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.

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.



CERC Proposes Tariff for RE Sources for FY 15-16

The Central Electricity regulatory Commission (CERC) in its notification dated 3rd march 2015, has proposed tariff’s for Renewable Energy Projects. The Commission through a public notice has invited comments and suggestions from all stake holder or interested parties by 18th March 2015.

The details of the tariff proposed can be found in the table below:

The tariff being proposed by CERC is less than the tariff finalized by commission for FY 14-15 in case of Solar and Wind projects while it has been slightly increased for small hydro projects.

A graph for change in tariff for solar, wind and small hydro projects is as below:

The slight reduction in proposed tariff for wind and solar projects can be a results of the reduction in the capital cost being incurred in this projects. while for other projects the increase is result of increase in the capital cost of this projects.

The CERC drafts can be accessed here.

Our previous blog on CERC REC Regulation (3rd Amendment) can be read here


MERC Finalizes RE Tariff for FY 2014-15

Maharashtra Electricity Regulatory Commission (MERC), through an order on 7th July 2014, has finalized the Renewable Energy tariff for FY 2014-15. The details of the Renewable Energy tariffs computed for FY 2014-15 have been highlighted below:

From the table, it is clearly evident that the tariff calculated for Solar Projects is higher as compared to that proposed in the draft. The price which has been finalized at Rs. 6.79 per unit is approximately 10.7% higher than Rs. 6.13 per unit, as proposed in the draft.

Earlier, CERC in its order (Refer) had finalized higher tariff for Solar Projects, based on the discussions during hearings about raising the normative capital cost of Solar PV power projects. MERC final order followed similar escalation after the hearings.

The detailed MERC’s order is available here

Our Previous Blog post on CERC RE Tariff can be read here

Govt mulling to introduce hydro tradable certificates

As per an article in Economic Times (refer), government is using an accelerated approach towards promotion of India’s hydro power assets. A recent progress on this pertains to introduction of tradable hydro certificates (on the lines of RECs). Demand for these tradable hydro certificates will be generated from a separate hydro power purchase obligation, a concept note on which has already been circulated among various stakeholders. A relevant amendment to Electricity Act,on the issue, is also likely to be tabled.

In India, hydro power has huge installed capacity in northern and north-eastern states. This unequal distribution can be fixed by making states procure a certain fixed quantum of hydro power.

India has 144320 MW of potential out of which only 40,000 MW has been commissioned.

Other relevant news on hydro power can be read here.

Financial assistance for small hydro power projects

According to a recent  release (Release no.101304) in press information bureau of India, the Hon’ble minister for new and renewable energy has produced in a written note to Lok Sabha, that financial assistance will be provided to states from GoI to develop more small hydro power projects. MNRE is providing central financial assistance (CFA) to small hydro power projects in both private and public sectors. Through the assistance MNRE also expects states to identify more potential sites.

Vital information pertaining to previous funds was also provided.

MNRE quotes that the total funds released under SHP Programme during 2010-11, 2011-12 and 2012-13 were Rs. 151.99 crores, Rs.154.45 crores and Rs.158.92 crores respectively. 6474 potential SHP sites with an aggregate capacity of 19,749 MW have been identified in the country. So far, 985 small hydro power projects with an aggregate capacity of 3754 MW have been setup and 265 projects aggregating to 945 MW are under implementation in various States.

For other similar updates on small hydro power – click here

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