WIND PROJECTS (10 YEAR PERIOD) 3.40

• Tamil Nadu –2036 MW

EXTRACS FROM ELECTRICITY ACT 2003 Section 86(1)(e)

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