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Hyderabad, Sept. 28

FOLLOWING the provisions of the Electricity Act, 2003, the Andhra Pradesh Electricity Regulatory Commission (APERC) on Wednesday announced salient features of co-generation and its requirements.

This decision is based on a discussion paper circulated and feedback received from various sections.

The regulator has fixed a percentage of power to be purchased from these co-generation plants. Consumers and NGOs too participated in the discussions.

Consequently, every distribution licensee, captive power consumer and open access consumer shall be required to purchase not less than five per cent of its total requirements from co-generation or renewable sources each year during the period 2005-2006 to 2007-2008.

One-half of one percentage point, out of the five per cent of total consumption in the year shall be kept reserved for procurement of wind-based energy, in view of the large potential in the State for this green energy as identified by Non-conventional Energy Development Corporation of Andhra Pradesh Ltd (Nedcap).

In view of the over-exploitation of bio-mass resources and with a view to avoiding further damage to the environment, no further bio-mass based power shall be purchased by the distribution licensees, , than that already committed for purchase through the PPAs (power purchase agreements) already consented to by the commission.

However, according to an APERC order, this renewable power purchase obligation has to be met with from sources within the State only.

The regulator stated that whoever fails to comply with renewable power purchase agreement under this order shall be liable for penal action as per Section 142 of the Act. And any penalty imposed shall be passed on to Nedcap for promotion of these sources of energy and conservation of electricity.

(This article was published in the Business Line print edition dated September 29, 2005)
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