Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 129
Offshore Wind Worldwide 2023
extendable by 2 years subject to progress of studies/surveys and project
development.
• Concession agreement and lease
agreement to be executed by the
selected developer with overall project
commissioning timeframe of 4 years
from the date of the concession agreement extendable to 5 years from the
date of the concession agreement in
case of extenuating circumstances.
In the case of projects that are competitively
bid out (such as offshore wind projects),
note that Section 63 of the Electricity Act,
2003 ("Electricity Act") clearly indicates that
the tariff determined through the transparent bid process would be adopted by the
appropriate commission.
1.3 Incentives for investments
While various states under their respective
renewable power policies have emerged
with different options to promote the development of renewable power, broadly, the
following incentives are available:
(a) Electricity Duty Exemptions:
Common among state policies are
exemptions for wind power projects
from the levy of electricity duty.
(b) Must-run Status:
The Central Electricity Regulatory
Commission (Indian Electricity Grid
Code) Regulations, 2010 (as amended)
prescribes the relevant Load Despatch
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Centre shall make all efforts to ensure
evacuation (that is, the feeding of the
electricity generated from a project into
the transmission network) of wind and
solar power on a ‘must run’ basis (other
than for reasons of grid security or safety
of equipment or personnel or other such
conditions) and if such backing down
occurs, the developer is required to be
compensated. 21
(c) Land Use:
From the perspective of any onshore
land requirements, note that some state
policies contain provisions assuring
deemed conversion of land (which may
be agricultural) for non-agricultural use
upon payment of conversion charges,
if the land being acquired is for a grid
connected renewable project.
(d) Renewable Purchase Obligation:
State Electricity Regulatory Commissions
("SERCs") across states have introduced
regulations imposing a requirement on
distribution licensees to mandatorily
offtake a specified percentage of total
power from renewable sources.
(e) Measures under the Offshore Wind
Policy:
The Offshore Wind Policy assures developers of coordination support from
NIWE for the facilitation of approvals.
Further, the policy indicates that all fiscal
and financial benefits available for onshore wind projects would also extend to
cover offshore wind projects. The policy
21 Ministry of Power, Government of India, Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Wind
Power Projects (8 December 2017).
