Overview

Particulars Sub-particulars Sub-particulars Sub-particulars Units Details Source
General State Overview
State Telangana
State Regulatory Commission Telangana State Electricity Regulatory Commission
State Nodal Agency Telangana New and Renewable Energy Development Corporation Ltd.
Installed Capacity (MW) MW 62.75 MNRE (As on 29.05.2015)
Potential Area Clusters (Tehsil) Dundigul, Warangal, Mahabubnagar
Break down of Installed Capacity (as on 31.3.2015) JNNSM MW 0 MNRE
State Solar Policy MW 39.35
 REC MW 23.4
Policy Overview
Title of Policy Telangana Solar Power Policy 2015 Telangana Solar Power Policy 2015
Time span of the policy Years 2015-2020 Telangana Solar Power Policy 2015
Categories of projects covered in Solar Policy Category 1 Projects set up for sale to Telangana DISCOMs or third party users Section 5., pp. 4/12 of Telangana Solar Power Policy 2015
Category 2 Captive/Group Captive projects
Category 3 Solar Rooftop Projects – Grid connected and Off-grid
Category 4 Projects set up in solar parks
Category 5 Off-grid projects
Grid Evacuation The developer shall be responsible for laying the power evacuation infrastructure from the plant to the nearest substation or interconnection point. The supervision charges levied by TSTRANSCO/DISCOMs shall be exempted. TSTRANSCO/DISCOMs shall process and close the proposals for technical feasibility within 30 days of receipt of application from the developer. Section 11. i), pp. 9/12 of Telangana Solar Power Policy 2015
Single Window Clearance Single Clearance Window for all clearances required shall be available at a transaction fee of INR 10,000/MW with a ceiling of INR 2 Lakh on the transaction fee. The mechanism will be handled by the state level TS – iPASS. Following are the modalities for it:

1. i. State level TS-iPASS cell will act as the Co-coordinating agency & interface with the entrepreneurs for all clearance.
ii. TS-iPASS to receive necessary application & payments from the Solar Power Project Developers and disburse them to the relevant departments.
iii. TS-iPASS will process and issue all the required clearance.
iv. TS-iPASS cell to hand over documents specifically related to Energy Department (TSDISCOMS/TS TRANSCO and CEIG) to SPC/TSSPDCL, for further processing of clearances.
2. Furnishing of either of the below mentioned documents by the Solar Power Developers is a pre-condition for processing of application by TS-iPASS.
i. Technical Feasibility – Issued by DISCOMs/TSTRANSCO/Solar Power Cell
or
ii. Signed Power Purchase Agreement (PPA) with DISCOMs.

Section 11. a), pp. 7/12 of Telangana Solar Power Policy 2015, Modalities for Single Window Clearance Mechanism by TSSPDCL
Deemed Conversion to Non-Agricultural Status Any land used to setup solar project for sale of power to TSDISCOMs/Third Party/Captive Consumption shall be deemed to be converted to Non-Agricultural status on payment of the conversion fee at 10% of the basic value of the land. The application has to be made by filling the form in Annexure A of THE ANDHRA PRADESH AGRICULTURAL LAND (CONVERSION FOR NON-AGRICULTURAL PURPOSE) RULES, 2006. The same is available online at this link. Section 11. b), pp. 7/12 of Telangana Solar Power Policy 2015, Andhra Pradesh Agricultural Land (Conversion for Non-agricultural Purposes) Act, 3 of 2006, THE ANDHRA PRADESH AGRICULTURAL LAND (CONVERSION FOR NON-AGRICULTURAL PURPOSE) RULES, 2006
Exemption from Land Ceiling Act No ceiling limit applicable on any land acquisition for solar projects subject to the extent of land required in successful bids/PPA’s with the land requirement ccomputed at 5 acres/MW or lower. Section 11. c), pp. 8/12 of Telangana Solar Power Policy 2015
Stamp Duty Exemption 100% exemption from payment of Stamp Duty for purchase of land for solar power projects Section 11. l), pp. 10/12 of Telangana Solar Power Policy 2015
VAT Exemption 100% refund of VAT/SGST for all inputs required for solar power plants for a period of 5 years Section 11. k), pp. 10/12 of Telangana Solar Power Policy 2015
Development Charges payable to Gram Panchayat INR 25,000 per acre to be paid to Gram Panchayat as development charges for the land in question. The Gram Panchayat will provide the permission for development on the land within 14 working days of receiving the payment. Section 11. j), pp. 9/12 of Telangana Solar Power Policy 2015
T&D Charges Waiver Waived for only Captive Users Section 11. d), pp. 8/12 of Telangana Solar Power Policy 2015
Electricity Duty Waived for sale to DISCOM/Third Party/Captive Use Section 11. f), pp. 9/12 of Telangana Solar Power Policy 2015
Cross Subsidy Surcharge 100% exemption for five years since CoD Section 11. g), pp. 9/12 of Telangana Solar Power Policy 2015
Regulatory Overview
Solar Purchase Obligation 2014-15 % 0.25% TSERC (Adoption of previously subsisting Regulations,Decisions,Directions or Orders,Licences and Practice Directions) Regulation , 2014; Section 3.1 of APERC Renewable Power Purchase Obligation (Compliance by purchase of Renewable Energy / Renewable Energy Certificates) Regulations, 2012
2015-16 % 0.25%
2016-17 % 0.25%
2017-18 % 0.25%
2018-19 % 0.25%
Wheeling Charges TSSPDCL 2014-15 33 kV INR/kVA/Month 12.67 Table No. 6.3, Section 47, pp. 53/62 of TSERC Tariff Order for Wheeling and Distribution Business dated 27.05.2015
11 kV INR/kVA/Month 155.91
LT INR/kWh 344.17
2015-16 33 kV INR/kVA/Month 15.71
11 kV INR/kVA/Month 173.97
LT INR/kWh 373.12
2016-17 33 kV INR/kVA/Month 16.63
11 kV INR/kVA/Month 191.53
LT INR/kWh 406.84
2017-18 33 kV INR/kVA/Month 18.34
11 kV INR/kVA/Month 211.62
LT INR/kWh 446.15
2018-19 33 kV INR/kVA/Month 19.95
11 kV INR/kVA/Month 231.52
LT INR/kWh 485.45
TSNPDCL 2014-15 33 kV INR/kVA/Month 10.69
11 kV INR/kVA/Month 218.45
LT INR/kWh 484.50
2015-16 33 kV INR/kVA/Month 13.74
11 kV INR/kVA/Month 259.09
LT INR/kWh 576.16
2016-17 33 kV INR/kVA/Month 13.20
11 kV INR/kVA/Month 321.20
LT INR/kWh 691.33
2017-18 33 kV INR/kVA/Month 14.28
11 kV INR/kVA/Month 332.70
LT INR/kWh 714.49
2018-19 33 kV INR/kVA/Month 15.62
11 kV INR/kVA/Month 346.34
LT INR/kWh 743.42
Wheeling Losses TSSPDCL 2014-15 33 kV % 3.99% Table No. 5.1, Section 42, pp. 49/62 of TSERC Tariff Order for Wheeling and Distribution Business dated 27.05.2015
11 kV % 5.00%
LT % 7.50%
2015-16 33 kV % 3.99%
11 kV % 5.00%
LT % 6.50%
2016-17 33 kV % 3.99%
11 kV % 4.50%
LT % 5.50%
2017-18 33 kV % 3.99%
11 kV % 4.40%
LT % 5.25%
2018-19 33 kV % 3.99%
11 kV % 4.25%
LT % 5.00%
TSNPDCL 2014-15 33 kV % 4.00%
11 kV % 4.25%
LT % 7.00%
2015-16 33 kV % 4.00%
11 kV % 4.25%
LT % 6.00%
2016-17 33 kV % 4.00%
11 kV % 4.23%
LT % 5.50%
2017-18 33 kV % 4.00%
11 kV % 4.20%
LT % 5.25%
2018-19 33 kV % 4.00%
11 kV % 4.15%
LT % 5.00%
Transmission Charges 2014-15 INR/kW/Month 65.30 Table No. 7.2, Section 71, pp. 80/101 of APERC Transmission Tariff Order dated 09.05.2015
2015-16 INR/kW/Month 76.66
2016-17 INR/kW/Month 91.36
2017-18 INR/kW/Month 95.37
2018-19 INR/kW/Month 94.44
Transmission Losses 2014-15 % 4.02%
2015-16 % 4.02%
2016-17 % 4.01%
2017-18 % 3.98%
2018-19 % 3.95%
Banking Provisions Charges % of energy drawnn 2.00% Section 11. e), pp. 8/12 of Telangana Solar Power Policy 2015
Provisions Annual Banking for 100% of energy injected. Energy cannot be redeemed during the montsh of February to June and in the peak hours of 6 PM to 10 PM. Unutilized banked energy shall be considered deemed purchased by TSDISCOMs at APPC for that year
SERC Defined Tariff With AD INR/kWh NA
Without AD INR/kWh NA

 

Site Selection

Step Sub-step DESCRIPTION Authority Reference
Details Activities Important factors to consider
SITE IDENTIFICATION AND PROJECT PRE-FEASIBILITY IDENTIFICATION OF SITE The first step in project design and development is the site identification. In Telangana, the developer has to identify a suitable land for the project. The category of the land has to be checked with the Revenue Department of the State. Further, one of the key factor in identification of a suitable site is to obtain the consent of the present owner of that piece of land, to sell. Suitability of a place includes factors such as suitable irradiation, access to site and availability of evacuation infrastructure.  This step is undertaken in conjunction with other analysis such as solar radiation analysis, infrastructure analysis etc. 1. Identify a suitable piece of land
2. Obtain consent from current owners
3. Check the categorization of the land with the Revenue Department
Telangana Revenue Department Primary Research
SOLAR INSOLATION AND SHADOW ASSESSMENT It is recommended that for ascertaining accuracy of solar irradiation data, dedicated weather stations are erected at the site for local irradiation measurement and a minimum of 12 to 18 months of data is gathered for observation.
There are currently 3 solar radiation resource assessment stations under the National Institute of Wind Energy (NIWE). They are located at Warangala, Medak and Mahabubnagar. Read more.
The following has to be checked :        #Global Horizontal Solar Radiation
#Diffused Horizontal Solar Radiation
#Direct Normal Solar Radiation
#Wind Speed/Direction
#Rain Accumulation
#Air Temperature
#Atmospheric Pressure (SLP) and
#Relative Humidity.
Technical advice is suggested for this level. NA Primary Research
POWER EVACUATION FEASIBILITY AND SITE ACCESSIBILITY The recent bid in Telangana has been on tariff based reverse biddding for. However, the developer has to offer the quoted tariff for a “offered capacity” at a specified substation. Therefore, the technical details of the to-be bidded capacity at substations has been presented as part of the bids. No separate grid feasibility is required to be conducted. However, issues such as Right of Way have to be considered by the developer. TSNREDCL Primary Research
WATER AVAILABILITY/ CONSTRUCTION & POWER AVAILABILITY There is no specific provision for water availability in Telangana Water requirements are generally fulfilled through borewells and other temporary sources of water such as water tankers NA NA Primary Research
PROJECT REGISTRATION There is no specific requirement to register the project with TSNREDCL. The bids so far have not explicitly stated a requirement for successful bidders to get their projects registered. TSNREDCL Primary Research
BAY ALLOCATION The bay allocation has been a part of the bid itself so far in Telangana. No separate allocation needs to be conducted. NA TSNREDCL Primary Research

Project Development

Step Sub-step DESCRIPTION Authority Reference
Details Activities Important factors to consider
LAND/SITE ACQUISITION LAND ACQUISITION The process of land acquisition involves identifying a piece of revenue land and obtaining a government lease for the same through the following process:
##After identification of land, submit an application to the district collector.
##District collector provides recommendation letter which shall be forwarded to the the Panchayat (talati)  via the additional district collector
##the Panchayat (talati) examines records to ascertain the availability and applicability of the land and if found correct, requires a payment of INR 25,000/acre as development charges. Upon payment of these charges the Gram Panchayat shall grant the permission to the developer within 14 days.
##The Panchayat (talati)  then demarcates land in front of the developer and some villagers.
##Consent from thePanchayat (talati)  is routed through the  additional district collector and the district collector to the state revenue department and revenue minister.
##Revenue minister approves the recommendation for lease of land which is then executed in the form of a lease deed by the District Collector.
If the land is forest land then that is taken on lease from the forest department. Private land is purchased from a private individual or corporation
Signing of land agreement and demarkation of land #Complex procedure of conversion in case of revenue land, application needs to be routed through various state nodal agencies. Need to hire agents and liaison officer to facilitate and understand the process
# Lack of ownership data, land demarcation records, maps and various local claims over the land. Clarity on land classification is also a concern
District Collector; Local Village Body; State Revenue Department Section 11. j), pp. 9/12 of Telangana Solar Power Policy 2015
LAND CATEGORY CONVERSION Any land used to setup solar project for sale of power to TSDISCOMs/Third Party/Captive Consumption shall be deemed to be converted to Non-Agricultural status on payment of the conversion fee at 10% of the basic value of the land. The application has to be made by filling the form in Annexure A of THE ANDHRA PRADESH AGRICULTURAL LAND (CONVERSION FOR NON-AGRICULTURAL PURPOSE) RULES, 2006. The same is available online at this link. District Collector; Local Village Body; State Revenue Department Section 11. b), pp. 7/12 of Telangana Solar Power Policy 2015, Andhra Pradesh Agricultural Land (Conversion for Non-agricultural Purposes) Act, 3 of 2006, THE ANDHRA PRADESH AGRICULTURAL LAND (CONVERSION FOR NON-AGRICULTURAL PURPOSE) RULES, 2006
TRANSMISSION AGREEMENT AND INFRASTRUCTURE In Telangana, the tender that has been released so far has been based on bidding of the substation capacity. Hence, no separate transmission agreement is needed. No supervision charges have to be paid. However, other charges such as charges for purchasing of meters and CT/PT equipment have to be paid to TSTRANSCO. The charges amount to 5% of the cost of the equipment purchased and go towards facilitation of purchase of such equipment by the TSTRANSCO. #Construction of Transmission Line
#Payment of facilitation charges to TSTRANSCO
TSTRANSCO Primary Research
CLEARANCES AND APPROVALS CONSENT TO ESTABLISH Telangana offers a Single Window Clearance mechanism. The Consent to Establish will be taken by the Telangana State Industrial Project Approval and Self Certification System (TS-iPASS) as per the TS-iPASS Act 2014. The developer can take the approval himself too by filling in the Common Application Form available by registering at TS-iPASS. The form is available online for viewing here. TSPCB Primary Research
CEIG DRAWING CLEARANCES Drawing approvals need to be taken with the details of the drawing and accompanying enclosures mentioned as follows: The following drawings are to be furnished:

1) Topographical map showing location of the power plant/unit.

2) Single line schematic of entire project

3) Sectional plan and elevations

4) Earthing scheme

Documents required to be submitted along with the drawing are,

1) Govt. order for having obtained permission for setting up of power plant.

2) Power purchase agreement copy.

3) Scheme of grid synchronization.

4) Power Evacuation infrastructure details including sending and receiving end equipment’s.

Telangana State Electrical Inspectorate; Telangana Energy Department Indian Electricity Rules 1956  (Section 47 a):

Construction

Step Sub-step DESCRIPTION Authority Reference
Details Activities Important factors to consider
TEMPORARY ELECTRICITY CONNECTION Prior to the start of construction at the site, a temporary electrical connection from the local/state distribution utility must be taken. This is to offset the cost of electricity in case of using a diesel generator during the construction period. To take a new electricity connection from TSSPDCL, the following form needs to filled and submitted:
For HT connection: Application Form
For LT Connection: LinkDownloads/Application Form for LT
For taking connection from TSNPDCL the following form needs to be filled:
Application Form
NA TSSPDCL, TSNPDCL TSSPDCL, TSNPDCL
WATER PERMIT The water requirements of the industry can be met from the nearest source available besides utilizing ground water. NA NA NA Primary Research
LABOR CLEARANCE Before employment of labor at site, Registration of Licenses needs to be done with the Labor Department and the time limit for getting the same is expected to be 7 days This can be done either online by registering on the following portal and following subsequent steps:

Portal
Or this clearance can be achieved by approaching the Telangana Labor Department directly

NA State Labor Department (Labor inspector) Industrial Employment Act 1936
PROJECT COMPLETION AND COMMISSIONING CONSENT TO OPERATE Consent to Operate is the second levele of clearance to be taken from the Pollution Control Board after taking Consent to Establish. Consent to Operate can be taken by filling up this form: TSPCB Primary Research
CEIG CLEARANCE THE CEIG Inspector inspects three components of the system:
1. The solar power plant
2. The pooling substation
3. The transmission line constructed to the nearest substation
Calibration reports, site test results, equipment manufacturer testing reports, etc. shall be sent to the jurisdictional officer of the Electrical Inspectorate for inspection. Telangana CEI Indian Electricity Rules 1956  (Section 47 a)
GRID INTERCONNECTION AND METERING The project developer needs to commission the project within the timeline specified in the PPA

EPC to undertake the testing of the equipment and take Utility Approval for substation connection. The Final Acceptance Test is designed to check the status of the plant and the proper functioning of the system and system components. Once it is verified that the plant complies with requirements and testing, the plant will be taken over by the owner from the EPC contractor.

All warranty relevant data or testing shall be approved or tested prior to warranty ending to raise final claims by the developer and the EPC. Further, the distribution utility shall provide the necessary approvals and infrastructure for evacuation of power generated.

At the time of commissioning, the developer is to draw up a punch list with the EPC contractor. This comprises of the scope of work that has been partially completed/not completed but does not impact performance or output of plant. The punch list needs to be completed by EPC contractor at a future date within a mutually agreed timeframe with the developer.

The process of project commissioning will follow:
##Site inspections
##Mechanical Completion Test
##Inverter Commissioning Test
##Performance Test.

DISCOMS Primary Research

Support Schemes

Incentive Element DESCRIPTION  Authority Reference
TAX EXEMPTIONS Stamp Duty Exemption A stamp duty exemption of 100% on purchase of land for solar project development. Telangana Revenue Department Section 11. k), pp. 10/12 of Telangana Solar Power Policy 2015
VAT/Entry Tax Exemption 100% VAT/Entry Tax exemption on equipments purchased for solar power plant for 5 years from CoD provided power is supplied and consumed within the state Telangana Revenue Department Section 11. k), pp. 10/12 of Telangana Solar Power Policy 2015
OPEN ACCESS AND T&D CCONCESSIONS Transmission and Wheeling charges Exemption of wheeling charges for captive consumers provided power is supplied and consumed within the state TSTRANSCO/TSDISCOMs Section 11. d), pp. 8/12 of Telangana Solar Power Policy 2015
Electricity duty exemption Waived for sale to DISCOM/Third Party/Captive Use provided power is supplied and consumed within the state TSSPDCL/TSNPDCL Section 11. f), pp. 9/12 of Telangana Solar Power Policy 2015
Cross Subsidy Surcharge 100% exemption for five years since CoD provided power is supplied and consumed within the state TSSPDCL/TSNPDCL Section 11. g), pp. 9/12 of Telangana Solar Power Policy 2015