WIND TARIFF HITS A NEW LOW

In the second auction conducted by SECI for 1 GW wind capacity on 4th October, the wind tariff reached an all time low of Rs 2.64 per unit. This tariff was quoted by ReNew Power for 250 MW capacity. This is the lowest wind energy tariff determined in the country after the wind auction conducted by TANGEDCO where a price of Rs 3.42 was determined. The following graph determines the decrease in wind tariffs determined through reverse bidding in 2017:


Article covering the same can be accessed here.

 

 

STATES IN INDIA BARRED FROM CANCELLING PPAS

The Government has barred the states in India from arbitrarily cancelling PPAs and has also imposed a penalty of 50% of the tariff. This notification has come after six states in the last two months have cancelled or renegotiated PPAs signed at higher prices. This is a welcoming move as it will make sure that the renewable energy sector keeps growing and the government is able to install 175 GW renewable energy by 2022.

 

The article covering the same can be accessed here

WIND TARIFF HITS A NEW LOW

In an auction held yesterday in Tamil Nadu by TANGEDCO, the latest tariff which has been determined is Rs 3.42 per unit. This is lower than the tariff determined in the auction held in February and below the tariff determined under FiT mechanism. The auction was won by ReGen Powertech, Leap Green Energy and Powertech India for 200 MW, 250 MW and 50 MW capacities respectively.

Keeping in view the recent trend of cancellation of PPAs which were signed at a higher rate, the power minister Sree Piyush Goyal has requested the state utilities to honor them as this can pose a threat to the development of the projects which have already been signed. Though this falls in line with the government’s initiative to have 175 GW RE capacity by 2022, it may also prove to be counterproductive.

The article can be accessed 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.

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.

Rajasthan Proposes Wind Tariff for FY 2016-17

The Rajasthan Electricity Regulatory Commission (RERC) recently proposed the new tariff for wind energy sources, which will be applicable for the projects commissioned during FY 16-17. The tariff will be applicable for 25 years.  The details of the tariff proposed are in the table below:

 

 

Below are the some graphs on the year-wise tariff’s of CERC and RERC for wind energy and the % changes in the tariffs over the years.

 

Note: All figures of CERC relate to wind zone-2 as defined by CERC, and all RERC tariffs relate to Wind Power Plants located in districts other than Jaisalmer, Jodhpur & Barmer districts.

It can be noticed from the graphs above that RERC has constantly increased Wind tariffs over the last three FYs except for the current FY, while CERC wind tariffs have risen a bit in terms of %.

Rajasthan has a wind power potential of 5050 MW’s and with these tariffs proposed, it will become an attractive destination for setting up Wind projects.

The Tariff proposed by RERC can be read here.

 

 

GERC Determines Tariff for Procurement of Power from Wind Energy Projects

Gujarat Electricity Regulatory Commission (GERC) has proposed an increase in tariff for procurement of wind power. The higher tariff is on account of a rise in capital costs of setting up a wind power project in Gujarat.

GERC has come out with a draft discussion paper on tariff fixation and has invited stake holders to file objections before June 10, 2016. According to the draft paper, the capital cost of setting up a wind power project in Gujarat increased from Rs 6.06 crore per MW to Rs 6.13 crore per MW.

The graph below gives a comparison of the wind tariff determined over the few years:

 

 

Cross Subsidy Charges, Transmission and Wheeling Charges:

1.      Cross Subsidy Charges:

According to the earlier orders, the commission had exempted third party sale of wind energy from the cross subsidy surcharge. Also  the cross-subsidy surcharge all open access transactions from wind power projects.

  • 25% of the cross subsidy surcharge as applicable to normal open access consumer shall be applicable.

2. Wheeling of power for Captive Use

a. In Case of wheeling of power to consumption site at 66 kV voltage level and above, normal open access charges and losses as applicable to normal open access consumer.

b.  In case the injection of power is at 66 kV or above and drawl is at 11 kV, normal transmission charges and losses are applicable; however 50% of wheeling charges and 50% of distribution losses of the energy fed into the grid as applicable to normal open access consumers.

 

3.Wheeling of power to more than one locations

Wind power projects owners , who decide to wheel electricity for captive use / third party sale , to more than one location, shall pay 5 Paisa/KWh on energy fed in the grid to the distribution company concerned in addition to transmission charges and losses, as applicable.

 

4. Energy Metering

  • Wind projects shall have to provide ABT compliant meters at the interface points
  • Metering shall be done at interconnection point of the generator bus-bar with the transmission or distribution system concerned. Pricing of Reactive Power
  • 10 paise/kVARh– For the drawl of reactive energy at 10% or less of the net energy exported.
  • 25 paise/kVARh– For the drawl of reactive energy at more than 10% of the net active energy exported

5.Banking of Surplus Wind Energy

As promotional measure, it is proposed to continue the banking facility for 1 billing cycle for the wind power captive projects wheeling electricity for own use.

  • For captive wind energy projects, the surplus energy after one month’s banking is considered for purchase by distribution licensee at 85% of the wind tariff.
  • For third party wind energy sale, the surplus energy after 15 minutes time block is considered for purchase by distribution licensee at the rate of 85% of the tariff declared by the Commission. The order can be accessed here.

CSERC Determination of Generic Tariff for Renewable Energy for FY 2015-16

The Chhattisgarh Electricity Regulatory Commission came up with its final order on the CSERC (Terms and Conditions for Determination of Renewable Energy (RE) Tariff) Regulations, 2015, (“the RE Tariff Regulations”) on 1st May, 2016. The RE Tariff Regulations specify the Terms and Conditions and the Procedure for determination of Generic Tariff by the Commission. Central Commission has specified capital cost as Rs.619.16 Lakh/MW for wind energy projects for the year 2015-16.The graph below gives a comparison of the RE tariff determined in year 2013-14, 2014-15 to 2015-16 for wind generators.

In the Draft Generic Tariff Order, the normative Capital Cost for the Solar PV power projects for was not declared by CERC and accordingly, the Commission proposed to consider the same Capital Cost of Rs. 605.85 lakh/MW for the Solar PV Projects and Rs. 1200 lakh/MW for Solar Thermal Projects to be commissioned in the period from 1 April, 2015 to 31 March, 2016.

The graph below gives comparison of Generic Tariffs for Solar Projects in the period from 2015– 2016 to the previous years. The tariff has been determined depending on the type of solar project as follows:

The Order can be accessed here.

MERC Determination of Generic Tariff for Renewable Energy for FY 2016-17

The Maharashtra Electricity Regulatory Commission came up with its Draft order on the MERC (Terms and Conditions for Determination of Renewable Energy (RE) Tariff) Regulations, 2015, (“the RE Tariff Regulations”) on 1st April, 2016.The RE Tariff Regulations specify the Terms and Conditions and the Procedure for determination of Generic Tariff by the Commission. The graph below gives a comparison of the RE tariff determined in year 2014-15, 2015-16 to 2016-17 for wind and mini & micro hydro generating stations.

In the Draft Generic Tariff Order for FY 2016-17, the normative Capital Cost for the Solar PV power projects for FY 2016-17 was not declared by CERC and accordingly, the Commission proposed to consider the same Capital Cost of Rs. 605.85 lakh/MW for the Solar PV Projects to be commissioned in the period from 1 April, 2016 to 31 March, 2017.

The graph below gives comparison of Generic Tariffs for Solar Projects in the period from 2016– 21017 to the previous year. The tariff has been determined with AD benefits depending on the type of solar project as follows.:

 

The Generic Tariffs for Wind Energy Projects in the period from 1 April, 2016 to 31 March, 2017 have been determined as follows.  The discount factor for levelisation of Tariff for Wind Energy Projects works out to 10.54%.

The Commission has invited Comments, suggestions and objections from the public and stake-holders, including RE Developers, Distribution Licensees, MEDA, electricity consumers, etc. are on this draft Suo Moto Order.

The Order can be accessed here.

 

Tamil Nadu Comprehensive Tariff Order on Wind Energy

The Tamil Nadu Electricity Regulatory Commission issued its fourth Comprehensive Tariff Order on Wind Energy on 30th March, 2016. The Commission’s last comprehensive tariff order was issued in 2012 for a control period for two years which was later extended up to the issuance of next comprehensive tariff order. This order would be applicable on purchase of wind energy by the Distribution Licensee from wind energy generators (WEGs).

Some of the key points of the order are as follows:

 

  • Wind Tariff: This year’s levelized wind tariff has been finalized out to be Rs 4.16/ unit which has increased from the previous tariff of Rs 3.59/ unit.
  • CDM Benefits: The order offers CDM benefits, which will be shared between the distribution licensee and the consumer on gross basis starting from 100% to developers in the first year and thereafter reducing by 10% every year till the sharing becomes equal.
  • Wheeling & Transmission Charges: The WEGs shall have to bear 40% in each of the transmission, wheeling and scheduling and system operation charges as applicable to the conventional power to the wind power.
  • CSS: The WEG will be levied 50% of cross subsidy charges.
  • Banking Charges: This order provides the banking of Energy for a period of 12 month commencing from April 1st, 2016 to 31st March.
    • The Unutilized energy as on 31st March every year would be encashed at the rate of 75% of the respective applicable wind energy tariff rate fixed by the Commission.
    • The WEGs have requested to consider purchase of unutilized energy for the generators under REC scheme at APPC rates and to permit banking of energy and encash the unutilized energy at 75% of the applicable rates notified by the Commission.
  • The order can be accessed here.
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