Energy policy proposes to raise State share in IPPs’ generation

  • 22/07/2018

  • Pioneer (New Delhi)

The most talked about issue that comes ahead of setting up any power plant in Jharkhand—compulsory power sharing agreement with the State—has gone for a major shift in the new energy policy draft brought out for consideration. Against the policy in place that binds any independent power projects (IPPs) setting up thermal power plant in the State to share at least 25 per cent of the energy generated with it, the new policy proposes to take it up to 35 per cent. The Jharkhand Power Policy Draft-2018 that vows to encourage thermal power projects of super critical in nature says, “35 per cent of the power generated from these projects is tied up to the State, subject to first right to refusal of the State. In case of provision of coal linkage the rate of 18.2 per cent share will be as approved by Jharkhand State Electricity Regulatory Commission (JSERC) and rate of remaining 16.8 per cent share will be as on variable cost. In case, no provision for coal linkage is provided, then the rate of 35 per cent of power will be as per the approved rate of JSERC.” The existing policy and power purchase agreement (PPA) there to be signed leaves tariff for entire 25 per cent of the power generated from any proposed IPP to the JSERC. “The provision has been made to attract more investors in the field of electricity generation. At the same, it would also provide more share on the power produced from the plant which would ensure sufficient power available to the State,” said an official of the Energy Department talking about the draft on which the stakeholders or commoners can send their feedbacks and suggestions by August 10. This apart, the policy also seeks contribution of 6 paisa per unit of the energy sent from the IPPs during the continuing financial year out of the State. The cess is to be deposited in the Environmental Protection Fund to be in place to mitigate side effects of the thermal power plants.On the environment protection front, guidelines for washing coal with no water or minimum consumption, gasification of coal for power generation through integrated gasification combined cycle (IGCC)—a technology that uses a high pressure gasifier to turn coal and other carbon based fuels into pressurised gas, carbon capture and storage technologies and other clean coal technologies have been given weightage. Also, the draft policy talks about coal linkages allocation mechanism which would be granted to joint venture formed by JUVNL or its subsidiaries and IPP based on new transparent allocation policy for power sector floated in 2017 as ‘Shakti’ (Scheme for harnessing and Allocating Koyla Transparently in India). “The Government sees its role as a facilitator in arranging land through land bank, creating desired infrastructure, availability of water and exemptions from stamp duty and tax-free sale of electricity outside the State,” informed the official.