The spread of various renewable energy technologies has
been aided by a variety of policies and support measures
by Government. Major policy initiatives have been taken
to encourage private/foreign direct investment to tap energy
from renewable sources including provision of fiscal and
financial incentives. This policy is directed towards a
greater thrust on overall development and promotion of renewable
energy technologies and applications. This will facilitate
excellent opportunities for increased investment in this
sector, technology upgradation, induction of new technology
market development and export promotion.
The conventional sources of energy in Kerala are fuel wood,
petroleum products and electricity. Till recently Kerala
has been depending solely on hydro-power for electricity,
availability of which is limited due to lack of technically
favourable sites and unfavourable ecological impacts. Nuclear
power and fossil fuel-fired thermal stations are the other
conventional sources. Owing to widespread popular opposition,
because of high population density and fragile ecology,
nuclear stations could not be installed in Kerala. The only
other alternative was fossil-fuelled thermal stations like
Brahmapuram or Kayamkulam.
It is widely accepted that fossil fuels are limited, that
its price will go on increasing, that they do not offer
a long term solution, that they contribute to global warming
and that alternative sources are to be identified.
To cater to ever-increasing demand of power, Government
of Kerala has decided to give encouragement to power generation
from Non-conventional Energy Sources. It is proposed to
generate energy from municipal waste, agro waste, industrial
waste, sewage and other biomass, small-hydel units, solar
photo voltaic, wind, tide, wave, geothermal etc. These technologies
are environment friendly. The use of Municipal Solid Waste
for power generation, besides generating power, will eliminate
the problem of pollution and disposal of urban waste. Private
investment will be attracted in all these sectors.
Ministry of Non-Conventional Energy Sources(MNES), Government
of India has formulated legal, financial and administrative
frame work for promotion of investments in this sector and
has advised the State governments to formulate policies.
These guidelines and policy are issued, accordingly.
Energy or non-conventional energy mentioned
anywhere in this documents refers to energy from sun (thermal
and photovoltaic), biomass (direct burning, gasification
or methanation, including municipal solid waste) small hydel
power plants upto 25 MW station capacity, wind, tide, wave,
Development, propagation and promotion of Non-conventional
Exploitation of Natural resources to avail cheaper power.
Acceleration of identification, development and implementation
of new projects with the long-term objective of substituting
all non-renewable sources.
Development of Eco-friendly Projects.
Provision of single window service for technical
consultation, sources of finance and project clearance.
Decentralised and microlevel power generation through renewable
energy sources to reduce expenditure on transmission lines
and transmission and distribution losses.
Self-sufficiency in Power in the near future.
Creation of suitable environment for private participation
in Power Generation sectors.
Publicity of Renewable Energy through various media.
Water flowing in stream, wind blowing over the land and
waves smashing on the shores, belong to the whole community
and not to the owner of the land. The Local
Self-Governments shall be equipped to develop these resources
on behalf of the community.
There will be a Nodal Agency to facilitate all activities
related to non -conventional (renewable) energy programs.
As per the mandate given to it by MNES, ANERT shall be the
State Nodal Agency for co-ordinating all activities relating
to Renewable Energy Development. ANERT should lay down procedures
for project preparation, approvals, monitoring etc. and
should act as the State Agency to:-
Promote development of renewable energy sources.
Function as a single window clearing agency for all renewable
energy power projects including small hydel power plants
up to and including 3 MW, for issuing necessary clearances
and approvals on behalf of Government of Kerala, providing
technology support, facilitating financing, etc. (KSEB will
be the authority for SHP projects above 3 MW and upto 25
Make recommendations to the Government on issues related
to renewable energy development.
Certify/arrange for certification of all devices related
to renewable energy sources.
All power producers generating grid-grade electricity (quality
of power produced should be equal or above the quality of
power in the grid) including power producers from stand
alone projects using Non-conventional Energy Sources
are eligible producers under the policy.
In the case of small hydro projects, only power producers
having installed station capacity of and below 25MW will
be treated as eligible producer.
These power producers shall sell power to Kerala state Electricity
Board (KSEB) at rates described in article 4.6 of this policy
or with the concurrence of KSEB and after getting license
from Government, shall charge tariff from users in case
of stand alone type power projects similar to what they
would have received from KSEB for grid connected projects.
Power producers generating electricity for captive consumption
shall also be treated as eligible producers. However, if
the producer wishes to sell power in excess of own demand,
KSEB shall buy the power at rates described in article 4.6
of this policy.
There shall be no restriction on legal structure of entrepreneur
in generation of power. Companies, co-operative, partnerships,
Local Self Governments, registered societies, NGOs, individuals
etc. would all be eligible producers provided they undertake
to generate power from non-conventional energy sources,
provided they fulfill the laid down conditions.
Interfacing, including transformers, panels, kiosk protection,
metering, HT lines from points of generation to the nearest
HT line etc. as well as their maintenance will be undertaken
by the producer as per the specifications and requirements
of KSEB, for which the eligible producer will bear the entire
cost. Alternatively, these works and their maintenance could
be undertaken by the Board at charges to be decided by the
Kerala State Electricity Board will undertake to augment
the sub-station capacity at its cost to receive the power
generated by the eligible producer. KSEB will also undertake
the augmentation of transmission lines and laying of new
lines if required.
The eligible producer at his cost will install meters to
measure the outflow and inflow of energy based on KSEB instructions.
The producer should ensure the quality of power delivered
in accordance with the prevailing regulations.
Power generated through Renewable Energy Sources, if purchased
by KSEB, will be at a ceiling rate of Rs.2.50 per unit for
power from small hydel power plants. For power from all
other renewable energy sources, price will be at a ceiling
rate of Rs.2.80 per unit, with base year fixed as 2000-01
and with 5% escalation for every year upto 5 years of operation.
There after the rate shall be mutually settled between KSEB
and the eligible producer, in all cases of Renewable Energy
sources including SHP.
In special cases, the committee referred in para 4.19 of
this policy will study and recommend to Government for considering
a higher tariff.
KSEB is to permit electricity generated by eligible producers
to be banked. 100% banking is allowed for the period from
June to February for every financial year. From March to
June, the producers can bank power with KSEB. The producer
can take this banked power back only during the period from
June to February, the same financial year. Accounting will
be done at the end of every financial year. If the banked
energy is not utilised at the end of the year, it will be
lapsed and if this is sold to KSEB, the same will be purchased
by KSEB at the average selling rate of KSEB applicable during
the corresponding year.
KSEB will undertake to transmit on its grid the power generated
by eligible producer and make it available to him for captive
use or for banking, at a uniform wheeling charge of 5 per
cent of energy fed into the grid, which includes compensation
for transmission loss also, irrespective of the distance
from the generating station.
KSEB shall initially bear the expenditure for erection of
high- tension sub stations and transmission infrastructure.
ANERT shall recover 50 per cent of this expenditure from
the power project promoters and will give it to KSEB. Developers
shall bear the cost of transmission lines from the sub station
to the project and all other related equipment such as metering
arrangement and protection system, capacitor banks etc.
Settlements on Monthly Basis
All transactions between KSEB and eligible producer involving
wheeling, banking or sale of power will be settled on a
Power Purchase Agreement
KSEB and eligible producers under this policy, intending
to sell power to KSEB/to wheel/ to bank will enter into
a Power Purchase Agreement (PPA) for a minimum period of
KSEB is to provide facilities of an irrevocable, divisible,
revolving and confirmed stand by Letter of Credit by any
Nationalised Bank. The amount of letter of credit is to
be equal to the Expected Payment for one month by Board.
All new projects producing power from Renewable Energy Sources
is to be given industry status. Eligible producers generating
electricity from Renewable Energy Sources will be treated
as eligible industry under the schemes administrated by
Industries Department and incentives will be made available
to eligible producers for establishing and running such
power generation plants.
Entry Tax/Octroi Refund
Renewable Energy equipment and materials shall be exempted
from Entry Tax /Octroi.
Use of Energy Conservation Devices is Made Mandatory
Conserving energy is better than producing it. Cost of producing
an additional unit of power is much higher than conserving
the same quantity of power; ie, Energy conservation is a
cheaper way to produce power. Hence it is felt that the
following measures are taken.
Fluorescent and Compact Fluorescent Lamps (CFL) are made
mandatory in all new Hospitals, Hotels, Government Offices
and offices of Public Sector undertakings. In the case of
existing Hospitals, Hotels, Government Offices and Offices
of Public Sector undertakings, where incandescent lamps
are used at present, the same should be replaced by Fluorescent
and Compact Fluorescent Lamps of prescribed quality within
a period of 2 years from the date this policy comes into
force. ANERT should ensure this with the help of Local Self-Governments
and other Governmental organisations.
Solar Water Heating Systems are made mandatory in all Lodges
and Hotels having 10 or more rooms and in hospitals with
20 beds or more.
Energy efficient devices such as, Improved Community Chulhas,
gasifiers, etc. are made mandatory in all Hotels, Hostels
and Schools with noon meal scheme and in all industries
where firewood is used as a fuel.
Quality control of Renewable energy and Energy Saving Devices.
ANERT, which is having a well established laboratory to
test the performance of various photovoltaic, solar thermal,
energy saving devices etc., is authorised to test all devices/equipment
related to renewable energy and energy saving devices for
Mandatory Captive Power Plants
Large Industries having 2000 KVA and above as connected
load, should produce at least 5 per cent of their requirement
through captive power plants using Renewable Energy Sources.
Choice of Green Pricing is given to interested customers,
who choose to pay extra for the energy generated from Renewable
Energy Sources (Green Energy).
Central Clearing Agency
An appraisal committee with representatives from ANERT,
KSEB, Power Department (Government of Kerala) and two or
more experts in the corresponding field (depending on the
type of project) will be constituted to co-ordinate matters
relating to different renewable energy projects.
and Published by the Director, Public Relations department
, Government of Kerala.
2002 Copies: 10,000 Not for sale
Technology and Environment Department-Renewable Energy Policy-Draft
SCIENCE, TECHNOLOGY & ENVIRONMENT (A) DEPARTMENT
No.16/2002/STED. Dated, Thiruvananthapuram: 03.04.2002.
:- 1. Letter No.MOS/MES/4690/1997 dt.25.9.97 from the
MNES, New Delhi.
2. Letter No. 98/WE/REP/10315/ANERT dtd. 18.6.98 from the
3. G.O(Rt) No.291/2000/STED. dated, 17.8.2000.
R D E R
The Ministry of Non-Conventional Energy Sources (MNES) as
per letter read as first paper above has requested to take
necessary steps for formulating and announcing the State
Renewable Energy Policy as per the Ministry of Non-Conventional
Energy Sources (MNES) guidelines. Accordingly a committee
for formulating the State Policy on Renewable Energy Sources
has been constituted as per government Order read as third
The committee held a several meetings. Sri.G.M.Pillai,
IAS, Director General, Maharashtra Energy Development Agency,
Pune, Ajith K.Chopra, Director, MNES and Dr.M.P.Parameswaran
were called as experts for the meetings. After elaborate
discussion and consultations the draft Renewable Energy
Policy of the State was formulated and finally approved
in the sub committee meeting on 2.7.01.
The draft Renewable Energy Policy as approved by the Sub
Committee has been circulated to District Panchayats, Corporations
and Municipalities, District collectors and also to non-Governmental
organisations working in the field, inviting comments and
their comments have been received.
Government have examined the matter in detail and are pleased
to accept the draft Kerala Renewable Energy Policy appended
with this orders subject to the condition that the existing
state of affairs regarding the small hydro projects will
be continued for one more year.
of the Governor,
The Director, ANERT, Thiruvananthapuram,
Secretary to Government of India,
The Ministry of Non-Conventional Energy Sources, Block
CGO Complex, Lodi Road, New Delhi-3.
General Administration (SC)Department(Vide item No.845 dated
Stock File/ Office copy.