According to reports, the state government has come out with its promised New and Renewable Energy Policy under which sops have been declared for developing various types of renewable energy. It has set a target of generating 14,400 MW through renewable sources. Many sops are common for the sources while some are sector-specific.
The government has decided to promote six sources of renewable energy. They are: wind (5,000 MW), cogeneration using farm waste (1,000 MW), small hydel (400 MW), farm waste gasification (300 MW), inorganic industrial waste (200 MW) and solar (7,500 MW).
As per the policy, Maharashtra Electricity Regulatory Commission (MERC) will declare separate open access (OA) regulations and cross subsidy surcharge (CSS) for renewable energy. If MSEDCL does not grant OA within time stipulated by MERC, the promoter will get deemed OA.
A committee will be constituted under the chief secretary for mid-term review of the policy. In case a promoter has power purchase agreement (PPA) with MSEDCL and wants to sell his renewable energy elsewhere, he can terminate the agreement.
Some of the sops are common. If the developer wants to use renewable energy for captive purpose, then he will get waiver on electricity duty for 10 years. MSEDCL and Mahatransco will not levy supervision charges for setting up transmission infrastructure. Maharashtra Energy Development Agency (MEDA) will give a grant of up to Rs 1 crore for transmission network.
Many incentives are common for solar and wind. They can get industry status if the developer wants. The land used for energy generation will be deemed non-agricultural (NA) use. No consent or no-objection certificate (NOC) will be needed from Maharashtra Pollution Control Board (MPCB).
The policy has identified four ways of selling renewable power: to MSEDCL and other distribution companies in the state to fulfill their renewable energy purchase obligation (RPO), captive use, direct third party sale or selling power to the exchange through renewable energy certificate (REC) mechanism.
The target for wind generation is 5,000 MW. Private players already have 1,350 MW capacity. So 3,500 MW will have to be for captive use or outside the state sale. In case of solar energy, Mahagenco is the sole generator at present. Now, it will create 2,500 MW capacity on public private partnership (PPP) basis. The remaining 5,000 MW will be developed by private players on their own. MERC will give preferential tariff to solar and MSEDCL will give it priority for open access. MEDA will give land up to 4 hectare without auction.