KARNATAKA RENEWABLE ENERGY DEVELOPMENT LIMITED

Karnataka Solar Policy :2011-16

Sl No 1 Category Capacity reserved (MWs) Capacity Allotted Remarks

Solar RPO

200MW

70MW

KERC has issued regulations for procurement of 0.25o/o of total power consumed, from solar resource.70m MW allotted and balance130MWs tendered and technical evaluation of bids is under process. Proposals to enhance capacity is under consideration by govt and guidelines for allotment will be issued after this BESCOM has signed 70MWs on behalf of all 4 ESCOMs

Solar REC Mechanism Bundled Power

100MW

-------

50MW

70MW

Sl No 4

Category

Capacity reserved (MWs) Not mentioned

Capacity Allotted

Captive solar power plants and sale to third party

Captive power plants and those put up for sale of power to third party (not to ESCOMS) do not form part of the target of 200 MW envisaged in the policy. Insuch cases the wheeling charges have to be paid at the rates determined by theKERC/CERC as the case may be. Where open access is granted to any developer, applicable open access charges as approved by KERC/CERC have to be paid.

Captive Power Plants No limitation for allotment, however conditions as detailed in KERC regulations shall be applicable. Eligible for accreditation to get RECs . Independent power producers(IPPs) Allowed sale of energy to third party. No limitation for capacity allocation. Not eligible for RECs

Solar RPO projects Allotment through reverse bidding process on discount offered on tariff fixed by KERC. Salient features Capacity of allocation Solar PV : Minimum 3MWs , Maximum 10MWs Solar Thermal Power Project : Minimum 5MWs Maximum 10MWs Tariff fixed by KERC.

Allotment of Projects

Tariff fixed by KERC

SPV Projects ( Rs./kWh) 14.50

Solar Thermal (Rs./kWh) 11.30

Land and Evacuation: Responsibility of the developer

Solar Renewable Energy Certificate Mechanism (REC Mechanism) Maximum capacity allowed 100MWs (it is proposed to revise capacity allocation) Projects will be allotted as per the guidelines issued by Govt. Accreditation for RECs as per KERC & CERC regulations.

Experience during bidding process

Even though 30MWs was reserved for Solar Thermal projects only 2 bidders participated, in this category Reservation for Solar thermal technology in first bidding process found not competitive. One bidder refused to sign PPA and paid penalty(Bid Security appropriated, bid security Rs.20lakhs/MWs) It is felt a) That state ESCOMs need to be enlightened regarding Solar RPO and REC projects. b) Uniform PPA format need to be developed and approved by CERC/KERC to avoid delay in signing of approved PPA to avoid delay in achieving financial closures

 Bidders need to focus their attention w.r.t acquiring pvt lands for project development to avoid penalty for not achieving conditions precedent. Bidders are required to furnish bank guarantees from one banks(in previous bidding KREDL received BGs from various banks). The present bidding process(130Mws) is through EPlatform & yet to be analyzed for advantages. It is essential to develop uniform RFP document which facilitates wider participation in bidding process and also avoids ambiguities w.r.t key submissions Viz,; BG format, networth criteria, clauses of RFP etc.

Solar Roof top & net metering

Proposed to develop 10Mw grid connected solar rooftop power plants (individual and aggregator model ) A task force is formed including BESCOM & KREDL officials to sort out a) Grid connectivity b) Security and c) Tariff issues

Solar City Project

Urbanization and economic development are leading to a rapid rise in energy demand in urban areas in our country leading to enhanced Green House Gas (GHG) emissions. To promote energy security and Green Energy, the Development of Solar Cities program is designed to support/encourage Urban Local Bodies to prepare a Road Map to guide their cities in becoming renewable energy cities or solar cities. Mysore and Hubli - Dharwad has selected as solar city. Master Plan for Mysore as solar city has been approved in 2012. An amount of Rs. 1,50,000 has been released towards preparation of master plan for Hubli Dharwad under Solar City Program. Total amount of Rs. 5,65,000 has been released for Mysore city Corporation under Solar City Program.

SPV off-Grid Systems FY Sanctioned Sl. No.

201112 201213

Capacity in kW

No.of Proposals

Proposals pending in Commissioned MNRE No.of Capaci No.of Capacity Propos ty in Propos in kW als kW als

20 CFA=Rs.56 872.610 3.05 lakhs

206.895

645.84

21

779.95 6 872.610 9 206.895 8 1425.7 96

24 45

Total

Thank you