UPERC approves UPNEDA’s petition for fixing the ceiling tariff for 500 MW solar projects

UP New and Renewable Energy Development Agency (UPNEDA) and UP Power Corporation Ltd. (UPPCL) had filed a petition seeking approval for RFP & PPA for procurement of 500 MW Grid-connected solar power through tariff based competitive bidding discovering ceiling tariff-based competitive bidding discovering a ceiling tariff of INR 3.25/unit. UPERC has recently approved the petition and suggested certain changes in the PPA but largely accepting the petition as it is. The key points of the approved petition include:

  • Commercial operation date will be 21 months for projects of capacity less than 250 MW.
  • Commercial operation date will be 24 months for projects of a capacity of more than 250 MW.
  • Upper tariff ceiling will be ₹3.25/kWh if safeguard duty is included.
  • If safeguard duty is not included, upper tariff ceiling will be ₹3.10/kWh.
  • Financial closure must be attained within 365 days of PPA signing.

The changes suggested by the commission are:

  • The document talks about providing 210 days time for the submission of technical Feasibility of connectivity of the plant to the STU substation. The commission suggested that in case the STU is not in a position to provide connectivity to the proposed solar plant due to technical issues, then the PPA should be considered unfruitful without any financial liability on either party.
  • The commission is of the opinion that since the power is always procured in kWh or Million Units (MU) and not in MWh. It should be specified in the PPA that the power will be procured in kWh or MU but the bidding will be done in MWh.

 

MERC announces generic tariff for various RE sources

Recently the Maharashtra Electricity Regulatory Commission (MERC) announced an order for generic tariff determination of various renewable resources including Solar and Wind. Even after the generic tariff is realized, DISCOMs opt for competitive bidding for tariffs due to the low rates. The details regarding the tariffs for various RE sources is a follows:

Renewable energy sources

Tariff without AD Tariff with AD
Non-Fossil Fuel-Based Cogeneration Projects INR 4.99 _
Biomass projects INR 7.30 INR 7.44
SHP (5 MW-25 MW) INR 3.66 INR 3.92
SHP (1 MW-5 MW) INR 4.36 INR 4.64
SHP (500 kW-1 MW) INR 4.86 INR 5.14
SHP 500 kW and less INR 5.36 INR 5.64
Wind Energy projects INR 2.87
Utility-Scale Solar PV Projects INR 2.72

Rooftop Solar PV projects INR 3.22

The above mentioned solar rooftop tariff will be applicable from August 1 2018 to March 31 2019 and for wind projects between August 1 2018 – March 31 2019 for  a period of 13 years from the date of commissioning. However, in a recent project auction base tariff of INR 2.52/kWh was discovered (INR 0.35/kWh less than the new generic tariff).

In case of SHP, the above-mentioned tariffs will be applicable between August 1, 2018, and March 31, 2019, for 35 years (with capacity up to 5 KW) and 13 years for SHP with a capacity greater than 5 MW and up to 25 MW.

Recently Maharashtra also announced its final regulations for the forecasting, scheduling and deviation management regulations in July 2018.

RERC Approves APPC for FY 14-15 and 15-16

Rajasthan Electricity Regulatory Commission (RERC) in its orders dated 1st April, 2016 has approved the Average Power Purchase Cost (APPC) for its DISCOM’s. Honorable commission approved APPC of FY 14-15 & 15-16 for Jodhpur, Jaipur & Ajmer Discoms.

The Order came in response of petitions filed by the Discoms for the approval of the APPC. The details of the approved APPC are highlighted below:

The graph below gives a comparison of the APPC approved by the commission over the past five years:

The APPC rates have decreased for the FY 15-16 on an average by 3.94% for all the three Discoms. The average pooled cost of power purchase for FY 2015-16, shall be the provisional pooled cost of power purchase for FY 2016-17 till the same is determined by the Commission.

The order for Ajmer Discom APPC can be accessed here.

The order for Jaipur Discom APPC can be accessed here.

The order for Jodhpur Discom APPC can be accessed here.

 

 

PSERC Finalizes RE Tariff for FY 15-16

The PSERC (Punjab Electricity Regulatory Commission) on 24th July 2015 has finalized the tariff for Renewable Sources of Energy. The tariff will be applicable for the projects to be commissioned during the year 2015-16. Previously in the May 2015, the commission notified a draft for the determination of the RE tariff and invited comments and suggestion. After considering all the submitted comments and suggestions the commission has come out with the final tariff. The brief details of the tariff finalized are provided in the table below:

The Graph below shows the comparison between the tariffs defined by the PSERC and the Tariff of CERC (Central Electricity Regulatory Commission):

As it can be seen in the graph above that the tariff finalized by PSERC in previous years has remained in line with the CERC and that the commission has done the same for the current financial year also. The tariff for solar energy has reduced by close to 9%, while for wind and small hydro it has been increased by approx. 3.75% and 4.10% respectively.

The more details on the tariff order can be read here.

HPERC Proposes Tariff for Solar Projects

The Himachal Pradesh Electricity Regulatory Commission (HPERC) has notified a draft on 16th June 2015 for the calculation of solar energy tariff in the state. The proposed tariff will be applicable for the projects where PPAs are signed on or before 31.03.2016 and the entire capacities covered by the PPAs are commissioned on or before 31.03.2017.

The details of the proposed tariff are given in the table below:

The proposed tariff by the commission is slightly higher (approx. 1.6%) than the tariff determined by CERC, which can be considered as a promotional move by the commission to encourage the slowly growing sector in the state.

The comments and suggestions on the proposed draft has been invited by the honorable commission, which can be submitted by any interested party or industry stake holders latest by 16th July 2015.

The commission order can be accessed here.

JERC for Goa and UT’s Determines Tariff for Solar Projects

The Joint Regulatory Commission for Goa and Union territories (JERC) has determined the solar tariff for ground-mounted and rooftop solar projects. The tariff will be applicable for projects in the State of Goa and the Union Territories of Andaman and Nicobar Islands, Chandigarh, Dadra & Nagar Haveli, Daman & Diu, Lakshadweep, and Puducherry.

A brief summary of the tariff determined by the commission is given in the table below:

The commission has finalized the tariffs based on the amount of subsidies being availed by a generator. For the projects availing higher subsidies (being offered by various institutions and Govt. of India); the tariff offered will be on the lower side and vice versa.

The Commission order can be accessed here

GERC (Gujarat) Proposes Tariff for Solar Projects

The Gujarat Electricity Regulatory Commission (GERC) in a draft notified earlier this month has proposed tariff for the solar projects. The Tariff proposed in the Discussion Paper will be applicable to the projects commission during July 1, 2015 to March 31, 2018. The commission through a separate public notice has invited comments and suggestions from the interested stake holders by 22nd June 2015.

The details of the tariffs proposed are in the table below:

Below is the graph for comparison between tariffs of CERC and GERC for previous years:

Wheeling Charges:

  • For Injection at 66 kV voltage level and above, transmission charges as applicable to normal open-access customers and transmission and wheeling loss @ 7% of the energy fed into the grid.
  • For Injection at 11 kV or above and below 66 kV, wheeling in the area of the distribution licensee will be allowed on payment of distribution loss @ 3% of the energy fed in to the grid. In the other case of wheeling within the State but in the area of a different distribution licensee will be allowed on payment of transmission charges as applicable to normal Open-Access Customers and transmission and distribution loss @ 10% of the energy fed in to the grid.

Cross subsidy Charges: As a promotional measure for solar power no cross-subsidy surcharges would be levied in case of third-party sale.

It is worth noticing that GERC had calculated its tariffs back in 2012 for coming years I.e. FY 13, FY14 & FY 15, while CERC revises its tariffs every year. The difference visible between tariffs of CERC and GERC for previous years is because the GERC hasn’t revised its tariff after 2012 and it is that period during which the capital cost of the solar modules fell drastically and so the difference didn’t reflect on the tariffs of GERC as it wasn’t revised.

Now the GERC has proposed new tariff which is quite lower (approx. 5.5%) than the tariff finalized by the CERC. A public hearing on the matter will take place on 29th June 2015.

Rajasthan Finalizes Wind Tariff for FY 15-16

The Rajasthan Electricity Regulatory Commission (RERC) has finalized the tariff for wind energy projects; it will be applicable for FY 15-16. Earlier the commission notified a draft and invited comments and suggestions from the stake holders.  The details of the tariff finalized are given in the table below:

Below are the graph for tariffs finalized by RERC and CERC and a comparison between them.

The Commission (RERC) in its order has reduced the tariff by 3.23% compared to previous year, which appears to be inspired by tariff of CERC (reduced by 2.02%). In the previous years the tariff for wind energy in Rajasthan was one of the highest in the country, and was an attractive destination for industry.

The commission order can accessed here.

PSERC Proposes RE Tariff for FY 15-16

The Punjab Regulatory Commission (PSERC) has recently proposed the Renewable Energy Tariff for FY 15-16. The commission through a separate Public Notice has invited comments and suggestions on the proposed Staff Paper. The comments and suggestions can be submitted by 15th June, 2015.

The details of the tariff proposed by the commission are given in the table below:

A graph depicted below shows the tariffs determined by the PSERC over the years.

The tariffs determined by the PSERC over the years have been in line with the tariff determined  CERC. The PSERC has followed the same trend in changing the tariff (% Change in tariff) for different Renewable Energy technologies as carried out by CERC. So it is expected that the PSERC RE tariff for FY 15-16, might be determined in line with the CERC RE tariff. .

The more details on draft RE Tariff can be read here.

Rajasthan Finalizes Tariff for Biomass Projects

Rajasthan Electricity Regulatory commission (RERC) in its order dated 7th May 2015, has finalized the tariff for biomass projects in the state. The regulation will come in force from 1st April 2015 and will remain in force for a period of four (4) years.

Tariff for Biomass power plants, for which Power Purchase Agreements (PPA) have been executed under GoR Policy of 1999 and commissioned before 30.09.2008 will be as under:

The commission has also finalized the capital costs for the technology specific projects. For Biomass Gasifier based power plants the capital cost has been fixed at Rs. 457.24 lakh/MW, and for Biogas based power projects it has been determined at Rs. 883.62Lakh/MW.

Other charges payable by the generators:

kVArh charges: Net kVArh drawal by generating plants from the Grid will be billed at 12.50 paise/kVArh w.e.f 01.04.2015 escalated annually at 0.50 paise/kVArh, unless otherwise revised by the Commission by Order.

Transmission & wheeling charges: For third party sale or captive use within or outside the state the wheeling and transmission charges will be recovered as per orders of the commission.

Banking: Banking of energy is allowed at consumer end for only captive consumption within the state. The period of banking will be monthly basis and banking charges at 2% of banked energy would be payable.

The commission order can be accessed here.

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