Bihar Releases Draft for Determination of Solar Tariff
Bihar Electricity Regulatory Commission (BERC) in its latest notification dated 30thSeptember 2014, have released a draft for determination of solar tariffs for FY 2014-15, for power generated from solar power PV projects including rooftop solar PV and small power projects which are to be commisioned up to to 31.03.2016 and for solar Thermal Projects which are to be commisioned up to 31.03.2017 and for which Power Purchase Agreement (PPA) is signed up to 31.03.2015.
Some important key-points about the proposal are:
1. Control Period: 3 years upto FY 2015-16
2. Tariff Period: 25 years
3. Debt-Equity ratio: 70:30
4. Depreciation: 7% for the first 10 years, and remaining depreciation shall be spread over the remaining useful life of the project from 11th year onward.
The details of the tariff proposed is given below:
The tariff proposed is higher as compared to the tariff defined by the CERC for FY 14-15. The higher tariff may have proposed in order to push the Solar Generation in the state which is lagging behind in the sector.
This is a welcome move by the state, as it has fixed the tariffs for 25 years, providing long term commercial visibility.
In Bihar, the potential for wind power is zero whereas small hydro power potential was 213 MW, 619 MW from biogass and 300 MW from cogeneration bagasse. The waste to energy potential in Bihar was estimated to be 73 MW. An analysis of Solar potential by WISE-Pune, reveals a potential of 8500 MW Grid Connected Solar and 3200 MW Off-Grid Solar.
The Commission has invited comments and suggestion from stakeholders by 20th September 2014, a public hearing in the matter will be held on 21st October 2014.
The draft released can be found here.
Our blog on Bihar Biomass and Bagasse Tariffs can be accessed here.
Contributed by Dheeraj Babariya
