APERC: Tariff for the Wind & Industrial Waste Power projects

Andhra Pradesh Electricity regulatory Commission (APERC) in its order dated 6th September 2014 has given tariffs for the wind energy generators who have completed 10 years of their commercial operation. The tariff will be applicable to the wind generators of both the states i.e. Andhra Pradesh and Telangana.

The project developers through their submissions requested commission to fix a reasonable tariff as they incurred higher losses due to lower PLF’s achieved. They also requested that in the initial years they paid higher wheeling charges while tariffs were low.

The commission in its order said that as the petitioners were the first movers for the wind generation in the then state of Andhra Pradesh. The PLF’s achieved by petitioners have varied between a range of 6% to 15% against the projected 20% such lowered efficiency has affected the performance of the wind mill generators.

After hearing all the respondent and taking all submissions into consideration the commission fixed single part tariff of Rs.3.37 per unit and said that the tariff should be continued for all these projects till the expiry of the respective PPAs.

In another hearing for fixing the tariff for industrial waste based power projects from 11th year to 20th year of operation, the commission in its order dated 1st September 2014 concluded that the tariff fixed for Biomass based power projects would also be applicable to the Industrial waste based power projects.

The commission in its order dated 19th July 2014 has fixed the fixed cost component for the Biomass based projects in its orderdt.19.07.2014. The details of the tariff are in the table below:

The relevant order can be accessed here.

The order for the Industrial waste based projects can be accessed here.

Our Previous blog post on APERC biomass tariff can be read here.

Contributed by Dheeraj Babariya. 

APERC determines tariff for biomass, bagasse power projects

Andhra Pradesh Electricity Regulatory Commission (APERC) through an order dated 16th May 2014, has determined the variable cost for existing Biomass, Bagasse, and Industrial waste based power projects in AP for the period 1st April 2014 to 31st March 2019.

The commission before finalizing this order had done its due diligence by floating a consultation paper and holding a public hearing in which every stakeholder’s view was taken into consideration. This process was carried out on the lines of directives of ApTel in its 20th Dec 2012 order which says –

“However, we feel that there is a need for carrying out a scientific study for determining the normative parameters specific to the state for future. The study should also take into consideration the technological improvements that have since taken place in the generation by non-conventional energy sources. We direct the State Commission to arrange to undertake the study on priority and frame its Tariff Regulations for purchase of power by distribution licensees from NCE sources after considering the Study Report, Central Commission’s Regulations and any other relevant information.”

The variable cost determined for Biomass based projects are as in table below:

The costs projected for subsequent years are indicative; meaning the commission will determine the actual price escalation before the start of each financial year starting FY16.

The variable cost determined for Industrial waste based power projects:

The variable cost determined for bagasse based power projects are:

 The order can be read in detail by clicking here.

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