Guidelines for Promoting Generation of Electricity through New & Renewable Sources of Energy in A&N Islands

Guidelines for Power Generation through New & Renewable Energy Sources by Private Entrepreneurs :

The following are the guidelines for power generation through New & Renewable Energy Sources by Private Entrepreneurs in A&N Islands:

1. Title & Enforcement:

1. These guidelines will be known as "Guidelines for Promoting Generation of Electricity through New & Renewable Sources of Energy in A&N Islands".

2. All Acts, Rules and Regulations, Tariff Policy, Guidelines of GOI, A&N

Administration, Electricity Regulatory Commission and other

Government authorities will be applicable and followed.

2. Objectives and Strategies:

The main objective of the policy is to:

(i) Reduce dependence on conventional sources of Power

Generation especially HSD oil. (ii) Protection of the Environment. (iii) Generation of employment.

(iv) Encourage entrepreneurial investment in NRSE.

3(A)Electricity Act, 2003:

D e termination of tariff

Section 62(1): The Appropriate Commission shall determine the tariff in accordance with the provisions of this Act for --

(a) Supply of electricity by a generating company to a distribution licensee:

Provided that the Appropriate Commission may, in case of shortage of supply of electricity, fix the minimum and maximum ceiling of tariff for sale or purchase of electricity in pursuance of an agreement, entered into between a generating company and a licensee or between licensees, for a period not exceeding one year to ensure reasonable prices of electricity.

Section 63: Determination of tariff by bidding process:

Notwithstanding anything contained in section 62, the Appropriate Commission shall adopt the tariff if such tariff has been determined through transparent process of bidding in accordance with the guidelines issued by the Central Government.

Section 86.(1): The State Commission shall discharge the following functions:

(e): promote cogeneration and generation of electricity from renewable sources of energy by providing suitable measures for connectivity with the grid and sale of electricity from such sources, a percentage of the total consumption of electricity in the area of a distribution licensee;

(B) National Electricity Policy 2005:

The National Electricity Policy 2005 stipulates that progressively the share of electricity from non-conventional sources would need to be increased; such purchase by distribution companies shall be through competitive bidding process; considering the fact that it will take some time before non-conventional technologies compete, in terms of cost, with conventional sources, the commission may determine an appropriate deferential in prices to promote these technologies.

(C) Tariff Policy 2006:

The Tariff Policy announced in January, 2006 has the following provisions:

• Pursuant to provisions of section 86 (1) (e) of the Act, the Appropriate Commission shall fix a minimum percentage for purchase of energy from such sources taking into account availability of such resources in the region and its impact on retail tariffs. Such percentages for purchase of energy should be made applicable for the tariffs to be determined by the SERCs.

• It will take some time before non-conventional technologies can compete with conventional sources in terms of cost of electricity. Therefore, procurement by distribution companies shall be done at preferential tariffs determined by the Appropriate Commission.

• Such procurement by Distribution Licensees for future requirements shall be done, as far as possible, through competitive bidding process under Section 63 of the Act within suppliers offering energy from same type of non-conventional sources. In the long-term, these technologies would need to compete with other sources in terms of full costs.

4(a) Introduction

Scattered in the heart of Bay of Bengal lies a cluster of islands, known as Andaman & Nicobar Islands(A&N Islands). These islands form a long broken chain lies between 92O to 94O East Longitude and 6O to 14O North Latitude. The location of these islands are strategically important on the eastern side of India from the view point of defence. With the generous assistance of Central Government these islands have take a large stride on all-round developments in last few decades, which resulted in the tempo of socio- economic transformation. To achieve the above goal, the energy input will be a vital factor.

(b) Andaman and Nicobar Islands:

The A&N Islands have a total area of 8249 sq.kms. out of which the forest cover is about 7589 sq.kms.(92%). These islands enjoy a thick forest, rich environment, abundant sea wealth, which boost a high tourist attraction. These islands are divided in three district viz. Andaman, Nicobar and North & Middle Andaman. The seat of the Administration is at Port Blair (South Andaman) in which 14.14 sq.kms. area is under the jurisdiction of Port Blair Municipal Council.

(c) Past History On Power:

Prior to Independence a small steam driven reciprocating DG generator of 100 KW capacity was installed by the British at Ross Island in 1926. Direct current DG Sets of 100 KW capacity was installed at Port Blair during 1929. After independence two steam turbine generating sets of

550 KW each were established during 1951 in the Power House at Chatham Island. The boilers were operated on wood fuel and saw dust, which were the waste products of Chatham Saw Mill and later on switched over to Mangrove Wood which was used as fuel. This was the start of the alternating current power supply at Port Blair.

Due to the geographical and topographical peculiarities of these islands, including separation by sea over great distances, there is no single power grid for all the electrified islands and instead a power house caters independently to the power requirements of an area/island.

The Electricity Department is operating & maintaining power generation, transmission & distribution system and networks in these islands for providing electric power supply to general public and also implements various schemes under Plan and Non-Plan Programmes for augmentation of the diesel generating capacity and establishment of new Power Houses and T&D systems. This department also functions as a Nodal Agency for implementing Renewable Energy Programme of the Ministry of New & Renewable Energy Sources. The Electricity Department is headed by a Superintending Engineer and assisted by 7

Executive Engineers and 38 Assistant Engineers. The present total installed capacity is around 68.50 MW with a peak demand of 37 MW. The installed capacity of the Power Houses ranges between 6 KW to 12500 KW. One Hydro Electric Power Station having a capacity of 5.25 MW is functioning at Kalpong River, North Andaman. A 20 MW Diesel Power Station at Bambooflat, South Andaman is being operated by M/s SPCL on PPA basis. South, Middle & North Andaman are well connected by VHF communication for better monitoring & fault rectification for improved services to the consumers.

(d) Power Scenario in A&N Islands:

(i) Sub-Sector: Power

The salient features about development of electric power supply in these islands during last 57 years is tabulated below:-

Year Power Houses (Nos.) Total Capacity (MW) Generation (MU) Per capita consumption (Kwh)
1951 1 1.1 0.5 16
1961 1 1.1 1.6 20
1971 10 3.0 4.3 27
1981 16 7.5 10.8 41
1991 32 15.7 51.9 113
2001 34 44.0 118.6 250
2006 34 66.90 183.70 309
2008 41 68.50 200.60 385

Power Generation in A & N Islands is largely through Diesel fuel, which accounts for 95% out of total generation, rest 5% being Hydel generation. In a diesel generation scenario the major cost of power generation is the fuel cost which works out to around 80% of the total cost. The illustrations given below give a detailing of the cost of HSD at various Islands and the specific fuel consumption of the various powers plants of a particular year. There are 41 Diesel Power Houses at different locations in these islands having DG capacity ranging from 6 KW to 5000 KW (including 20 MW IPP) and one Hydro Power Station having 5.25 MW capacity at Kalpong. The aggregate installed capacity is 68.50 MW (2007-08). The details of power scenario in major islands are tabulated below:


Sl. No. Name of Island Installed Capacity (MW) Consumer (Nos.) Annual Generation (MU) Peak Demand (KW)
1. North Andaman 6.86 7673 9.79 2461
2. Middle Andaman 6.36 12931 16.40 2699
(a) Long Island 0.39 478 0.50 120
(b) Baratang 0.38 1147 0.39 210

3. South Andaman 41.28 50482 151.57 27560
(a) Neil Island 0.56 637 1.01 270
(b) Havelock 1.33 1162 2.58 444
4. Little Andaman 4.20 3335 6.50 1590
5. Car Nicobar 2.00 579 4.95 1447
6. Nancowry Group of Islands 2.10 1109 3.54 686
7. Great Nicobar 3.00 1463 3.67 691
Total 68.46 80996 200.90 38178

Consumers :

The category wise unit consumption and the number of consumer of A&N

Islands are tabulated as below:

Sl.No. Category Nos. Consumer (%) Consumption (%)
(a) Domestic 65282 80.59 46
(b) Non-Domestic 13823 17.06 25
(c) Industrial 450 0.60 5
(d) Other & Bulk Supply 1095 1.35 18
Street Lights 346 0.40 6
Grand Total: 80996 100.00 100

Round the clock power supply through DG Sets is provided to population in the islands at South Andaman, Middle Andaman, Long Island, Neil Island, Havelock, Little Andaman, Car Nicobar, Katchal, Kamorta & Campbell Bay, which account for about 85% of total population. At other...

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