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Understanding West Bengal’s DSM and RE Policy vis-à-vis DREC Project. Presentation by – Arnab Ganguly Project Officer CUTS International. Scheme of the Presentation. About the DREC Project Advocacy Issues that emerged from the DREC Project Advocacy Issues pertaining to DSM - PowerPoint PPT Presentation
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Understanding West Bengal’s DSM and RE Policy vis-à-vis DREC Project
Presentation by –
Arnab GangulyProject OfficerCUTS International
2
Scheme of the Presentation About the DREC Project
Advocacy Issues that emerged from the DREC Project
Advocacy Issues pertaining to DSM Advocacy Issues pertaining to RE
An overview of West Bengal’s RE Policy
Revisiting the advocacy issues in the light of the RE Policy
3
Objectives of the DREC project Overall Objective –
To increase long-term capacity/awareness of consumer groups to demand for DSM and RE initiatives, and also to understand, document and communicate their specific needs to relevant policy makers.
Specific Objectives
To gauge the level of awareness among various stakeholders on RE and DSM
To understand consumers’ willingness to pay for RE
To understand the various roadblocks to effective implementation of initiatives pertaining to RE and DSM
Major Activities undertaken so far..…
Baseline survey of 513 respondents in the selected 4 territories in West Bengal
20 Consumer Interface Meetings with different stakeholder categories (approximately 550 consumers)
Details….
5
Major Advocacy Issues – Related to DSM
West Bengal need a DSM Policy to promote efficient generation, distribution and use of electricity
Any DSM initiative should be evaluated based on feedback from consumers.
BEE / SDA should use the existing CSO network to reachout to the consumers at the grassroots.
Need to generate greater awareness about Energy Efficient Technologies (EETs) among different category of stakeholders
Need for appropriate DSM measures in areas of Sunderban where grid has reached very recently viz. Gosaba
6
Major Advocacy Issues – Related to RE
Need to Strengthen the after sales service for RETs by training local youth
Need to revive the existing off-grid projects
Need for regulations to ensure long term sustainability of RE based off-grid projects – metering facility should be introduced
Need for financial incentives (viz. soft loans, rebates on electricity bills etc.) to motivate grid-connected consumers to use RETs (especially hotels, government buildings etc.)
Grid connected rooftop solar to be encouraged through popularising net-metering system
Incentives need to be provided to the DISCOMs who exceed their RPO targets
7
Major Highlights of West Bengal RE Policy
Identification of appropriate technologies
Implementation and Monitoring
Financing
Regulatory Issues
Social and Environmental Issues
8
Policy Targets
RE Sources Potential (in MW)
Existing installed
Capacity (in MW)
Target Cumulative Capacity (in MW)
2017 (End of 13th Plan)
2022 (End of 13th Plan)
Wind Power 450 2 75 450Mini & Small
Hydro 394 97 220 394
Biomass 662 16 240 662Waste to Energy 100 7 50 100
Solar Under Preparation 2 100 500
Cogeneration 600 69 355 600Total 2,206 193 1,040 2,706
9
Implementation Strategies (Page 12-18)
Nodal agency to undertake RE resource assessment study
Existing tariff structure for RE to be revisited
Nodal agency to guide developers to get all the necessary clearances
Encouraging Co-Generation in Iron and Steel Industry, Fertilizer and Chemical Industries having connected load of 2,000 KVA and above
Targeting huge capacity addition through grid-connected rooftop and smaller solar installations
10
Commercial establishments having more than 1.5 MW of contract demand will be required to install solar to meet at least 2% of their electrical requirement
All existing and upcoming schools and colleges, hospitals, large housing societies and government establishments having a total contract demand of more than 500 KW will be required to install solar rooftop
Growth centres, industrial parks, intelligent parks etc. shall mandatorily employ solar rooftop to meet some part of their in-house demand
Development of Mini-solar project (maximum 150 kW size), projects shall be done under the DDG model.
Strategies to promote use of Solar Applications (Page 16 – 18)
11
Monitoring of RE Projects (Page 19-24)
WBGEDCL to facilitate investment
WBREDA to set up demonstration projects
Allotment of RE projects in two ways - Solicited (< 2 MW) OR, Unsolicited (>=2 MW)
Competitive Bidding route will be followed – Two stage process
Mandatory Power Purchase Agreement (PPA) – Developer offering highest discount on the ceiling tariff will sign the PPA
PPA to be signed with the host utility / DISCOM – timeline for such projects to mentioned clearly
11
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Evacuation Infrastructure – (Page 22)
Creating Pooling Stations
Cost beyond the point of interconnection with the grid to be borne by the licensee and the consumers
Cost of interfacing equipment to be borne by the developer
The technical specifications for grid connectivity will be governed by WBERC regulations
Time Limit for the project –
Work should start within 6 months of getting all the clearances
Time limit mentioned in the implementation agreement to be strictly followed
Nodal agency to closely monitor progress of the projects
Monitoring of RE Projects (Page 19-24)
13
RE Project Financing (Page 25-26) Creation of Green Energy Fund
To promote RE initiatives
Contribution by the Government (equity contribution) and International Donor agencies
The Nodal agency will manage this fund
80% of the penalty imposed for violation of statutory clearances
50% of the penalty imposed for not meeting RPO targets
PPP models
14
Regulatory Issues (Page 26-29) Mandatory RPOs
DISCOMs can also purchase REC to meet RPO targets
Penalty for Failing to comply with RPO targets
Utilities are free to procure power (from RE sources) from outside state but the price should not exceed the cap fixed by WBERC
PPA to be signed following competitive bidding
Open access as per WBERC Regulations
Net metering facility to be extended to grid connected rooftop Solar PV
15
Incentives (Page 29) Exemption of Demand Cut
Letter of Credit as a payment security mechanism
Government to provide some basic infrastructural support in remote areas
Concessions and incentives allowed by MNRE
Entire proceeds of carbon credit from approved CDM projects shall be retained by the generating company
16
Revisiting the advocacy issues pertaining to RE in the light of West Bengal’s RE Policy
Advocacy Issues Whether addressed in the RE policy
How to strengthen it further
Promoting grid connected rooftop solar
YES • Extend the facility to ordinary households with a load above a certain threshold
• Provide rebates on the electricity bill• Extended to areas where grid
consumers face the problems of frequent voltage fluctuation / load shedding
Need to Strengthen the after sales service for RETs by training local youth
NO • Organise training programs involving local youths on how to repair RETs
• Separate labelling needs to be developed to ensure good quality of RETs
Need for financial incentives to buyers of RETs
NO • Advocacy with Banks and financial institutions to provide loans for buying RETs at low interest rates
17
Revisiting the advocacy issues pertaining to RE in the light of West Bengal’s RE Policy …….(contd.)
Advocacy Issues Whether addressed in the RE policy
How to strengthen it further
Need for regulations to ensure long term sustainability of RE based off-grid projects – metering facility should be introduced
NO• Appropriate regulations governing
quality of service, billing metering etc. to be introduced
Incentives need to be provided to the DISCOMs who exceed their RPO targets
NO • The distribution utilities should be given incentives to overachieve the RPO targets
Need to revive the existing off-grid projects
NO • There should be a definite strategy plan to ensure that the investment going into setting up a demonstration project should not become bad investment after a certain period
18
Questions on the way forward
Will the RE Policy encourage private investment on RE in the state ?
What could be Challenges ?
How to overcome those ?
19
THANK YOU
20
ANNEXURES
Baseline Survey for West Bengal
Methodology - Total Sample Size – 513
Household – 210 Agriculture – 56 Industrial (SME) – 37 Government Institutions - 53 Commercial and Private Institutions – 70 NGO/CSO - 87
Number of Districts – 4 South 24 Parganas (The Sunderbans area) - 204 Cooch Behar - 106 Nadia - 103 East Midnapore - 100
HOUSEHOLD41%
AGRICULTURAL11%
INDUSTRIAL7%
GOVERNMENT INSTITUTION
10%
COMMERCIAL INSTITUTION
14%
NGO / CSO17%
SAMPLE COMPOSITION - STAKEHOLDER CATEGORIES
COOCH BEHAR
21%
EAST MID-NAPORE
19%
NADIA20%
SOUTH 24 PGS40%
SAMPLE COMPOSITION - RESPON-DENTS FROM SELECTED DISTRICTS
Baseline Survey for West Bengal
Methodology – Criteria for Choosing Districts –
Sunderbans (South 24 Parganas) ---- where RE initiatives have been undertaken
Cooch Behar --- isolated islands -----virgin territory for RE initiative Nadia & East Midnapore ---- Grid Connected----higher relevance of DSM
Details 4 districts – 10 territories (Blocks)--- 2 in each district; but in
Sunderbans 4 blocks 1 CSOs from each territory – 10 CSOs 50 respondents in each territory --- 50x100= 500 respondents
From each of the territories both Urban and Rural areas were surveyed
Stakeholder wise CIMs in the selected territories in West BengalName of the
District Name of the CSOs Name of the Territory Stakeholder Category
South 24 Parganas
Ramakrishna Loka Seva Kendra Gosaba (Urban) HouseholdKochukhali (Rural) CSO
Debnibas Sindhubala Narikalyan Samity
Namkhana (Urban) Household7mile (Rural) CSO
MUKTI Raidighi (Urban) HouseholdCSO
Baikunthapur Tarun Sangha K Plot Diesel OperatorsRamganga Household
East Midnapore
Kajla Jana Kalyan SamityPatashpur (Rural) Agriculture Contai (Urban) School authorities
Alinan Ramkrishna Vivekananda Yuva
Tamluk (Rural) HouseholdTamluk (Urban) CSO
NadiaSreema Mahila Samity Ranaghat (Urban) Household
Sreerampur (Rural) AgricultureChapra Social and Economic Welfare Association (SEWA)
Chapra (Urban) HouseholdMahatpur (Rural) CSO
Cooch BeharHaldibari Welfare Organisation Haldibari (Urban) Household
CSODakshin Ramchandrapur Vivekananda Seva Kendra
Dinhata CSODinhata (Rural) Agriculture
24
Stakeholder Category Number of CIMs Number of Participants (apprx.)
Households 8 200
CSO 7 210
Farmers 3 100
Schools 1 19
Diesel Operators 1 30
TOTAL 559