The Odisha Gazette

EXTRAORDINARY
PUBLISHED BY AUTHORITY

No. 2178 CUTTACK, MONDAY, NOVEMBER 28, 2016/MARGASIRA 7, 1938

No. 8646-0HPC-21/2016
GOVERNMENT OF ODISHA
DEPARTMENT OF ENERGY

RESOLUTION

The 25th November 2016

SUBJECT :—Odisha Renewable Energy Policy, 2016

Section A : General
1. Introduction :

1.1. Preamble :

Renewable energy assumes great significance in the wake of huge demand of electricity
throughout the country outstripping the supply, which is being largely met from coal based thermal
generation. Although Odisha has large deposits of power grade coal in Talcher and IB Valley Areas
which has attracted a number of thermal generating plants both in the private and public sector, a
commensurate effort is required to ramp up generation from renewable energy sources also. The
Government of Odisha (GoO) had issued Policy Guidelines on Power Generation from
Non-Conventional Energy Sources vide Notification No. 6971/ST, Bhubaneswar, ST-IV-RE-
13/2005, dated the 3rd December, 2005 with an objective to reduce dependence on conventional
sources of power generation, protecting the environment, generation of employment in large scale,
generation of grid-quality power, encourage entrepreneurial investment, and to extend such rational
fiscal and promotional incentives so as to provide conducive atmosphere to attract private investment.

1.2. Renewable Purchase Obligation (RPO) :

1.2.1. All Obligated Entities in the State are required to purchase quantum of renewable
energy as prescribed by OERC in its Regulations Under Section 86(1)(e) of the Electricity Act 2003.

1.2.2. The Odisha Electricity Regulatory Commission (OERC) has also issued OERC
(Procurement of Energy from Renewable Sources and its Compliance) Regulations, 2015 for
purchase of electricity from Renewable Energy sources, making it mandatory for the obligated
entities to source a certain percentage of their power purchase from Renewable Energy sources.
Year-wise RPO percentage targets given by OERC are given in the Table below :—
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Financial State Energy RPO Percentage (%) Requirement in MU Requirement in MW

Year Consumption „...—...-----____, _______...-._._......„ ,..----------._
(MU) Solar Non- Solar Solar Non-Solar Solar Non- Solar

(1) (2) (3) (4) (5) (6) (7) (8)

2015-16 23748 0.5 2.5 118.74 593.7 91 136

2016-17 24550 1.5 3.0 368.25 736.5 283 168

2017-18 25500 3.0 4.5 765 1147.5 588 262

2018-19 26500 4.5 5.0 1192.5 1325 917 303

2019-20 27500 5.5 5.5 1512.5 1512.5 1163 345

(*Figures given in MU and MW are indicative in nature)

1.2.3. According to the revised National Tariff Policy notified on the 28th January, 2016, the
RPO percentage will reach 8% for Solar and 9% for Non-Solar Power by the year 2022 (leaving
hydro consumption). According to the demand forecast done by the STU (OPTCL), the requirement
of Solar and Non-Solar Power will reach up to 1850 MW and 600 MW respectively by the year
2022. Further, MNRE has communicated the cumulative Solar Power capacity addition target as
2191 MW by the year 2022 keeping in view the revised National Tariff Policy 2016.

1.2.4. Hence, developing alternative power through renewable energy sources has become
urgent and the Odisha Renewable Energy Policy needs to be viewed from that angle. Over last few
years, many developments have taken place necessitating a strong policy push to propel the
growth of various renewable energy sources in Odisha. The present Policy had been framed
against these developments and backdrop in line with the GOI Framework under the Electricity Act,
2003 and the National Tariff Policy.

1.3. Vision :
The vision of the Policy would be to harness green and clean energy from natural resources
in the State of Odish.a for benefit of the environment and to ensure energy security for the people of
Odisha.
1.4. Mission :
The mission of the Policy would be to provide a long term sustainable solution for meeting
energy needs and reducing dependence on conventional sources of power while seeking to achieve
the Renewable Purchase Obligation targets and also fulfilling the objectives of the State Action Plan
for Climate Change.
1.5. Objectives :
The Policy aims to achieve the following objectives—

(a) Contribute to long-term energy security of the State as well as ecological security
by reduction in carbon emissions.

(b) Create an environment conducive to public/private /community participation and

investment in Renewable Energy Projects.

(c)Create skilled and semi-skilled manpower resources through promotion of technical

and other related training facilities.
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(d) Enhance the contribution of Renewable Energy Projects in the total installed
capacity of the State through private participation.
(e) Facilitate development of manufacturing units and Research & Development in
the Renewable Energy sector.
1.6. Policy Period :

The policy shall come into operation with effect from the date of its publication in the Official
Gazette of the State and shall remain in force till dated the 31st March, 2022 or till a new policy is
announced, as decided by the State Government.

1.7. Targets Envisaged :

The Government of Odisha envisage to achieve the following targets for addition of renewable
energy capacity in the State by the year 2022:

Technology Solar Wind Small Biomass WTE Total

Hydro
(1) (2) (3) (4) (5) (6) (7)
Target(MW) 2,200 200 150 180 20 2750

1.8. Power to Review and Interpret/Amend :

1.8.1. The State Government may undertake review as and when the need arises in view of
any technological breakthrough or to remove any inconsistency with Electricity Act 2003, Rules &
Regulations made thereunder or any Government of India Policy/State Electricity Regulatory
Commission's order or to remove any barriers/difficulties in promotion of renewable energy projects.

1.8.2. Government of Odisha will have the exclusive powers to interpret/amend any of the
provisions of this policy.

2. Definitions :
(i) "Act" means the Electricity Act, 2003 (36 of 2003) as amended from time to

time.

(ii) "Biomass" means waste produced during agricultural and forestry operations (for
example straws and stalks) or produced as a by-product of processing operations of agricultural
produce (e.g., husks, shells, de-oiled cakes, etc); wood produced in dedicated energy
plantations or recovered from wild bushes/weeds; and the wood waste produced in some
industrial operations.

(iii) "COD" means Commercial Operation Date.

(iv) "Decentralised Distributed Generation (DDG)" means generation of electricity

from any renewable energy source for local consumption, in off-grid or on-grid mode.

(v) "Detailed Project Report (DPR)" is a Report that establishes the technical and
commercial basis of the Project and includes all project technical and cost related details
and is used for subsequent planning and implementation of the Project.

(vi) "EIC (Electricity)" means Engineer-in-Chief (Electricity), Nodal Agency for

implementation of small hydro power projects in the State of Odisha.
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(vii) "Feed-in-Tariff (FIT)" means a guaranteed price per unit of electricity determined
by Odisha Electricity Regulatory Commission in accordance with Section 62 and
Section 86(1) (e) of the Act for payment to the generator to enable it to obtain a reasonable
return on renewable energy investments.

(viii) "GEDCOL" means Green Energy Development Corporation of Odisha Ltd , a

wholly owned subsidiary of Odisha Hydro Power Corporation Ltd. (OHPC) created with the
main objective to explore the renewable energy resources in the State.

(ix) "IDCO" is the Odisha Industrial Infrastructure Development Corporation

established under the Odisha Industrial Infrastructure Development Corporation Act, 1980
as the nodal agency for developing infrastructure in the State of Odisha.

(x) "Municipal Solid Waste" means the waste that includes commercial and residential
waste generated in municipal or notified areas in either solid or semi-solid form excluding
industrial hazardous wastes but including treated bio-medical wastes.

(xi) "OPTCL" means Odisha Power Transmission Corporation Limited (OPTCL ),

the State Transmission Utility incorporated as a company wholly owned by the Government
of Odisha to undertake the business of transmission and wheeling of electricity in the State.

(xii) "OREDA" means Odisha Renewable Energy Development Agency (OREDA),

constituted as a State Nodal Agency under the aegis of Dept. of Science & Technology,
Government of Odisha with a view to popularize the exploitation and use of renewable
energy resources in the State.

(xiii) "Renewable Energy Certificate (REC)" means the Certificate issued by the
Central Agency under the provisions specified in the Central Electricity Regulatory
Commission (terms and conditions for recognition and issuance of Renewable Energy
Certificate for Renewable Energy Generation) Regulations, 2010 as amended from time to
time.

(xiv) "RESCO" means Renewable Energy Services Company as defined by MNRE

from time to time.
(xv) "Small Hydro Power (SHP) Project" means a hydro power project with capacity
up to 25 MW.
(xvi) "Solar Park" means an exclusive area consisting of dedicated zones for
development of solar power generation projects, solar manufacturing projects and R&D
with basic infrastructure.

(xvii) "Solar Rooftop Project" means a roof top photovoltaic system connected on the
consumer side of the meter.
The definitions not provided in this section but defined in the Electricity Act 2003 or the
Odisha Electricity Reforms Act 1995 or the Policies/Resolutions framed thereunder or by OERC
Regulations/Orders shall have the same meaning as provided in these documents.
Section B: Grid Connected Renewable Energy Projects

3. Solar:
Odisha receives an average solar radiation of 5.5 kWh/sqr. mtr. area with an average CUF
(Capacity Utilisation Factor) ranging from 15-17% across the Districts and around 300 clear sunny
days every year. In order to develop the targeted capacity in the State, solar capacity will be added
mainly through the following four areas/means:
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3.1. Land Based Solar Projects :

3.1.1. IDCO has identified large chunks of land under its Land Bank Scheme. Focus would
be more on these patches of land to set up solar plants for generation of power to make these cost
effective. GEDCOL as Nodal Agency will facilitate allotment of the land on lease as per the provisions
of IPR-2015 for developing solar projects. However, it shall be the responsibility of the project
developer to arrange land for the project.

3.1.2. The project developer may utilize the energy generated for self-consumption or sell
power generated from such projects within or outside the State to any Procurer.

3.2. Projects Utilizing Water Bodies :

3.2.1. Areas covered under water bodies such as reservoirs, lakes, canals and storage
ponds can be considered for development of solar projects. Solar PV panels can be mounted on
structures on canal tops. In addition, floating solar technologies can be considered, wherein solar
panels can be mounted on floats and placed on water bodies.

3.2.2. GEDCOL shall be the Nodal Agency for development of solar projects utilizing water
bodies. It shall undertake a survey of the water bodies to prepare a database of such areas,
co-ordinate with the concerned Departments/Authorities for permission to install solar projects on
the water bodies and shall acquire the right to use the water surface/area for development of the
solar projects. It should co-ordinate with GRIDCO for floating the tenders for power procurement
from the selected sites through competitive bidding. The project developers shall be allotted land
with no lease charge.

3.2.3. GRIDCO shall have the first right of refusal to procure power from the solar projects
developed on water bodies at the tariff discovered during the competitive bidding process and
approved by OERC.
3.3. Projects on Consumer Side of Meter :

3.3.1. Solar energy is evenly spread over the land mass. It can be best utilised in a
decentralised mode by way of promoting small scale solar PV projects on the consumer side of the
meter. These projects would use the solar power within the institution/household during the day in
tandem with grid power and export excess power, if any, to the grid at generic tariff determined by
OERC. Investors/consumers who want to develop rooftop PV projects can set up their facility by
connecting to the grid either at 33 kV /11 kV three phase lines or at 440/220 \/olt three/single phase
depending on the size of the system. However, it shall be the responsibility of the project developer
to arrange land required, if any, for the project.

3.3.2. OREDA shall be the nodal agency for the projects of below 1 MW capacity on the
consumer side of the meter. The projects of 1 MW and above capacity will be implemented by
GEDCOL. The net-metering facility will be extended to all the project developers who intend to
set-up solar photovoltaic plants on their rooftops. Project developers shall follow the net metering
Orders issued by the OERC from time to time.

3.4. Solar Parks :

3.4.1. A solar park shall be an exclusive area consisting of dedicated zones for development
of solar power generation projects, solar manufacturing projects and R&D with basic infrastructure.
Odisha hosts a high capacity of captive power plants (CPPs) which are Obligated Entities and are
required to meet the Solar Purchase Obligation (SPO) specified by the OERC. It is necessary for
 6
these Obligated Entities to either set up their own solar projects or purchase power from solar
projects to meet their SPOs. Solar parks would create and provide ready to use infrastructure for
such users apart from other commercial solar power developers. Solar parks would achieve economies
of scale and will minimize the project risks.

14.2. There will be two modes of implementation of the Solar Parks depending upon the
implementation agency, namely, GEDCOL Solar Parks and Private Park Developer model.

(a) GEDCOL Solar Parks :

3.4.2.1. Under this model, GEDCOL shall develop all infrastructure facilities. GEDCOL shall
either purchase the land or take it on long term lease from the Government. GEDCOL may also
develop solar parks under the MNRE Scheme for Development of Solar Parks and Ultra Mega Solar
Power Projects. It may develop these parks in partnership with Solar Energy Corporation of India
(SECT) or other agencies.

3.4.2.2. Under this model, GEDCOL shall invite proposals from developers for allotment of
plots for solar project development in the solar park. The developers shall pay the per MW facilitation
charges as determined by GEDCOL. GEDCOL will provide the land to project developers on 30
years lease at a pre-determined lease/rent and other charges as per the agreed terms & conditions.
3.4.2.3. GEDCOL shall offer plots to project developers in the following order of priority :-

1.Projects being developed to meet SPO of Distribution Licensees/ GRIDCO.

2. Projects being developed by CPPs in the State to meet their SPO

3. Projects being developed under Average Pool Power Cost (APPC)/ Renewable
Energy Certificate (REC) route.

4. Project developers who have won projects in competitive bidding undertaken under
National Solar Mission/any other scheme of Government of India.

5. Project developers who have won projects in competitive.bidding undertaken by

State utilities in other States.

6. Project developers opting for open access/third party sale model.

3.4.2.4. All solar PV and solar thermal project developers and manufacturers developing
solar projects in notified Solar Parks shall be eligible for allotment of land. However, the share of
land in the solar park allotted to the solar manufacturing capacity shall be limited to maximum of 10%
of the allotable land. Hybrid power projects with other renewable technologies i.e., solar-biomass,
solar-hydro, solar- wind etc., shall also be eligible for allotment of land. However, the ratio of solar
generation, in energy terms, should be at least 60% of total electricity generated in a hybrid project.

3.4.2.5. The minimum capacity that can be allotted to any individual solar power developer'
shall be 10 MW. The maximum capacity allocated to a single developer shall be 30% of the Solar
Park capacity. However, GEDCOL may relax the capacity norms on 'case to case' basis.

3.4.2.6. In case the proposals are more than the capacity invited, GEDCOL shall conduct
competitive bidding on facilitation charges for selection of bidders i.e., the bidders who offer the
highest premium over GEDCOL determined facilitation charges per MW would get priority.
 7
(b) Private Park Developer Model :

3.4.2.7. Under this model, the private solar park developer shall identify the suitable site and
procure land for development of a solar park. In case of the Government land, the private developer
would make an application to GEDCOL for allotment of the land. The Government land shall be
leased out as per the provisions of Odisha Industrial Policy (IPR)-2015. A maximum 5 acre/MW of
land shall be leased out for solar park development. GEDCOL will give in-principle approval for
setting up of the project and will co-ordinate with IDCO for providing the land on lease, if required.
The required permits under the Orissa Land Reforms Act of 1960 and its Amendments, with respect
to land ceiling shall also be facilitated by GEDCOL. The land allotted for solar power generation
cannot be diverted for any other purpose .

3. 4.2.8. The private developer shall be responsible for development of the basic infrastructure
facilities like approach roads, boundary wall, security, water, auxiliary power, power evacuation
facility, etc. and allotment of capacity to other solar power developers in the solar park. The solar
park developer may either develop project on his own or further sub-let plots after creating
infrastructure necessary for the solar project development. In such a case, the private developer
shall be responsible for development of the basic infrastructure and allotment of capacity to other
private power project developers in the solar park.

3.4.2.9. Under this model, the developer shall be responsible for execution of the project and
the same shall be monitored by the GEDCOL. Private solar park developer may also develop solar
park under the MNRE scheme for Development of Solar Parks and Ultra Mega Solar Power Projects.
In case, 80% of the project capacity is not developed within a period of 5 years, penalty shall be
imposed by GEDCOL. For every 1 MW shortfall in capacity, the solar park developer shall be liable
to pay 3 times the lease rent for every year until 80% of the capacity is developed.
4. Small Hydro :

The Engineer-in-Chief (EIC) (Electricity) shall be the nodal agency for small hydro projects.
4.1. Process of Selection of Developer and Allotment/Cancellation of Projects :

(a) The responsibility of identifying small hydro projects in the State lies exclusively
with the nodal agency. Self-identified small hydro projects shall not be allowed. The nodal
agency shall prepare the DPRs and place the recommendations of the State Technical
Committee (STC) for Small Hydro-Electric Projects to the Government of Odisha for approval.
(b) Selection of project developer other than State PSUs will be done on competitive
bidding basis. The selected bidder will deposit the cost of DPR and other expenses upfront
to the Nodal Agency.

(c) OHPC will be the sole developer for dam-toe and canal based projects.

(d) The already allotted projects that fail to achieve financial closure within six (6)
months of the date of notification of this policy would be liable for cancellation.

(e) The project allotted in pursuance of this policy would be liable for cancellation, if
they fail to achieve financial closure within six (6) months of the date of allocation order.
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4.2. Sale of Power :

GRIDCO shall have the first right of refusal in case of all small hydro projects developed in
Odisha, which it shall exercise at the time of scrutiny of the project by the STC. Where GRIDCO will
procure power, such projects will be allocated on tariff based competitive bidding. In case of sale of
power to entities other than GRIDCO, the project will be allocated on competitive bidding on the
basis of maximum free power to be supplied by the developer to the State.

5. Wind :
OREDA shall be the nodal agency for wind power development in the State.

5.1. Wind Resource Assessment :

(a) Wind Resource Assessment (VVRA) is carried out by OREDA at various places
including at hill tops. NIWE gives the co-ordinates of locations for WRA studies. Acquisition
of land for setting up met masts (measurement towers) at these locations will be done by
OREDA.

(b) For carrying out wind resources assessment studies, the private developer can
also select the location for establishment of wind monitoring station and shall submit the
application to the nodal agency as prescribed by it.

(c) The Government land required for setting up of wind monitoring station shall be
allotted on temporary basis to the Developer for a maximum period of 3 years at the rate to
be decided by the District Level Committee. The allotment of such land shall be done by the
concerned District Collector on the recommendation of Nodal Agency. After completion of
wind assessment studies, the wind monitoring station shall be dismantled at the cost of the
Developer and land shall revert back to the State Government free from all encumbrances.

(d) Purchase and acquisition of private land, if any shall be the responsibility of the
Developer.
5.2. Process of Selection of Developer and Allotment of Projects :

5.2.1. Data for the sites where wind monitoring stations have been installed shall be made
available to the applicants in accordance with the extant MNRE policy. The nodal agency would
facilitate in making the land available to the project developer in accordance with the IPR-2015. For
setting up wind power plants on sites identified by OREDA or by the private developers, the DPR
shall be submitted by the developers to OREDA for techno-commercial assessment.

5.2.2. Applicants may apply to the nodal agency to set up the wind power project on the
Government land or private land. If more than one application is received for setting up project at
the same site on the Government land, then the allotment of project shall be done on competitive
bidding on the basis of site premium amount. The projects shall be allocated to applicants on
private land in accordance with their proposal.

5.3. Sale of Power :

5.3.1. The project developer may utilize the energy generated for self-consumption or sell
power generated from such projects within the State or outside the State to any Procurer in accordance
with the relevant regulations of the OERC.

5.3.2. To kick start the wind power development in the State, GRIDCO shall purchase initial
wind power capacity up to 50 MW at the generic tariff to be determined by OERC from time to time.
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6. Biomass :
OREDA shall be the nodal agency for development of Biomass based power projects in
Odisha.
6.1. Identification of Biomass Catchments :

Taking into account the commercial feasibility of Biomass Power Projects, the State Nodal
Agency shall undertake resource assessment studies and supply chain mechanisms and identify
biomass catchments in different parts of the State to harness the targeted capacity. After completion
of such studies OREDA shall notify the biomass catchments and their power generation potential
and invite developers to set up power projects.
6.2. Process of Selection of Developer and Allotment of Projects :

(a) If GRIDCO agrees to procure power, the selection of project developer will be
based on a tariff based competitive bidding.

(b) For third party sale based on open access regulations of OERC to any buyer
other than GRIDCO, the nodal agency shall allocate the projects on first come first serve
basis after examining the techno-commercial suitability of the proposal.

6.3. Land :
The Government of Odisha would make land available to the project developer in accordance
with the IPR-2015. Waste and fallow lands may also be allocated to the eligible developers for
raising energy plantations so as to meet up to 20% of the annual biomass fuel requirement.

6.4. Sale of Power :

The project developer may utilize the energy generated for self-consumption or sell power
generated from such projects within the State or outside the State in accordance with the relevant
regulations of OERC. GRIDCO shall have the first right of refusal. OERC shall determine the tariff
for such projects from time to time.

7. Waste to Energy :
OREDA shall be the nodal agency for development of Waste to Energy, mainly Municipal
Solid Waste (MSW), Industrial and Agricultural Waste based power projects in Odisha.

7.1. Process of Selection of Developer and Allotment of Projects :

The Urban Local Body (ULB) will select the project developer and allot the WTE projects.
ULBs in Odisha, categorized as Municipal Corporations, Municipalities and Notified Area Councils
shall be responsible for infrastructure development for collection, storage, segregation, transportation,
processing and disposal of municipal solid wastes. The nodal agency shall interact with the urban
local bodies (ULBs) in order to facilitate the process for supply of solid waste to the developers.

7.2. Availability of Solid Waste :

It is the responsibility of the ULB to collect solid waste, process it and destroy the same.
Solid wastes shall be provided to the power projects free of cost. To make this process less
cumbersome and environmentally sustainable, it is appropriate that costs associated with collection
and processing of solid wastes are borne by the ULB. The WTE power plants based on solid waste
will be located close to the dumping grounds of the ULB.
 10

7.3. Land :

The ULBs would make land available at suitable location to the project developer for projects
based on WTE as per the norms set in the IPR-2015.

7.4. Sale of Power :

GRIDCO shall purchase the power from such projects at the generic tariff to be determined
by OERC.

Section C: Decentralized Renewable Energy Applications

8.1. Types of Applications :

Government will continue to encourage and support Decentralized Renewable Energy

applications for on-grid / off-grid / hybrid modes to address the energy needs of poorer and deprived
communities, to make efficient use of RE resources and to promote efficient demand side management.
ORFDA shall be the State Nodal Agency to execute and co-ordinate all projects under decentralised
applications of Renewable Energy such as :--

(a) All RE based small/mini/micro grids up to 1 MW

(b) Roof top Solar Projects

(c) Solar water pumping for irrigation, drinking water supply etc.

(d) Wind-solar hybrid projects

(e) Micro/Pico hydro projects

(t) Biomass gasifier for power generation and thermal applications

(g) Solar thermal projects

(h) Biogas based projects for domestic application & power generation

(i) Improved cook stoves

(j)All new and innovative energy options

8.1.1. RE Based Mini/Micro Grid :

A 'Mini Grid' is defined as a system having a RE based electricity generator (with capacity of
10 KW and above) and supplying electricity to a target set of consumers through a Public Distribution
Network (PDN). A `Micro Grid' system is similar to a mini grid but having a RE based generation
capacity of below 10KW. Micro and mini grids generally operate in isolation to the electricity networks
of the DISCOM grid (stand alone), but can also interconnect with the grid to exchange power. If
connected to the grid they are termed as grid connected mini/micro grid. A mini/micro grid can
provide the electricity service to the consumers for various purposes including economic and
livelihood generation activities.

8.1.2. Rooftop Solar Projects:

Rooftop solar power plants are defined as solar PV based electric generators either in stand
alone or grid connected mode. The stand alone plants can work on complete DC mode or convert
the DC power generated from SPV panel to AC power using power conditioning unit and feed the
power to various captive loads. In grid connected mode, they can feed the power to grid either at
33 KV/11 KV three phase or at 440/220 volt three/single phase depending on the capacity of the
system installed and the regulatory framework specified. They generate power during the day time
which is utilized fully by powering the captive loads and feed excess power to the grid as long as grid
is available. In case, where solar power is not sufficient due to cloud cover etc., the captive loads
are served by drawing power from the grid. The grid-interactive rooftop system can work on net
metering basis within the purview of the OERC Order.

8.1.3. Solar Water Pumping for Irrigation, Drinking Water Supply etc. :

An SPV water pumping system consists of an SPV array of 200-5000 Wp capacity. The
array is connected to a DC or AC pump of matching capacity that can be surface mounted,
submersible or floating type. The SPV array converts the sun light into electricity and delivers it to
run the motor with mono block DC pump. In case of AC pump an inverter is used to convert DC
output of the array into AC. No storage battery is required in this type of pump. The normal pumping
head is 10 m-I00 m. This is most suitable for inaccessible areas where decentralised application is
necessary and where grid is unstable.

8.1.4. Wind-Solar Hybrid Projects :

Small wind power generators are aero-generators with maximum capacity of 10 KW that
normally work in stand-alone mode to feed either to a mini/micro-grid or the captive loads. Wind
solar hybrid projects optimally use both wind and solar resources to meet the power requirement of
a local grid or the captive loads. The maximum capacity cap of such systems is restricted to 50 KW
in which the wind capacity shall be at least 60% of the renewable energy.

8.1.5. Micro/Pico Hydro Projects :

Micro/Pico hydro projects are very small power projects with individual generation install
capacity up to 100 KW. Such projects with capacities from a few kilowatt to 100 KW will be implemented
by OREDA in either stand-alone or grid connected mode.

8.1.6. Biomass Gasifiers for Power Generation and Thermal Applications :

Biomass power generation through gasifier route is mainly targeted at meeting rural power
requirement. MNRE is promoting multi-faceted biomass gasifier based power plants for producing
electricity using locally available biomass resources, both woody and agro residues. The focus of
this programme would also be to meet the captive electrical and thermal needs of rice mills and
other industries, which in turn would help in replacing/saving the conventional fuels such as coal,
diesel, furnace oil etc. The main components of the biomass gasifier programme would be:

(a) Biomass gasifier based Distributed/Off-grid power for rural areas.

(b) Captive power generation applications in Rice Mills and other industries.

(c) Tail end grid connected power projects up to 2 MW capacity.

8.1.7. Solar Thermal Projects :

The State will promote all types of solar thermal systems for which necessary norms will be
prescribed by the Housing & Urban Development Department in consultation with the Science &
Technology Department. These norms will encompass mandatory use of solar water heating system
(SWHS) and other such applications in different categories of buildings covering residential,
commercial and industrial requirements.
 12
8.1.8. Biogas Based Projects for Domestic Application & Power Generation :

The gas produced from dung or any other biodegradable waste is a source of fuel for rural
and semi-urban areas. It is an appropriate and renewable energy source from waste, which is
abundant in rural and semi-urban areas and provides a decentralized, cheap and environment-
friendly energy. The methane gas which is one of the constituents of GHG emissions is most suitably
utilized as fuel supplement. The process can be applied to small domestic units as well as larger
farms and institutions. The size of domestic / household type biogas plant will depend upon the
cattle available.

8.1.9. Improved Cook Stoves :

Improved biomass cook stove is basically a combustion device which burns biomass fuel
more efficiently with reduced emissions and offers cleaner cooking energy solutions. Biomass cook
stoves are of two types; fixed type and portable type. The portable cook stoves are also of two
types, natural draft and forced draft. Advanced cook stoves utilizing fans are more efficient compared
to natural draft ones. Each type of cook stove can be used for domestic as well as community
cooking applications. The improved cook stoves can be made from any suitable material.

8.1.10. All New and Innovative Energy Options :

OREDA will explore and take-up all new and innovative energy options in the area of tidal,
geo- thermal, bio-fuel, triple effect and combination/hybrid of such options. It will also encourage
R&D in these applications.

8.2. Implementation Mechanism :

8.2.1. OREDA will prepare plans/proposals, DPRs or schemes for all such renewable energy
interventions. OREDA shall also frame up Integrated Renewable Energy Plan in PVTG areas/
inaccessible pockets of the State through DDG and mini-grid options towards energy access.

8.2.2. The selection of RESCO will be done by OREDA by inviting expression of interest.
The formats for submitting project proposals under various off-grid applications shall be made available
on the website by OREDA. The systems will have to qualify technical standards prescribed by
MN RE

Section D: Incentives and Institutional Mechanism

9. Nodal Agencies for Different RE Projects :

(i) Green Energy Development Corporation Limited (GEDCOL) shall be the Nodal
Agency for all on-grid solar and hybrid power projects of 1 MW and above capacity.

(ii) Engineer-In-Chief (EIC) (Electricity) will be the Nodal Agency for Small Hydro
Electric Power Projects.

(iii) OREDA shall be the Nodal Agency for all other Renewable Energy Projects.

10. Roles and Responsibilities of Various Institutions

10.1. Odisha Renewable Energy Empowered Committee (OREEC) :

The Government of Odisha will set up a high powered Committee namely, Odisha Renewable
Energy Empowered Committee (OREEC) under the chairmanship of Chief Secretary to take decisions
relating to the implementation of this Policy, monitoring of the renewable energy projects and other
important matters associated with the development of renewable energy in the State.
 23
10.2. State Technical Committees :

10.2.1. Three separate State Technical Committees (STC) shall be constituted to look into
the following activities concerning the renewable energy projects :—

a) Evolving criteria for selection of the project developer

b) Selection of the project developer

c)Approval of Detailed Project Reports (DPRs)

d) Extension of the Projects

e) Making recommendations for consideration of OREEC

10.2.2. The Committees shall comprise of the members as follows with the Principal Secretary
of the respective Department as the Chairperson and head of the nodal agency as the Member-
Convener.

(a) For GEDCOL :

Principal Secretary, Energy Department Chairperson

Principal Secretary, Science & Technology Department Member

Principal Secretary, Industries Department Member

Managing Director, GRIDCO Member

Chief Executive, OREDA Member

Engineer-in-Chief - Electricity Member

Managing Director, OPTCL Member

Managing Director, DISCOM Member

Managing Director, GEDCOL Member-Convener

(b) For OREDA :

Principal Secretary, Science & Technology Department Chairperson

Principal Secretary, Energy Department Member

Principal Secretary, Industries Department Member

Managing Director, GRIDCO Member

Engineer-in-Chief - Electricity Member

Managing Director, GEDCOL Member

Managing Director, OPTCL Member

Managing Director, DISCOM Member

Chief Executive, OREDA Member-Convener

(c) For. EIC (Electricity) :

Principal Secretary, Energy Department . Chairperson

Principal Secretary, Science & Technology Department .. Member

 14
Principal Secretary, Industries Department . Member
Principal Secretary, Water Resource Department . . Member
Managing Director, GRIDCO . Member
Chief Executive, OREDA Member
Managing Director, GEDCOL . . Member
Managing Director, OPTCL . . Member
Managing Director, DISCOM Member
Engineer-in-Chief-Electricity
. . Member-Convener
11. Odisha Renewable Energy Development Fund (OREDF):
11.1. The State Government will create a Odisha Renewable Energy Development Fund
(OREDF) within six (6) months of issuance of this policy for accelerated development of renewable
energy in the State. Independent / private developer shall contribute 5 paise per unit of Renewable
Fnergy sold outside the State towards generating financial resources for this Fund. This fund will
be utilized as a revolving fund for creation of infrastructure such as transmission network, roads
and training centres for accelerated development of renewable energy as per the guidelines to be
issued by the State Government in this regard. The State Government shall provide a corpus of
Rs. 250 crore spread over 5 years for creation of OREDF, which will be released by the Government
in suitable tranches every year. The resources mobilized through NodalAgencies by way of collection
of development charges will be credited to OREDF. The State Government will also evolve other
suitable mechanism for generating financial resources for increasing capital of this fund.
11.2. This fund will be utilised by the nodal agencies, as decided by the OREEC, for various
activities induding, inter alia, the following :—
(a) Acquisition and development of land for various technologies;
(b) Preparation of Detailed Project Reports for Small Hydro Electric Projects;
(c) Development of infrastructure for power evacuation by OPTCL and DISCOMs;
(d) Studies for assessment of potential for various technologies;
(e) Capacity building and training of manpower;
(f) Provide funds for innovation and demonstrative projects;
(g) Provide loans to small enterprises for new business models.
12. Incentives and Other Support Measures
Following incentives shall be applicable for the Renewable Energy Projects:
12.1. Land:

(a) Government land earmarked for industry under the "Land Bank" Scheme of Odisha
Industrial Infrastructure Development Corporation (IDCO) and other Government land,
wherever available, may be allotted for the renewable energy projects at the rates as specified
in IPR-2015 and subsequent revisions.

(b) Exemption from the ceiling on land holdings as per the Land ReformsAct (1960)
of Odisha and its amendments shall be applicable for renewable energy projects. OREDA/
GEDCOL shall facilitate clearance to this effect for renewable energy project developers
from the competent authority.
 15

(c) Land acquired for development of Grid-connected Renewable Energy Projects

for captive consumption/sale to GRIDCO /third party sale of power or development of Solar
Parks, shall be deemed to be converted to Non-Agricultural status on payment of applicable
conversion charges as per Land Reforms Act (1960) of Odisha and its amendments. The
respective nodal agencies shall facilitate project developers to this effect.

(d) Developers may rope in private land owners willing to lease out their land for
renewable energy projects on long term lease basis for a minimum period of 30 years at the
lease rates as will be mutually decided by the project developer and the private land owner.

12.2. Inter-connection Arrangement:

(a) Infrastructure required to connect the project till inter-connection point shall be
developed and maintained by the Developer at his own cost.

(b) The main and check meters would be installed by the Developer at the inter-
connection point of OPTCL/DISCOMs Substation.

(c) It shall be the responsibility of STU to ensure that all the infrastructure required
beyond the inter-connection point is created in a timely manner for projects at 132KV and
above. The STU shall claim the cost incurred on such development under its ARR (Annual
Revenue Requirement).

(d) It shall be the responsibility of DISCOM to ensure that all the infrastructure required
beyond inter-connection point is created in a timely manner for projects at 11KV and 33KV.
The DISCOM shall claim the cost incurred on such development under its ARR (Annual
Revenue Requirement).

(e) GRIDCO and OPTCL shall work in close co-ordination with the Nodal Agencies
to ensure that requirements of the renewable energy generation are factored into while
finalizing their transmission and distribution network plans.

(f) Rooftop Solar PV sources shall be allowed connectivity at L\/ or MV or at 11 KV of

the Distribution system of the licensee as considered technically and financially suitable by
the licensee and the Developer.

(g) To build the infrastructure using the highest possible standards, the whole solar
power evacuation infrastructure in solar parks shall be designed and developed by the
Developer by using the latest technologies like SCADA (Supervisory Control and Data
Acquisition), GIS (Geographical Information System), Bay controller and Online monitoring
equipment ete. The transmission network development shall be governed by the applicable
CEA/CERC/OERC regulations/standards. Grid connectivity shall be compliant with applicable
Grid code.
12.3. Transmission & Sale of Power:
(a)Any person generating electricity from renewable energy sources, irrespective of
installed capacity, shall have open access to any licensee's transmission system and/or
distribution system, as the case may be.
(b) On an application from such person, the transmission licensee or distribution
licensee shall provide appropriate inter-connection facilities before commercial operation
date of the renewable energy project. Such inter-connection shall follow the grid connectivity
standards as specified in the Central Electricity Authority (Technical Standards for connectivity
 16

of the Distributed Generation Resources) Regulation, 2013 or the State Grid Code and its
amendments, as the case may be. The transmission licensee/distribution licensee shall
provide meters and associated facilities at the inter-connection point.
(c) For projects on consumer side of the meter, inter-connection arrangements as
specified under the Net-metering Regulations/Orders and their amendments from time to
time shall be followed.

(d) Communication system, if required by SLDC, between Grid Substation and the
Generating Station shall be developed & maintained by the developer(s) at his own cost.
(e) Charges regarding wheeling, banking, cross subsidy surcharge and additional
surcharge for Open Access consumers as notified by OERC from time to time will be
applicable. Presently, procurement of power through third party sale from Renewable Energy
sources is exempted from the Cross Subsidy Surcharge and only 20% wheeling charge is
payable by the consumers drawing power from Renewable Energy source through Open
Access excluding Co-generation & Biomass power plants.

(f) A Developer may utilize the renewable energy generated for captive use at the
place of generation or may seek open access to transmission/distribution system of OPTCL/
DISCOMs to carry the power to the destination of its use subject to technical feasibility on
payment of transmission/distribution and wheeling charges as approved by OERC.
(g) All renewable energy power systems shall be treated as 'Must Run' power plants
and shall not be subjected to Merit Order Rating (MOR)/Merit Order Dispatch (MOD) principles
subject to the applicable regulations of OERC and provisions of the relevant PPA.
(h) Developers of Renewable Energy sources shall abide by all applicable codes,
rules, regulations etc. in regard to operational & commercial practices issued by the OERC
from time to time.

12.4. Concessions in Taxes & Duties and Other Benefits :

(a) Renewable Energy Projects would be treated as new industrial units with
investment limits as applicable for MSMEs or Large sector and all incentives and concessions
as per IPR-2015 would be accordingly made available for them.

(b) No stamp duty will be required to be paid in respect of land allotted by the
Government/IDCO to Solar Park Developers.

(c) All new renewable energy projects developed under this policy who come into
commercial production within the stipulated period shall be exempted from paying Electricity
Duty for self-consumption for a period of 5 years from the date of achieving commercial
operation as certified by the nodal agency.

12.5. Exemptions from Certificates, Fees & Charges:

(a) Nodal Agencies shall receive applications from investors and facilitate/co-ordinate
for required clearances from various Departments or concerned Authorities within a time
frame.

(b) Testing charges of FIC would be waived for all new and renewable energy projects.

(c) Supervision charges shall not be levied by DISCOM/OPTCL for projects under
this Policy.
 (d) No clearance from State Pollution Control Board, Odisha would be required for
Renewable Energy projects except Biomass and Municipal Solid Waste Projects

12.6. Special Incentives for Renewable Energy Manufacturing Units :

(a) Any kind of RE manufacturing facility / hub shall be treated as Priority Sector as
per IPR-2015. The relevant provisions under the Industrial Policy Resolution-2015 under
priority sector shall be applicable to the entrepreneurs setting up manufacturing units of
Solar PV Panels, other RE equipment and associated devices/equipment in Odisha with
minimum investment and employment limits as Rs. 10 crore and 20 persons respectively for
both category 'A' and category 'B' districts. The benefits of category 'Al ' & category 'B1', as
applicable, would be made available as per IPR-2015.

(b) IPICOL shall act as facilitator in regard to allotment of land in Industrial Estates/
Solar Parks to set up such units by private entrepreneurs and also for other clearances/
concessions.

121. Miscellaneous:

(a) The capital subsidy and other concessions as available under various Missions/
Schemes/Projects/Programmes/Policies of the Government of India and State Government
shall be administered/facilitated through the Nodal Agencies,

(b) On-grid renewable energy projects involving innovative/new technologies may

be given Viability Gap Funding (VGF) from OREDF. This would be provided on case to case
basis as approved by OREEC.

(c) The modalities of specific incentive schemes or structure for funding support for
a particular off-grid RE program shall be published at the time of formulation of the specific
off-grid RE program. The other terms and conditions for operations of such programs/
schemes shall also be notified by OREDA.

(d) State Government may notify from time to time the mandatory provisions in
Building bye-laws, other Regulations, environmental and .conservation norms to promote
decentralized RE solutions.

ORDER—Ordered that the Resolution be published in the Odisha Gazette.

By order of the Governor

RAJESH VERMA

Principal Secretary to Government

Printed and published by the Director, Directorate of Printing, Stationery and Publication, Odisha, Cuttack-10
Ex. Gaz. 1598-173+100