The Economic Coordination Committee (ECC) of the Cabinet in its meeting held on 6 March 2013, approved the ‘Framework for Power Cogeneration 2013 Bagasse and Biomass’ as an addendum to the Renewable Energy Policy. This framework shall be effective for all high-pressure cogeneration projects utilising bagasse and biomass.
The power producer may establish the project as part of an existing sugar mill or as a separate entity. The Upfront tariff for bagasse/biomass-based cogeneration projects shall be determined by the National Electric Power Regulatory Authority (NEPRA). Power producers can offer electricity to the respective distribution companies (DISCOs) or Central Power Purchase Agency (CPPA) provided that the cost of interconnection, grid station upgrades, etc. shall be incurred by the respective DISCOs. It shall be mandatory for the power purchaser to consume all the energy offered to it by the power producer.
There shall be no requirement for feasibility or firm costs from the power producers. However, they will be required to submit grid interconnection studies and initial environmental examination reports to relevant agencies/departments.