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&¼1½ bl vkns'k dks ;wihbZvkjlh ¼mRiknu 'kqYd ds fu;e vkSj 'krZsa½ fofu;e] 2019 ¼dfBukbZ dks nwj djuk½ igyk vkns'k] 2024 dgk tk ldrk gSA
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¼d½ dks;yk vkèkkfjr fctyh?kjksa esa dks&Qkfjax ds ekè;e ls fctyh mRiknu ds fy, ck;ksekl mi;ksx ds fy, fo|qr ea=ky; ¼MOP½ dh vfèklwpuk fnukad 08-10-2021 dh rkjh[k ds vuqlkj okf.kfT;d lapkyu ds rgr] fo|qr vfèkfu;e] 2003 dh èkkjk 62 ds rgr rki fctyh?kjksa ds fy,] mä vfèklwpuk dkuwu esa cnyko vkSj MOP vfèklwpuk fnukad 08-10-21 ds çklafxd çkoèkkuksa dk xBu djsxh vkSj blds la'kksèku ykxw gksaxsA fefJr bZaèku dh ÅtkZ pktZ nj dh x.kuk MOP }kjk fufnZ"V lfEeJ.k vuqikr ;k ck;ksekl dh okLrfod [kir] tks Hkh de gks] ds vkèkkj ij ck;ksekl dh [kir dks è;ku esa j[kdj dh tk,xhA
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lfpoA mRrj izns'k vlk/kkj.k xtV] 18 ekpZ] 2024 3 THE UTTAR PRADESH ELECTRICITY REGULATORY COMMISSION
LUCKNOW
Removal of difficulties Order No. 1/2024/005
Dated Lucknow, March 18, 2024
SUBJECT :- Removal of difficulties to frame methodology for Co-firing of Biomass Pellets and
its cost recovery.
ORDER
WHEREAS, the Uttar Pradesh Electricity Regulatory Commission (Terms and Conditions of Generation Tariff) Regulation,2019 came into effect from April 01, 2019, vide Notification no. UPERC/Secy./ Generation Regulations, 2019/343A, Lucknow dated 11.09.2019;
AND WHEREAS, 'Landed Fuel Cost' under these Regulations means: "the total cost of coal (including Biomass in case of Co-firing) lignite or the gas delivered at the unloading point of the generating station and shall include the base price or input price, washery charges wherever applicable, transportation cost (overseas or inland or both) and handling cost, charges for third party sampling and applicable statutory charges";
AND WHEREAS, difficulties have arisen in the cost recovery of Co-firing of Biomass Pellets and energy generated out of Co-firing of Biomass Pellets and also in treating additional capital expenditure on Biomass handling equipment and facilities for Co-firing etc;
AND WHEREAS, the Commission prepared an approach paper on Methodology for Co-firing of Biomass Pellets and its cost recovery and published in one daily newspaper in English and Hindi on 24.01.2024 & also on its website www.uperc.org, inviting suggestions/objections/comments from various stakeholders by due date of 21.02.2024;
NOW, THEREFORE, considering suggestions/objections/comments from various stakeholders, received within the due date and in exercise of the power conferred by section 11 of UPERC Terms and Conditions of Generation Tariff) Regulation,2019, namely, 'Power to Remove Difficulties', the Commission, hereby makes the following order, to provide clarity to the methodology for Co-firing of Biomass Pellets and its cost recovery, in a manner not inconsistent with UPERC (Terms and Conditions of Generation Tariff) Regulation, 2019 or the Electricity Act,2003, to remove the difficulties:-
1. Short title and commencement (1) This order may be called the UPERC (Terms and Conditions of Generation Tariff) Regulation,2019 (Removal of difficulty) first order,2024.
(2) It shall come into force on the date of its notification.
2. Methodology in case of Co-firing of Biomass Pellets:- Following methodology shall be adopted for cost recovery of Co-firing of Biomass Pellets and energy generated out of Co-firing of Biomass Pellets:-
(a) For Thermal Generating Stations, under section 62 of Electricity Act, 03, under commercial operation as on date of Ministry of Power (MOP) notification dated 08.10.2021 for Biomass Utilization for power generation through Co-firing in Coal Based Power Plants, the said notification would constitute a Change in law and the relevant provisions of MOP Notification dated 08.10.21 and its amendments shall be applicable. The energy charge rate of the blended fuel shall be worked out considering consumption of biomass based on blending ratio as specified by MOP or actual consumption of biomass, whichever is lower.
(b) Where biomass fuel is used for blending with coal, the landed cost of biomass fuel shall be worked out based on the delivered cost of biomass at the unloading point of the generating 4 mRrj izns'k vlk/kkj.k xtV] 18 ekpZ] 2024 station, inclusive of taxes and duties, as applicable. The benchmark price of biomass pellets and their specifications shall be adopted as per guidelines issued by MOP.
(c) The energy generated by Co-firing of biomass pellets shall be estimated in accordance with Central Electricity Regulatory Commission's (CERC) Order dated 18.02.2020 in Suo Motu Petition No. 12/SM/2019.
(d) Merit Order dispatch (MOD) of the power plant shall be governed by MOP notification dated 08.10.2021 as amended from time to time.
(e) Generating company shall keep beneficiaries informed about the Co-firing of Bio- mass with coal. Authorized representatives of the beneficiaries shall be allowed inspection during the period when biomass is being Co-fired.
(f) Generating Power Plants shall consult the Original Equipment Manufacturers (OEM) regarding technical feasibility and impact on operation parameters before undertaking the technical feasibility study in terms of Bio-mass Policy. In case the OEM is not accessible/ refuses in writing/ doesn't Co-operate despite best efforts of the generating company, technical feasibility may be carried out by third party without affecting guarantee/warrantee and safety norms of power plant & its equipments. The report of OEM or the third party report, as the case may be, and technical feasibility study shall be shared with the beneficiary for their comments and arriving at consensus. The cost of the study shall be borne by the beneficiary (ies).
(g) Coal based thermal power plants, as a prerequisite, would be required to assess useful economic life of plant, procurement of Agro residue-based Bio-mass pellets in line with technical specification issued by Central Electricity Authority (CEA), sourcing, and supply chain constraints against Model Contract document issued by MOP, frame site specific standard operating procedure (SOP) in line with standard SOP issued by MOP etc. The responsibility of procuring pellets in terms of the MOP directives issued from time to time shall be that of the Power Plants.
(h) Subsequent to the assessment of above aspects, the plant can approach CEA as per Guidelines/procedure prescribed for examining the request of the power plants for seeking exemption/relaxation from bio-mass Co-firing, in case exemption/ relaxation is required.
(i) Generating Stations shall estimate the capex viz., Biomass pellet handling & Feeding system, construction of storage facilities, any retrofitting or modifications in existing equipment or system for enabling Co-firing of Biomass, etc. The additional capex would be treated as additional capitalization, subject to prudence check by the Commission at the time of True-up of the relevant control period.
By Order of the Commission,
SHAILENDRA GAUR,
Sachiv.