Central Electricity Regulatory Commission (CERC) in its order on 15th May has finalised the Renewable Energy tariff for FY 14-15.
The details of the tariff calculated for FY 14-15 can be found in table below.
In the table above, it is clearly evident that CERC has finalized a higher price in case of solar projects as compared to that proposed in its draft. The price now finalized of Rs. 6.95 per unit is approx. 9.7% higher (than Rs. 6.33 per unit proposed in the draft).
A higher tariff determination for solar follows a similar consideration of higher benchmark capital cost. It was proposed that the capital cost for SPV projects to be Rs. 612 Lakh per MW. However, in the final order the capital cost now stands at Rs. 691 Lakh per MW.
It can be said that the apex regulator has finalised the tariff in response to views/suggestions of all stakeholders.
A higher solar tariff means grid parity still remains a distant dream. However, given the pace with which the retails tariffs across various states have been increasing and the fact that solar prices are coming down aggressively, it can be inferred that a “distant dream” is not too far away.