BILT GRAPHIC PAPER PRODUCTS LIMITED Vs. MAHARASHTRA ENERGY DEVELOPMENT AGENCY
LAWS(ET)-2014-8-21
CENTRAL ELECTRICITY REGULATORY COMMISSION
Decided on August 07,2014

Bilt Graphic Paper Products Limited Appellant
VERSUS
Maharashtra Energy Development Agency Respondents

JUDGEMENT

- (1.) M/s. BILT Graphic Paper Products Limited (BGPPL) has filed a Petition on 11 February, 2014 under Section 86(1)(e) of the Electricity Act (EA), 2003, Clause 5.12 of the National Electricity Policy and Clause 6.4 of the Tariff Policy seeking directions to the Maharashtra Energy Development Agency (MEDA) to accreditate its Renewable Energy - based Power Project under the Renewable Energy Certificate (REC) framework, and for approving the methodology for measuring generation from such project by the Maharashtra State Load Despatch Centre for issuance of RECs. BGPPL's prayers are as follows:
(2.) "a) Direct the Respondent No -1 to accreditate the Petitioner's black liquor based generation project for participating under the REC framework. b) Approve the methodology for determining net power generation from the steam produced by the black liquor fired recovery boiler out of total generation of Petitioner's Captive Generating Plants. c) Direct the Respondent No -2 to measure the generation of electricity from the Petitioner's black liquor based generation project in accordance with the methodology approved by the Hon'ble Commission."
(3.) The facts as stated in the Petition are as follows: 3.1 BGPPL has set up a Captive Power Generation Plant (CPP) consisting of 4 Units with total capacity of 67.5 MW (2 x 7.5 MW, 1 x 12.5 MW, 1 x 40 MW) at its manufacturing unit at Ballarpur, Distt. Chandrapur. Of these, the 40 MW Unit generates electricity from steam produced by black liquor -fired soda recovery boiler and coal -fired boiler. 3.2 There are three options for co -firing biomass in conjunction with coal -fired power, viz. a) Direct co -firing, b) Indirect co -firing, and c) Parallel co -firing. BGPPL has opted for Parallel co -firing technology and installed a new soda recovery boiler fired by black liquor (generated from new pulp mills) which will generate 190 TPH of net steam at 64 bar (g) and 480 deg C at 900 tonnes AD max. The black liquor from the pulp mill and fired in soda recovery boiler is recognized by the Ministry of New and Renewable Energy (MNRE), Govt. of India as biomass fuel. 3.3 The steam generated from the new recovery boiler is fed through steam lines with flow nozzles, where it is metered, into a common steam header. Steam from the coal -fired boiler is also fed to this header. The steam emanating from this common header at the rate of 262 TPH will be fed into the Steam Turbine Generator (STG), which will generate 40 MW of power. Out of this, 190 TPH steam will be available from the new recovery boiler, and the remaining steam will come from the coal -fired boiler. 3.4 BGPPL needs to generate 40 MW of power to meet its plant's captive power demand after production ramp -up. The ratio of maximum steam generated from black liquor (biomass) and balance steam from the coal boiler to generate 40 MW power will be in the ratio of 72 % / 27.5 % , respectively. 3.5 Directions from the Commission to the State Agency, i.e. the Maharashtra Energy Development Agency (MEDA), are sought to accreditate BGPPL's CPP under the REC framework. BGPPL also seeks approval of the methodology for deriving the extent of biomass -based generation out of the total generation MSLDC for issuance of RECs. 3.6 Some other State Regulatory Commissions, viz. those of Chhattisgarh and Gujarat have considered similar projects for accreditation under the REC mechanism, and directed their State Agencies to accreditate such projects. 3.7 BGPPL's CPP satisfies all the eligibility criteria specified in the Central Electricity Regulatory Commission (CERC) (Terms and Conditions for recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010 as amended to date. As per the R. 5 of CERC's REC Regulations, BGPPL applied to MEDA for accreditation of 30 MW out of 40 MW capacity. 3.8 In its response, MEDA asked BGPPL to submit the complete metering details and make documentary compliance. BGPPL clarified that, as the boilers (fired through fossil fuel as well as through biomass) supplies steam to a common header which is consumed by the turbo -generator set, the generation of electricity from the biomass - fired boiler is required to be derived from the total generation on a pro -rata basis. 3.9 However, a direction by the Commission to MEDA is necessary to accreditate its biomass -based generation project under the REC framework, and also approval of the methodology for deriving the extent of biomass -based generation out of the total generation. ;


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