Punjab Follows in Karnataka’s Footsteps by issuing 1MW upto 2.5 MW at a fixed tariff – DRAFT SCHEME FOR ALLOCATION OF SOLAR POWER PROJECTS TO LAND OWNING FARMERS

As provided in the NRSE Policy-2012 and subsequent amendment, this scheme is introduced for allocation of Solar Power Projects to the land owning farmers effective from 1.4.2015.

The Government of Punjab endeavors to promote solar energy projects by land owning farmers with a minimum capacity of 1MW to a maximum capacity of 2.5 MWp (per land owning farmer) in the state for sale of power to PSPCL at applicable generic tariff determined by PSERC on annual basis. With Solar Power Projects located closer to the agriculture loads  in distribution / transmission network, distribution losses will be reduced considerably and voltage drop at peak day time load will be minimized along with power supply and power factor improvement . These small solar PV systems shall act as a micro distributed utility at farm level. The solar power generation shall be available for enabling the agriculture pump-sets loads to be operated during the daytime, thereby allowing the utility to dispatch the power so saved from their central generating station to other area.

Nodal Agency

PEDA shall be the nodal agency for implementation of this special scheme. Project application processing & allocation shall be with PEDA while administration of PPA’s shall be with PSPCL. PEDA will also facilitate the farmers regarding documentation for the projects.

Capacity Target

The cumulative capacity under this scheme shall be 500MW to be allotted on first come first served basis. Out of this 500MWp, 100MWp is reserved for allotment to land owners belonging to SC/ST categories / Women land owners.

Evacuation facilities

Govt. of Punjab (GoP) shall facilitate purchase of energy generated under this scheme by PSPCL through power purchase agreements of 25 years duration. PSPCL shall be responsible for providing connectivity of the solar PV power generating station at the nearest grid sub-station with the grid and provide cable from the last H pole of the 11 KV evacuation line inside the Grid sub/station and 11 KV switchgear along with metering system in the grid. The farmer shall bear the total cost of the 11 KV line for evacuation of power from the Out Door Yard of the project to the nearest 66KV sub-station which can be got constructed by the farmer from PSPCL on deposit job work basis.

Eligibility, Terms &Conditions

  1. Farmer / Group of Farmers, holding agriculture land in their name for the last three years from date of issue of this scheme.
  2. A group of farmers can also get together for setting up of the SPV Power Project in the land owned by the members of the group.
  3. Farmer / Group of Farmers can also form a company for applying and or implementation of the project.
  4. The minimum capacity is 1MW and maximum is 2.5 MW for each farmer/group of farmers/SPV company.
  5. Only the Farmer / Group of Farmers, owning the land in the State of Punjab, having valid and duly certified land ownership document (Jamabandi) with entry of their names are eligible to apply. The existing land use as per revenue records should be for Agriculture/Horticulture/ Farming including irrigated & non-irrigated area.
  6. The applicant has to furnish the certified copy of the land ownership documents as proof of land holding of the total required land for the applied capacity. (5 acres for 1 MWp).
  7. If the land holding is held jointly each of the joint holder is individually also eligible to apply for minimum 1MW to maximum 2.5 MW depending upon the extent of required land. Provided that Husband &Wife will be individually or jointly eligible to apply for max 2.5 MW only.
  8. The application fee of Rs 50,000/-per project (Non Refundable) to be paid along with the application.
  9. The application fee shall be submitted through Draft/RTGS/NEFT/IPG with the application along with the scanned certified copy of the ownership documents and caste certificate if applicable, shall be submitted to PEDA.
  10. PEDA will scrutinize the application and verify the original documents before short listing for allotment.
  11. A list of all eligible applicants will be prepared and notified on the basis of first cum first served basis. Allotments shall be made to the eligible applicants on first cum first served basis till the total cap. Of 500 MW is reached. A waiting list of Farmers shall also be prepared, who were eligible but did not get the allotment.
  12. Within 30 days of allotment, the farmer has to furnish a processing fee of Rs. 2,00,000/- per MWp (Non refundable ) to PEDA. If the farmer fails to give processing fee within 30 days from the date of issue of Letter of award, the allotment will stand cancelled and project will be allotted to the next eligible applicant.
  13. The farmer can also form an SPV company after project allocation but before signing of the IA to implement the project. Farmer will have to continuously hold 51% equity in the project till 7 yrs of signing of PPA.
  14. The farmer shall enter into PPA for a period of 25 years (effective from the date of commissioning of the project) at the Generic tariff for solar PV projects as determined by PSERC applicable for that year of allocation of the project . The signing of IA shall be completed in 45 days and thereafter signing of PPA will be completed in 60 days from the date of allotment.
  15. The farmer has to furnish the financial closure documents, technical feasibility clearance and final technology selection documents within 120 days of signing of PPA.
  16. The farmer has to complete the project within the stipulated time as mentioned in the allotment letter, however extension can be sought for 30 days in the First go on payment of a fee of Rs. 5000/day/MW. And for another period of maximum 60 days on a payment of a fee of Rs.10,000/day/MW. After which no further extension will be given and the PPA shall stand canceled.
  17. The Change of Land use allowed for Agriculture/ Horticulture land for installation of SPV shall revert back to Agriculture / Horticulture on completion of the Project period or in the event the Project is removed from the site.
  18. Farmers will be advised to install solar system at some height from the ground so that some kind of agriculture/horticulture activity can be undertaken below the solar panels & the Canal water connection and supply schedule shall remain as it is in the name of the farmer.
  19. PEDA shall give information about the scheme through print & electronic media and will also hold interactive meets with farmers to sensitize them about the scheme.
  20. PEDA reserves the right to increase/decrease the total solar project capacity and capacity under the reserved category in line with the response to the scheme and also to extend the scheme to next years.
  21. Other general term and conditions will be as per NRSE policy 2012. In case of any conflict, NRSE Policy 2012 shall prevail.
  22. Farmer’s can also operate their agriculture pumps (Both DC or AC pumps) by taking power from these solar PV power plants, which shall be treated as auxiliary power.
  23. Suggestions are welcome on E- mail: farmers.solar@gmail.com.

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About Ritesh Pothan

Ritesh Pothan, is an accomplished speaker and visionary in the Solar Energy space in India. Ritesh is from an Engineering Background with a Master’s Degree in Technology and had spent more than a decade as the Infrastructure Head for a public limited company with the last 9 years dedicated to Solar and Renewable Energy. He also runs the 2 largest India focused renewable energy groups on LinkedIn - Solar - India and Renewables - India
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