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Karnataka Renewable Energy Tariff Orders, 2018

HIGHLIGHTS

 

Tariff Period

Technology

No. of Years

Wind

Not available

Mini-hydel

--

Bagasse based co-generation.

--

Biomass based on Rankine cycle (water cooled condenser).

--

Solar rooftop and small PV power plants, grid-connected megawatt scale solar power plants.

25

MSW to Energy

--

 

Control Period

Technology

Period

Wind

1st April 2018 to 31st March 2019

Solar rooftop and small PV power plants, grid-connected megawatt scale solar power plants.

Mini-hydel, bagasse based co-generation, biomass based on Rankine cycle (water cooled condenser).

1st April 2018 to 31st March 2021

MSW to Energy

19th September 2016 to 31st March 2019

 

Useful Life of a Plant

Technology

No. of Years

Wind, solar rooftop and small PV power plants, grid-connected megawatt scale solar power plants.

25

Mini-hydel

35

Bagasse based co-generation, biomass based on Rankine cycle (water cooled condenser), MSW to Energy.

20

 

Technology-wise Gross Tariff

Technology

Gross Tariff

(in Rs./kWh)

Wind

3.45

Mini-hydel

3.95

Bagasse based co-generation. Fixed cost

1.77

Variable cost (FY 2018-19)

1.82

Variable cost (FY 2019-20)

1.92

Variable cost (FY 2020-21)

2.03

Biomass based on Rankine cycle (water cooled condenser). Fixed cost

2.19

Variable cost (FY 2018-19)

3.36

Variable cost (FY 2019-20)

3.55

Variable cost (FY 2020-21)

3.76

Biomass based on Rankine cycle (air cooled condenser). Fixed cost

2.07

Variable cost (FY 2018-19)

3.28

Variable cost (FY 2019-20)

3.47

Variable cost (FY 2020-21)

3.66

Megawatt scale solar PV projects below 5 MW capacity.

3.05

Solar rooftop PV projects of 1 MW and below. Without capital subsidy

3.56

With capital subsidy

2.67

MSW to Energy

7.08

 

Capital Cost

Technology

Capital Cost

Wind (Rs. lakh/MW)

575.00

Mini-hydel (Rs. lakh/MW)

633.00

Bagasse based co-generation (Rs. lakh/MW).

470.00

Biomass based on Rankine cycle (water cooled condenser) (Rs. lakh/MW).

576.00

Biomass based on Rankine cycle (air cooled condenser) (Rs. lakh/MW).

586.00

Solar rooftop and small PV power plants (Rs./kW).

40000.00

Grid-connected megawatt-scale solar PV plants (Rs. lakh/MW).

350.00

MSW to Energy (Rs. lakh/MW).

1700.00

 

Operation and Maintenance (O&M) Expenses

Technology

O&M Cost for the FY 2018-19

Wind (Rs. lakh/MW)

10.00

Mini-hydel (Rs. lakh/MW)

14.66

Bagasse based co-generation (Rs. lakh/MW).

14.10

Biomass based on Rankine cycle (water cooled condenser) (Rs. lakh/MW).

28.80

Biomass based on Rankine cycle (air cooled condenser) (Rs. lakh/MW).

23.44

Solar rooftop and small PV power plants (Rs. Lakh/kW).

0.006

Grid-connected megawatt-scale solar PV plants (Rs. lakh/MW)                                                                  

4.50

MSW to Energy (% of capital cost)

6%

An annual escalation at the rate of 5.72% shall be considered.

Capacity Utilization Factor (CUF)

Technology

CUF (%)

Wind

29

Mini-hydel

30

Bagasse based co-generation.

60

Biomass based on Rankine cycle (water cooled condenser).

75

Biomass based on Rankine cycle (air cooled condenser).

75

Solar rooftop and small PV power plants.

19

Grid-connected megawatt scale solar PV plants.

19

MSW to Energy

65 (1st year)

75 (balance  useful life)

 

Auxiliary Consumption

Technology

Aux. Con. (%)

Wind

0.50

Mini-hydel

1.00

Bagasse based co-generation.

8.50

Biomass based on Rankine cycle (water cooled condenser).

10.00

Biomass based on Rankine cycle (air cooled condenser).

10.00

Solar rooftop and small PV power plants.

0.00

Grid-connected megawatt scale solar PV plants.

0.25

MSW to Energy

12.00

 

Interest Rate on Loans

Technology

Rate of Interest (%)

Wind, solar rooftop and small PV power plants, grid-connected megawatt scale solar PV plants.

10.00

Mini-hydel, bagasse based co-generation, biomass based on Rankine cycle (water cooled condenser), biomass based on Rankine cycle (air cooled condenser).

10.50

MSW to Energy

12.00

 

Depreciation

  • 5.38% for the first 12 years and 2.50% for the balance 8 years for MSW to energy plants.
  • 5.38% for the first 13 years and remaining depreciation spread over the residual useful life of the project for all other technologies.

Return on Equity

  • 16% per annum for MSW to energy projects.
  • 14% with tax on RoE as a pass-through for all other technologies.

Interest on Working Capital

Technology

Rate of Interest (%)

Wind, solar rooftop and small PV power plants, grid-connected megawatt scale solar PV plants.

11.00

Mini-hydel, bagasse based co-generation, biomass based on Rankine cycle (water cooled condenser), biomass based on Rankine cycle (air cooled condenser).

11.50

MSW to Energy

12.50

 

Specific Fuel Consumption

Technology

Value (kg/kWh)

Bagasse based co-generation plant.

1.60

Biomass based on Rankine cycle (water cooled condenser).

1.21

Biomass based on Rankine cycle (air cooled condenser).

1.18

 

Fuel Cost

Technology

Cost (Rs./MT)

FY 2018-19

Bagasse based co-generation plant

1,039.00

Biomass based on Rankine cycle (water cooled condenser).

2,500.00

Biomass based on Rankine cycle (air cooled condenser).

2,500.00

 

 

OTHER PROVISIONS

 

Tariff structure and design

Generic, single part, levelised tariff.

Merit Order Despatch principle

Mini-hydel, wind.

Subsidy or/and incentives by government Not available
Rebate Not available
Late payment surcharge Not available
Links

http://www.karnataka.gov.in/kerc/Pages/Generic%20Tariff%20Orders.aspx

http://www.karnataka.gov.in/kerc/Miscellaneous%20Orders%20%202018/Forms/AllItems.aspx?RootFolder=%2Fkerc%2FMiscellaneous%20Orders%20%202018%2FOrders%20-%202018&FolderCTID=0x0120002933890377E5CF48AAB0FF7E90C1F7C6&View=%7BD6DAD114-C388-4A03-A65C-CB64ED3A6CF1%7D&InitialTabId=Ribbon%2EDocument&VisibilityContext=WSSTabPersistence

References

http://www.karnataka.gov.in/kerc/Documents/RE%20Tariff%20Order%202018.pdf

http://www.karnataka.gov.in/kerc/Miscellaneous%20Orders%20%202018/Orders%20-%202018/Determination%20of%20tariff%20and%20other%20norms%20in%20respect%20of%20new%20Solar%20Power%20Projects.pdf

http://www.karnataka.gov.in/kerc/Miscellaneous%20Orders%20%202018/Orders%20-%202018/Generic-Tariff-for-Wind-Power-Project-2018.pdf

http://www.karnataka.gov.in/kercold/Downloads/COURT-ORDERS-2016/MSW_FINAL_Order-OP_20_2016-19.09.2016.pdf

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