State Government policy and pricing framework

Here is an overview of wind turbine policy for the Indian states most active in wind power. The information includes a comprehensive coverage of tariff and policies of the various state governments.
 

  STATES                
ITEMS Andhra Pradesh Gujarat Karnataka Kerala Madhya Pradesh Maharashtra Rajasthan Tamil Nadu West Bengal
Captive use Allowed Allowed Allowed Allowed Allowed Allowed Allowed Allowed Allowed
Wheeling At par with conventional source 4% of energy 5% of energy plus INR 1.15/kWh as  cross subsidy for third party sale To be decided by SERC 2% of energy plus transmission charges as per ERC 2% of Energy as wheeling plus 5% as transmission and distribution loss. Below 132 kV, 50% of normal charges applicable to 33 kV declared by commission, plus surcharge, plus losses 5% of energy 7% of energy plus open access charges
Banking   Not allowed Allowed at 2% of energy input   Not allowed 12 months Six months 5% (12 months -  April to March)  
Buy-back Rate by SEB INR.3.50/kWh without any escalation for 10 years, as per state government policy amendment (9/9/08) -  subject to approval of APERC INR 3.50/kWh

without any escalation for 20 yrs

INR 3.40/kWh without any escalation for 10 yrs of commercial operation INR 3.14/ kWh without any escalation for 20 yrs. Annual rates (INR/kWh) from 1st to 20th year
 
1st yr – 4.03
2nd yr – 3.86
3rd yr – 3.69
4th yr – 3.52
5th to 20th yr – 3.36
INR 3.50/kWh (First year of commissioning).
(escalation of 15 paise per year for 13yrs)
For Jaisalmer, Jodhpur and Barmer district INR 3.60 per unit for injection in 33kV or 11kV system, and INR 3.71 per unit for injection into extra high voltage (EHV) system.
For other districts, INR 3.78 per unit for injection on 33kV or 11 kV system, and INR3.89 per unit for injection in EHV system
INR 2.90/kWh
Note : The ERC has proposed INR 3.40, but this has yet to be implemented
INR 4/ kWh
Third Party Sale Allowed under Electricity Act 2003, subject to regulation f by SERCs Allowed under Electricity Act 2003, subject to regulation by SERCs Allowed under Electricity Act 2003, subject to regulation by SERCs Allowed under Electricity Act 2003,  subject to regulation by SERCs Allowed under Electricity Act 2003, subject to regulation by SERCs Allowed under Electricity Act 2003, subject to regulation by SERCs Allowed under Electricity Act 2003,  subject to regulation by SERCs Allowed under Electricity Act 2003, subject to regulation by SERCs Allowed under Electricity Act 2003, subject to regulation by SERCs
Other Incentives Industry status ED -  Exempted,  Demand cut 30% of wind farm installed capacity No electricity duty for 5 yrs   No electricity duty for 5 yrs Power evacuation arrangement, approach road, electricity duty, loan to cooperative societies Exemption from electricity
duty at 50% for 7 years
   
Penalty on kVArh consumption Penalty on kVArh consumption 10 paise/kVArh upto 10% and 25 paise/ kVArh above 10% 10 paise/kVArh up to 10% and 20 paise/KVArh above 10% INR 0.40/kVArh   27 paise/kVArh 25 paise/kVArh 5 paise per year from 01/04/06, with escalation of 5% per year 25 paise/kVArh if the ratio of kVArh drawn to KWh exported is upto 10%, and 50 paise/KVArh for more than 10%  

Source: MNRE/SNAs


2009.02.27