CSERC (Terms and conditions for determination of generation tariff and related matters for electricity generated by plants based on renewable energy sources) Regulation, 2012 .

fnukad fnukad fnukad fnukad 16 tuojh 201416 tuojh 201416 tuojh 201416 tuojh 2014 ~ ~(~ 6icfi~)~ vquy ( '11~ iii 1(01) dh fnukad( tk;s( gSA gks] :i esa ekuk tk,xk A 200 rd 20% 201&250 rd 22% 251&300 rd 25% 301&400 rd 30% 400 ls mij 32% 27-1 izfrekudh; lfpolfpolfpolfpo izkpy izkpy izkpy izkpy {kerk fnukad iwathxr ykxr@esxkokWV _.k % :- yk[k izfr’kr izkIrO; Ekkg O;; C;kt C;kt izkpy izkpy izkpy izkpy {kerk ,y-,Q iwathxr ykxr@esxkokWV _.k % ls :- yk[k izfr’kr izkIrO; Ekkg :-@,e-Vh :-@,e-Vh o"kZ 1 :-@,e-Vh C;kt dk izfr’kr mRiknu( eklkar dk izdkj ekg ds ewY; dk izdkj ekg esa ewY; dk izdkj ekg ds ewY; ekg esa ewY; ekg ds foxr 12 ekg esa 2 ebZ 3 twu 6 flracj 8 uoacj 9 fnlacj 10 tuojh 11 Qjojh ekfld v|ru 'ks"k 'ks"k 'ks"k 'ks"k 2 ebZ 3 twu 6 flracj 8 uoacj 9 fnlacj 11 Qjojh Page 1 of 39 Chhattisgarh State Electricity Regulatory Commission Irrigation Colony, Shanti Nagar, Raipur, Dated July 27, 2012 Chhattisgarh State Electricity Regulatory Commission (Terms and conditions for determination of generation tariff and related matters for electricity generated by plants based on renewable energy sources) Regulations, 2012 No. 42/CSERC/2012. - Govt. of India is giving thrust to develop renewable source of energy being environment friendly in nature. Also the Electricity Act 2003 provides for policy formulation by the Government of India and mandates State Electricity Regulatory Commissions (SERCs) to take steps to promote renewable sources of energy within their area of jurisdiction. The Central Electricity Regulatory Commission (CERC) has notified the CERC (Terms and Conditions for Tariff determination from Renewable Energy Sources), Regulations, 2012 under which tariff determination aspects for various renewable energy technologies, has been discussed. Although these Regulations are applicable for central sector and inter-State generation projects, under "~~ $ ~ mcfi f~, ~ 30·-5".'2001." ~ * ~ cfi I IT! I a . Page 2 of 39 Section 61 of EA 2003, however these can be considered as guiding factor for SERCs while dealing with matters related to energy generation from RE sources. Centre of Wind Energy Technology (CWET) has identified few sites in the Chhattisgarh State, wherein wind energy potential can be harnessed for power generation, which needs suitable tariff to attract the investors in this sector. Keeping the above in view and in exercise of powers vested under section 61, 86 read with Section 181 of the Electricity Act 2003 (36 of 2003) and all other powers enabling it in this behalf, the Chhattisgarh State Electricity Regulatory Commission (the Commission) hereby makes the following Regulations specifying the terms and conditions of tariff for wind based electricity generating stations, small hydro electricity generating stations, biomass based electricity generating stations and solar based electricity generating stations for the purpose of sale of power to distribution licensees. After notification of these regulations the previous regulations namely Chhattisgarh State Electricity Regulatory Commission (Terms and conditions for determination of generation tariff and related matters for electricity generated by plants based on non-conventional sources of energy) Regulations, 2008 shall stand repealed, however the orders issued under the repealed regulations shall remain valid till the currency of the order specified therein. 1. Short title and commencement 1.1 These Regulations may be called the Chhattisgarh State Electricity Regulatory Commission (Terms and conditions for determination of generation tariff and related matters for electricity generated by plants based renewable energy sources) Regulations, 2012. 1.2 These Regulations shall come into force from April01, 2012 and shall remain in force for a period of 5 years from the date of commencement. 1.3 These Regulations shall extend to the whole of the State of Chhattisgarh and shall be applicable to renewable energy based generating stations established in the State. Page 3 of 39 2. Definitions and Interpretation 2.1 In these Regulations, unless the context otherwise requires: a) "Act" means the Electricity Act, 2003 (36 of 2003), as amended from time to time; b) "Auxiliary Energy Consumption" or 'AUX' in relation to a period means the quantum of energy consumed by auxiliary equipments of the generating station and transformer losses upto the interface point, and shall be expressed as a percentage of the sum of gross energy generated at the generator terminals of all the units, combined or separately of the generating station; c) “Biomass” means 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 or as specified by Ministry of New and Renewable Energy from time to time; d) “Capacity Utilization Factor” or “CUF” for a given period, means the total electricity corresponding to actual generation (gross generation) during the reference period, expressed as a percentage of gross generation electricity corresponding to installed capacity in that reference period and shall be computed in accordance with the following formula; Gross generation over the reference period x 100% Installed capacity x total hours during the reference period (including outage hours) e) “Capital Cost” means as defined in the regulation 12, 24, 28, 35 and 50 for the respective renewable energy source. f) "CERC" means the Central Electricity Regulatory Commission; g) "Commission" means the Chhattisgarh State Electricity Regulatory Commission; h) “Commissioning” means testing and operation of systems and components of generating plant as may be required for successful synchronization of the generating plant. A commissioning process may be CUF= Page 4 of 39 applied not only to new projects but also to existing units and systems subjected to expansion, renovation or revamping. i) "Cutoff Date" means 31st March of the year closing after two years of the year of commercial operation of the project, and in case the project is declared under commercial operation in the last quarter of a year, the cut- off date shall be 31st March of the year closing after three years of the year of commercial operation; j) Control Period or Review Period means the period during which the norms for determination of tariff specified in these regulations shall remain valid; k) "Date of Commercial Operation" or “COD” means (i) in relation to a generating unit means the date declared by the generator after demonstrating the maximum continuous rating (MCR) or installed capacity (IC) at designed condition (after considering deviations in uncontrollable parameters) through a successful trial run, after notice to the beneficiary. (ii) in relation to the generating station means the date of commercial operation of the last unit or block of the generating station in accordance with the clause (i) above; l) "Financial Year" means a period commencing on 1st day of April of a calendar year and ending on 31st March of the subsequent calendar year; m) “Firm Power” In relation to biomass based generating plant means supply of electricity after COD which is equal or more than the 70% as decided by the Commission from time to time, however, energy supplied more than 100% of load factor of contracted capacity, on annualized basis, will not be treated as firm power. In relation to small hydro- generating stations, wind, solar it means any electricity supplied from and after the COD if the entire generated electricity is supplied to a distribution licensee(s). n) "Gross Calorific Value" or 'GCV' in relation to a fuel used in generating station means the heat produced in KCal by complete combustion of one kilogram of solid fuel or one lit of liquid fuel or one standard cubic meter of gaseous fuel, as the case may be; o) "Gross Station Heat Rate" or "GSHR" means the heat energy input in kCal required to generate one kWh of electrical energy at generator terminals; p) Hybrid Solar Thermal Power Plants means the solar thermal power Page 5 of 39 plant that uses other forms of renewable energy input sources along-with solar thermal energy for electricity generation, and wherein not less than 75% of electricity is generated from solar energy component. q) "Infirm Power" means electricity generated prior to declaration of date of commercial operation of generating station/ unit; r) "Installed Capacity" or "IC" means the summation of the name plate capacities of all the units of the generating station or the capacity of the generating station (reckoned / tested at the generator terminals), as approved by the Commission from time to time; s) Inter-connection Point means interface point of renewable energy generating facility with the transmission system or distribution system, as the case may be: I. in relation to biomass power, non fossil fuel based cogeneration power projects and Solar Thermal Power Projects, the inter- connection point shall be line isolator on HV side of the grid sub- station; II. in relation to wind energy projects, Solar Photovoltaic Projects, small hydro power, the inter-connection point shall be line isolator on HV side of generator transformer; t) "Licensee" means a distribution licensee operating in the State; u) “MNRE” means the Ministry of New & Renewable Energy of Government of India; v) "Maximum Continuous Rating" or "MCR" in relation to a unit of the thermal generating station based on renewable energy source means the maximum continuous output at the generator terminals, guaranteed by the manufacturer at rated parameters; w) ‘Mini/Micro Hydro’ means Hydro Power projects with a station capacity up to 100 kW for micro hydro power plants and from 101 kW & up to 2 MW for mini hydro; x) “Non-firm power” means electricity supplied by biomass-based power generating plants after COD, to a distribution licensee which is less than 70% of the scheduled electricity in a given period. Further electricity supplied by such generating station above 100% plant load factor of contracted capacity, on annualized basis shall also be treated as non-firm power. However, in case of other renewable energy plants, there is no concept of Non firm power. Page 6 of 39 y) “Non fossil fuel based co-generation” means the process in which more than one form of energy (such as steam and electricity) are produced in a sequential manner by use of biomass provided the project may qualify to be a co-generation project if it fulfils the eligibility criteria as specified in Regulation 4.4; z) "Project / Plant" means a generating station including the evacuation system upto inter-connection point, and in case of a small hydro generating station includes all components of generating facility such as dam, intake water conductor system, power generating station and generating units of the scheme, as the case may be, as apportioned to power generation; aa) “Renewable Energy Power Plants” means the power plants other than the conventional power plants generating grid quality electricity from renewable energy sources as approved by MNRE; bb) “Renewable Energy Sources” means renewable sources such as small hydro, wind, solar including its integration with combined cycle, biomass, bio fuel cogeneration, urban or municipal waste and other such sources as approved by the MNRE; cc) "Scheduled Generation" at any time or for any period or time block means schedule of generation in MW or MU at inter-connection point as agreed by the generator and licensee; dd) "Small Hydro Electricity generating station" or "SHP" means the hydro electricity generating station, above 2 MW and up to including installed capacity of 25 MW; ee) “Solar PV power” means the Solar Photo Voltaic power project that uses sunlight for direct conversion into electricity through Photo Voltaic technology; ff) “Solar Thermal power” means the Solar Thermal power project that uses sunlight for direct conversion into electricity through Concentrated Solar Power technology based on either line focus or point focus principle; gg) "State" means the State of Chhattisgarh; hh) “Tariff period” means the period for which tariff is to be determined by the Commission on the basis of norms specified under these Regulations; ii) ‘Useful Life’ in relation to a unit of a generating station including evacuation system shall mean the following duration from the date of commercial operation of such generation facility, namely; Page 7 of 39 I. Wind energy power project 25 years II. Small Hydro Plant 35 years III. Biomass power project 20 years IV. Non-fossil fuel cogeneration 20 years jj) ‘Year’ means a financial year; 2.2 Words and expressions used in these Regulations and not defined shall have the same meaning as they have in the Act and in the other Regulations made by the Commission. 3. Scope and extent of application 3.1 These Regulations shall apply for all Renewable Energy (hereinafter referred to as "RE") projects achieving COD within the State of Chhattisgarh after April 01, 2012 for generation and sale of electricity from such RE projects to distribution licensees under long term PPA for 20 years or more within the Chhattisgarh State and where tariff, for a generating station or a unit thereof based on renewable sources of energy, is to be determined by the Commission under Section 62 read with Section 86 of the Act. Provided that in case of wind, small hydro projects, biomass power, non- fossil fuel based cogeneration projects, solar PV, Solar Thermal and other small solar power projects, for the purpose of being eligible for claiming generic tariff, these Regulations shall apply subject to the fulfilment of eligibility criteria specified in Regulation 4; 3.2 In case of existing RE projects having long term PPA with distribution licensee of 20 years or more, which have achieved COD before April01, 2012, applicable tariff and other terms and conditions, shall be governed by respective RE Tariff Orders and amendments thereof as issued from time to time by the Commission for the duration of the Tariff Period as stipulated under respective RE Tariff Orders. However on completion of validity of prevailing tariff orders for such projects, the new tariff will be Page 8 of 39 decided on basis of norms specified in these regulations on generic/project specific basis on the request of generators or licensees. Further in such cases for redetermination of the tariff after currency of the tariff order, the capital cost shall be allowed as specified in the then prevailing Orders. 4. Eligibility Criteria 4.1 Wind power project – New wind power project(s) achieving COD after April01, 2012 using new plant and machinery. 4.2 Small hydro project – New small hydro project(s) achieving COD after April01, 2012 and located at the sites approved by State Nodal Agency/ State Government using new plant and machinery, and installed power plant capacity to be lower than or equal to 25 MW at single location. 4.3 Biomass power project based on Rankine cycle technology – New b