Understanding West Bengal’s DSM and RE Policy vis-à-vis DREC Project

1. Understanding West Bengal’s DSM and RE Policy vis-à-visDREC Project Presentation by – ArnabGanguly Project Officer CUTS International

2. Scheme of the Presentation • About the DREC Project • Advocacy Issues that emerged from the DREC Project • Advocacy Issues pertaining to DSM • Advocacy Issues pertaining to RE • An overview of West Bengal’s RE Policy • Revisiting the advocacy issues in the light of the RE Policy

3. Objectives of the DREC project • Overall Objective – Toincrease long-term capacity/awareness of consumer groups to demand for DSM and RE initiatives, and also to understand, document and communicate their specific needs to relevant policy makers. • Specific Objectives • To gauge the level of awareness among various stakeholders on RE and DSM • To understand consumers’ willingness to payfor RE • To understand the various roadblocks to effective implementation of initiatives pertaining to RE and DSM

4. Major Activities undertaken so far..… Baseline survey of 513 respondents in the selected 4 territories in West Bengal 20 Consumer Interface Meetings with different stakeholder categories (approximately 550 consumers) Details….

5. Major Advocacy Issues – Related to DSM • West Bengal need a DSM Policy to promote efficient generation, distribution and use of electricity • Any DSM initiative should be evaluated based on feedback from consumers. • BEE / SDA should use the existing CSO network to reachout to the consumers at the grassroots. • Need to generate greater awareness about Energy Efficient Technologies (EETs) among different category of stakeholders • Need for appropriate DSM measures in areas of Sunderban where grid has reached very recently viz. Gosaba

6. Major Advocacy Issues – Related to RE • Need to Strengthen the after sales service for RETs by training local youth • Need to revive the existing off-grid projects • Need for regulations to ensure long term sustainability of RE based off-grid projects – metering facility should be introduced • Need for financial incentives (viz. soft loans, rebates on electricity bills etc.) to motivate grid-connected consumers to use RETs (especially hotels, government buildings etc.) • Grid connected rooftop solar to be encouraged through popularising net-metering system • Incentives need to be provided to the DISCOMs who exceed their RPO targets

7. MajorHighlightsof West Bengal RE Policy • Identification of appropriate technologies • Implementation and Monitoring • Financing • Regulatory Issues • Social and Environmental Issues

8. Policy Targets

9. Implementation Strategies (Page 12-18) • Nodal agency to undertake RE resource assessment study • Existing tariff structure for RE to be revisited • Nodal agency to guide developers to get all the necessary clearances • Encouraging Co-Generation inIron and Steel Industry, Fertilizer and Chemical Industries having connected load of 2,000 KVA and above • Targeting huge capacity addition throughgrid-connected rooftop and smaller solar installations

10. Strategies to promote use of Solar Applications (Page 16 – 18) • Commercial establishments having more than 1.5 MW of contract demand will be required to install solar to meet at least 2% of their electrical requirement • All existing and upcoming schools and colleges, hospitals, large housing societies and government establishments having a total contract demand of more than 500 KW will be required to install solar rooftop • Growth centres, industrial parks, intelligent parks etc. shall mandatorily employ solar rooftop to meet some part of their in-house demand • Development of Mini-solar project (maximum 150 kW size), projects shall be done under the DDG model.

11. Monitoring of RE Projects (Page 19-24) • WBGEDCL to facilitate investment • WBREDA to set up demonstration projects • Allotment of RE projects in two ways - Solicited (< 2 MW) OR, Unsolicited (>=2 MW) • Competitive Bidding route will be followed – Two stage process • Mandatory Power Purchase Agreement (PPA) – Developer offering highest discount on the ceiling tariff will sign the PPA • PPA to be signed with the host utility / DISCOM – timeline for such projects to mentioned clearly 11

12. Monitoring of RE Projects (Page 19-24) • Evacuation Infrastructure – (Page 22) • Creating Pooling Stations • Cost beyond the point of interconnection with the grid to be borne by the licensee and the consumers • Cost of interfacing equipment to be borne by the developer • The technical specifications for grid connectivity will be governed by WBERC regulations • Time Limit for the project – • Work should start within 6 months of getting all the clearances • Time limit mentioned in the implementation agreement to be strictly followed • Nodal agency to closely monitor progress of the projects

13. RE Project Financing (Page 25-26) • Creation of Green Energy Fund • To promote RE initiatives • Contribution by the Government (equity contribution) and International Donor agencies • The Nodal agency will manage this fund • 80% of the penalty imposed for violation of statutory clearances • 50% of the penalty imposed for not meeting RPO targets • PPP models

14. Regulatory Issues (Page 26-29) • Mandatory RPOs • DISCOMs can also purchase REC to meet RPO targets • Penalty for Failing to comply with RPO targets • Utilities are free to procure power (from RE sources) from outside state but the price should not exceed the cap fixed by WBERC • PPA to be signed following competitive bidding • Open access as per WBERC Regulations • Net metering facility to be extended to grid connected rooftop Solar PV

15. Incentives (Page 29) • Exemption of Demand Cut • Letter of Credit as a payment security mechanism • Government to provide some basic infrastructural supportin remote areas • Concessions and incentives allowed by MNRE • Entire proceeds of carbon credit from approved CDM projects shall be retained by the generating company

16. Revisiting the advocacy issues pertaining to RE in the light of West Bengal’s RE Policy

17. Revisiting the advocacy issues pertaining to RE in the light of West Bengal’s RE Policy …….(contd.)

18. Questions on the way forward Will the RE Policy encourage private investment on RE in the state ? What could be Challenges ? How to overcome those ?

19. THANK YOU

20. ANNEXURES

21. Baseline Survey for West Bengal Methodology - • Total Sample Size – 513 • Household – 210 • Agriculture – 56 • Industrial (SME) – 37 • Government Institutions - 53 • Commercial and Private Institutions – 70 • NGO/CSO - 87 • Number of Districts – 4 • South 24 Parganas (The Sunderbans area) - 204 • Cooch Behar - 106 • Nadia - 103 • East Midnapore - 100

22. Baseline Survey for West Bengal Methodology – • Criteria for Choosing Districts – • Sunderbans (South 24 Parganas) ---- where RE initiatives have been undertaken • Cooch Behar --- isolated islands -----virgin territory for RE initiative • Nadia & East Midnapore ---- Grid Connected----higher relevance of DSM • Details • 4 districts – 10 territories (Blocks)--- 2 in each district; but in Sunderbans 4 blocks • 1 CSOs from each territory – 10 CSOs • 50 respondents in each territory --- 50x100= 500 respondents • From each of the territories both Urban and Rural areas were surveyed