MERC Determination of Generic Tariff for Renewable Energy for the remaining Tariff Review Period of FY 2015-16

The Maharashtra Electricity Regulatory Commission came up with its Draft order on determination of generic tariff for Renewable Energy for the remaining Tariff Review Period of FY 2015-16, on 1st December, 2015. This Tariff Order will be applicable for New RE Projects to be commissioned during the remaining Tariff Review Period of FY 2015-16 (1 January to 31 March, 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 to the RE tariff determined in 2015-16 for wind and mini & micro hydro generating stations.

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.



UPERC Finalizes RE Tariff

The Uttar Pradesh Electricity Regulatory Commission (UPERC) in its order dated 22nd Jan 2015, has finalized y the regulation for Captive & Renewable Energy Generating Plants. The UPERC has also finalized the tariff’s for different RE sources of generation under this regulation.

The Commission earlier in November last year released a draft seeking comment and suggestion from stake holders. The details of the tariffs finalized are given in the table below:

For Solar Energy the commission will take the capital cost into consideration and will give the tariff every year based on the capital cost variations.

The UPERC Order is available here.

Our Previous blog post on the UP Net Metering can be read here.

KERC Revises Tariff for Mini-Hydel & Biomass Projects

The Karnataka Electricity Regulatory Commission (KERC) in its order dated 1st January 2015, has revised the Tariff for the Mini-Hydel, Co-generation and Biomass based power projects. The new tariff will be applicable to the projects that get commissioned during the period 01.01.2015 to 31.03.2018 for which PPAs have not been entered into, prior to the date of this order.

Projects for which power purchase agreements have been entered into before 01.01.2015, will not get the benefit of this tariff revision.

The tariff approved by the commission is given in the table below:

The revised tariff in case of Mini-hydel projects is Rs. 4.16 per unit as against Rs.3.40 previously, which has increased by 22%.Tariff determined for Bagasse based projects is Rs. 4.83 per unit for the first year of the commissioning of the project, which was Rs. 3.90 previously, an increase of approx. 24%. While in the case of biomass the tariff has been determined at Rs. 5.19 per unit against Rs. 3.66 per unit in previous order, a hike of about 42%.

 The commission has also approved the prevailing reactive power charges of 40 p/kVAh, till 31.03.2018.

The KERC Order can be reached here.

MERC drafts RE Tariff Order for FY 2014-15

Maharashtra Electricity Regulator – MERC on 6th May has made public a draft order for tariff of renewable energy produced within the state in FY15. Comments and suggestions are invited by 5th June 2014 as per this public notice.

A glimpse of tariff for new RE projects can be had in the following table –


The draft order is available here.

Pass RE cost to Industries says MSEDCL

Maharashtra state electricity distribution company limited (MSEDCL) has requested the Hon’ble MERC to consider passing on the cost due to renewable energy purchase to Industries of the state. As per MSEDCL, Industries in the state are responsible for pollution and climate change and consequently they should be burdened with higher purchase cost of RE, not common consumers.

MSEDCL has provided the average cost of RE power purchase to be : Rs. 3.81 per unit, Rs 4.12 per unit, Rs. 4.26 per unit & Rs. 4.32 per unit for FY11 to FY13 respectively. Based on this MSEDCL has requested to segregate the RE power purchase from the ARR so that the overall tariff gets reduced, even-though, a cursory look reveals that the %age in such increase is declining on year to year basis (8.31% to 3.3 % to 1.41 % finally for FY13).

In the form of an additional information, MSEDCL in the order has elaborated that it has met the RPO targets of FY11 and FY12 and has tied with adequate renewable capacity to meet RPO of FY14. However, it has mentioned that due to infirm nature of RE power, challenges remain in claiming the contracted capacity as RE purchase capacity.

However, in the present order Hon’ble commission has stated that burdening one category of consumers with higher tariff is a matter of tariff determination process and has held that such a decision will be appropriately taken up during tariff determination of MSEDCL.

Copy of the order.

Haryana RE Tariff for FY 2013-14

The electricity regulatory commission of Haryana – HERC in an order dated 20th Nov 2013 has declared tariff for all renewable energy projects to be commissioned in FY 2013-14.

Following are the numbers for various projects –

Solar PV (Crystalline) – Rs. 5.70 per unit.

Solar PV (Thin Film) – Rs. 5.36 per unit.

Solar (Rooftop) – Rs. 5.32 per unit.

Solar (Thermal) – Rs. 11.60 per unit.

Wind (300-400 W/m2) – Rs. 3.62 per unit.

Biomass (water cooled) – Rs. 6.97 per unit.

Biomass (air cooled) – Rs. 7.05 per unit.

Co-generation (bagasse) – Rs. 4.15 per unit.

It is important to note that the tariff for solar projects (PV Crystalline) has been the lowest as compared to tariff in states of Punjab, Rajasthan, UP, MP, Maharashtra & Gujarat (Source – MNRE GOI). Likewise, the tariff for co-generation was also the lowest in comparison to tariff in above mentioned states.

This downward trend of tariff is a sign of progressiveness towards reaching grid parity for RE technologies.

The order can be assessed here.

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