Solar energy is the most secure of all energy sources. It is abundantly available. It can be easily converted into electrical energy. Production of electrical power and its easy availability at regulated rates is an established benchmark of development. No major economic activity can be sustained without adequate and reliable sources of power. The challenges of Climate Change and Global Warming resulting from the burning of fossil fuels are continuously threatening the world community. Solar Power generation offer an environmentally safe and sustainable alternative.
Goa is richly endowed with a moderate climate and bright sunshine for almost 8-9 months in a year for generating solar power. The State of Goa entirely depends on thermal energy generated in other States. Goa is eco-sensitive, no Thermal Energy generation is possible in the State. Hence in order to attain self-reliance in Power generation and to promote a clean source of Power, Solar Policy is being adopted. This would result in a reduction of carbon emissions.
The challenge before the State Government is not only to meet the ever-growing demand for power but also to progressively increase the share of Renewable Sources in the energy – mix so as to achieve overall energy security and also to meet the Renewable Purchase Obligation (RPO)as per the target fixed by appropriate authorities from time to time. It can be done by promoting the systematic tapping of the solar energy potential to the maximum. Technological improvements have now made a generation of solar energy economically viable and would lead to the reduction of expenditure of the State in the purchase of Conventional Power from the Grid.
An appropriate policy framework is therefore essential to promote the SolarEnergy generation initiatives. Therefore, the State Government is pleased to introduce the “Goa State Solar Policy -2017”, as under:
2. TITLE OF THE POLICY:
This policy shall be known as the “Goa State Solar Policy – 2017”.
3. LEGISLATIVE FRAMEWORK FOR POLICY:
Several provisions under the Electricity Act, 2003 mandates the Electricity Regulatory Commissions and the Government’s to take the necessary steps for promotion of renewable energy. The Section 108 and Section 109 of the Electricity act 2003 mandates the Government to give directions to the State Commission in the matter of policy involving public interest. Accordingly, the state Government in exercise of its powers has formulated this Policy.
4. OPERATIVE PERIOD:
This policy shall come into effect from the date of notification in the official gazette in the state of Goa and shall remain in operation up to 7 (seven) years. However, this is subject to modifications as may be made by Government of Goa from time to time, without jeoparding the already signed Agreement or MOU. Even though, the policy will be in operation for 7 years, all Agreements and PPAs signed under this policy shall be valid for the period of Agreement / PPA.
5. CATEGORY FOR GENERATING SOLAR POWER
(5.1) Category I: Prosumer
“Prosumer” is a Consumer having an already connected load with the Goa Electricity Department (GED)and is also a Producer of Solar Power. Prosumer is categorised into two types namely Small and Large.
a) Small Prosumer is a person already having an LT connection i.e. connected load upto 100kW with GED. It will include Residential, Commercial, Institutional or Industrial consumers. They are allowed to go for Gross metering upto 100kW or the connected load, whichever is lower. The feed in tariff will be as per the Joint Electricity Regulatory Commission (JERC) approved solar tariff rates for that year. The solar power plant can be installed on rooftop or ground based within the same premises. The area/boundary of the premises will be as existing on date of Notification of this policy. However, the Small Prosumer is also allowed to opt for Net metering, if he chooses so.
b) Large Prosumer is a person having an HT connection i.e. connected load above 100 kW with GED. It will include Residential, Commercial, Institutional or Industrial consumers. All large prosumer shall be allowed to go for Net metering only. The feed in tariff will be as per JERC approved solar tariff rates for that year for the surplus energy exported as per the net metering mechanism of JERC. The solar power plant can be installed on rooftop or ground based within the same premises. The area/boundary of the premises will be as existing on date of Notification of this policy.
(5.2) Category II : Producer
The Producer is an entity intending to set up a Solar Power plant with a capacity of more than 100kW exclusively for sale of power to the Distribution Licensee under gross metering as per the tariff discovered by Reverse Bidding.The solar power plant can be installed on rooftop or ground based. Producers are allowed to participate in reverse bidding for four sizes of installation i.e. i) 100kW to 1MW, ii) 1MW to 5MW, iii) 5MW to 10MW and iv) 10MW & above. The producer will be selected through Reverse Bidding on the basis of the maximum discount offered on the levillised tariff fixed by the JERC for the solar power plant for that year. At the above discovered price of Solar tariff for that slab/size, the GED will enter into a Power Purchase Agreement (PPA) with all intending producers subject to availability of infrastructure for evacuation of power.
I. Norms / Conditions Applicable for Reverse Bidding
In order to keep away from speculative bidding and to ensure the participation of only serious power producers, following conditions for bidding shall apply:-
i. Price: Price for supply of solar power shall be as per the discount offered on the levellised tariff rate as declared by JERC and duly notified as on the last date of responding to the Expression of Interest (EOI)/bidding.
ii. Eligibility: Besides other General Condition of EOI/bidding, only those who have firm proof of land in their ownership or NOC/confirmation from the owner of the land regarding his intention to lease out the land to the bidder (in case of bidder being successful in the bid) for a period equal to or more of the period of PPA shall be considered.
iii. The term for starting of supply from completion of bidding process & execution PPA shall be as mentioned at point no. 12 of this policy.
iv. The solar capacity to be approved for each year for all the 04 slabs as mentioned above at para 5.2 shall be separately notified by the Government at the time of bidding. However, an information on future requirement for 5 yrs will be indicated. The lowest bidder in each slab shall have the right to go for PPA for the whole capacity allocated to that slab. In case he desires to restrict to only his quoted capacity in the bid, then other bidders in that slab will be given the option to match the L1 rate.Incase they agree for the same, then PPA at L1 rate upto allocated capacity of that slab will be entered with them. In case there are more bidders than the allocated capacity in that slab, then priority will be given in terms of next lowest bidder and so on i.e. from L1 to L2 to L3 and so on till the whole capacity in the slab is exhausted. In case even after signing of PPA with all bidders in that slab, the capacity is still left, then only non-bidders will be given the option to enter into PPA at L1 rate at the discretion of the Government.
v. Permissible delays and Penalty thereof:-
a) Any delay though condoned, shall not increase the period of PPA. Thus while delay could be permitted to the extent permissible on payment of penalty, the total time frame of PPA shall remain unaltered.
b) Maximum delay permissible to start the supply shall be 12 months. However, the State Government at its discretion may permit further delay of upto 12 months on payment of twice the penalty levied for the 1stdelay permitted, prorata to the delay time on day basis. Provided that inspite of delays of first12 months as permitted and subsequent discretionary delay, if permitted by Government of Goa, do not result in supply, then the PPA stands null & void and all Bank Guarantees shall be encashed.
c) The supplier shall give notice of his intention of supply three months prior to date as scheduled in PPA. Failure to give this notice will automatically be considered as delay until the notice is received for 90 days for intention to begin supply. Delay accordingly will be calculated in days and penalty will be imposed as per rules.
d) For supply to be considered as valid supply, atleast 50% of power as per PPA should be made available. Failure will be treated as breach of contract & one month supply value equivalent BG will be encashed or penalty imposed. However the supply will be paid at the contract rate.
e) Upto 10% lower supply quantum will not attract penalty. Anything above 10% & upto 50% will be levied penalty at 5% of value of supply that is missing above the 10% threshold.
f) For delay upto 12 months, the bidders shall pay penalty equal to 5% of value of energy committed for every day of delay. For delay upto next 12 months (if approved by Government), the penalty will be at twice the rate as already mentioned at point (b) above.
g) The bidder will have to provide 6 BGs each equivalent to 30 days supply for the capacity of the plant size he has quoted based on his own expectation of generation. The bidder shall clearly mention the size of the plant he plans to install and the minimum average units per KW per month that he commits to be generated from the same. This will be the basis for calculation of his value of BGs and penalties, if any, in case of default.
h) PPA shall not take into consideration the rainy season wherein supply as available will be considered for payment and above clauses a) to g) shall not be applicable. The start of rainy season shall be date of onset of monsoon as declared by Meteorology or the day in June when seasons rains cross 15cms whichever is early & will last for purpose of this PPA for 75 days from that date.
i) The BG submitted shall be valid for atleast 02 years. Out of six BG two BG (of one month each) shall be kept valid throughout the period of PPA, failing which equivalent amount of billing will be frozen. The B/L BG shall be returned after 6 month of successful operation (6 month of Non default operation after commissioning) or validity of BG whichever is later and the operator is required to extend the BG till such condition is achieved in case the same happens after 02 years.
j) Both the penalties i.e. for delay in supply or for short supply, shall be levied simultaneously if there is a default on both the accounts. However, in case one month BG is encashed in any month because of short supply, then no other penalty in that month shall be imposed to save the bidder from a double whammy.
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