The Hindu Business Line : Wind power policy opens up Govt land for developers

THE wind power policy of the State Government allows establishment of generating stations by private developers in Government as well as private lands.

The policy guidelines issued by the Government state that competitive bids will be invited for allotment of Government lands for setting up generating stations by captive power producers (CPPs) and independent power producers (IPPs). However, public sector undertakings and power-intensive industries within the State will be given preference under the CPP category.

According to a study conducted by Agency for Non-conventional Energy and Rural Technology (ANERT), the technical wind potential available in the State is 600 MW. Of this, Ramakkalmedu in Idukki district, with an estimated potential of about 80 MW, is considered as the best site.

For development of wind power in government lands under CPP category, all high-tension and extra high-tension consumers of the Kerala State Electricity Board (KSEB) with contract demand of 500 KVA and above or consortia of such consumers are eligible. The installed capacity for each site will be fixed with a view to harnessing the optimum generation potential.

CPPs can undertake wind power projects in such a way that the total installed capacity will not exceed their contract demand with KSEB or State Transmission Utility (STU) plus the capacity addition required for expansion/diversification to be carried out within 10 years from the date of allotment.

The Government land will be licensed to CPPs on payment of a licensing fee for a period of 20 years from the date of allotment. After this period, the land with the generators, evacuation arrangements and all other facilities shall be returned to the Government.

The developer will have to pay 50 per cent of his share towards the cost of establishment of pooling substation and evacuation line to ANERT. The balance 50 per cent, to be borne initially by ANERT, shall be paid by the developer on achieving commercial operation date.

KSEB will have the first right to purchase of the energy, if any, generated by CPP over the captive consumption requirement at rates specified for a tariff period by the State Electricity Regulatory Commission (SERC).

The purchase will be subject to the energy requirements of the State, grid frequency, other system parameters and the financial viability of such purchase.

If KSEB does not intend to purchase the excess power, CPP will be permitted to sell the power to any other party at a rate approved by SERC. This will include applicable surcharge, additional surcharge and distribution/transmission charges.

Under IPP category also, KSEB will have the first right to purchase the power generated at the bid rates subject to the approval of SERC.

The purchase will be subject to financial viability and other system requirements. If KSEB does not intend to purchase the power, the developer will be permitted to sell the power to any other party at rates approved by SERC.

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