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Wednesday, 07 February 2018 17:05

MERC approves NMC’s waste-to-energy plant, accords ‘must-run’ status

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07/02/2018

The Maharashtra Electricity Regulatory Commission (MERC) has approved Nagpur Municipal Corporation's (NMC) waste-to-energy plant, and also accorded it 'Must-Run' power plant status. All decks have now been cleared for execution and smooth running of the project planned three years ago.

MERC passed an order on the petition filed by NMC's private operator — Nagpur Solid Waste Processing and Management Private Ltd (NSWPMPL) — on Monday. NSWPMPL is a company incorporated by Essel Infraprojects Limited and Hitachi Zosan India Private Ltd.

With the MERC order, Maharashtra State Electricity Distribution Company Limited (MSEDCL) will purchase 11.50MW power to be generated at the plant. As it is a renewable energy project, MERC has fixed power purchase rate at Rs7 per unit, which is almost double the gross power purchase rate of MSEDCL, which is Rs3.90 per unit. Since it was accorded 'Must Run' power plant status, MSEDCL will have to continue purchasing power from the plant even if demand is low.

Municipal commissioner Ashwin Mudgal said tariff of Rs7 per unit and 'Must Run' status will ensure success of the project. "Garbage disposal is a major issue. We will be generating power from garbage. Thus, issue of garbage disposal will be solved and ensure wealth from waste. Therefore, plant has been given 'Must Run' status," he said.

Around 1,100 tonne garbage is generated from the city daily. About 200 tonne garbage is being treated at the plant operated by NMC's private operator Hanjer Biotech. At the waste to energy project, 800 tonne garbage will be treated. Thus, 1,000 tonne garbage will be disposed off in scientific manner. There is also scope to increase capacity by 20% in the project.

NSWPMPL will develop the project by investing Rs218.80 crore. NMC will give Rs70 crore to NSWPMPL as viability gap funding for execution under Swachh Bharat Mission. NSWPMPL will develop the project in two years followed by operation and maintenance for 15 years. NMC will pay tipping charges of Rs225 per tonne, which will increase by 4.5% every year. NSWPMPL will get revenue from MSEDCL for purchase of power and recover its investment.

NSWPMPL will also operate existing landfill site and develop two more, including their operation and maintenance for 15 years. This will ensure mitigation of fire incidents, foul smell, pollution in groundwater and air.

Additional Info

  • News Section: Bio Energy News
  • Month: February
  • Year: 2018
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