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| Introduction Karnataka Renewable Energy Development Limited (KREDL) was formed on 8th march 1996 as a nodal agency of the Government of Karnataka to facilitate the development of non-conventional energy sources. It is registered under company act. Prior to the creation of KREDL, the Karnataka State Council for Science and Technology (KSCST), the erstwhile Karnataka Electricity Board (KEB) and Karnataka Power Corporation Limited (KPCL) functioned as the nodal agencies of the Government in that order. But each of the above agencies had their own priorities and limitations. While KSCST had a research orientation, the KEB's priority was management of power transmission and distribution. KPCL was involved in construction of large power projects and could not focus adequately on small power projects in the non-conventional energy sector. Therefore, promotion of renewable energy projects as a supplement to conventional power generation tended to take the back seat. This persuaded the Government of Karnataka to set up a separate agency for rendering handholding type of support to renewable energy project developers. |
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Mandate of KREDL The following are the core objectives of the company
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The Policy Environment: The State Government has enunciated forward looking polices to encourage rapid development of small hydro projects. The following elements are common for all small power projects in the renewable energy sector. Wheeling and banking facility: Karnataka Power Transmission Corporation Limited (KPTCL) allows wheeling & banking of electricity generated by all renewable energy power projects. Third party sale of power: KPTCL allows the sale of power to third party (Industries). Electricity tax: Electricity tax is exempted for a period of 5 years for captive consumption of power generated. Non-conventional energy projects deemed to be industries: Non-conventional energy projects have been given the status of industry under Sec. 109 of Land Reforms Act for the purpose of acquiring lands through Karnataka Industrial Areas Development Board. Wind power projects have 80% depreciation from Ministry of New and Renewable Energy, Government of India, New Delhi. Allotment Procedure (common to all Renewable Energy Projects): Standard conditions for eligibility and terms and conditions of allotment have been developed and are made available along with the prescribed application forms. The applicants may also propose to develop potential sites, which they may have on their own discovered and investigated. The applicant has to submit a pre-feasibility report for the project they wish to apply for, along with evidence of their capacity to raise the minimum equity of 11% of the project cost to KREDL. The KREDL reviews the applications on the technical, viability, and basis of the financial strength of entrepreneur and then makes recomendations to the allotment committee constituted at Energy Department, Govt. of Karnataka. A committee of experts constituted by the State Government headed by Principal Secretary, Energy Department scrutinizes the applications to ascertain the financial viability of the project and the ability of the applicant to raise the resources. The committee makes a recommendation to the Government on the desirability or otherwise of granting capacity to the applicant. The Government, after due consideration of the recommendation sanctions capacity to the applicants. Methodology for clearance of cogeneration projects in the state of Karnataka The sugar mill has to submit a proposal to KREDL for setting up a cogeneration plant. The proposal should be accompanied with a feasibility report. The proposal and the feasibility report is scrutinized by KREDL and recommended to the Government of Karnataka for issuing a "No-objection certificate". The sugar factory has to approach statutory authorities like the Pollution Control Board, Ecology and Environment Department and the Karnataka Power Transmission Corporation Limited etc. and obtain statutory clearances for the cogeneration project. Memorandum of Understanding (MOU): The applicant to whom capacity allocation is approved is expected to sign an agreement with the Government. The agreement sets out the terms and conditions under which the development is allowed to take place. When more than one applicant requests for capacity for the same project then the relative merit of the proposals are studied and the best recommended. |
| Progress of non-conventional energy power projects in Karnataka till 31 July 2007 | ||||||||
Small Hydro Projects Karnataka is bestowed with a rich potential for development of 7500 MW of hydroelectric projects, of which only 2755 MW constituting about 36.75% of the potential has been exploited. Large hydro electric projects are not coming up on account of environmental considerations, difficulties in resettlement of local inhabitants, interstate river water disputes etc. This has underscored the need for small hydro project development, as they are free from problems that afflict major hydroelectric projects. It is unnecessary to stress that small hydroelectric projects have a benign effect on the environment; require lesser time and resources from concept to commissioning stage. It is estimated that 2500 MW of small hydropower potential can be exploited in the state. Such potential exists at the toes of the medium and minor irrigation dams, canal drops and hill streams. The Government has encouraged private sector participation in small power projects. So far, the State Government has issued licenses for construction of 289 small hydro projects with a total capacity of 1734.33 MW. 55 projects with a total installed capacity of 325.59 MW have been commissioned as of date. Karnataka has thus taken a lead in the small hydro segment of the non-conventional energy sector. Cogeneration development in Karnataka There are 44 sugar factories in the state. The total cane crushing capacity of these 44 existing sugar mills in the state is about 1,15,000 tons per day. The bagasse yield is about 40,000 tons per day. This bagasse can support at least 600 MW of power generation capacity using ordinary medium pressure boilers and turbo generators. If high pressure boilers and turbo generators are used, the installed power generation capacity in sugar factories could go up to 1000 MW or even more. Due to lack of expertise and experience in handling high-pressure boilers and turbo generators, it would take some more time for the managements of sugar factories to go in for the high-pressure technology. But as things stand today, using medium pressure boilers and turbo generators only, sugar factories in the state can generate 1000 MW of power. Biomass based power projects in Karnataka KREDL, with the financial assistance of MNES, has conducted biomass resource assessment study in 30 taluks of the state. Studies are undertaken by KREDL under the National Biomass Resource Assessment Programme of MNES. Anna University, Chennai who is the apex institution for the biomass resource assessment survey in Karnataka has surveyed the district wise biomass resource availability in Karnataka. As per the report more than 600 MW potential exists in the state for setting up biomass based power plants in the state. Eleven biomass based power project with an installed capacity of 81 MW have been commissioned in the state. Private developers are showing lot of interest in setting up biomass based power projects in the state. Till now 65 projects with an installed capacity of 478.2 MW have been sanctioned by the State Government. Wind Power Development in Karnataka Karnataka is bestowed with good wind energy potential in the Country. Of the 45000 MW wind energy potential identified by the Ministry of New and Renewable Energy (MNRE), about 7500 MW has been assessed for Karnataka. KREDL being the State Nodal Agency in the State has studied the wind energy potentials by installing 67 sophisticated wind-monitoring stations in the State. During the last 10 years of time. MNRE has fixed the qualifying norms for the sites having wind power density (WPD) above 150 Watts per Square Meter (W / M 2) at 30 M AGL., are considered for the development of wind farms and it is further revised to 200 watts per square meter at 50 M AGL. With this revision of WPD, the sites in Karnataka are viable for the development of wind farms. The Govt. of Karnataka in the last 10 years has issued licenses for development of 7181.965 MW spread over 27 districts. Out of these, 853.535 MW of wind projects is commisioned. The cumulative generation of wind power as on July 2007 is 3740.666 MU. Among all districts in Karnataka, Chitradurga district is found to the best and is at its forefront in development of wind power. With the pace of development going in this district it appears that the entire power requirement of the district could be met soon from wind energy alone. Table 3.1
SPV Programme in Karnataka KREDL implements the national program on solar photovoltaic in Karnataka. The main objective of the program is to make the SPV technologies and devices available to the common public at affordable prices. The Government of India provides subsidy and other incentives for encouraging the use of solar energy devices, which are channelised through KREDL. Subsidy under this program is available for the following item: Solar Lights:
Solar Power Plant A subsidy up to Rs.1.25 lakhs per kilowatt peak of power developed by an array is given for solar photovoltaic power plants. The power plant should have a minimum capacity of 1 kW and a maximum of 100 kW peak. Some salient features of the innovative implementation methodology adopted by KREDL for implementation of the program in Karnataka are: KREDL operates in a market mode where the user has the option to choose the best product as compared to tender mode wherein the user has no choice of the product. No individual target is given to a dealer or manufacturer. The total target is indicated and the dealers / manufacturers having valid test certificates for their systems can compete in the market and receive the subsidy on a first come first served basis. Subsidy reaches the user through the manufacturers / dealers who are expected to discount the subsidy and claim it from KREDL. The subsidy amount is released after complete documentation of the proof of residence and random field verification of the installation by KREDL. After release of the subsidy amount to the manufacturers, a random cross verification through phone calls and post is done to ascertain whether the subsidy has reached the beneficiary. Demonstration Projects:
Future Plans The total capacity allotted to private entrepreneurs as on date is about 10250 MW. As and when further requests come from the entrepreneurs more capacity addition will be allotted. This allotted capacity is planned to be realized during the forthcoming 11th and 12th five year plans. During 10th five year plan (2002-2007) about 1450 MW of Renewable Energy Power has been added to the state grid. It is planned about 1500 MW of Renewable Energy Power during the 11th five year plan (2012). Energy wise it works out to about 13% of the total installed capacity by the end of 11th five year plan (2012). Year-wise generations from non-conventional energy projects in Karnataka 
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