HPERC DETERMINES GENERIC LEVELLISED TARIFF FOR SOLAR PV PROJECTS

Himachal Pradesh Electricity Regulatory Commission (HPERC) has determined the regulations for determination of generic levelised tariff for solar PV projects. The tariff has been determined in parts.

 

  • Tariff determined for the Solar PV projects applicable from 01.04.2017 to 30.09.2017 is as follows:

The capital cost has been determined at Rs 446 lakh/ MW and the tariff determined is:

 
  • Tariff determined for the Solar PV projects applicable from 01.10.2017 to 31.03.2017 is as follows:

The capital cost considered for solar projects is 446 Lakh/ MW for projects above 1 MW to 5 MW and 452.70 lakh/ MW for projects over 1 MW capacity. The tariff determined is as follows:

In comparison to the tariff of previous years, there has been a steady decrease of 17%. The following graph shall make this clearer:
 
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.

HIMACHAL PRADESH ELECTRICITY REGULATORY COMMISSION (RENEWABLE POWER PURCHASE OBLIGATION AND ITS COMPLIANCE) REGULATION

HPERC has notified Renewable Purchase Obligation and its compliance, 3rd amendment 2017 on 24th March 2017.

 

Quantum of Renewable Power Purchase Obligation (RPPO)

 

Since Himachal Pradesh mostly thrives on the energy produced through Hydropower, the state will be a beneficiary since RPO is excluded from RPO obligation as per the regulation.

The graph below shows the total and type of energy consumption by the state of Himachal Pradesh. The data has been derived from CEA Report.

 

Almost 3/4th energy of the total consumption comes from the Hydro Power. Its an added advantage for the state that RPO is exempted from the power consumed through Hydro sources, thus this in turn will reduce the cost of power from the state.

The graph below gives a comparison between the MoP recent RPO Trajectory and HPERC’s earlier RPO Trajectory:

HPERC for computing Renewable purchase obligation for a year of obligated has included  the transmission and distribution losses within the state in the following manner:

  • In case the electricity is purchased by such obligated entity from sources outside state , the electricity at state periphery shall be considered as the consumption of obligated entity

  • In case the electricity is purchased or generated from generating sources located within the state the electricity injected at the generating bus bar shall be considered as its consumption

The above given clauses are against the law of Electricity Act 2003 as for computing renewable purchase obligation total consumption has to taken under consideration excluding the transmission and distribution losses.

The Supreme Court order on RPO dated 13th May 2015 has taken into consideration the word “ Total Consumption” which also has been used in Electricity Act 2003. One can find below the reference from the act Section 86 (e):

promote cogeneration and generation of electricity from renewable sources of energy by providing suitable measures for connectivity with the grid and sale of electricity to any person, and also specify, for purchase of electricity from such sources, a percentage of the total consumption of electricity in the area of a distribution licence;

 The regulation can be accessed here.

GERC Determines tariff for small hydro power projects for FY 2016-17

The GERC (Gujarat Electricity Regulatory Commission) on 14th December 2016 finalized the tariff for Renewable Sources of Energy (small, mini & micro hydro projects). The tariff will be applicable for the projects to be commissioned during the year 2016-17.

Previously in the September 2016, 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:

Wheeling of power for third party sale from the small hydro projects will be allowed on payment of transmission charges, wheeling charges and losses of energy fed into the grid, as applicable to normal open access consumers.

The small hydro projects who desire to wheel electricity under third party open access has to pay 50% of cross subsidy surcharge as applicable to normal open access consumers. Also, additional surcharge as determined by the Commission from time to time shall also be applicable for selling power to third party under open access.

The regulation can be accessed here.

Himachal Pradesh Electricity Regulatory Commission Determines Additional Surcharge

HPERC in its recent order determined the Additional Surcharge on the consumers availing Short Term Open Access Consumers. The Commission earlier approved the rate of additional surcharge as 78paise/kWh in its order dated 18th Feb, 2016.

The HPSEBL has, vide the present petition, requested the Commission to approve the Additional Surcharge of 80 paise per unit for STOA.

After reviewing all the comments and suggestion from the stakeholders and objectors the commission deter-mines the Additional surcharge to be 49.16paise/kWh. The graph below depicts the change in additional sur-charge over the past three control periods :-

The regulation can be accessed here.

 

Himachal Pradesh Electricity Regulatory Com-mission Determines APPC for 2016-17

The Himachal Pradesh Electricity Regulatory Com-mission (HPERC) recently came up with its order on the Average Pooled Power Purchase Cost (APPC) for the financial year 2016-17.The definition of APPC followed by HPERC is in line with the CERC defini-tion and can be read as:

“Pooled Cost of Purchase means The weighted average pooled price at which the distribution licensee has purchased the electricity including  cost of self-generation, if any, in the previous year from all the energy suppliers long-term and short-term, but excluding those based on renewable en-ergy sources, as the case may be.”

The APPC for the financial year 16-17 has been deter-mined as Rs. 4.16 per Unit, by the commission which shall continue for further period with such variation or modification as may be ordered by the Commission for the next financial year.

The APPC for FY 16-17 is 8.23% higher as compared to the APPC of FY 15-16.The graph given below depicts the APPC’s determined by HPERC over last four years and how the APPC rates have in-creased over the past three years :

 

 

The regulation can be accessed here.

Himachal Pradesh Electricity Regulatory Commission (Renewable Power Purchase Obligation and its Compliance) Regulations

The Ministry of Power (MoP) had recently declared the national RPO trajectory.  The order had enlisted the yearly RPO trajectory for both non-solar and solar power purchase from 2016-17 till 2018-19. Following the steps of MoP RPO trajectory, Chhattisgarh and now Himachal Pradesh have notified its third amendment to the Renewable Power Purchase Obligation and its Compliance, regulations.

The regulation will be applicable to:

  • The distribution licensee
  •  Or any person, consuming electricity procured from conventional sources through open access third party sale,
  • Or person who installs Captive Generating Plant, with an installed capacity exceeding 5 MVA, requirements also.

The table below shows the Minimum Quantum of Purchase in percentage (%) from renewable sources (in terms of energy in kWh) of total consumption:

The said obligations will be applicable on total consumption of electricity by an obligated entity, excluding consumption met from hydro electric sources of power.

Analysis:

  • RPO to be applied on co-generation power
  •  Consumption from hydro sources to be excluded
  • RPO % is proposed to increase steeply – from 11.50% in 2016-17 to 17% in 2018-19 line with the MoP Trajectory. However, in effect the overall RPO of the HP will fall as 77% of the power consumed in the state comes from hydro sources.
  • In year 2011, HPERC had come up with a ten year long RPO Trajectory ranging from 10% (including both solar & non solar) in 2011-12 to 19% in 2021- 22. The commission now proposes to increase its RPO target in comparison to its earlier trajectory. However, in 2016-17, RPO % is will be reduced. The graph given below gives a comparison between the MoP recent RPO Trajectory and HPERC’s earlier RPO Trajectory

The graph given below gives a comparison between the MoP recent RPO Trajectory and HPERC’s earlier RPO Trajectory:

 

As the graph indicates HPERC has increased its RPO target by 2.25% to be achieved by 2018-19. Since Himachal Pradesh mostly thrives on the energy produced through Hydro Power, the state could be a beneficiary since RPO is excluded from RPO obligation as per the regulation.

The graph below shows the total and type of energy consumption by the state of Himachal Pradesh. The data has been derived from CEA Report.

 

Almost 3/4th energy of the total consumption comes from the Hydro Power. Its an added advantage for the state that RPO is exempted from the power consumed through Hydro sources, thus this in turn will reduce the cost of power from the state.

The regulation can be accessed here.

The CEA Report could be accessed here

 

HPERC Determines Generalized Levelised Tariff for Solar PV for FY 2016-17

HPERC recently determined its generalized levelized tariff for Solar PV for FY 2016-17. The Commission came out; vide its proposal for categorization of solar PV projects as well as for fixing the norms for technological specific parameters, other terms and conditions and determination of generic levelized tariffs for solar PV projects up to 5.00 MW capacities.

The Commission has fixed the normative capital costs inclusive of all components as well as taxes etc. for solar PV projects up to 5.00 MW capacity by increasing the CERC benchmark capital cost of Rs. 530.02 Lakhs per MW by 7.50% up to 1 MW and 6% above 1 MW and up to 5.00 MW capacity plants for 2016-17, as given below:-

 

The Commission has thereby determined the generic levelized tariffs and the associated terms and conditions for Solar PV power plant in respect of  FY 2016-17 as given under:-

 

These tariffs will be applicable for the solar PV projects where PPAs are signed on or before 31st March 2017, after approval of the Commission and the projects are commissioned on or before 31st March, 2018.

 

The regulation can be accessed  here.

HPERC Electricity Tariff for 2016-17

HPSEBL recently proposed a tariff increase of about 33% with the projected additional revenue requirement of Rs. 1556.70 Crores for 2016-17. The Himachal Pradesh Electricity Regulatory Commission after hearing the stake holders accepted additional requirement of Rs. 154.48 Crores and the corresponding increase in tariff.

The table given below depicts the marginal increase in the tariff for domestic category:

The order can be accessed 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.

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