Tariff Period

Technology

No. of Years

Wind, Solar PV (gross metering)

25

Small hydro

35

Tariff (Rs./kWh)

Generic Tariff for Solar Power Projects

Generic Tariff for Wind power project

Generic Tariff for Small Hydro Power Plants

Capital Cost

Technology

Capital Cost

(in Rs.Crore/MW)

Wind

• Mainland area: 5.25
• Andaman & Nicobar: 6.25
• Lakshadweep: 7

Small hydro below 5 MW

• Mainland: 7.79
• Island: 10.50

Small hydro above 5 MW and up to 25 MW

• Mainland: 7.07
• Island: 9

Solar PV

• Mainland: 5 (without subsidy)
• Island: 6 (without subsidy)

Capacity Utilization Factor

Technology

CUF

Wind

Territory

CUF

Goa

18%

Andaman & Nicobar

18%

Puducherry

21%

Lakshadweep

20%

Daman

19%

Chandigarh

18%

Dadra & Nagar Haveli

18%

Diu

26%

Small hydro

30%

Solar PV

Territory

CUF

Goa

18%

Andaman & Nicobar

17%

Puducherry

18%

Lakshadweep

17%

Daman

18%

Chandigarh

17%

Dadra & Nagar Haveli

18%

Diu

18%

Auxiliary Consumption

Technology

Auxiliary Consumption

Wind

0.25%

Small hydro

1%

Solar PV

0.25%*

*The JERC  may deviate from the norms in case of project-specific tariff determination.

Operation and Maintenance (O&M)Expenses

Technology

O&M Cost (Rs.Lakh/MW)

Wind

• Mainland: 7.88
• Andaman & Nicobar: 12.50
• Lakshadweep: 14

Small hydro ≤  5MW

• Mainland: 15.58
• Island: 26.25

Small hydro above 5 MW and less than or equal to 25 MW

• Mainland: 14.14
• Island: 22.50

Solar PV

• Mainland: 7.50
• Island: 12

O&M cost is escalated at 3.72% per annum over the tariff period.

Interest Rate on Loans

• Mainland : 10.51%
• Island : 11.51%

Depreciation

5.83% for the first 12 years and 1.54% for the remaining 13 years of the plant.

Return on Equity

• Mainland : 14%
• Island: 16%

To be grossed up by prevailing minimum alternate tax as on 1 April of the available year at the time of determination of tariff  for the entire useful life of the project.

Interest on Working Capital

• Mainland: 11.51%
• Island: 12.51%

Tariff Structure and Design

• Generic or project-specific.
  • Single part tariff for technologies not using fuel.
  • Single part with fixed cost and fuel cost component for technologies using fuel.
  • Levelisation is calculated on the useful life of the renewable energy project.

Despatch Principles

All renewable energy power plants shall be treated as ‘MUST RUN’ power plants and will not be subjected to merit order despatch.

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.

Taxes and Duties

As pass-through, on actual incurred basis.

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://jercuts.gov.in/

References

http://jercuts.gov.in/writereaddata/UploadFile/finalfile636933434438348145.pdf

GENERIC TARIFF ORDER FOR RENEWABLE ENERGY SOURCES 2 Sept 2019

http://jercuts.gov.in/writereaddata/UploadFile/finalgenricorder637031248973941416.pdf