Renewable Energy News in India

Generic Tariff of ₹3.51/kWh Proposed for Small Solar Projects Under KUSUM Program


The Chhattisgarh State Electricity Regulatory Commission (CSERC) has issued a draft to determine the feed-in-tariff (FiT) for decentralized solar projects with 500 kW to 2MW capacity. These projects come under Component-A of the Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM KUSUM) program.

The Commission has proposed generic levelized tariffs of ₹3.51 (~$0.048)/kWh for solar photovoltaic (PV) projects. The tariff applies to projects achieving commercial operation during the financial year (FY) 2021-22.

The Commission also proposed a tariff to purchase excess power from solarized agriculture pumps under Component-C of the KUSUM program. Stakeholders can submit comments and suggestions by October 5, 2021.

Background-

The state distribution company (DISCOM) is preparing bidding documents to invite a request for proposal (RfP), to select developers through tender-cum-reverse-auction process.

The state DISCOM will also supporting farmers to solarize their grid-connected agriculture pumps, under Component-C, by purchasing excess power from the farmer at the rate decided by the Commission.

The DISCOM has now requested the Commission to approve feed-in-tariff for projects to be developed under the program.

Proposed Tariff-

The Commission has proposed a generic levelized tariff of ₹3.51 (~$0.048)/kWh for solar projects between 500 kW to 2 MW capacity. The tariff is for projects achieving commercial operation during FY 2021-22.

The tariff is applicable to solar projects, with a long-term power purchase agreement with state DISCOMs.

Since it is the middle of FY 2021-22, DISCOM may not complete the bidding process by the end of the FY; thus the Commission has proposed extending the tariff until DISCOM concludes the bidding process under the KUSUM program.

The tariff will act as a ceiling tariff for competitive bidding for solar projects under Component-A.

The Commission has also proposed a tariff of ₹3.51 (~$0.048)/kWh for DISCOM purchasing excess power from grid-connected solarized agriculture pumps. The proposed tariff is for FY 2021-22 and 2022-23.

The tariff applies for the entire useful life of the grid-connected solar pumps set up under Component-C of the program. The DISCOM would settle the bills monthly.

The tariff applies for the capacity or number of consumers initially allocated to the state by the MNRE under Component-C the program.

In Madhya Pradesh, a pre-fixed levelized tariff of ₹3.07 (~$0.042)/kWh is applicable for projects under Component A of the KUSUM program. The tariff is for the entire life of projects commissioned until March 31, 2024.

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News Date: 17-Sep-2021

News Source: https://mercomindia.com/generic-tariff-proposed-small-solar-projects-kusum/

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