KSERC RELEASES TARIFF ORDER FOR FY 2017-18

KSERC (Kerala State Electricity Regulatory Commission) has released a tariff order determining the retail tariff for FY 2017-18 for the state. Salient features of the order are as follows:

 

 

Transmission Charge: The transmission charge for FY 2017-18 is Rs 0.37/unit

Wheeling Charges: The wheeling charges determined for the FY 2017-18 are Rs 0.31/unit

Cross Subsidy Surcharge: The cross subsidy surcharge is  Rs 0.91/unit.

 

The order can be accessed here.

HPERC NOTIFIES RETAIL TARIFF ORDER FOR FY 2017-18

The HPERC has released the retail tariff for FY 2017-18 in its order. The tariff has basically remained unchanged to a large extent.

 

The tariff is given as follows:

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Cross Subsidy Surcharge: Rs 1.89/unit

Wheeling charges: Rs 1.83/unit

Additional Surcharge: Rs 0.49/unit

The article can be accessed here.

The press note about the same can be accessed here.

SOLAR TARIFF HITS ANOTHER NEW LOW

Solar tariff has hit another low in the auction held for the solar park in Rajasthan’s  Bhadla. The top slot was won by ACME, a domestic company for Rs 2.44 a unit for 200 MW. SoftBank Energy closely followed at Rs 2.45 for 500 MW. As per the analysis given in an article by Business Standard. there has been an 80% fall in solar tariff since the past 6 years.

 

As per a Livemint article, this drastic reduction in solar prices has caused a decrease in the number of clean energy deals as there is a fear that the DISCOMS will not honor the Power Purchase Agreements (PPAs) signed earlier at a higher rate since this has happened in the past.

A link to our previous analysis can be found here and here.

APERC DETERMINES TARIFF FOR WIND PROJECTS

The Andhra Pradesh Electricity Regulatory Commission has recently proposed the tariff for wind energy sources which will be applicable for the projects commissioned during FY 2017-18. The tariff will be applicable for 25 years. The details of the tariff proposed are as follows:

 

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The order can be accessed here.

SOLAR POWER TARIFF HITS A NEW LOW

During the auction for a 250 MW capacity for Adani Renewable Energy Park in Bhadla, Rajasthan, the solar tariff fell to a new low of Rs 2.62 per unit. The previous low in tariff was  at an auction in Andhra Pradesh where the price was set at Rs 3.15 per unit. In the auction, Phelan Energy Group and Avaada Power, companies based in South Africa won the bid to build capacities of 50 MW and 100 MW by bidding at Rs 2.62 kWh per unit.

This low also beats the average price of power generated at the coal based plants owned by India’s largest power generation utility, NTPC Ltd. India is set to come to the position of being the third-biggest solar market globally in 2017 to  fulfill the 8.8 GW capacity addition projected for the year.

The article can be accessed here.

Our analysis of the previous lows seen in solar tariff can be accessed here.

MERC DETERMINES LEVELISED TARIFF FOR RENEWABLE SOURCES FOR FY 2017-18

The Maharashtra Electricity Regulatory Commission has released an order for the generic tariff for renewable energy for FY 2017-18. It specifies the terms and conditions and procedures for determination of generic tariff by the commission. The capital cost for wind energy projects has been determined on the basis of revised capital cost given by CERC. The value for capital cost is Rs 594.41 lakh/MW.

The valued for tariff decided for wind energy projects is as follows:

 

In the order, the capital cost for solar PV has not been determined by the CERC. Therefore, the state electricity commission determined the value of capital cost at Rs 424.74 lakh/MW. The normative capital cost for solar thermal projects is Rs 1200 lakh/MW. The table given below specifies the value of tariff for solar projects :

 

The order can be accessed here.

SUPREME COURT ORDERS STAY ON REC TRADING

After the Central Electricity Regulatory Commission’s (CERC) order dated 30th March 2017 on reduction of prices for RECs, many REC-generating companies had filed petitions stating that they had incurred a loss as vintage multiplier was not provided. They had first gone to Appellate Tribunal of Electricity (APTEL) to suggest a way to clear the existing REC stock. While the APTEL agreed to introduce a vintage multiplier, it refused to put a stay on the trading.  When the petition was taken to the supreme court, it not only put a stay on the trading, it has also stayed the new price regime which was introduced by the CERC.

 

The Business Standard article covering the same can be accessed here.

Our blog covering the reduction in the REC prices and our analysis of the same can be accessed here.

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