PPA FORMAT FOR CO-GENERATION PLANT IN SUGARMILLS

AGREEMENT BETWEEN ………………………………………………………………… AND TAMIL NADU ELECTRICITY BOARD FOR THE PARALLEL OPERATION AND SALE OF SURPLUS POWER FROM …………………………………………… ………………………………………………………………………… CO-GENERATION PLANT BY TENB.

 

 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 SUGAR MILL / 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 Sugar Mill / Power generating company has informed the Board of its intention to establish ……….. MW Co-generating power plant at ………….. village, …………………….. Taluk, ………………………. District to generate Electricity and to sell surplus power applicable after its consumption.

 

AND WHEREAS the sugar mill / power generating company has offered to sell the surplus power generated by the Bagasse based Co-generating plant to the ‘BOARD’.

 

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

 

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

  

  1. The Sugar Mill / Power generating company shall feed the surplus power from their bagasse based co-generating 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 Sugar Mill / 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 generating company shall be bound by all the provisions of the Electricity Act 2003, statutory amendments made form time to time and the directions of the Board issued from time to time.

  4.  

  1. The Sugar Mill / 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 co-generation 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.

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

  2.  

  1. The ‘Sugar mill / Power generating company’s annual maintenance requirements shall be from ………………………….. to ……………. The ‘Sugar mill / 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 ‘Sugar mill / 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 for each day shall be furnished one day in advance regularly.

  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         co-generation plant. The power has to be availed through the interfacing line itself as per provisions in permanent B.P. (CH) No.: 319,  dt. 30.10.95 and the amendments made from time to time.

  4. The sugar mill / power company are exempted from merit order backing down as per (Per) B.P. (FB)  No : 42 (TB) dt. 24.4.02.

  5. Billing and payment : The Sugar mill / 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 counter signature / certification. The bill so presented will be settled by TNEB in a reasonable time either to the Sugar mill / power generating company or to the person authorized by them 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 sugar mill / power generator in subsequent bills.

  1.  

  1. The Sugar mill / Power generating company agrees that the purchase price of bagasse based energy generated and exported during the crushing season, between 1st December and 30th June of the suceeding year, shall be paid at the rates specified in para 4 (i) of the permanent B.P. (FB) No : 1  dt. 11.1.2000 and as amended from time to time.

  2. The purchase price of energy generated and exported during seasonal period between 1st December and 30th June of the succeeding year by using conventional fuel in the boiler shall be paid at the rate specified in B.P. (FB) No : 93  Technical branch dated 16.5.2000 and as amended from time to time.

  3. The purchase price of the energy generated and exported during off-seasonal period between 1st July and  30th November by using conventional / non-conventional fuel in the boiler shall be at the rate specified in B.P. (FB) No. 93 (TB) dt. 16.5.2000 and B.P. (FB) No : 92  dt.7.7.2001 and as amended from time to time.

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

  1.  

  1. The Sugar mill / Power generating company is permitted to wheel the bagasse based power to its subsidiary company situated with in a radius of  25 km from the Sugar mill / Power generating company / Co-generation plant  after deducting 2 % of the energy exported as wheeling charges. Wheeling beyond 25 kms of radius to anywhere in the State is also permitted after deducting 10% of the energy exported as wheeling charges during the seasonal period and 1 5% of the energy exported during the off-seasonal period. 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 Sugar mill / Co-generation plant 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 as notified by the TNERC from time to time. 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 Sugar mill / Co-generation plant for maintenance works, trail run of equipments, water works etc., shall be charged under Board’s H.T. Tariff III including M.D. charges as 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 betweeen 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 Sugar mill / Power generating company shall install a static main meter and a check meter in the Sugar Mill / Power generating company at its cost to record the power supplied by the Sugar Mill / Power generating company to the Board. The static meter should record both export and import separately.

  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 by Meter Relay Test wing of the Board once in a year.

  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 for the previous 3 (three) months shall be revised based on the consumption recorded by the check meter. The main meter shall be calibrated immediately and 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 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

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.

  1. The Sugar mill / 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.

  2. The Sugar mill / 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 Co-generation and such other variations ordered by the TNERC and TNEB shall be binding on the company.

  3. 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.

  4. Duration

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

 

In case the Board continues to get power from the power generation plant, after the expiry of this agreement, without renewal or formal extension thereof, then the provisions of the 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 date of expiry of the agreement shall be adopted. It shall however be the endeavor of the power generating company and the Board to finalize the next agreement before the expiry of the agreement.

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

The expressions “Sugar mill / 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 ‘Sugar mill / 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.