MP introduces new tariff for wind and bagasse based cogen plants
Hon’ble MPERC recently unveiled its wind tariff order 2013 for procurement of power from wind energy generators. For new wind projects commissioned after 26.03.2013, the tariff has been set as Rs. 5.92 per unit. The commission has considered Rs. 596 lakhs per MW (including cost of power evacuation) and capacity utilization factor of 20% for tariff determination. Other important parameters considered are as under:
MPERC’s previous wind tariff order available dates back in the year 2010 when a tariff of Rs. 4.35 per unit was finalised. This implies that there has been increase of 36.09 % in this year’s tariff. The distribution company in whose area the energy is consumed has been ordered to deduct 2 % of the energy injected towards wheeling charges for third party sale/captive consumption.
Given the fact that Govt. of India has considered reintroduction of Generation Based Incentive for WEGs in its Budget for FY14, the wind power generation business in the state seems lucrative. The APPC + REC module, on the contrary, has limited encouragement for WEGs wanting to participate in the REC Markets considering the fact that RECs have been trading at floor prices (see March 2013 Trading Report) and the APPC in the state is around Rs. 2.47 per unit. This sums up the net realization for WEGs to be around 3.97 Rs per unit which is indeed 33% less than what preferential tariff has to offer.
MPERC also came up with new tariff for bagasse based cogeneration plants in Madhya Pradesh. The tariff for new plants to be commissioned on or after 01.04.2013 has been determined as Rs. 6.28 per unit for a project life of 20 years.
The important parameters considered for tariff determination are provided in the table below:
