Net Tariff

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Tariff Period

• Generally corresponding to project life or period provided in the PPA
• Tariff period- 12 months from CoD thereafter on year to year basis from CoD.

Control Period

• Control Period under these Regulations shall be from the FY 2017-18 to the FY 2020-21.

Useful Life of a Plant

Technology

Year

Non-fossil fuel based Co-generation, Biomass, Municipal solid waste to energy, Biogas power plant

20

Wind, Solar PV, Solar Thermal

25

Small hydro

35

Capital Cost

Technology

Capital Cost (in Rs. Crore/MW)

Wind (FY 2017-18)

*

Small hydro below 5 MW (FY 2017-18)

7.79

Small hydro between 5 MW and 25 MW (FY 2017-18)

7.07

Biomass with water cooled condenser (FY 2017-18)

5.59

Biomass with air cooled condenser (FY 2017-18)

6

Biomass using Rice straw with water cooled condenser (FY 2017-18)

6.10

Biomass using Rice straw with air cooled condenser (FY 2017-18)

6.52

Non fossil fuel cogeneration (FY 2017-18)

4.925

Solar PV with PV poly crystalline (FY 2017-18)

*

Solar PV with PV thin film and roof top (FY 2017-18)

*

Solar PV canal top (FY 2017-18)

*

Solar thermal (FY 2017-18)

*

Biomass gasifier(FY 2017-18)

4.43

Biogas power plant(FY 2017-18)

8.86

MSW based on Rankine cycle(FY 2017-18)

15

*^{All capital costs will be project specific}

Operation and Maintenance (O&M)

Expenses

Technology

O&M Cost (Rs. Crore/MW) for First Year

Wind

-

Small hydro below 5 MW

0.29

Small hydro (5 MW to 25 MW)

0.21

Biomass

0.40 (FY 2017-18)

Non fossil fuel cogeneration

0.21 (FY 2017-18)

Solar PV

-

Solar thermal

-

Biomass gasifier

0.53 (FY 2017-18)

Biogas power plant

0.53 (FY 2017-18)

MSW WtE

6.5% of normative capital cost for FY 2017-18

• O&M cost of FY 2018-19 shall be escalated at percent specified

Interest Rate on Loans

The normative interest rate shall be considered as the average Marginal Cost of funds based lending rate (MCLR) (one-year tenor) of SBI prevailing during the last available six months plus a margin of up to 200 basis points i.e. 2%.

Depreciation

Rate for the first 13 years of the Tariff Period shall be 5.38% per annum and the remaining depreciation shall be spread over the remaining useful life of the project from 14 th year onwards

Return on Equity

• 14% per annum on normative Equity Capital
• MAT/Corporate Tax shall be separately invoiced

Interest on Working Capital

Interest on Working Capital, for the purpose of tariff determination, shall be computed at the average Marginal Cost of funds based lending rate (MCLR) (one year tenor) of SBI prevailing during the last available six months plus an appropriate margin not exceeding 200 basis points i.e. 2%.

Renewable Purchase Obligation (RPO)

Year

Minimum quantum of purchase (in %) Excluding Hydro

Solar

Non-solar

Total

2016-17

1.00

2.75

3.75

2017-18

2.50

2.75

5.25

2018-19

4.00

3.00

7.00

2019-20

5.50

3.00

8.00

2020-21

7.00

3.00

10.0

2021-22

8.00

3.00

11.0

• Obligation to purchase renewable energy shall be inclusive of purchase of renewable energy already being made by obligate entity.
• Renewable energy purchase under power purchase agreement already entered into shall continue to be made until their validity even if the total renewable energy purchase exceeds RPO.

Obligated Entities

Distribution licensees, captive users and long term open access consumers in Haryana

Ways to Meet RPO

Purchase of energy or certificates or combination thereof

Certificates

• Obligations to fulfill solar and non-solar purchase obligations shall be fulfilled by purchase of solar and non-solar certificates respectively.
• Certificates purchased shall be submitted to the Commission by the obligated entity in accordance to detailed procedure issued by Central agency.

Tariff Structure and Design

• Single part tariff – Return on equity, Interest ,O&M etc
• Generic tariff - Levellised tariff for entire tariff period

Despatch principles

“MUST RUN” – all renewable energy plants except biomass with capacity of 10MW and above and non-fossil fuel based co-generation plants.

Subsidy or/and Incentives by Government

Any incentive or subsidy provided by the Central or State government

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

State Agency

Haryana Renewable Energy Development Agency (HAREDA)

Effect of Default

• The commission may direct obligated entities who fail to fulfill obligation and do not purchase certificates to deposit an amount into a separate fund to be created and maintained by the obligated entity.
• The amount to be deposited shall be determined based on the shortfall in RPO and forbearance price.

Banking of RE

 Will have to pay banking charges, T&D losses

Links

https://herc.gov.in/Regulation/1.aspx

References

https://herc.gov.in/writereaddata/pdf/r20180724.pdf

https://herc.gov.in/writereaddata/pdf/r20180827.pdf