Copy of Presentation on Wind Power Incentives

8/7/2019 Copy of Presentation on Wind Power Incentives

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Greenko Group

Wind Power IncentivesDept. : Risk Management

January 2011


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Introduction

The Scheme

Features of the Scheme

Eligibility

Documents required for GBI Registration

Documentation Compliances

Documents required for claiming GBI

Plan of Action

Contents:


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Power incentives schemes offered by MNRE to wind power projects are:

1. Generation based Incentives (GBI) for Grid interactive wind power projects.

2. Accelerated Depreciation (AD)

Introduction:


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The MNRE has announced the Generation Based Incentive (GBI) for GridInteractive Wind Power Projectscommissioned after 17.12.2009.

Objectives are:

1. To Broaden Investor Base by:

Facilitating the entry of large Independent Power Producers (IPPs) Attracting FDI in the Wind Power Sector

2. To Provide level playing field between various classes of investors.

3. To incentivize higher efficiencies.

4. To provide a framework for transition from an investment based incentive tooutcome based incentive.

The Scheme :


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Companies shall be allowed to avail either GBI or AD,but not both.

The GBI is @ Re. 0.50 per unit of electricity fed into the grid with acap ofRs.62 Lakhs/MW. The GBI is over and above the tariff approved by StateElectricity RegulatoryCommission.

The incentive will be for a minimum period of 4 years and a maximum of10 years. The total disbursement in a year will not exceed one fourth of themaximum limit of the incentive, i.e.Rs.15.50 lakhs per MW during firstfour years.

There is no floor or ceiling for a developer in terms of the MW capacity thatcan be considered for availing the incentive.

The Main Features of the Scheme :


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All wind power projects whose machines are commissioned in Indiaafter17.12.2009 and on or before 31.03.2012 and wishing to avail either

Accelerated Depreciation (AD) benefit or Generation Based Incentive (GBI)are required to be registered with IREDA.

Post registration: A Registration Number shall be allotted to each project and

A Unique Identification Number (UIN) shall be allotted to eachmachine commissioned.

GBI will be provided only for projects installed atwind potential site

validated byC-WET.

Only those wind turbines listed in theRLM list issued by C-WET, Chennaishall be eligible for GBI.

The Main Features of the Scheme :


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The claim for GBI would be applicable for those power producers

who have Wind turbines commissioned after 17.12.2009.

The scheme is limited to a capacity of first 4000 MW commissioned throughGBI on or before 31.03.2012.

The incentive would be available for grid connected wind power projects setup for:

sale of electricity to grid, at a tariff notified by SERC and /or State Govt.

Captive Wind Power Projects including Group

Captive to the extent ofsale of electricity to the grid

Exclusion: GBI would not be available to any wind power project sellingpower to third party, (viz. merchant power plants).

Eligibility for Availing GBI :


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Registration form duly filled along with WindTurbine Generator/ Projectdetails .

Copies ofCommissioning Certificates, original or duly certified by anofficer not below the rank of an Executive Engineer or equivalent in the

concerned Utility/ State Nodal Agency/ any other State Govt.CompetentAuthority.

Declaration from authorized signatory along with Boards Resolution asper the format at Annexure III (a).

A onetime non refundable upfront processing fee for registration,compilation of data and analysis & processing of GBI, payable toIREDA @Rs. 75,000/- per MW, with service tax at applicable rate by DD/ RTGS.

Documents Required for Registration for claiming GBI :


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o The commissioning certificate should indicate thelocation number for eachindividual turbine.

o Unique Identification Number (UIN) issued by IREDA for eachcommissioned machine to bepainted vertically on the Tower.

In case oflattice tower, the number can be painted on one of the

corners/ edges of the tower. The height at which the ten-digit UIN should be painted would be at 10

ft. from the base.

The size of each letter should be 2.5 each in Arial Font.

The machines availing the benefit of AD should have the number

painted in Red colour and The machines under GBI needs to painted in Green colour.

Documentation Compliances:


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Claim form duly filled in shall be submitted in IREDAs format on theOnline Portal.

Copy ofJoint meter reading (JMR) report by utility.

Copy ofinvoice raised as per JMR.

Copy oftax returns certified by Chartered Accountantwho

conducted statutory audit under section 44AB of the IncomeTax act stating

that no AD has been claimed.

Note:

Theclaims forGBIcanbeavailedonahalf yearly basis (April-Septemberand October-March).

Documents required for claiming GBI :


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The GBI would be implemented through IREDA(Indian Renewable EnergyDevelopment Agency).

The funds provided in the budget of MNRE will be released upfront asadvance to IREDAto ensure timely release and flow of funds to the projects.

The Financial ability during the 11th Plan is estimated to be Rs. 380 Crores whichwould be met by Ministry from its existing plan allocation.

Implementation Arrangements & Financial Outlay:


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GBI would be disbursed by Indian Renewable Energy Development Agency(IREDA) through e-payment on a half yearly basis.

This incentive is over and above the tariff approved by the State ElectricityRegulatoryCommissions.

The distributor / utility will provide a periodical certificate to the IPP regarding the

net electricity fed to the grid. Incentives shall be disbursed by IREDA, based on the grid synchronization letter

and certified information about the net electricity fed to the grid from the windpower project.

Project developer will have to submit a self declaration about non-claiming of

accelerated depreciation to IREDA. Copy of income tax return at the end of each financial year to be submitted with

IREDA to establish that the benefit of accelerated depreciation has not beenclaimed.

Disbursement Mechanism - GBI:


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Registration Process requires following:

Plan of Action:

Applicant Details Name of Applicant, Address,

Contact Details

PAN

Project Details Proposed Capacity

No. of WTGs

Capacity of each WTG

Project Location

Purpose of the Project Sale of Power to Utility or

CaptiveUse / Group Captive

Others

Proposed Incentives Details Accelerated DepreciationGeneration based Incentives

Wind Turbine Generator Details for

commissioned number of Machines Proposed Capacity

Commissioned Capacity

Registered WTGs Numbers


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Plan of Action:

WTGs Specification ManufacturersModel

Reference date of list of CWET

Hub Height (Meter) Rotor Diameter

(Meter)

Commissioning date wise detail of

WTGName of issuing Authority Letter no.

Letter Date

Commissioning date

Metering Details Meter Number

Billing Details Joint Meter Reading and Billing

Format

Commissioning Certificate

Board Resolution & Declarations


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We shall submit the Application immediately after commissioning gets over asThescheme will be applicable to a maximum capacity limited to 4000 MW during theremaining period of 11th Plan period.

Status as on 11.01.2011 for registration for GBI Incentives:

Status as on 11.01.2011 for registration for AD Incentives:

Plan of Action:

Application received and

Registered

363.76 MW

Application received but

Registration pending

44.6 MW

Application received and

Registered

437.32 MW

Application received but

Registration pending

126.85 MW


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