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Petition of Kolhapur Green Energy Pvt. Limited

 Petition of Kolhapur Green Energy Pvt. Limited under Section 62 (1) (a) and 86 (1) (e) of the Electricity Act, 2003 for determination of tariff for sale of electricity generated from 1.8 MW capacity Municipal Solid Waste (MSW) based power project to be commissioned at Kolhapur to the Distribution Licensees in Maharashtra (Case No. 87 of 2015)


Executive Summary

The Kolhapur Municipal Corporation (KMC) with an intension to develop project facility for treatment and disposal of the waste had invited proposals from the private sector after floating the request for proposal through Tender Notice No. 27 dated 04/06/2013 for establishment of Processing Plant for Conversion of MSW to useful product (Power) at Kasaba Bavda, Village in Kolhapur on Design, Build Finance, Operate and Transfer (DBFOT) basis. M/s Rochem Separation System (India) Pvt. Ltd., Mumbai was selected for development of MSW Project facility at Kolhapur on Design Built Finance Operate and Transfer (DBFOT) basis. Subsequently, Kolhapur Green Energy Pvt. Ltd (KGEPL) a Special Purpose Vehicle (SPV) was formed, promoted by Sunil Hi Tech Engineers Ltd (SHEL) and its subsidiary Sunil Hi Tech India Infra Pvt. Ltd (SHIIPL).  SHIIPL has entered into a Share Holder’s Agreement with Rochem Separations Systems (India) Pvt. Ltd (RSSIPL) with respective shareholding of 88:12 in KEGPL. KGEPL was formed to establish Processing plant with a capacity of 180 TPD for conversion of MSW into useful product (Power) & Bottom Ash as the byproduct. A Concession Agreement in this regard was signed between KGEPL and KMC on 7th February 2014. The concession period is 30 years from the date of commencement of the plant. As per the agreement, the MSW processing facility should be designed to have a minimum processing capacity of 180 tonnes of MSW per day. The tipping fee will remain constant at Rs 308 / Tonne throughout the concession period. M/s KGEPL shall pay a lease payment at the rate of Rs 1 (one) per square meter per annum for the land leased by KMC during the concession period. The performance security (Rs 150 lakhs) in the form of performance bank guarantee has to be furnished by the bidder. KMC has allotted a plot measuring 4 Hectare at Kasaba-Bavda Village in Kolhapur, Maharashtra for setting up the MSW project. M/s KEGPL has provided an irrevocable, revolving and unconditional bank guarantee of Rs. 150.00 Lacs to KMC dt. 29.01.2014 having expiry date of 01.06.2015 as performance guarantee to KMC.
The project is based on mass combustion technology for processing and disposal of the waste with energy recovery. Keeping in perspective the waste characteristics in Kolhapur, advantages and disadvantages of waste processing technologies, ground reality of waste processing and disposal in the city, maturity of technology, M/s KGEPL has selected mass-combustion technology for the proposed MSW project at Kolhapur. The mass-combustion technology has following advantages over  other available waste-to-energy technologies : i)  requires less land area, ii) produces more power with less waste and iii) causes maximum volume reduction of the waste. In mass burn plants the grate system moves the solid waste through the drying, burning & burnout zones while promoting combustion. This is done by ensuring that adequate quantities of air enter from below via holes in the grates. In this process the entire MSW will be converted into energy with higher efficiency as compared the other technologies.  The Single Segment Reverse Push Stoker System shall be capable of combusting municipal waste containing moisture around 40%.  The reciprocating stoker system will consists of a refuse feeder, a reverse acting stoker with adjustable device of refuse layer, a combustion control system and an ash discharge system. This technology is developed based on the existing reverse push reciprocation grate, and its core is in view of the living MSW features of low heat value and high moisture. The Power generation scheme proposed envisages a single boiler with all its auxiliary systems and an extraction cum condensing turbo-generator with all its auxiliary systems and HV systems for the export of the power to the grid and the remaining balance of plant items to complete the power plant.
With an intention to sale the electricity to distribution licensees in the State, M/s KGEPL has filed petition under Section 62(1) and 86(1) (e) of the of the Electricity Act 2003 before the Hon. Maharashtra Electricity Regulatory Commission for determination of tariff for supply of electricity from 1.8 MW capacity municipal solid waste based power project to be commissioned at Kolhapur for sale of electricity to the distribution licensees in Maharashtra. The Commission has admitted the petition and conducted a Technical Validation Session (TVS). Through the petition M/s KGEPL prayed that:
a) Accept this petition for determination of tariff for supply of electricity from proposed MSW power project at Kolhapur to Distribution licensees in Maharashtra. It is further requested that the Hon. Commission may specify the levellised tariff for proposed MSW power plant for 20 year tariff period which is useful life of the plant. The Hon. Commission may direct the distribution licensee to execute the PPA with the petitioner for the specified tariff period.   
b) Approve the final levellised tariff of Rs. 7.44/kWh for sale of electricity generated from proposed MSW power project to distribution licensees in Maharashtra.
c) To grant an opportunity in person before Hon Commission during the hearing on the above matter. 
d) Condone any inadvertent omission/errors/short comings and permit the petitioner to add/change/modify/alter this filing and make future submissions as may be required at a future date.