(229)

Haryana Government Gazette

Published by Authority

© Govt. of Haryana

No. 31-2018]

CHANDIGARH, TUESDAY, JULY 31, 2018 (SRAVANA 9, 1940 SAKA)

PART III

Notifications by High Court, Advertisement, Notices and Change of Name etc.

HARYANA ELECTRCITY REGULATORY COMMISISON

BAYS NO. 33-36, SECTOR – 4, PANCHKULA – 134112, HARYANA

Tel. No. 0172 – 2572395 (O), Fax No. 0172 – 2572359

www.herc.nic.in

Notification

The 24th July, 2018

Regulation No. HERC/ 40 / 2018.— In exercise of the powers conferred on it by section 181 of the

Electricity Act 2003 (Act 36 of 2003) and all other powers enabling it in this behalf, the Haryana Electricity

Regulatory Commission, hereby makes the following Regulations.

Chapter – 1

General

1.

Short title, commencement, extent of application and interpretation. –

(1)

These Regulations may be called the Haryana Electricity Regulatory Commission (Terms and

Conditions for determination of Tariff from Renewable Energy Sources, Renewable Purchase

Obligation and Renewable Energy Certificate) Regulations, 2017.

(2)

These regulations shall come into force on the date of their publication in the Haryana Government

Gazette.

(3)

These regulations shall extend to all grid connected renewable energy projects and obligated entities in

the State of Haryana.

2.

Definitions. –

(1)

In these regulations, unless the context otherwise requires,

(1)

‘Act’ means the Electricity Act, 2003 (36 of 2003);

(2)

‘Auxiliary energy consumption’ or ‘AUXe’ in relation to a period in case of a generating station

means the quantum of energy consumed by auxiliary equipments of the generating station, and

transformer losses within the generating station, expressed as a percentage of gross energy

generated at the generator terminal of the generating station during the period;

HARYANA GOVT. GAZ., JULY 31, 2018 (SRVN. 9, 1940 SAKA)

[ PART III

230

(3)

‘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 whichever permissible; and the wood waste produced in

some industrial operations;

(4)

‘Capital cost’ means the capital cost as defined in the relevant sub regulations of these

Regulations;

(5)

‘Central Agency’ means the agency operating the National Load Dispatch Centre or such other

agency as the Central Commission may designate from time to time;

(6)

“Certificate” means the renewable energy certificate issued by the Central Agency in accordance

with the procedures prescribed by it and under the provisions specified in the Central Electricity

Regulatory Commission (Terms and Conditions for recognition and issue of Renewable Energy

Certificate for Renewable Energy Generation) Regulations, 2009 as amended from time to time;

(7)

‘Commission’ means the Haryana Electricity Regulatory Commission;

(8)

‘Conduct of Business Regulations’ means the Haryana Electricity Regulatory Commission

(Conduct of Business) Regulations, 2004 as amended from time to time;

(9)

‘Control Period or Review Period’ means the period during which the norms for determination

of tariff and other provisions specified in these regulations shall remain valid;

(10)

‘Floor Price’ means the minimum price determined by the Central Commission in accordance

with these regulations at and above which the renewable energy certificate can be traded in the

power exchange;

(11)

‘Forbearance price’ means the ceiling price as determined by the Central Commission in

accordance with the Central Electricity Regulatory Commission (Terms and Conditions for

recognition and issue of Renewable energy Certificate for Renewable Energy Generation)

Regulations, 2010, as amended from time to time, within which the Certificate can be traded in

power exchange;

(12)

‘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 litre of liquid fuel

or one standard cubic meter of gaseous fuel, as the case may be;

(13)

‘Gross station heat rate’ or ‘GHR’ means the heat energy input in kCal / kWh required to

generate one kWh of electrical energy at generator terminals of a renewable energy generating

station;

(14)

‘Hybrid Solar Thermal Power Plant’ means the solar thermal power plant that uses other forms

of 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;

(15)

‘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 at the generator

terminals/Solar Inverter in MW / MVA), as the case may be;

(16)

‘Inter-connection Point’ shall mean interface point of renewable energy generating facility

including Waste to Electricity projects with the transmission system or distribution system,

(a)

in relation to wind energy projects and Solar Photovoltaic Projects, inter-connection point

shall be line isolator on outgoing feeder on High Voltage (HV) side of the pooling

sub-station;

(b)

in relation to small hydro power, biomass power, Waste to Energy projects and non fossil

fuel based cogeneration power projects and Solar Thermal Power Projects, the inter-

connection point shall be line isolator on outgoing feeder on HV side of generator

transformer;

(17)

‘Non firm power’ means the power generated from renewable sources, the hourly variation of

which is dependent upon nature’s phenomenon like sun, cloud, wind, etc., that cannot be

accurately predicted;

(18)

“Levellised Tariff” means the tariff calculated by carrying out levelisation for ‘useful life’ of

each technology considering the discount factor for time value of money.

(19)

‘MNRE’ means the Ministry of New and Renewable Energy of the Government of India;

PART III]

HARYANA GOVT. GAZ., JULY 31, 2018 (SRVN. 9, 1940 SAKA)

231

(20)

“Municipal Solid Waste” means and includes commercial and residential wastes generated in a

municipal or notified area in either solid or semi solid form excluding industrial hazardous

wastes but including treated bio-medical waste;

(21)

‘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 including

Bagasse.

(22)

‘Obligated entity’ means an entity in the State of Haryana which is mandated to fulfill renewable

purchase obligation under these Regulations and include the following:-

(i)

Distribution licensee(s)

(ii)

Open Access consumers including short term open access consumers, and

(iii)

Fossil Fuel based Captive Power Plant of 5 MW and above including Fossil Fuel based

Co-generation captive plant of 5 MW and above.

(23)

‘Operation and maintenance expenses’ or ‘O&M expenses' means the expenditure incurred on

operation and maintenance of the project, or part thereof, and includes the expenditure on

manpower, repairs, spares, consumables, insurance and overheads;

(24)

“Power Exchange’ means any exchange operating as the power exchange for electricity in terms

of the orders issued by the Central Commission;

(25)

‘Preferential tariff’ or “Feed in Tariff” means the tariff fixed by the Commission for sale of

energy from a generating station based on renewable energy sources to a distribution licensee;

(26)

‘Project' means a generating station or the evacuation system upto inter-connection point, as the

case may be, 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 apportioned to power generation;

(27)

‘Renewable Energy’ means the electricity generated from renewable energy sources;

(28)

‘Renewable Energy Power Plants’ means the power plants other than the conventional power

plants generating electricity from renewable energy sources;

(29)

‘Renewable Energy Sources’ means renewable sources such as small hydro, wind, solar

including its integration with combined cycle, biomass (including Bagasse), bio fuel, urban or

municipal waste and other such sources as approved by the MNRE;

(30)

‘Small Hydro’ means Hydro Power projects with a station capacity up to 25 MW or as specified

in the National Tariff Policy or by the Central Government from time to time;

(31)

‘Solar PV power’ means the Solar Photo Voltaic power project that uses sunlight for direct

conversion into electricity through Photo Voltaic Cells;

(32)

‘Solar Thermal power’ means the Solar Thermal power project that uses sunlight for conversion

of heat energy into electricity through Concentrated Solar Power technology based on either line

focus or point focus principle;

(33)

‘State agency’ means the agency in the State of Haryana to be designated by the Commission to

act as the agency for accreditation and recommending the renewable energy projects for

registration and to undertake functions under these regulations;

(34)

‘Tariff period’ means the period for which tariff / price for sale of power is determined by the

Commission on the basis of norms specified in these Regulations;

(35)

‘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 (COD) of such generation facility,

namely:

(a)

Wind energy power project 25 years

(b)

Biomass power project, non-fossil fuel cogeneration 20 years

(c)

Small Hydro Plant 35 years

(d)

Solar PV/Solar thermal power plants 25 years

(e)

Processed Municipal Solid Waste (MSW) WtE based power projects – 20 years

(f)

Biomass gasifier power plants 20 years

(g)

Biogas power plants 20 years

(36)

‘Year’ means a financial year.

HARYANA GOVT. GAZ., JULY 31, 2018 (SRVN. 9, 1940 SAKA)

[ PART III

232

(2)

All other expressions used herein but not specifically defined herein but defined in the Act shall have

the meaning assigned to them in the Act. The other expressions used herein but not specifically defined

in the regulations or in the Act but defined under Haryana Electricity Reform Act, 1997 (Act 10 of

1998) or the Indian Electricity Grid Code or the Haryana Grid Code or the Haryana Electricity

Regulatory Commission (Terms and Conditions for determination of Tariff for Generation,

Transmission, Wheeling and Distribution & Retail Supply under Multi Year Tariff ) Regulations, 2012,

as amended / reenacted from time to time, shall have the meanings assigned to them respectively in the

Haryana Electricity Reform Act, 1997 (Act 10 of 1998) or the Indian Electricity Grid Code or the

Haryana Grid Code or any other relevant Regulations in vogue , provided that such definitions in the

Haryana Electricity Reform Act, 1997 are not inconsistent with the provisions of the Electricity Act,

2003;

3.

Eligibility Criteria. – For the purpose of these regulations a project shall be treated as renewable energy

power project only if it meets the following criteria:-

(a)

Wind power project – located at the wind sites having minimum annual mean Wind Power Density

(WPD) of 200 Watt/m2 measured at hub height of 100 meters and using new wind turbine generators;

(b)

Small hydro project – located at the sites approved by State Nodal Agency / State Government / self

identified sites using new plant and machinery, and installed power plant capacity to be lower than or

equal to 25 MW at single location;

(c)

Biomass power project – Biomass power projects using new plant and machinery using biomass fuel

sources,

(d)

Processed Municipal Solid Waste based WtE power projects – The project shall qualify to be termed as

Municipal Solid Waste based WtE power projects, if it is using new plant and machinery and using

Municipal solid waste as fuel source for generation of electricity.

(e)

Solar PV and Solar Thermal Power Projects – Based on Technologies approved by MNRE / HAREDA.

(f)

Biomass Gasifier Power Projects - The projects shall qualify as gasifier based power project provided it

is using new plant and machinery and having a grid connected system that uses 100% syngas/producer

gas engine with MNRE approved gasification technology and shall use non fossil fuel as approved by

MNRE.

(g)

Biogass Power Projects - The projects shall qualify as biogas based power project provided it is using

new plant and machinery and having a grid connected system that and uses 100% biogas fired engine

with MNRE approved technology.

Explanation:

The necessity of new plant and machinery shall be applicable where the DPR is approved by HAREDA

and tariff is determined by the Commission under Section 62 of the Act as well as procurement of power by

the Distribution Licensee(s) under Section 63 of the Act in case the bidding documents / guidelines so

provides. The dispensation shall include the RE Projects where capital subsidy is claimed by the project

developer.

PART III]

HARYANA GOVT. GAZ., JULY 31, 2018 (SRVN. 9, 1940 SAKA)

233

Chapter – 2

Norms

4.

Control Period or Review Period.– The Control Period under these Regulations shall be from the FY 2017-18

to the FY 2020-21.

Provided that the benchmark capital cost and tariff for Solar PV rooftop, ground mounted, canal based /

Water Works solar projects, wind power, small hydro shall be determined on case specific basis only. It would

be appropriate for the HAREDA to adopt reverse bidding with the lowest quoted tariff as the base tariff.

Provided further that the tariff determined / discovered and approved by the Commission for the RE

projects commissioned / to be commissioned during the Control Period, shall continue to be applicable for the

entire duration of the Tariff Period as specified in Regulation 5 below.

Provided also that the revision in Regulations for next Control Period shall be undertaken at least six

months prior to the end of the first Control Period and in case Regulations for the next Control Period are not

notified until commencement of next Control Period, the tariff norms as per these Regulations shall continue

to remain applicable until notification of the revised Regulations and the Control Period shall be deemed to

have been extended up to the date of notification of the next Control Period.

5.

Tariff Period. –

(1)

The Tariff Period for Renewable Energy power projects shall generally correspond to their respective

project life or reckoned with the period provided in the PPA as the case may be.

(2)

Tariff period under these Regulations is for Renewable Energy Power Plants with entirely new plant

and machinery. The first year tariff shall be applicable from the CoD of the project and shall continue

for 12 months from the CoD and thereafter the tariff for the second year shall be applicable on year to

year basis i.e. for first 12 months from CoD, first year tariff shall be applicable, then for next twelve

months second year tariff shall be applicable and so on and each period of such 12 months shall be

termed as the tariff year.

(3)

Tariff determined as per these Regulations shall be applicable for Renewable Energy power projects,

only for the duration of the Tariff Period as stipulated under Regulation 5(1).

(4)

The PPA (s) signed by the distribution licensee (s) on the basis of tariff determined by the Commission

in its orders prior to the notification of these Regulations on renewable energy shall remain valid for the

tariff period as per the PPA. Such cases shall not be reopened in view of the norms provided in these

regulations.

6.

Project Specific tariff. –

(1)

Project specific tariff, on case to case basis, may also be determined by the Commission for the

following types of projects:

(a)

Processed Municipal Solid Waste (WtE) Projects

(b)

Poultry litter / Cow dung etc.

(c)

Mixed feed

(d)

Small / micro hydro power projects of 25 MW and below

(e)

Wind

(f)

Any other new renewable energy technologies approved by MNRE

(g)

The renewable energy projects which have been commissioned before the control period

specified in these Regulations but for which no power purchase agreement has been signed.

(h)

Solar PV and Solar Thermal Power projects, if a project developer opts for project specific tariff:

Provided that the Commission while determining the project specific tariff for Solar PV and

Solar Thermal shall be guided by the provisions of these Regulations.

(i)

Hybrid Solar Thermal Power plants

(j)

Biomass project other than that based on Rankine Cycle technology application with water

cooled / air cooled condenser.

(2)

Determination of Project specific Tariff for generation of electricity from such renewable energy

sources shall be in accordance with such terms and conditions as stipulated by the Commission.

Provided that the financial norms as specified under Chapter-3 of these Regulations, except for

capital cost, shall be ceiling norms while determining the project specific tariff.

Explanation:

Regarding Solar Power, it would be appropriate for the Discoms / HAREDA to procure such power

through competitive bidding route u/s 63 of the Electricity Act, 2003. However, for solar power projects of

HARYANA GOVT. GAZ., JULY 31, 2018 (SRVN. 9, 1940 SAKA)

[ PART III

234

less than 5 MW, the Commission, on an application made by the Solar Power Developer and DPR approved

by HAREDA with concurrence of HPPC/ Discoms, may determine project specific tariff. The Commission

would prefer that all solar projects are selected through competitive bidding.

As far as RE projects selected through competitive bidding (s) is concerned and where tariff is adopted

by the Commission under section 63 of the Act, the terms and conditions of the Guidelines as mentioned in

section 63 of the Act and the bidding documents thereto shall prevail.

7.

Petition and proceedings for determination of tariff. –

(1)

The Commission shall determine the generic tariff on the basis of suo-motu petition at least six months

in advance at the beginning of each year of the Control period for renewable energy technologies for

which norms have been specified under the Regulations.

(2)

A petition for determination of project specific tariff shall be accompanied by such fee as may be

determined by regulations and shall be accompanied by the following:-

(a)

Information in forms 1.1, 1.2, 2.1 and 2.2 as the case may be, and as appended to these

regulations;

(b)

Detailed project report outlining technical and operational details, site specific aspects, premise

for capital cost and financing plan etc.

(c)

A statement of all applicable terms and conditions and expected expenditure for the period for

which tariff is to be determined.

(d)

A statement containing full details of calculation of any subsidy and incentive received, due or

assumed to be due from the Central Government and/or State Government. This statement shall

also include the proposed tariff calculated without consideration of the subsidy and incentive.

(e)

Any other information that the Commission may require the petitioner to submit.

(3)

The proceedings for determination of tariff shall be in accordance with the HERC (Conduct of

Business) Regulations 2004, as amended from time to time.

8.

Tariff Structure. –

(1)

The tariff for renewable energy technologies shall be single part tariff consisting of the following fixed

cost components:-

(a)

Return on equity capital;

(b)

Interest on loan capital;

(c)

Depreciation;

(d)

Interest on working capital including margin money;

(e)

Operation and maintenance expenses;

Provided that for renewable energy technologies having fuel cost component, like biomass power

projects and non-fossil fuel based cogeneration, single part tariff with two components, fixed cost component

and fuel cost component, shall be determined. The fuel cost component may be subjected to escalation for

computing levellised generic tariff for entire useful life of the project as provided in these Regulations.

9.

Tariff Design. –

(1)

The generic tariff shall be determined on levellised basis for the entire Tariff Period.

Provided that for renewable energy technologies having single part tariff with two components,

tariff shall be determined on levellised basis considering the year of commissioning of the project for

fixed cost component while the fuel cost component shall be specified on year of operation basis.

(2)

For the purpose computation of levellised tariff, the discount factor equivalent to weighted average cost

of capital as per the formula specified in these Regulations shall be considered.

(3)

Levellised tariff shall be specified for the period equivalent to the ‘Tariff Period’.

10.

Despatch principles for electricity generated from Renewable Energy Sources. –

(1)

All renewable energy power plants except for Biomass power plants of installed capacity 10 MW and

above shall be treated as ‘MUST RUN’ power plants. Biomass power with installed capacity of 10 MW

and above shall be subjected to scheduling and dispatch as specified under Haryana Grid Code and

other relevant regulations including amendments thereto.

(2)

The scheduling and deviation settlement issues related to solar and wind power shall be addressed

through a separate set of Regulations already under formulation. Further, as far as scheduling and

deviation settlement mechanism for other source of RE generator is concerned, till the time the

Commission notifies the said mechanism after due deliberations, the dispensation provided in the

present Regulations shall be applicable.

PART III]

HARYANA GOVT. GAZ., JULY 31, 2018 (SRVN. 9, 1940 SAKA)

235

Chapter – 3

Financial Principles

11.

Capital Cost. – The norms for the Capital cost as specified in the subsequent technology specific chapters

shall be inclusive of all capital work including plant and machinery, initial spares, civil work, erection and

commissioning, financing and interest during construction, and evacuation infrastructure up to inter-

connection point.

Provided that for project specific tariff determination, the generating company shall submit the break-

up of capital cost items along with its petition.

Provided further that in case where land is on lease basis, the cost of land to be taken as part of capital

cost shall be determined as per the Land Lease Agreement. This provision shall be applicable for project

specific cases.

12.

Debt Equity Ratio. –

(1)

For generic tariff to be determined based on suo motu petition, the debt equity ratio shall be 70: 30.

(2)

For Project specific tariff, if the equity actually deployed is more than 30% of the capital cost, equity in

excess of 30% shall be treated as normative loan.

Provided that where equity actually deployed is less than 30% of the capital cost, the actual equity shall

be considered for determination of tariff. Provided further that the equity invested in foreign currency shall be

designated in Indian rupeeson the date of each investment.

13.

Loan and Finance Charges. –

(1)

For the purpose of determination of tariff, loan tenure of 13 years shall be considered.

(2)

(a)

The loans arrived at in the manner indicated above shall be considered as gross normative loan

for calculation for interest on loan. The normative loan outstanding as on 1st April of every year shall be

worked out by deducting the cumulative repayment up to March 31st of the previous year from the

gross normative loan.

(b)

For the purpose of computation of tariff, the normative interest rate shall be considered as the

average Marginal Cost of funds based lending rate (MCLR) (one-year tenor) of SBI prevailing during

the last available six months plus a margin of up to 200 basis points i.e. 2%.

(c)

Notwithstanding any moratorium period availed by the generating company, the repayment of

loan shall be considered from the first year of commercial operation of the project and shall be equal to

the annual depreciation allowed.

14.

Depreciation. –

(1)

The value base for the purpose of depreciation shall be the Capital Cost of the asset admitted by the

Commission. The salvage value of the asset shall be considered as 10%.

(2)

Depreciation per annum shall be based on ‘Differential Depreciation Approach’ over loan tenure and

period beyond loan tenure over useful life computed on ‘Straight Line Method’. The depreciation rate

for the first 13 years of the Tariff Period shall be 5.38% per annum and the remaining depreciation shall

be spread over the remaining useful life of the project from 14th year onwards.

(3)

Depreciation shall be chargeable from the first year of commercial operation.

Provided that in case of commercial operation of the asset for part of the year, depreciation shall be

charged on pro rata basis.

15.

Return on Equity. –

(1)

The value base for the equity shall lower of the two either 30% of the capital cost or actual equity (in

case of project specific tariff determination) as determined under Regulation.

(2)

The normative Return on Equity shall be as under:-

(a)

14% per annum calculated on normative Equity Capital.

(b)

MAT/Corporate Tax applicable shall be considered as pass through.

Provided that the applicable MAT / Corporate Tax shall be separately invoiced as per the actual

paid at the rate as declared by the Income Tax Department. The Generator shall raise the bill for

reimbursement of MAT / Corporate Tax applicable on Return on Equity in 12 equal installments which

shall be payable by the beneficiaries.

HARYANA GOVT. GAZ., JULY 31, 2018 (SRVN. 9, 1940 SAKA)

[ PART III

236

16.

Interest on Working Capital. –

(1)

The Working Capital requirement in respect of wind energy projects, small hydro power, solar PV and

Solar thermal power projects and Processed Municipal Solid Waste (WtE) projects shall be computed

in accordance with the following :-

(a)

Operation & Maintenance expenses for one month;

(b)

Receivables equivalent to 2 (two) months of fixed and energy charges for sale of electricity

calculated on the normative CUF / PLF;

(c)

Maintenance spare @ 15% of operation and maintenance expenses.

(2)

The Working Capital requirement in respect of biomass power projects (Rankine Cycle Technology),

Biomass Gasifier / Bio gas based projects and bagasse / non-fossil fuel based co-generation projects

shall be computed as under:-

(a)

Fuel costs for four months at normative PLF;

(b)

Operation & Maintenance expense for one month;

(c)

Receivables equivalent to 2 (Two) months of fixed and variable charges for sale of electricity

calculated on the normative PLF;

(d)

Maintenance spare @ 15% of operation and maintenance expenses.

(3)

Interest on Working Capital, for the purpose of tariff determination, shall be computed at the average

Marginal Cost of funds based lending rate (MCLR) (one year tenor) of SBI prevailing during the last

available six months plus an appropriate margin not exceeding 200 basis points i.e. 2%.

17.

Operation and Maintenance Expenses. –

(1)

‘Operation and Maintenance or O&M expenses’ shall comprise repair and maintenance (R&M),

establishment including employee expenses, and administrative and general expenses.

(2)

Operation and maintenance expenses shall be determined for the Tariff Period based on normative

O&M expenses specified by the Commission subsequently in these Regulations for the first Year of the

Control Period.

(3)

Normative O&M expenses allowed during first year of the Control Period under these Regulations shall

be escalated at the rate of 5.72% per annum over the Tariff Period.

18.

Rebate. –

(1)

For payment of bills of the generating company through letter of credit, a rebate of 2% shall be allowed.

(2)

Where payments are made other than through letter of credit within a period of one month of

presentation of bills by the generating company, a rebate of 1% shall be allowed.

19.

Late payment surcharge. – In case the payment of any bill for charges payable under these regulations is

delayed beyond a period of 60 days from the date of billing, a late payment surcharge at the rate of 1.25% per

month shall be levied by the generating company.

20.

Sharing of CDM Benefits. –

(1)

The proceeds of carbon credit from approved CDM project, after deduction of expenses incurred by the

generating company for registration and approval of the project as CDM project shall be shared

between generating company and concerned beneficiaries in the following manner:-

(a)

100% of the gross proceeds on account of CDM benefit to be retained by the project developer

in the first year after the date of commercial operation of the generating station i.e. 12 months

from CoD;

(b)

In the second year, the share of the beneficiaries shall be 10% which shall be progressively

increased by 10% every year till it reaches 50%, where after the proceeds shall be shared in

equal proportion, by the generating company and the beneficiaries.

Provided that in case the Concession Agreement or PPA has specific provision regarding sharing of

CDM benefits, the same shall be applicable in such cases.

21.

Subsidy or incentive by the Central / State Government. – The Commission shall take into consideration

any incentive or subsidy offered by the Central or State Government, available to the generating company, for

the renewable energy power plants while determining tariff under these Regulations.

22.

Taxes and Duties. – Tariff determined under these regulations shall be exclusive of taxes and duties as may

be levied by the appropriate Government. Any tax / duty levied by the appropriate Government shall be

allowed as pass through on actual incurred basis and should have been actually paid to the authority (ies)

concerned.

PART III]

HARYANA GOVT. GAZ., JULY 31, 2018 (SRVN. 9, 1940 SAKA)

237

Chapter – 4

Technology specific parameters for Wind Energy

23.

Capital Cost. –

(1)

The capital cost for wind energy project shall include Wind turbine generator including its auxiliaries,

site development charges and other civil works, transportation charges, evacuation cost up to inter-

connection point, financing charges and IDC. Provided in case of land obtained on lease, cost of land

shall be taken as per lease agreement.

(2)

Given the limited potential for setting up wind energy projects in Haryana, the Commission, on an

application received from a prospective wind power generator / developer and willingness of the

Disocoms / HPPC to purchase such power, shall determine capital cost for wind energy projects, O&M

expenses and tariff based on the market trends prevailing during the relevant year i.e. scheduled CoD of

such projects on case specific basis only.

24.

Capacity Utilization Factor. –

(1)

CUF norms for the control period shall be as follows:-

Annual Mean Wind Power

Density (W/m2)

CUF

Up to 220

22%

221- 275

24%

276- 330

28%

331- 440

33%

441 +

35%

Provided that the number of hours for calculation of CUF shall be 8760 hours.

(2)

The annual mean wind power density specified above shall be measured at 100 meter hub-height.

(3)

For the purpose of classification of wind energy project into particular wind zone class, the State-wise

wind power density map prepared by Centre for Wind Energy Technology (C-WET) / MNRE / NIWE ,

shall be considered.

Provided that the Commission may by notification amend the schedule from time to time, based on

MNRE guidelines / NIWE for wind measurement or by the private developer.

Provided in the case of wind measurement data submitted by wind power developer the same shall be

acceptable in case it is validated by NIWE.

HARYANA GOVT. GAZ., JULY 31, 2018 (SRVN. 9, 1940 SAKA)

[ PART III

238

Chapter – 5

Technology specific parameters for Small Hydro Project

25.

Capital Cost. –

(1)

The indicative capital cost for small hydro projects during the Control beginning the FY 2017-18,

unless reviewed earlier by the Commission shall be as under:-

Size of project

Capital Cost (Rs. Crore / MW)

Below 5 MW

7.79

5 MW to 25 MW

7.07

Provided in the case of small hydro power projects the Commission shall determine project specific

tariff only and accordingly determine project specific capital cost as well as CUF, if required, based on case

specific hydrological data.

26.

Capacity Utilization Factor. – Capacity Utilization Factor (CUF) for the small hydro projects shall be 56%.

The normative CUF shall be net of free power to the State, if any, and any quantum of free power, over and

above the free power notified by the Central Government, if committed by the developer over and above the

normative CUF, shall not be factored into the tariff. Provided further that the number of hours for calculation

of CUF shall be 8760 hours.

27.

Auxiliary Consumption. – Normative Auxiliary Consumption, including losses, for the small hydro projects

shall be 1.0%.

28.

Operation and Maintenance Expenses. –

(1)

Normative O&M expenses for the first year of the Control period (i.e. FY 2017-18) shall be as under:-

Project size

O&M Expenses (Rs. Crore / MW)

Below 5 MW

0.29

5 MW to 25 MW

0.21

(2)

Normative O&M expenses allowed under these Regulations shall be escalated at the rate of 5.72% per

annum for the Tariff Period for the purpose of determination of tariff under these Regulations.

PART III]

HARYANA GOVT. GAZ., JULY 31, 2018 (SRVN. 9, 1940 SAKA)

239

Chapter – 6

Technology specific parameters for Biomass based Power Projects

29.

Technology Aspect. – The norms for tariff determination specified hereunder are for biomass power projects

based on Rankine Cycle technology application using water cooled condenser and air cooled condenser.

30.

Capital Cost. –

(1)

The normative capital cost, during the control period under these Regulations, for the biomass power

projects shall be Rs. 5.59 MW (Water Cooled Condenser) and Rs. 6.0 Crore / MW for projects using

Air Cooled Condenser.

Provided for the project using single fuel i.e. rice straw / stubble for generation of power the Capital

Cost, during the control period, shall be Rs. 6.10 Crore / MW (Water Cooled Condenser) and Rs. 6.52 Crore /

MW for projects having air cooled condenser.

31.

Plant Load Factor. –

(1)

Threshold Plant Load Factor for determining fixed charge component of Tariff shall be as under:-

1.

1st Year of Operation including Stabilization: 65%

2.

From 2nd Year onwards: 80 %

32.

Auxiliary Energy Consumption. – The auxiliary energy consumption shall be 10% in the case of projects

equipped with water cooled condenser and 12% for air cooled condenser, for the purpose of tariff

determination.

33.

Station Heat Rate. – The Station Heat Rate for biomass power projects shall be 4126 kCal / kWh and 4063

Kcal / kWh for projects equipped with travelling grate boiler and AFBC boiler respectively.

34.

Operation and Maintenance Expenses. –

(1)

Normative O&M expenses for the first year of the Control period (i.e. FY 2017-18) shall be Rs. 0.40

Crore /MW.

(2)

Normative O&M expenses allowed at the commencement of the Control Period (i.e. FY 2017-18)

under these Regulations shall be escalated at the rate of 5.72% per annum.

35.

Fuel Mix. –

(1)

The biomass power plant shall be designed in such a way that it uses different types of non-fossil fuels

available within the vicinity of biomass power project such as crop residues, agro-industrial residues,

forest residues etc. and other biomass fuels as may be approved by MNRE.

(2)

The Biomass Power Generating Companies shall ensure fuel management plan to ensure adequate

availability of fuel to meet the respective project requirements.

36.

Use of Fossil Fuel. –

(1)

Use of Fossil Fuel shall not be permitted. The Project developer shall furnish monthly fuel (biomass

mix) usage statement and monthly fuel (biomass mix) procurement statement duly certified by

Chartered Accountant to the beneficiary (with a copy to appropriate agency appointed by the

Commission for the purpose of monitoring fuel consumption) for each month, along with the monthly

energy bill.

(2)

Non-compliance with the condition of fossil fuel usage by the project developer, during any financial

year, shall result in withdrawal of applicability of tariff as per these Regulations for such biomass based

power project. In such cases the PPA(s) shall be terminated and the Discoms (beneficiaries) shall be

under no obligation to make any payments for the power supplied by the seller in breach of the

regulation on fuel usage.

Provided that the bagasse based co-generation projects, selling power to the Discoms under PPA

approved by the Commission, shall be permitted to use biomass as fuel during the non-cane crushing

season. In such cases the generators can approach the Commission for determination of tariff for the

power generated using biomass as fuel. The HPPC shall not refuse purchase of such power without the

prior approval of the Commission.

HARYANA GOVT. GAZ., JULY 31, 2018 (SRVN. 9, 1940 SAKA)

[ PART III

240

37.

Calorific Value. – The Calorific Value of the biomass fuel used for the purpose of determination of tariff shall

be 3100 (kCal/kg).

38.

Fuel Cost. – Biomass fuel price during first year of the Control Period shall be Rs. 3270 /MT and shall be

escalated at the rate of 5% per annum for arriving at the levelised tariff for the entire useful life of the project.

Further, the Commission, for biomass / bagasse based power project, both existing and to be set up,

may consider two part tariff wherein the fixed cost shall be the levelised tariff already determined for the

existing projects and the fuel cost shall be as determined on a year to year basis so that the issue of fuel cost

and escalation there to is addressed.

With an objective to utilize and thereby prevent burning of paddy straw / stubble in the farms, the

Commission would like to promote use of the same in the power projects. Hence, while determining fuel cost /

GCV on a year to year basis applicable for the existing as well as to be commissioned biomass / bagasse power

projects, appropriate price weightage could be considered. HAREDA may provide the relevant data collected

from the field for consideration of the Commission. However, the details of usage of paddy straw / stubble

shall be certified by the IPPs and verified by HPPC based on the data emanating from the local authorities

concerned.

Further, given the single fuel based generation for paddy straw / stubble based power projects in

Haryana, working capital norms shall be accordingly determined.

PART III]

HARYANA GOVT. GAZ., JULY 31, 2018 (SRVN. 9, 1940 SAKA)

241

Chapter – 7

Technology specific parameters for Non-fossil fuel based Cogeneration Projects

39.

Technology Aspect. – A project shall qualify as a non-fossil fuel based Co-generation project, if it is in

accordance with the definition as specified under these Regulations.

40.

Capital Cost. - The normative capital cost for the non-fossil fuel based cogeneration projects shall be

Rs. 4.925 Crores/MW during the control period, unless reviewed earlier by the Commission.

41.

Plant Load Factor. –

(1)

For the purpose of determining fixed charge, the plant load factor for non-fossil fuel based cogeneration

projects shall be computed on the basis of plant availability for number of operating days considering

operations during crushing season and off-season as specified under sub regulation (2) below and load

factor of 92%.

(2)

The number of operating days shall be 150 days (crushing) + 60 days (off-season) = 210 days operating

days and the Plant Load Factor shall be 53%.

42.

Auxiliary Energy Consumption. – The auxiliary energy consumption factor shall be 8.5% for the purpose of

tariff determination.

43.

Station Heat Rate. – The Station Heat Rate of 3600 kCal / kWh for power generation component alone shall

be considered for computation of tariff for non-fossil fuel based Cogeneration projects.

44.

Calorific Value. – The Gross Calorific Value for Bagasse shall be considered as 2250 kCal/kg.

45.

Fuel Cost. –

(1)

The price of Bagasse shall be Rs. 2307/ MT and shall be escalated at the rate of 5% per annum for

determination of levellised tariff for the entire useful life of the project.

46.

Operation and Maintenance Expenses. –

(1)

Normative O&M expenses during first year of the Control Period shall be Rs. 0.21 Crore / MW.

(2)

The normative O&M expenses allowed at the commencement of the Control Period i.e. the FY 2017-18

under these Regulations shall be escalated at the rate of 5.72% per annum.

HARYANA GOVT. GAZ., JULY 31, 2018 (SRVN. 9, 1940 SAKA)

[ PART III

242

Chapter – 8

Technology specific parameters for Solar PV Power Project

47.

Technology Aspects. – Norms for Solar Photovoltaic (PV) power under these Regulations shall be applicable

for grid connected PV systems that directly convert solar energy into electricity and are based on the

technologies such as crystalline silicon or thin film etc. as may be approved by MNRE. The Commission shall

not determine generic tariff under these Regulations and only project specific tariff, if required, shall be

determined.

Provided that the Discoms / HAREDA may do reverse bidding with the lowest quoted tariff as base

tariff.

Provided that the norms including Capital Cost, CUF, Auxiliary Energy consumption, O&M expenses

etc. and the tariff thereto for Solar PV / Thermal / Rooftop / Canal top / Water works, as per the technology

approved by the MNRE, shall be determined on project specific basis depending on the prevalent market trend

only if required i.e. in case the competitive bidding route for any reason does not take effect. The broad

guiding parameters shall be as under:-

48.

Capacity Utilisation Factor. – The Capacity utilisation factor for Solar PV project shall be 19%. Provided

that the Commission may deviate from above norm in case of project specific tariff determination.

49.

Operation and Maintenance Expenses. –

(1)

The O&M Expenses shall be determined based on prevalent market conditions.

(2)

Normative O&M expenses allowed at the commencement of the Control Period under these

Regulations shall be escalated at the rate of 5.72% per annum.

50.

Auxiliary Energy Consumption. – The auxiliary energy consumption shall be 0.25% of the gross generation.

PART III]

HARYANA GOVT. GAZ., JULY 31, 2018 (SRVN. 9, 1940 SAKA)

243

Chapter – 9

Technology specific parameters for Biomass Gasifier based Power Project

51.

Technology Aspects. –

(1)

A process achieved by reacting biomass at a high temperatures without combustion / incomplete

combustion, with a controlled amount of oxygen and/or steam resulting in production of combustible

gases consisting of a mix of Carbon Monoxide (CO), Hydrogen (H2) and traces of Methane (CH4),

which shall be called synthesis gas to be used as fuel. The projects shall qualify as biogas based power

project provided it is using new plant and machinery and having a grid connected system that uses

100% syngas engine with MNRE approved gasification technology and shall use non fossil fuel as

approved by MNRE.

(2)

The useful life, for the purpose of these Regulations, for biomass gasification based Projects, shall be

20 years.

(3)

The normative Capital Cost, after accounting for capital subsidy, shall be Rs. 4.43 Crore / MW for the

entire control period unless reviewed by the Commission.

(4)

The threshold Plant Load Factor (PLF), including stabilisation period, for the purpose of determining

levellised generic tariff under these Regulations shall be 85%.

(5)

The Auxiliary Energy Consumption (AUXe), for the purpose of determination of levellised generic

tariff under these Regulations, shall be 10%.

(6)

The Normative Specific Fuel consumption shall be 1.25 Kg./kWh.

(7)

The Normative Operation and Maintenance (O&M) expenses shall be Rs. 0.53 Crore / MW for the

base year i.e. the FY 2017-18, the same shall be subject to an escalation factor @ 5.72% per annum

form second year onwards.

(8)

The base year (FY 2017-18) fuel cost shall be Rs. 3270 / MT and the same shall be escalated @ 5% per

annum for the purpose of arriving at generic levellised tariff for the entire useful life of the project.

HARYANA GOVT. GAZ., JULY 31, 2018 (SRVN. 9, 1940 SAKA)

[ PART III

244

Chapter – 10

Technology specific parameters for Biogas Power Project

52.

Biogas based power projects. –

(1)

A technology for generation of power using a mixture of different gases produced by the breakdown of

organic matter (anaerobic digestion with anaerobic organisms in the absence of oxygen / fermentation

of biodegradable materials) i.e. produced from raw materials such as agricultural waste, manure,

poultry droppings, cow dung, municipal waste, plant material, sewage, green waste or food waste. The

projects shall qualify as biogas based power project provided it is using new plant and machinery and

having a grid connected system that and uses 100% biogas fired engine with MNRE approved

technology.

(2)

The useful life, for the purpose of these Regulations, for biogas based projects, shall be 20 years.

(3)

The normative Capital Cost, after accounting for capital subsidy, for the entire control period beginning

the FY 2017-18 shall be Rs. 8.86 Crore / MW unless reviewed earlier by the Commission.

(4)

The threshold Plant Load Factor (PLF), including stabilisation period, for the purpose of determining

levellised generic tariff under these Regulations shall be 90%.

(5)

The Auxiliary Energy Consumption (AUXe), for the purpose of determination of levellised generic

tariff under these Regulations, shall be 12%.

(6)

The Normative Fuel consumption shall be 3.0 Kg / kWh of substrate mix.

(7)

The Normative Operation and Maintenance (O&M) expenses shall be Rs. 0.53 Crore / MW for the base

year i.e. the FY 2017-18, the same shall be subject to an escalation factor @ 5.72% per annum form

second year onwards for determining levellised tariff for the entire useful life of the project.

(8)

The base year (FY 2017-18) fuel cost (Feed Stock Price) shall be Rs. 1229 / MT and the same shall be

escalated @ 5% per annum for the purpose of arriving at levellised tariff for the entire useful life of the

project. Provided the cost recovery from digester effluent shall be set off against the Fuel Cost

(feed stock price) while determining generic levellised tariff.

PART III]

HARYANA GOVT. GAZ., JULY 31, 2018 (SRVN. 9, 1940 SAKA)

245

Chapter – 11

Technology specific parameters for Processed Municipal Solid Waste (WtE) based Power Projects based on

Rankine Cycle Technology

53.

A project shall qualify as MSW (WtE) based power project if it uses processed municipal solid waste and are

based on Rankine cycle technology application, combustion or incineration, Bio-methanation, Pyrolysis and

High end gasifier technologies etc.

(1)

Capital Cost. – The normative capital costs during the entire control period under these Regulations,

unless reviewed earlier by the Commission, shall be Rs. 15 Crore / MW.

(2)

Plant Load Factor (PLF). –

(1)

Threshold Plant Load Factor for determining fixed charge component of tariff for the municipal

solid waste WtE projects shall be as under:-

PLF(%) processed MSW (WtE) based Power Projects

(a)

During Stabilisation 65%

(b)

During the remaining period of the first year (after stabilization) 65%

(c)

From 2nd Year onwards 75%

(2)

The stabilization period shall not be more than 6 months from the date of commissioning of the

project.

(3)

Auxiliary Energy Consumption (AUXe) – The auxiliary power consumption for the Waste to

energy power projects using municipal solid waste shall be 15.5%.

(4)

Operation and Maintenance Expenses (O&M) – The Normative O&M expenses for the first

year of the control period under these Regulations i.e. FY 2017-18 shall be 6.5% of normative

capital cost. The same shall be escalated @ 5.72% per annum to arrive at the levellised tariff for

the entire useful life of the project.

HARYANA GOVT. GAZ., JULY 31, 2018 (SRVN. 9, 1940 SAKA)

[ PART III

246

Chapter – 12

Renewable purchase obligation (RPO) and Renewable Energy Certificate (REC)

54.

Renewable Purchase Obligation. –

(1)

Every obligated entity including distribution licensee, consumers owning captive power plant and open

access consumers including short term open access consumers in Haryana, shall purchase energy from

renewable energy sources under the Renewable Purchase Obligation (RPO) as under:-

FY

Existing Total RPO (%) of

Consumption

Revised Minimum RPO (%) of Total

Consumption Excluding Hydro

Total RPO

Solar

Non Solar

Solar

2016-17

3.75

1.0

2.75

1.00

2017-18

4.00

1.25

2.75

2.50

2018-19

4.50

1.50

3.00

4.00

2019-20

4.75

2.00

3.00

5.50

2020-21

5.00

2.50

3.00

7.00

2021-22

5.50

3.00

3.00

8.00

(2)

Provided that solar renewable purchase obligation specified above shall be procured from generation

based on solar energy sources only.

Provided further, such obligation to purchase renewable energy shall be inclusive of the

purchases, if any, from renewable energy sources already being made by obligated entity concerned.

Provided also that the power purchases under the power purchase agreements for the purchase of

renewable energy sources already entered into by the distribution licensees and consented to by the

Commission shall continue to be made till validity of the Power Purchase Agreement approved by the

Commission, even if the total purchases under such agreements exceed the RPO as specified in these

regulations.

Provided also that the issue of interchangeability of solar and non-solar RPO, if decided in

favour at Central level, shall be applicable under these Regulations.

55.

Certificates under the Regulations of the Central Commission. –

(1)

Subject to the terms and conditions contained in these regulations the Certificates issued under the

Central Electricity Regulatory Commission (Terms and Conditions for recognition and issuance of

Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010 shall be the valid

instruments for the discharge of the mandatory obligations set out in these regulations for the obligated

entities to purchase electricity from renewable energy sources.

Provided that in the event of the obligated entity fulfilling the renewable purchase obligation by

purchase of certificates, the obligation to purchase electricity from generation based on solar as

renewable energy source can be fulfilled by purchase of solar certificates only, and the obligation to

purchase electricity from generation based on renewable energy other than solar can be fulfilled by

purchase of non-solar certificates.

(2)

Subject to such direction as the Commission may give from time to time, the obligated entity shall act

in consistent with the Central Electricity Regulatory Commission (Terms and Conditions for

recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation)

Regulations, 2010 notified by the Central Commission and as amended from time to time in regard to

the procurement of the certificates for fulfillment of the Renewable Purchase Obligation under these

regulations.

(3)

The Certificates purchased by the obligated entities from the power exchange in terms of the regulation

of the Central Commission mentioned in sub regulation (1) of this Regulation shall be deposited by the

obligated entities to the Commission in accordance with the detailed procedure issued by the Central

Agency.

The Obligated Entities including the Power Utilities in Haryana under these Regulations may meet its RPO

target by way of own generation or procurement of power from RE developer or by way of purchase from other

licensee or by way of purchase of Renewable Energy Certificate or by way of combination of any of the above

options.

PART III]

HARYANA GOVT. GAZ., JULY 31, 2018 (SRVN. 9, 1940 SAKA)

247

Provided that in the case of an obligated entity with conventional captive power generation plant as defined in

the Electricity Act, 2003, may meet their RPO, solar and non solar as the case may be by self / own generation of

respective renewable power.

56.

State Agency. –

(1)

The Commission designates Haryana Renewable Energy Development Agency (HAREDA) as the State

Agency for accreditation and recommending the renewable energy projects for registration and to

undertake functions under these regulations.

(2)

The State Agency shall function in accordance with the directions issued by the Commission and shall

act in consistent with the procedures rules laid by Central Agency for discharge of its functions under

the Central Electricity Regulatory Commission (Terms and Conditions for recognition and issuance of

Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010 as amended from

time to time.

(3)

The State Agency shall submit quarterly status to the Commission in respect of compliance of

renewable purchase obligation by the obligated entities in the format as stipulated by the Commission

and may suggest appropriate action to the Commission if required for compliance of the renewable

purchase obligation.

(4)

If the Commission is satisfied that the State Agency is not able to discharge its functions satisfactorily,

it may by general or special order, and by recording reasons in writing, designate any other agency to

function as State Agency as it considers appropriate.

57.

Effect of default. –

(1)

If the obligated entities do not fulfill the renewable purchase obligation as provided in these regulations

during any year and also does not purchase the certificates, the Commission may direct the obligated

entity to deposit into a separate fund, to be created and maintained by such obligated entity, such

amount as the Commission may determine on the basis of the shortfall in the RPO determined under

these regulations from time to time at the forbearance price decided by the Central Commission.

Provided that the fund so created shall be utilized, as may be directed by the Commission, for purchase

of the renewable energy certificates.

Provided further that the Commission may empower an officer of the State Agency to procure from the

Power Exchange the required number of certificates to the extent of the shortfall in the fulfillment of the

obligations, out of the amount in the fund.

Provided also that the distribution licensee shall be in breach of its licence condition if it fails to deposit

the amount directed by the Commission within 30 days of the communication of the direction or within such

period as directed by the Commission.

(2)

Where any obligated entity fails to comply with the obligation to purchase the required percentage of

power from renewable energy sources or the renewable energy certificates, it shall also be liable for

penalty as may be decided by the Commission under section 142 of the Act.

Provided that in case of genuine difficulty in complying with the renewable purchase obligation

because of limited availability of renewable energy or non-availability of certificates, the obligated entity can

approach the Commission for relaxation or carry forward of compliance requirement to the next year.

However, in normal circumstances, the renewable purchase obligation shall not be waived of.

Provided further that where the Commission has consented in writing on an application made by the

obligated entity to carry forward of compliance requirement, the provision of regulation 57 (1) of these

Regulation or the provision of section 142 of the Act shall not be invoked.

58.

Banking of RE Power. – A generator or a captive power producer or a Consumer in the State may bank

power on payment of the banking charges along with the transmission and distribution losses for availing the

open access on the transmission or distribution network of the licensees for banking and drawl of banked

power from the Discoms after entering into the banking agreement with the concerned Discoms at the terms

and condition specified in the agreement, as follows:-

1.

The solar power shall be allowed to be banked with the distribution licensee(s) subject to the condition

that 5% of power banked in (kind) shall be deducted toward banking charges.

2.

The Energy Banked shall be permitted to be carried forwarded from month to month. The banked

power shall be utilized within the same financial year failing which the unutilized energy at the end of

the financial year shall lapse, and no compensation whatsoever shall be claimed/ paid for such lapsed

banked energy, provided the solar energy banked during the last quarter of the financial year shall be

carried forward to the next financial year.

HARYANA GOVT. GAZ., JULY 31, 2018 (SRVN. 9, 1940 SAKA)

[ PART III

248

3.

The banking shall be allowed throughout the year, however, the drawl of banked power shall not be

allowed during the peak season period (July to mid October).

4.

The drawl of bank power shall also be not allowed during peak load hours and time of day (ToD) tariff

period.

5.

The Banked Energy Shall be calculated at the end of a month as follows:-

Banked Energy at the end of month (Ebi)= {Eg(1-losses)-Ec} * (1-b) + Eb (i-1)

* Eg = Energy Generation for the ith month

* Ec = Energy consumption for the ith month

* Eb (i-1) = Energy Banked at the end of previous month

*b = Banking charges in kind.

Further, as far as scheduling and deviation mechanism is concerned, the Commission in the process of

finalization of Regulations on forecasting, scheduling and settlement and once these Regulations are notified

the same shall be applicable.

The Solar power shall be adjusted as first charge in order of consumption of energy by a consumer. The

banking will be counted on daily basis for the purpose of monthly account.

Settlement of wheeled energy at consumer End shall be in the following priority:

1.

Solar generation after deduction of losses.

2.

Captive Power

3.

Banked Energy from Solar

4.

Open Access Power through Exchange

5.

Discom power

HVPNL / SLDC shall formulate the criteria for settlement of wheeled energy at Consumer end in

consultation with the Stakeholders and submit the same to the Commission for approval within 3 months of

notification of these Regulations.

59.

Cost of Evacuation System. – The State transmission utility or the Transmission/Distribution Licensee shall

bear the cost of Extra High Voltage (EHV)/ High Voltage (HV) transmission line up to a distance of 10 km.

from the inter-connection point. In case the distance between the inter connection point and point of grid

connectivity is more than 10 KMs then the cost of transmission line for the distance beyond the 10 KMs shall

be borne equally between the Independent Power Producer and the licensee. However for canal based solar

power projects, the transmission lines shall be provided by the utilities, free of cost, irrespective of the distance

of the project from the substation, subject to the conditions that the solar power is generated and utilized

within the state of Haryana and is counted towards RPO of the Distribution Licensee (s).

The cost of any augmentation required after the interconnection point in the grid system of the

Transmission/Distribution Licensee shall also be borne by the Transmission/Distribution Licensee concerned.

Further, the power utilities concerned, on being informed about the Scheduled Commissioning Date (SCOD),

shall complete the evacuation system well in time.

60.

(1) Notwithstanding anything contained in any other Regulation(s) notified by the Commission, Wheeling

Charges, Cross Subsidy Charges, Transmission & distribution charges and Additional Surcharge shall be

totally waived of, for third party sale /Open Access consumers for energy from ground mounted / Roof Top

Solar power, commissioned during the control period under these Regulations. This shall be subject to the

condition that the solar power is generated and utilized within the State of Haryana and is counted towards

RPO of the Distribution Licensee(s). However, Solar Energy purchased or generated by an obligated entity is

to be counted towards the RPO of the said entity and not that of the Discoms.

Further provided that if such generated power is sold to obligated entities, Distribution licensee shall be

eligible for RPO benefits only to the extent the consumed solar power is in excess of the purchase obligation

of the obligated entity.

Further provided, that the Distribution Licensee shall be eligible for RPO benefits to the extent of

unutilized banked power at the end of the financial year.

The waiver shall be applicable to the Captive Solar PV Power for self consumption as well. However,

the losses, as determined by the Commission, shall be recovered in kind by the Haryana Power Utilities.

Further, banking charges as per these Regulations, shall be applicable so that the Haryana Power Utilities are

not burdened un-reasonably.

PART III]

HARYANA GOVT. GAZ., JULY 31, 2018 (SRVN. 9, 1940 SAKA)

249

(2) All the waivers/concessions/banking provided in these Regulations shall correspond to the period of 10

years from the date of commissioning or date of notification of this regulation, whichever is later, for power

generated and consumed within the State of Haryana. Provided the waivers / concessions /banking shall be

applicable till the aggregate installed capacity of 500MW of Solar PV Plants in the State is achieved, where

after the Commission shall review the provision of waivers / concessions /banking taking into account the

financial impact on the Distribution Licensees. Further provided that waivers / concessions /banking once

provided to any project shall be applicable for a period of 10 years, as above.

61.

Cluster of rooftops of public / private buildings. – Some percentage capacity (to be fixed from time to time)

for the setting up of ground mounted mega watt scale grid connected power plants, to meet the solar RPO shall

be developed by setting up of grid connected rooftop solar power plants. For that the offers shall be invited by

Renewable Energy Department, Haryana/HAREDA from the independent power producers for development

of grid connected rooftop solar power plants, of capacity ranging from 250 kWp to 1 MW, on a cluster of

public private buildings on the last lowest tariff discovered and conveyed by HPPC. The entire power

produced by power producers who set up plants within four years from the date of notification of this policy

shall be purchased by the HPPC or any entity of Haryana Govt. Alternatively, the developer can also

supply/provide the power for the captive use of the premises where the system is installed along with net meter

and can sell the remaining power to HPPC or any entity of Haryana Govt. on the last lowest tariff discovered

and conveyed by HPPC or to third party as per HERC regulations.

The rooftop space available in the government organization, institutions, buildings or vacant land of the

same can also be provided on lease/rent to the Independent Power Producer/ RESCO developer for setting up

of solar power projects.

For such sites the lease/rent rate shall be decided by a Committee of Deputy Commissioner of

concerned district, PWD (B&R) Department and the Department owning the building. The developer can also

supply/provide the power for the captive use of the premises where the system is installed along with net meter

and can sell the remaining power to HPPC on the minimum last tariff discovered and conveyed by HPPC or to

third party as per the HERC Regulations.

62.

Discount Factor. – The discount factor for working out levelised generic tariff shall be the weighted average

cost of capital (WACC).

HARYANA GOVT. GAZ., JULY 31, 2018 (SRVN. 9, 1940 SAKA)

[ PART III

250

Chapter – 13

Miscellaneous

63.

Deviation from norms. – Tariff for sale of electricity by the RE Generating company may also be determined

in deviation from the norms specified in these regulations subject to the conditions that the levellised tariff

over the useful life of the project on the basis of the norms in deviation does not exceed the levellised tariff

over the entire useful life of the project calculated on the basis of the norms specified in these regulations.

Provided that the reasons for deviation from the norms specified under these Regulations shall be

recorded in writing.

64.

Others. –

(a)

The provisions, if any, contained in any other regulation relating to reduction of contract demand shall

not be applicable for solar PV Power.

(b)

In case of additional cost on account of GST, the generator can approach the Commission with

necessary details for allowing additional tariff.

(c)

The imbalance charges as per Open Access Regulation will not be applicable for Solar Power generated

and consumed within the State.

65.

Power to Relax. – The Commission may by general or special order, for reasons to be recorded in writing, and

after giving an opportunity of hearing to the parties likely to be affected may suo moto relax any of the

provisions of these regulations or on an application made before it by an interested person.

66.

Issue of orders or directions. – Subject to the provisions of the Act and these regulations, the Commission

may, from time to time, issue orders and procedural directions with regard to the implementation of these

regulations and specify the procedure to be followed on various matters, which the Commission has been

empowered by the regulations to direct and matters incidental thereto.

67.

Power to amend. – The Commission may, at any time, add, vary, modify or amend any of the provisions of

these regulations.

68.

Power to remove difficulties. – If any difficulty arises in giving effect to any of the provisions of these

regulations, the Commission may, by general or special order, make such provisions, which in the opinion of

the Commission are necessary or expedient to do so.

69.

Savings. – Nothing in these Regulations shall limit the inherent power of the Commission to make such orders

as may be necessary to meet the ends of justice or to prevent abuses of the process of law / statutes. Nothing in

these Regulations shall bar the Commission from adopting, any other procedure, which may be at variance

with any of the provisions of these Regulations, as long as they are in conformity with the provisions of the

Electricity Act, 2003 and the policies framed by the Central / State Government thereto.

Provided that the reasons for any such deviating shall be recorded in writing.

Provided also that nothing in these regulations shall, expressly or implicitly, bar the Commission from

dealing with any matter under these Regulations or exercising any power under the Act for which no

regulations have been framed.

By Order of the Commission

(Sd.)…,

Director Tariff

HERC

[104-1]

56358—C.S.—H.G.P., Chd.