CEE Oct-Dec 2012

,. REGULATORY AND POLICY INCENTIVES FOR RENEWABLE ENERGY PROJECTS IN MADHYA PRADESH Particulars Solar policy Wind policy Biomass policy Month of launch July 2012 January 2012 October 2011 Tariff Solar thermal: As 4.35 per unit for As 2.50 per kWh -As As 12.65 per unit for 25 projects that are 1.77 per kWh for 20 years, considering the commissioned after years (plus the discounting factor at the issue of the wind variable tariH) (issued 10.2 per cent tariff order (May in March 2012) Solar PV: Rs 10.44 per 201 0) for 25 years unit for 25 years for plants of more than 2MW, considering the discounting factor at 10.2 per cent (issued in August 2012) Exemption from For 10 years from the No cess on electricity For 10 years from the electricity cess date of commissioning supply from wind date of commissioning and duty power projects Duty exemption for 10 yers Wheeling charges 2 per cent (rebate of 4 2 per cent (rebate of 2 per cent (rebate of 4 per cent) 4 per cent) per cent) Contract demand Allowed Allowed Allowed reduction in the case of third- party/ captive use of power within the state Entry tax Allowed Allowed Allowed exemption Single-window Provision for Provision for Provision for clearance establishing the Project establishing the establishing the Clearance and Project Clearance Project Clearance and Implementation Board and Implementation Implementation Board Board Third-party sale Allowed Allowed Allowed Banking 100 per cent 100 per cent 100 per cent Stamp duty 50 per cent exemption on the Purchase of private land Source: Government of Madhya Pradesh MADHYA PRADESH'S CURRENT AND PLANNED RENEWABLE ENERGY CAPACITY (MW) Small-hydr o policy November 2011 As 5.40 per kWh - As 2.30 per kWh for 30 years (issued in June 2008) Cess exemption for 10 years from the date of commissioning. Duty exemption as per the state government's notifications. 2 per cent rebate of 4 per cent) For industrial units (consumers of the state electricity board/successor companies) Allowed (for five years) Provision for establishing the Project Clearance and Implementation Board Allowed 100 per cent Source Potential Current Pipeline June 2014 target Investment (Rs billion) Wind 2,931* 314.25 1,422 1,200.00 126 Biomass 1,386 43.70 296 376.00 15 Small hydro 740 86.25 219 305.00 13 Solar 5.6- 6.2 kWh per 7.25 270 877.25 90 m 2 a day • At a hub height of 80 metres Source: Government of Madhya Pradesh Madhaya Pradesh has set an ambitious target of 2,600-2,850 MW of renewable energy-based capacity by June 2014, implying a 581-630 per cent growth over the current level. Courtesy: Renewable Watch, Oct. 2012, Pp 37-38. 27