CERC Finalizes RE Tariff for FY 15-16

The Central Electricity Regulatory Commission (CERC) has finalized the Tariff for Renewable sources of Energy. In its order dated 31st March 2014, it has calculated the RE tariff and the benchmark capital cost for solar energy projects following its draft notification for the same.

Brief details of the tariff calculated is as given in the table below:

Variation of CERC Renewable Energy tariff during the last 4 FY and percentage variations are as below:

The CERC Tariff for the Solar Energy projects has constantly shown reduction, and the same trend has followed this FY as well. The reasons behind the reduction in tariff is clearly the downfall in the prices of the solar energy equipments and solar cells which results in the reduction of capital cost of the solar projects.

The wind tariff by CERC in the past years showed increasing trend, while for this year it has been reduced by 2.2% compared to previous year, due to reduction in the overall project capital cost.

The small hydro projects continue to show increasing trend over the years.

The CERC has also calculated and finalized capital cost required for the solar projects, the order on the same can be accessed here.

The CERC tariff will have significant impact on the state specific tariffs for Renewable Energy, and it will be interesting to see how the states come with their own tariff for RE.

For more details on the tariffs for Hydro, Biomass and other sources, please refer the order here.