PPA   FORMAT   FOR   BIOMASS  POWER

 

 

AGREEMENT BETWEEN ………………………………………………………………… AND TAMIL NADU ELECTRICITY BOARD FOR THE PARALLEL OPERATION AND SALE OF SURPLUS POWER FROM …………………………………………… ………………………………………………………………………… BY TNEB.

 

THIS AGREEMENT entered in to at ……………………………………………….  on the day of ……………. Two thousand four Between ………………………………… …………………………………., a company incorporated under the companies Act, 1956 (CA1 of 1956) having its registered office at ………………. (hereinafter called the POWER GENERATING COMPANY) represented by Thiru. ………………………., as party of the first park and the Tamil Nadu Electricity Board, a body corporate constituted under the Electricity (Supply) Act, 1948 (C.A.54 of 1948) having its office at N.P.K.R.R. Maaligai, Electricity Avenue, 800, Anna Salai, Chennai-2, represented by Thiru………………………… Superintending Engineer / ………………………. EDC (hereinafter called the “Board”) as party of the SECOND PART.

 

WHEREAS the BOARD has taken note of the information from the party of the FIRST PART to establish ……….. MW biomass based power plant at ………….. village, …………………….. Taluk, ………………………. District to generate Electricity and to sell entire surplus energy after its consumption.

 

WHEREAS the power generating company has offered to sell the surplus power generated by the Biomass power plant in it fold to the ‘BOARD’.

 

AND WHEREAS the ‘BOARD’ has taken note of the information about establishment of the said plant and has accepted to purchase the surplus power on the terms and conditions hereinafter agree to

 

NOW THESE PRESENTS WITNESSETH and the parties hereto agree as follows :

 

Definition

“Biomass” means any agro waste like Sugar Cane Residuals, Wood Chips, Saw Dust, Rice Husk, Coconut Shell, Ground Nut Shell, Coffee Husk, Cane Trash, Casurina Wood, Juliflora, Tapioca Waste, Tapioca Stem, Tapioca Peeling, Coconut Fronds, Coconut Coir, Coconut Raiches & Stem, Coirpith, Maize Stalk, Cotton Stalk, Paddy Hay etc., that are classified as Non Conventional Sources of energy by the Ministry of Non conventional Energy Sources, Government of India.

 

  1. The power generating company shall feed the surplus power from their Biomass power plant into the Board’s grid and the Board shall draw the power and pay therefor.

  2. There shall be direct transfer of power from the plant to the grid of Tamilnadu Electricity Board and for this purpose the generators of the power generation company shall be permitted to be paralleled with the Board’s Grid subject to the terms and conditions imposed by the Board from time to time.

  3. The power generating company shall be bound by all the provisions of Electricity Act 2003, Statutory amendments made form time to time and also orders of the Government of Tamil Nadu related to the project and directors of the Board issued from time to time.

  4.               

  1. The power generating company shall be responsible for designing the generating set and protection system of the plant for the safe parallel operation with the Board’s grid.

  2. The company shall provide an exclusive circuit breaker of the appropriate voltage level and rating at the biomass power plant end for interconnecting the plant with TNEB grid.

  3. The company shall make good the losses, if any, due to any damage that may be caused to the equipment / lines of the Board resulting on account of parallel operation of its plant.

  4. The company agrees that the Board will not be responsible for any damage to its power plant resulting from parallel operation with the grid and that the Board shall not be held liable to pay any compensation for any such damage.

  5. Works on power evacuation facilities shall be executed by the ‘Power Generating company’ at the company’s cost.

  1. The interfacing with the Board’s grid shall be at the voltage level of ……… kV.

  2.  

  1. The ‘Power generating company’s annual maintenance requirements shall be from ………………………….. to …………… the ‘Power generating company’ shall inform the ‘Board’ of any changes in the maintenance schedule at least one week in advance.

  2. In the last week of every calender month, the ‘Power generating company’ shall furnish to the ‘Board’ a supply plan indicating the quantum of energy likely to be delivered during the next calender month. Arrangements shall be made for transmission of on Line data of the generated power to Load  Despatch Centre. The anticipated generation may be furnished one day in advance on routine.

  3. The generating company shall obtain prior permission of the Chief Engineer / Distribution concerned for the drawal of start up power from the grid giving complete split up details of preferential loads of the biomass power plant. The power has to be availed through the interfacing line itself as per permanent B.P. (CH) No.: 319,  dt. 30.10.95 and the amendments made from time to time.

  4. Biomass power plants are exempted from merit order backing down as per (per) B.P. (FB)  No : 86 (TB) dt. 5.7.03.

As per the B.P (FB) No : 59, dt. 11.4.200, the price for the financial year 2004-05 works out to Rs.3.15 per unit with 5% annual esclation for the period upto 2010 and the price shall not exceed 90% of the prevailing H.T. Industrial tariff which is provisional and will be subject to retrospective modification as and when tariff orders are revised by TNERC.

  1. Billing and payment : The power generating company shall prepare bill every month based on the meter reading certified by the TNEB / in accordance with the provisions of the PPA in duplicate and forward it to the Superintending Engineer concerned for scrutiny and countersignature / certification. The bill so presented will be settled by TNEB in a reasonable time either to the power generating company or to the person authorized by it at its discretion with the prior, approval of TNEB by way of crossed cheque payable at Chennai. Board is entitled to recover any excess payment or any other dues to TNEB from the power generating company bill in subsequent bills.        

  1.  

  1. The ‘Power generating company agrees that the purchase price of biomass based energy generated and exported to the TNEB grid shall be paid at the rates specified in the permanent B.P. (FB) No : 59  dt. 11.4.2000 as amended from time to time.

  2. The power generating company agrees that a 2 % deduction from the total energy exported shall be made towards tie line losses.

    8.                   

  1. The ‘Power generating company’ is permitted to wheet the Biomass based power to its subsidiary company situated with in radius of 25 km from the ‘Power generating company’ after deducting at 2 % of the energy exported as wheeling charges. Wheeling beyond 25 kms radius to anywhere in the state is also permitted after deducting 10% of the energy exported as wheeling charges which is subject to revision from time to time. Wheeling of energy is restricted to a maximum of 2 Nos. H.T. Industrial Tariff - I, Service connections coming under the same distribution circle only.

  2. A certificate from the Superintending Engineer of the Electricity Distribution Circle concerned shall be obtained for the energy wheeled to the own or subsidiary company and enclosed with the monthly bill.

 

  1. Metering arrangements shall be provided at the ‘Power generating company’ at the company premises at the Company’s cost for measuring import and export of power with maximum demand.

  2.  

  1. (i)  Drawal of power from Board’s grid as recorded by the import meter shall be charged at Board’s H.T.Tariff I rate applicable for Industrial consumers. Maximum Demand charges shall be charged based on tariff notified by the TNERC. Penal and other surcharges shall be levied as per the notified tariff conditions if the sanctioned demand is exceeded or power is availed during peak load hours as the case may be or as per conditions imposed from time to time by the Board & TNERC.(ii)  Power drawn from the TNEB grid for the purpose of biomass based power plant maintenance works, trail run of equipments, water works etc., shall be charged under Board’s H.T. Tariff III including MD. charges based on tariff notified by the TNERC from time to time.

  2. The average power factor during the billing period for the power drawn from TNEB grid is to be maintained between 0.9 lag and unity. Penalty shall be imposed at the rates stipulated in the notified tariff for the low power factor less than 0.9 lag.

  3. The ‘Power generating company’ shall install main meter and a check meter in the ‘power generating company’ at its cost to record the power supplied by the power generating company to the Board.

  4. The meters shall be jointly inspected, calibrated and sealed on behalf of both the parties and shall not be interfered with by either party except in the presence of other party or its representatives.

  5. The main meter and the check meter shall be test checked for accuracy once in six months and shall also be calibrated and adjusted once in a year by the Meter Relay Test wing of the Board.

  6. The meters shall be deemed to be working satisfactorily if the errors as determined in the test are within the limits specified in the relevant specification applicable to high precision energy meters.

  7. The consumption registered by the main meter alone shall be taken for the purpose of billing as long as the error in the main meter is within the permissible limits specified.

  8. If, during the half yearly test check or annual calibration, the main meter is found to have errors within permissible limits, the billing shall be done as per the main meter. If the check meter is found to have error beyond permissible limits, the check meter shall be calibrated.

  9. If, during the half yearly test check or annual calibration, the main meter is found to have errors beyond permissible limits, but the check meter is found to have errors within the permissible limits, the billing thereafter shall be as per the main meter.

  10. If during the half yearly test check or annual calibration, both the main meter and the check meter are found to have errors beyond permissible limits, the bill shall be revised for the previous 3 (Three) months by applying correction as determined by the MRT / Wing of the Board to the consumption registered by the main meter.

  11. If both the main meter and the check meter fail to record energy either due to the blowing of the P.T. fuses or due to any other causes, the energy exported during the period of outage will be computed as in Clause (i) above.

  12. All the testes on the main and check meters shall be conducted by the Meter & Relay Test (MRT) laboratory of the Board at its laboratory in the presence of the representative of company and the results / correctness so arrived at shall be applicable and binding on both the parties and the same cannot be subject to any dispute.

  1. Settlement of disputes – Arbitration

  2. If any dispute or difference of any kind what soever arises between the parties relating to this agreement, it shall in the first instance be settled amicably with intervention of the Chief Engineer Non Conventional Energy Sources of the Board within sixty (60) days, failing which the matter shall be referred to a sole arbitrator as nominated by the Chairman of the Board. If the matter is so referred to the Sole Arbitrator for arbitration, the arbitration shall be conducted by the arbitrator in accordance with the provisions of arbitration and conciliation Act, 1996 or any other enactment or statutory modifications thereof for the time being in force. Decision of the sole Arbitrator in this regard shall be final and binding upon the parties.

  3. The power generating company is entitled to bank the energy generated as per orders that are in force issued by the Board and as amended from time to time.

  4. The Board reserves the right to terminate the agreement if any of the conditions laid down by the TNEB / CEIG / TNERC is not complied with by the power generating company of for any other reasons. The power generating company agrees that the Board shall have the right to vary from time to time, the tariff, policy on banking and wheeling and terms and conditions of this agreement by special or general proceedings and the conditions relating to generation of electricity through biomass and such other variations ordered by TNERC and TNEB shall be binding on the company.

  5. Implementation of the agreement

  1. All discretions to be exercised and direction, approvals, consents and notices to be given and actions to be taken under these presents, unless otherwise expressly provided herein, shall be exercised and given by the signatories to this agreement or by the authorised representatives (s) of that party, nominated in this behalf and notified in writing to the other party.

  2. All notices with regard to default or difference relating to this agreement shall be in writing and signed by the signatories to this agreement or by the authorised representative(s). Each such notice shall be deemed to have been duly given or sent by the party concerned, if the notice is delivered against acknowledgement due to the signatories or the authorised representative(s) at their respective address.

  1. Duration

  1. This agreement shall remain in force, for a period of 15 (fifteen) years or for the useful life period of the plant, which ever is less, from the date of this agreement.

  2. In case the Board continues to get power from the power generating company after the expiry of this agreement, without renewal or formal extension thereof, then the provisions of this agreement shall be continued, to be operative till the agreement is formally renewed, extended or replaced within one year from the date of expiry. Then, for the purpose of billing and payment in respect of the supply of energy received from the power generating company during such period, the rate applicable for, as on the expiry date of the agreement, shall be adopted. It shall, however be the endeavor of the power generating company and the Board to finalise the next agreement before the expiry of this agreement.

  1. The parties shall ensure compliance of the terms of this agreement.

The expressions power generating company and “The Board” herein before used shall include their respective successors and assigns in office. In witness where of Thiru…………………………………………………. for and behalf of the ‘Power generating company’ and Thiru. ……………………..…… for and on behalf of the ‘Board’ have hereunto set their signatures on the day, month and year first above mentioned.

 

SIGNATURE

In the presence of Witnesses :

1.

2.

 

 

SIGNATURE

 

 In the presence of Witnesses :

1.

2.