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CSERC (Terms and Conditions for Determination of Generation Tariff and Related Matters for
Electricity Generated by Plants based on Renewable Energy Sources) Regulations, 2017

HIGHLIGHTS

Tariff Period	13 years
Control Period	3 years, of which the first year shall end on 31.03.2018.
Useful Life of a Plant	Technology			No. of Years
	Biomass, non-fossil fuel based co-generation, MSW and RDF based power projects.			20
	Wind, solar PV, solar thermal.			25
	Small hydro			35

Technology-wise Net Tariff (Rs./kWh)	----
Capital Cost	All capital costs are for FY 2017-18, and the same for subsequent years is determined using indexation formula given in Regulations.
	Technology		Capital Cost (in Rs. lakh/MW) for FY 2017-18
	Small hydro below 5 MW.		779.00
	Small hydro (5 MW to 25 MW).		707.00
	Non-fossil fuel based cogeneration.		492.50
	Capital costs for all other technologies approved by MNRE shall be project specific.
Capacity Utilization Factor (CUF)/Plant Load Factor (PLF)	Technology		CUF/PLF (%) of Plant Capacity
	Wind	Annual Mean Wind Power Density (W/M2)
		Up to 220	22
		221-275	24
		276-330	28
		331-440	33
		>440	35
	Small hydro		30 or project specific, whichever is higher.
	Biomass based on Rankine cycle technology		80
	Non-fossil fuel based co-generation projects.		38
	Solar PV*		19
	Solar thermal*		23
	MSW		75
	RDF		80
	*Commission may deviate from the norms in case of project specific tariff determination.
Auxiliary Consumption	Technology		Aux. Cons. (% of Gross Generation)
	Small hydro		1.00
	Biomass based on Rankine cycle technology.		10.00
	Non-fossil fuel based co-generation projects.		8.50
	Solar PV*		0.25
	Solar thermal*		10.00
	MSW		15.00
	RDF		15.00
	*Commission may deviate from the norms in case of project specific tariff determination.
Station Heat Rate	Technology		Heat Rate (kCal/kWh)
	Biomass based on Rankine cycle technology.		4000
	Non-fossil fuel based co-generation projects.		3600
	MSW		4200
	RDF		4200

Calorific Value	Technology		Cal. Value (kCal/kg)
	Biomass based on Rankine cycle technology.		3100
	Non-fossil fuel based co-generation projects.		2250
	MSW		2500
	RDF		2500

Fuel Cost	Technology		Cost (Rs./MT) FY 2017-18
	Biomass based on Rankine cycle technology.		To be decided by independent study
	Non-fossil fuel based co-generation projects.		1964.71
	MSW		0.00
	RDF		1800.00
	Fuel cost shall be escalated at the rate of 5% per annum.
Operation and Maintenance (O&M)Expenses	Technology		O&M Cost (in Rs. lakh/MW) FY 2017-18
	Small hydro below 5 MW.		29.00
	Small hydro (5 MW to 25 MW).		21.00
	Biomass based on Rankine cycle.		40.00
	Non-fossil fuel co-generation		21.13
	O&M cost is escalated at 5.72% per annum. O&M costs for all other technologies approved by MNRE shall be project specific.
Interest Rate on Loans	State Bank of India Marginal Cost of Funds based Lending Rate (one-year tenor) prevalent on 1st October of the previous year plus 200 basis points.
Depreciation	5.28% for the first 13 years and remaining depreciation spread over the residual useful life of the project.
Return on Equity	14% to be grossed up by the prevailing minimum alternate tax, as on 1st April of the previous year, for the entire useful life of the project.
Interest on Working Capital	State Bank of India Marginal Cost of Funds based Lending Rate (one-year tenor) prevalent on 1st October of the previous year plus 300 basis points.

OTHER PROVISIONS

Tariff structure and design	Generic, levelised, single part tariff for the tariff period. For project specific tariff, financial norms of these regulations shall be treated as ceiling norms.
Dispatch Principles	Scheduling and deviation shall be governed by the intra-state ABT/deviation settlement mechanism/UI regulations notified by the Commission. Banking – allowed for 3 months if full electricity is not supplied to the licensee. Banking charges – 2% of energy banked.
Subsidy or/and incentives by government	Any incentive or subsidy provided by the central or state government, including accelerated depreciation benefit, would be taken into consideration for determination of tariff. Generation based incentives allowed over and above tariff shall not be factored into the tariff.
Rebate	2% - for payment through Letter of Credit. 1% - for payments not through Letter of Credit but within 1 month from the date of presentation of bills.
Late payment surcharge	1.25% per month, for payment of bills beyond a period of 60 days from the date of billing.
Links	http://www.cserc.gov.in/regulations.php?r_type=Draft
References	http://www.cserc.gov.in/admin/upload_regulation/071117_063652_.pdf

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CSERC (Terms and Conditions for Determination of Generation Tariff and Related Matters for Electricity Generated by Plants based on Renewable Energy Sources) Regulations, 2017