Wind Power Policy, 2012 :

Preamble:—

The Government of Madhya Pradesh has focused on the growing recognition of the impacts of climate change and recognized the need to tackle challenges that have arisen due to these impacts through integrated policy assessment and programmes aimed at minimization of their impacts. Based on this green initiative, by supporting the essential need to prevent the inevitable erosion of natural carbon-energy resources, with which the State is enriched, the State is committed to encourage the promotion of power generation through Renewable Energy Resources. Wind energy is an indirect form of Solar energy. About 1 % of the total solar radiation reaching the earth is converted into wind energy.

Wind Energy is one of the most economical and exploitable renewable source of energy that can be harnessed for generation of power. There are several advantages of using wind energy— like low establishment period, no raw material expenses, non-polluting, etc. Wind energy based power generators are ruling the Indian Renewable Energy market. In India wind energy accounts for around 70 % of the renewable energy generation capacity. The 11th plan proposal foresees a total installed wind energy capacity of 40,000 Megawatt by harnessing around 88% of the wind energy potential in India by 2022. Madhya Pradesh has a wind energy potential of around 5500 Megawatt whereas the total installed capacity is 270 Megawatt in the State. The State Government proposes to promote wind energy as an additional and alternative source of energy.

Regulatory Framework:—

 1. The “Electricity Act 2003” has been enacted with effect from June 2003. Under the provisions of this Act any private agency or individual is free to set up power generating plants and shall have the right for open access of the transmission facilities. 2. The Madhya Pradesh Electricity Regulatory Commission (MPERC) has been functioning since 1999 and the orders/regulations passed by this commission from time to time shall be applicable to the provisions of this policy. Similarly Acts passed by Government of India from time to time regarding energy sector shall also be applicable to the provisions of this policy. In case of any inconsistency in the provisions of this policy and orders/regulations issued by MPERC, the orders/regulations issued by MPERC shall prevail.

Operative Period:—

• This policy shall come in force from the date of notification in the Madhya Pradesh State Gazette.
• All the projects allotted or to be allotted under this policy shall operate on Build, Own and Operate (BOO) basis. The BOO period shall begin from the Commercial operation date (COD) and shall be for 25 years or the life of the project, whichever is earlier. After completion of this period, Government shall consider about the renewal of the project.
• Wind Power Project:— At any site, generation of power by setting up of one or more than one wind turbine generators are called the Wind Power Projects under this policy. 

 Participation:—

Any individual/firm/society/organisation/registered company etc. shall be eligible to apply for the development of the project.

 Process of Project Allotment:—

Department shall invite proposals for project allotment from time to time, normally twice in a year. Applicant may apply to set up the project on government land or private land. Data of the sites where department has installed wind monitoring masts for setting up wind power plants shall be available for applicants. If more than one application are received for setting up project at the same site on government land then in such case the allotment of project shall be on competition basis. The premium amount shall be the basis of competition for which bids shall be invited from applicants. No applicant shall be eligible for applying more than 100 Megawatt project against one time advertisement on government land. Project shall be allocated to applicants on private land in accordance with their proposal. Applicant shall have to ensure that wind turbine generator being installed at the project site proposed by them should be at a technically safe distance from the other nearest previously identified/installed wind turbine generators.

Permission for Land use:—

• If government land is available for implementation of the project then in such case the permission to use the land shall be provided for establishing aero-generator on the basis of footprints, approach road up to the aero-generator, transmission lines, sub-station installation and for other affiliated uses on the basis of actual use of land for the project. Measurement of the land required shall be based on the footprint, determined by the government taking into consideration, the technology of WTG (Wind Turbine Generator Technologies) established.

Transmission and Distribution:—

•  The developer shall be free to construct his own dedicated transmission/distribution lines from the point of generation to consumption point. The developer shall also have the right of open access of existing transmission facilities of the State as per the provisions mentioned in the Electricity Act 2003. Under the terms mentioned in this policy developer shall sign the wheeling agreement with the Madhya Pradesh Power Transmission Company Ltd. (MPPTCL)/related Distribution Company.
• In case the developer sell power to Third Party Consumers/ Licensee distributor/ Power Trading Company then it shall be bound for payment of wheeling and transmission charges to the MPPTCL/Distribution Company, subject to the final decision taken by M.P. Electricity Regulatory Commission.
• Metering equipments as specified by MPPTCL/related Distribution Company shall be installed at the generation site/interconnection site in accordance with the provisions of M.P. Electricity Supply Code, 2004 and MPERC regulations for metering at the cost of the developer. The officers of MPPTCL/Distribution Company may inspect the same. 

Sale of Power:—

• Developer can sell generated energy to any third party consumer/willing distributor company or Power Trading Company the entire energy produced in case of Independent Power Production (IPP) and any surplus energy produced in case of Captive Power Production (CPP) as per the orders of M.P. Electricity Regulatory Commission.
• M.P. Power Trading Company shall have the first right to purchase the power generated from the project installed entirely or partly on Government land.
• Before presenting the electricity purchase agreement for signing the developer has to avail all the necessary approvals from M.P. Electricity Regulatory Commission.
•  Power generated from wind energy shall be sold at the rates decided by M.P. Electricity Regulatory Commission. The tariff determined by transparent bidding process as per the guidelines issued by Central government ‘which should not exceed the rates prescribed by the Commission’ shall be acceptable to the Commission.
• If the Unit takes Reactive Power in the project then charges shall be payable at the rates determined by M.P. Electricity Regulatory Commission.
• Developer may sell the power generated in accordance with the R.E.C. mechanism.

Incentives :

• No energy cess shall be payable on the power supplied by wind power projects.
• Projects implemented under this policy shall receive the status of industry and shall be eligible for all the incentives provided under “Industrial Promotion Policy” of State government as amended from time to time. If there is any contradiction between the provisions of this policy and the Industrial Promotion Policy then the provision of this policy shall be applicable.
• The industrial consumer opting to buy energy from wind power projects in regard of corresponding pro rata reduction in contract demand on a permanent basis The decision of the Madhya Pradesh Electricity Regulatory Commission in this subject shall be final
• .For captive consumption and third party sale the installed project shall be entitled to receive exemption from payment of Electricity Duty for a period of 10 years.
• In case of power consumption for self use or power sale to third party the Madhya Pradesh Power Transmission Company Ltd. (MPPTCL) or related State Distribution Company shall facilitate wheeling of power at the rates prescribed by Madhya Pradesh Electricity Regulatory Commission (MPERC). In case of power sale to Third party within the State, the related Distribution Company shall avail a wheeling grant at the rate of 4.0 percent from the State government.