Untitled Document

RAJASTHAN ENERGY DEVELOPMENT AGENCY
(A wholly owned Agency of the Govt. of Rajasthan)
E-166, Yudhishthar Marg, C-Scheme, Jaipur - Phone : 0141-382759/382298/383450 - Fax : 0141-382759 - Email : reda@rajenergy.com

STATUS PAPER ON WIND POWER PROGRAMME IN RAJASTHAN

1. 8 Nos. potential sites / locations have been identified for Wind Power Generation in Rajasthan by MNES under Wind Power Survey programme:

S. No	Wind Mast Site	District	Annual Mean Wind Speed KMPH		Annual Mean Wind Power Density (W/M2)
			at 20/25 m	Extrapolated at 30 M	at 20/25 M	Extrapolated at 50 M
1	Devgarh	Chittorgarh	19.88	21.38	151	281
2	Harshnath	Sikar	20.62	22.60	206	617
3	Jaisalmer	Jaisalmer	17.80	19.50	159	274
4	Jaisalmer	Jaisalmer	17.80	19.79	182	311
5	Khodal	Barmer	17.00	18.50	135	229
6	Mohangarh	Jaisalmer	15.50	17.50	117	243
7	Phalodi	Jodhpur	17.40	19.20	142	261

1.            Dadrewa (Churu)
2.            Bissau (Jhunjhunu)
3.            RD 1.6 Suratgarh (Sriganganagar)
4.            Napasar (Bikaner)
5.            Mahajan (Bikaner)
6.            Kathoti (Nagaur)
7.            Balesar (Jodhpur)
8.            Kanod (Jaisalmer)
9.            Suratgarh (Sriganganagar)
10.        Jaisalmer ( 50 M wind mast) - Wind masts under installation

3. RREC have implemented three Nos. Demonstration Wind Farm Projects at Jaisalmer, Phalodi and Devgarh with total aggregated installed capacity of 6.35 MW. MNES has sanctioned a grant of Rs. 1152 lac for development of these projects. The performance parameters of the projects are as under:

Financial Year	Jaisalmer Capacity 2.00 MW commissioning (5.4.2000)		Devgarh Capacity 2.25 MW commissioning (22.8.2000)		Phalodi Capacity 2.10 MW commissioning (15.4.2001)		Total
	Gen. Kwh	Rev. Rs.	Gen. Kwh	Rev. Rs.	Gen. Kwh	Rev. Rs.	Gen. Kwh	Rev. Rs.
1999-2000	766650	2213702	-		-		766650	2213702
2000-2001	3245940	9841041	2410470	7308063	70456	213609	5726866	17362713
2001-2002	2567730	8165381	3102990	9867508	2986530	9501645	8657250	27534534
2002-2003 upto 30.5.2003	3302130	11029114	3580470	11958770	3854160	12872894	10736760	35860778
Cummulative	9882450	31249238	9093930	29134341	6911146	22588148	25887526	82971727

RREC has already prepaid the entire loan amount to IREDA for Jaisalmer, Devgarh and Phalodi Wind Farm Projects.

On successful demonstration of performance of Wind Power Projects in Rajasthan a special Policy to attract private sector investment in the wind power programme has been declared on 4.2.2000 i.e. "Policy for Promotion of Electricity Generation from Wind" with following benefits / incentives:

(i) Remunerative tariff for power sold to RVPN (at present Rs. 3.34 per unit) with escalation @ 5% every year.

(ii) Wheeling facility at a flat rate of 2% of electricity wheeled any where in Rajasthan to a III party.

The proposals were invited accordingly from Power Developers / Wind Energy Generator manufacturers. The proposals for setting up of wind power project aggregate capacity of 236 MW were received.

4. A capacity of 23.29 MW has been commissioned in Jaisalmer till January, 2003 (excluding demonstration projects set up be RREC).

5. To isolate non serious developer from above capacity and to ensure target of 100 MW, the capacity has been allotted to developers against deposit of Rs. 1 lac per MW as reserve licence fee with a commitment for achieving the same by 31.3.2003.

6. Total 34.44 MW capacity under competitive licensing scheme commissioned by 31.3.2003.

7. The present status of wind farm project by independent power producer enclosed at Annexure-A.

8. This apart the developers are willing and have shown their interest for allocation of the additional capacity and registered their applications for 200-250 MW with RREC. (Detail enclosed at Annexure-B). RREC therefore, approached RVPN for creation of facility to ensure safe and uninterrupted power evacuation for electricity generated from upcoming wind farms in Jaisalmer area. Series of meeting and discussions were held including a joint site visit by RREC and RVPN officials at Jaisalmer to identify location for pooling station as well as up gradation of transmissions system i.e. 132 KV and 220 KV substation including transmissions lines. The location of pooling station at Badabagh, Bhopa area were finalised and action for allocation of land for the development of pooling station and 132 KV / 220 KV substation was initiated by RREC on behalf of RVPN.

9. Developers, manufacturers, investors alike have been calling for formulation of a new Policy well before the expiry of the existing Policy so that the momentum gained is maintained. As a demonstration of their continued commitment to setting up of wind energy generation capacity in the State of Rajasthan, developers have shown willingness and registered their applications with RREC for setting up wind power projects of additional capacity of 200-250 MW.

10. The level of tariff protection with guaranteed escalation and wheeling charges provided in the 2000 Policy, in accordance with MNES guidelines, is no longer affordable to RVPN as it imposes a heavy financial burden on it. Moreover, the identification of more potential sites, improvement in conversion efficiency, reduction in lending rates by the financial institutions, availability of large size machines on commercial scale and downtrend in capital costs, have all necessitated a review of the incentives and benefits in the existing Policies. A revised Policy is issued by GOR. However the existing Policy dated 4.2.2000 shall continue to be applicable to those Wind Power Projects, upto the cap of 100 MW, for which RREC has given specific approval.

· The Corporate Entrepreneur having experience of setting up at least 7.5 MW wind generation capacity or manufacturer of wind energy generator of minimum 25 MW capacity are eligible producer.

· The proposed project should be of maximum 25 MW capacity with secured investment commitments.

· Sale of power to RVPN, @ Rs. 3.32 per unit during FY 2003-04 with escalation simple rate of 2% per annum.

· Infrastructure for grid interfacing shall be developed / maintained by producer as per specification and requirement of RVPN.

· RREC and RVPN shall finalise pooling station for evacuation of power. For this developer shall deposit Rs. 2 lacs per MW with RREC.

· RVPN would undertake to augment the sub station capacity at higher level at it own cost to receive the power generated by eligible producer.

· Developer is also allowed to set up its own substation and transmission line for evacuation of power.

· RREC would take all necessary action to invite applications from intending producers and allotting sites to eligible producer.

· Developer shall deposit Rs. 25000/- per MW (non refundable) as processing fees.

· Developer shall deposit Rs. 1 lac per MW (refundable) as Security Deposit towards the completion of the project within the stipulated time.

1.1 The Govt. of Rajasthan had brought out a Policy for Promotion of Generation of Power from Non-conventional Sources on 11.3.99. A separate Policy aimed at achieving installed capacity of 100 MW exclusively from Wind was issued on 4^th February, 2000. The operative period of both Policies ends in March 2004.

1.2 There has been encouraging growth in development of wind power projects in the State in the recent past, primarily due to prevailing incentives and benefits offered in the afore-mentioned Policies. The capacity build up of 100 MW envisaged in the 2000 Policy is expected to be achieved by December, 2003.

1.3 Developers, manufacturers, investors alike have been calling for formulation of a new Policy well before the expiry of the existing Policy so that the momentum gained is maintained. As a demonstration of their continued commitment to setting up of wind energy generation capacity in the State of Rajasthan, developers have shown willingness and registered their applications with RREC for setting up wind power projects of additional capacity of 200-250 MW.

1.4 The level of tariff protection with guaranteed escalation and wheeling charges provided in the 2000 Policy, in accordance with MNES guidelines, is no longer affordable to RVPN as it imposes a heavy financial burden on it. Moreover, the identification of more potential sites, improvement in conversion efficiency, reduction in lending rates by the financial institutions, availability of large size machines on commercial scale and downtrend in capital costs, have all necessitated a review of the incentives and benefits in the existing Policies. A revised Policy is therefore proposed. However the existing Policy dated 4.2.2000 shall continue to be applicable to those Wind Power Projects, upto the cap of 100 MW, for which RREC has given specific approval.

2.1 The wind resource assessment programme is implemented by MNES through State Nodal Agencies and Center for Wind Energy Technology (C-WET). A total of 45000 MW gross wind potential has been assessed in the country.

2.2 IITM has so far identified following potential sites in the various districts of Rajasthan specifying average wind speed, wind density profile and power potential per square meter.

S. No	Wind Mast Site	District	Annual Mean Wind Speed	Annual Mean Wind Power Density (W/M²)
S. No	Wind Mast Site	District	KMPH At 20/25 m	At 20/25 m	Extra-polated at 50 M
1.	Devgarh	Chittorgarh	19.88	151	281
2.	Harshnath	Sikar	20.62	206	617
3.	Jaisalmer	Jaisalmer	19.79	182	311
4.	Khodal	Barmer	17.00	135	229
5.	Mohangarh	Jaisalmer	15.50	117	243
6.	Phalodi	Jodhpur	17.40	142	261

2.3 Wind assessments studies at following additional locations are under progress:-

S.No.	Village	District
1.	Dadrewa	Churu
2.	Bissau	Jhunjhunu
3.	RD 1.6 Suratgarh	Sriganganagar
4.	Napasar	Bikaner
5.	Mahajan	Bikaner
6.	Kathoti	Nagaur
7.	Balesar	Jodhpur
8.	Kanod	Jaisalmer
9.	Suratgarh	Sriganganagar
10.	Jaisalmer	Jaisalmer

2.4 Three demonstration wind power projects at Jaisalmer, Devgarh in Chittorgarh and Phalodi in Jodhpur districts have been set up by the State nodal agency with aggregate capacity of 6.35 MW and MNES grant of Rs. 3.84 crore / project.

2.5 Against the total wind power capacity of 1639 MW achieved in India (Tamilnadu – 895 MW, Maharashtra - 399 MW, Gujarat – 166 MW, A.P.- 92.6 MW, Karnataka – 93.00 MW, Rajasthan – 60 MW) a gross potential of 5400 MW and technical potential of 845 MW has so far been assessed in Rajasthan.

2.6 Large investment has been carried out by PSU’s, public utilities and corporate houses to meet power generation demand and avail financial and fiscal incentives and benefits throughout the country. Higher capacity machines with larger rotar dia and higher hub heights are now available yielding higher output i.e. higher conversion ratio.

The objectives of this Policy are to support wind power generation programme based on wind resource studies and assessment and attract investment in the State. There is no cap on generation of power, however, it will not be obligatory for RVPN to purchase power beyond 250 MW within this Policy.

This Policy shall come into operation from the date of its publication in the Official Gazette and will be applicable to Wind Power Plants commissioned upto 31^st March, 2009, unless superseded or modified by any other order. This Policy supersedes the Policy for Promoting Generation of Power through Wind issued vide Government Order No. F.20(3)Energy/98 dated 4.2.2000. After this Policy comes into effect all new approvals, PPA's, Wheeling Agreements etc. will be granted / executed only under this Policy. However the existing Policy dated 4.2.2000 shall continue to be applicable to those Wind Power Projects, upto the cap of 100 MW, for which RREC has given specific approval.

Wind Farm developers, WEG manufacturers, Government Owned Companies, private companies, Joint Venture Companies and private investors would be Eligible Producers under this policy. The eligible producer shall obtain permission for installation of wind power plant from RERC/State Government.

Following expressions would have meanings assigned to them as follows unless the context otherwise requires:

(b) "Collector" means Collector as defined in the Rajasthan Land Revenue Act and includes every officer authorised to discharge the duties of Collector under the Act / Rules / executive orders of the Government of Rajasthan.

(d) "DLC" means 'District Level Committee' to fix the price of land for purposes of registration.

(e) "Eligible Project" means Wind Farm with a capacity which is not more than 25 MW.

(f) "Eligible wind farm" means a Wind Farm as detailed in clause 7 of this policy.

(h) "Jaipur Discom, Jodhpur Discom and Ajmer Discom" means the respective electricity distribution companies

(j) "MNES" means Ministry of Non-conventional Energy Sources, a Central Government Ministry promoting use of Non-conventional Energy Sources in India.

(o) "State" and "Government" means, respectively, the State of Rajasthan and the Government of Rajasthan.

(p) "Wind Energy Generator" means a machine/device which converts kinetic energy of wind into electrical energy with any technology.

(q) "Wind Farm" means cluster of WEG's erected by a single developer and generating electricity from wind.

Wind Farms of an Eligible Producer would be eligible, if it satisfies the following conditions:

7.1 The Wind Farm Developer or WEG manufacturer has experience of having set up at least 7.5 MW wind generation capacity in the country or is a manufacturer of wind energy generators having supplied, installed, commissioned wind energy generation capacity of at least 25 MW in India or is a company promoted by such entrepreneur and/or manufacturer.

Wind Farm Developer / Investor would be eligible for using the power produced for captive consumption or making sale to a third party or to RVPN or any combination of the three options available. A PPA or Wheeling Agreement, or both, as the case may be, will be required to be entered into with RVPN/concerned Discom(s).

9.1 In the case of power to be sold to RVPN / DISCOMS, RVPN would pay a rate of Rs. 3.32 per unit for power supplied during 2003-04 which shall be increased at a simple rate of 2% (of Rs. 3.32) every year on 1^st April of the year for a period of up to 10 years i.e. up to 2012-13 with Base year 2003-04. Thereafter, from 2013-14 and onwards a fixed rate of Rs. 3.92 per unit charges to be paid by RVPN for a period upto the 20^th year of the project.

9.2 In case of sale of power to third party the Investor / Developer shall obtain license from RERC under Rajasthan Power Sector Reforms Act 1999. The tariff applicable for such third party sale shall be determined by RERC. Investors would be free to negotiate quantum of sale of power, if effected to a third party, and bill and collect the same directly from such third party.

RVPN / Discoms will undertake to transmit on their grid the power generated by the Eligible Producer and make it available to such Eligible Producer for captive use or sale to a third party nominated by such Eligible Producer within the State. Such sales would attract a uniform wheeling charge of 10% of the energy fed into the grid, irrespective of the distance from the generating station. However, the third party so nominated will have to be consumer of DISCOM of category "Large Industrial Service", as defined in Discom Tariff rules, unless the concerned DISCOM specifically relaxes this condition.

The RVPN will permit banking of the energy generated in a calendar year by Eligible Producer for the period upto 31^st December of the said calendar year. The banked energy, if not consumed within this period, would be treated to have been sold to RVPN at 60% of the prevailing energy charges of 'Large Industrial Service tariff' rate.

12.1 RVPN will enter into a Power Purchase Agreement for a period of 20 years from COD.

12.2 All transactions between RVPN and the Eligible Producers involving wheeling, banking or sale of power will be settled on monthly basis.

12.3 RVPN / concerned DISCOM shall sign the PPA / WBA within one month of its presentation.

Consumption of electricity generated by Eligible Producers for its captive use or for sale to a nominated third party will be exempted from Electricity Duty for a period of five years from COD.

14.1 Interfacing, including transformers, panels, kiosks, protection, metering, HT lines from the points of generation to the nearest pooling station / technically feasible point determined by RVPN/ concerned DISCOM, as well as their maintenance, will be undertaken by the Eligible Producer as per the specifications and requirements of the RVPN/concerned DISCOM, for which such Eligible Producers will bear the entire cost. Alternatively, these works and their maintenance could be undertaken by concerned Discom at charges to be mutually agreed between them.

14.2 RREC will finalize plan for the location of pooling station in consultation with RVPN and respective DISCOM for accepting inter-connection of the individual wind farm. The Developer shall deposit Rs. two lacs per MW with RREC for developing such pooling station. This amount would be transferred by RREC to RVPN.

14.3 RVPN/concerned Discom will undertake to augment sub-station capacity at 132/33 or 33/11 KV or higher levels, augmentation of transmission lines and all related works at its cost, to receive the power generated by Eligible Producer.

14.4 Developer could be allowed to set up own Sub-station and transmission lines but at their cost and as per pre-approved laid down specifications and prudent utility practices of RVPN. This would help projects to be commissioned within specified time frame. RVPNL would have to create upstream strengthening of the transmission as well as sub-stations capacity for which necessary comfort level can be asked by RVPN/RREC from the developers / investors, so that this additional capacity is not wasted due to non-utilization in the absence of non-creation of downstream facility by the Developer / Investor. The facility so created would be deemed to have been transferred to RVPN by the developers/investor for further operation and maintenance. The amount for development of pooling station shall not be charged from such Wind Farms.

14.5 RVPN / concerned DISCOM shall grant the inter-connection facility, wherever adequate power evacuation capacity is available, within 15 days of intimation or COD, whichever is later.

14.6 The Eligible Producer, at his cost, will install, at the pooling station, two separate meters, one for the import of power from the grid and another for export to the grid. RVPN/concerned Discom will seal the meters and metering boxes. In addition to the above one back up metering system shall also be provided at the Wind Farm.

14.7 One meter for recording reactive power drawn from the Grid shall also be provided.

14.8 The Eligible Producer will install necessary current limiting devices such as Thyristors in the generating equipment. Capacitors of sufficient rating will also be provided in the Wind Farm to ensure that the average power factor is maintained above 0.9, measured at metering point of the Wind Farm.

14.9 The Eligible Producer shall comply with Grid Code including Load Despatch and System Operation Code, Metering Code, Protection Code, Safety Code etc. as applicable from time to time in the State of Rajasthan.

RREC shall facilitate clearances for the project at the State and Central levels and shall also facilitate PPA with RVPN/concerned DISCOM and grant of loans by IREDA/ PFC/ REC and other term loan Agencies/commercial Banks.

16.1 The Developer will select the site for establishing the Wind Farm, after ascertaining the wind parameters in the wind mast areas mentioned in the Policy. RREC will take all necessary actions for allotting sites to developers, in accordance with procedure approved by GOR.

16.2 The State Government will provide land for the proposed wind farm at 10% of DLC rates on first cum first served basis. The land allotment would be treated as cancelled if the project is not commissioned as per committed schedule, at the sole discretion of RREC.

17.1 The Developer shall deposit an amount of Rs. 25,000/- per MW along with his application towards processing fee, which shall be non-refundable.

17.2 RREC/RVPN/Discom will provide clearances within a period of two months from the date of submission of application.

17.3 If the applicant does not take effective steps to achieve the COD within in the stipulated period, the application/PPA could be terminated by RREC/RVPN, as also the allotment of site.

The Developer shall deposit with RREC a refundable amount of Rs. one lac per MW as security deposit towards completion of the project within the stipulated time. The amount could be forfeited by RREC in the event of failure of the developer to adhere to the stipulated schedule of COD.

The Application format is enclosed for the convenience of the Developer to expedite project approvals.