jammu & kashmir state electricity regulatory commissionjkserc.nic.in/generictariff...

Jammu & Kashmir

State Electricity Regulatory Commission

Order

in the matter of

Determination of Generic Levellised Generation Tariff

for Renewable Energy Sources for FY 2016-17

Jammu

April 2016

Jammu & Kashmir State Electricity Regulatory Commission

Website: http://www.jkserc.nic.in & Email ID: [email protected], [email protected]

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Determination of Generic Levellised Generation Tariff for RET FY 2016-17

JKSERC Order Page 1

Before

Jammu & Kashmir State Electricity Regulatory Commission

Suo-motu Petition No.: JKSERC/ 62 of 2016

In the Matter of:

Determination of generic levellised generation tariff for the FY 2016-17 under Regulation 8 of

the Jammu and Kashmir State Electricity Regulatory Commission (Terms and Conditions for

Tariff determination from Renewable Energy Sources) Regulations, 2013 and amendments

thereof.

Order No.: 20-JKSERC of 2016

Dated 21.04.2016

1. The Jammu & Kashmir State Electricity Regulatory Commission (hereinafter referred to

as JKSERC or the Commission) notified the Jammu and Kashmir State Electricity

Regulatory Commission (Terms and Conditions for Tariff determination from Renewable

Energy Sources) Regulations, 2013 on 17th May, 2013 (hereinafter referred to as “the RE

Tariff Regulations 2013” or the “Principal Regulations”), which provide for terms and

conditions and the procedure for determination of tariff of the various categories of

Renewable Energy (RE) generating stations:

2. The Commission also notified the first amendment to the Principal Regulations vide

notification No.: 49-JKSERC of 2016 dated 22nd March, 2016, thereby including the scope

of tariff determination for generation from ‘Municipal Solid Waste’ & ‘Refuse Derived

Fuel’ besides amending various norms pertaining to the biomass power projects based on

Rankine cycle. The RE Tariff Regulations 2013 and amendments thereof provide the scope

for determination of tariff of the following categories of Renewable Energy (RE)

generating stations:

1. Wind Power Project;

2. Small Hydro plants;


JKSERC Order Page 2

3. Biomass Power Projects

a) Rice straw and Juliflora (plantation) based project with water cooled condenser

and using Travelling Grate boiler;

b) Rice straw and Juliflora (plantation) based project with air cooled condenser

and using Travelling Grate boiler;

c) Rice straw and Juliflora (plantation) based project with water cooled condenser

and using AFBC boiler;

d) Rice straw and Juliflora (plantation) based project with air cooled condenser

and using AFBC boiler;

e) Other than Rice straw and Juliflora (plantation) based project with water cooled

condenser and using Travelling Grate boiler;

f) Other than Rice straw and Juliflora (plantation) based project with air cooled

condenser and using Travelling Grate boiler;

g) Other than Rice straw and Juliflora (plantation) based project with water cooled

condenser and using AFBC boiler;

h) Other than Rice straw and Juliflora (plantation) based project with air cooled

condenser and using AFBC boiler;

4. Non-fossil fuel-based co-generation project;

5. Solar Photo voltaic (PV) / Solar Thermal Power Projects;

6. Biomass Gasifier based Power Projects;

7. Biogas based Power Project;

8. Municipal Solid Waste; and

9. Refuse Derived Fuel;

3. The Commission, vide notification No.: -50- JKSERC of 2016 dated 20th April, 2016,

notified the second amendment to the Principal Regulations, wherein the Commission

revised the norms for determination of operation and maintenance expenses for Solar PV

projects for FY 2016-17 and FY 2017-18, in line with the amendments notified by the

CERC.


JKSERC Order Page 3

4. The Regulations enjoin upon the Commission to determine the generic tariff on the basis

of the suo-motu Petition, for the RE technologies for which norms have been provided in

the RE Tariff Regulations 2013 and amendments thereof. Generic Tariff is different from

project specific tariff for which a project developer has to file a Petition before the

Commission as per the format provided in the RE Tariff Regulations 2013 and amendments

thereof. Pertinently, project specific tariff has been envisaged for the new RE technologies

and the technologies which are still at the nascent stage of development, and the

Commission shall determine the project specific tariff for such technologies on a case to

case basis.

5. Clause (1) of Regulation 8 of the RE Tariff Regulations, 2013 and amendments thereof,

provides that “the Commission shall determine the generic tariff on the basis of suo-motu

Petition at least six months in advance at the beginning of each year of the Control Period

for renewable energy technologies for which norms have been specified under the

Regulations”.

6. In line with above Regulations, the Commission vide its Order No. JKSERC/38 of 2014

dated 18th July, 2014 issued the Order for the ‘Determination of Generic Levellised

Generation Tariff for Renewable Energy Sources (RES) for FY 2014-15’ on suo-motu basis

applicable for Renewable Energy projects commissioned in Jammu and Kashmir during

FY 2014-15, i.e., from 1st April, 2014 to 31st March, 2015.

7. The Commission vide its Order No. 12-JKSERC of 2015 dated 28th February, 2015, issued

the Order for the ‘Determination of Generic Levellised Generation Tariff for Renewable

Energy Sources (RES) for FY 2015-16’ on suo-motu basis applicable for Renewable

Energy projects commissioned in Jammu and Kashmir during FY 2015-16, i.e. from

1st April, 2015 to 31st March, 2016.

8. In order to determine the generic tariff for RE projects commissioned during FY 2016-17

and in due discharge of the mandate under Regulation 8 (1) of RE Tariff Regulations 2013

and amendments thereof, the Commission brought out the proposal in the matter of

determination of generic tariff for renewable energy technologies for the FY 2016-17 vide

suo-motu Petition No: JKSERC/62 of 2016 dated 12th February, 2016.

9. The Commission published the gist of the suo-motu Petition in various widely read

newspapers of the State in February 2016 to elicit the comments/suggestions/objections of

the stakeholders on the proposal. The list of newspapers in which gist was published is as

follows:

Table 1: List of Newspapers in which the gist was published

Sl. No. Newspaper Date of Publication

1. Amar Ujala 13.02.2016

2. Daily Excelsior 15.02.2016

3. Greater Kashmir 16.02.2016

4. Hind Samachar 16.02.2016

5. Daily Aftab 16.02.2016

10. The Petition was also made available on the website of the Commission.


JKSERC Order Page 4

11. The stakeholders were requested to submit their written comments/ suggestions / objections

latest by 3rd March, 2016. Comments were received from two (2) stakeholders which have

been discussed in detail in the chapter of Public Consultation Process.

Public Hearings

12. In order to maintain transparency in the process for approval of generic levellised tariffs

for generation of power from RES for FY 2016-17, the Commission involved the

stakeholders by initiating a public consultation process to understand their views on various

aspects of suo-motu Petition initiated by the Commission. Accordingly, the public hearings

on the suo-motu Petition were held at Srinagar and Jammu as per the details provided in

the following table:

Table 2: Details of Public Hearings

Place/ city Date Location

Srinagar 12.03.2016 J&K IMPA, Moulana Azad Road, Srinagar

Jammu 15.03.2016 JKSERC Conference Hall, Ambedkar (Panama) Chowk, Railway Road, Jammu

13. During the public hearings, the Commission made a detailed presentation on the

determination of the generic levellised tariffs for generation of power from Renewable

Energy Sources for FY 2016-17 and the methodology used for computation of generic

levellised tariff for each RES.

14. The comments/objections/suggestions received during the public hearings have duly been

considered while finalizing this Order on determination of generic levellised tariff for

Renewable Energy Sources for FY 2016-17. The list of stakeholders who attended the

public hearing is enclosed as Annexure A.

Meeting of the State Advisory Committee

15. The Commission convened a meeting with the members of the State Advisory Committee

(SAC) on 17th March, 2016 for the purpose of discussing the suo-motu Petition on the

generation tariff from RES for FY 2016-17.

16. The Commission made a detailed presentation on the determination of generic levellised

tariffs for generation of power from Renewable Energy Sources for FY 2016-17 and the

methodology used for computation of generic levellised tariff for each RES.

17. The SAC resolved that JKSERC should go ahead with the notification of the Tariff Order

after examining the suggestions/comments, if any, from the Public/ Stakeholders. The

participants of the SAC meeting are listed in Annexure B.

Approved generic levellised tariff for RES for FY 2016-17

18. The approved generic levellised tariff for generation from renewable energy sources for

FY 2016-17 is summarized in the following tables.


JKSERC Order Page 5

Table 3: Generic Levellised tariff for RE technologies without fuel component, approved for FY 2016-17

(Rs/ kWh)

Particulars Levellised Total

Tariff

Benefit of Accelerated

Depreciation

(if availed)

Net Levellised Tariff

(upon adjusting for

Accelerated

Depreciation

benefit) (if availed)

WIND ENERGY

Wind Zone -1 (CUF 20%) 6.17 0.36 5.81

Wind Zone -2 (CUF 22%) 5.61 0.33 5.28

Wind Zone -3 (CUF 25%) 4.94 0.29 4.65

Wind Zone -4 (CUF 30%) 4.11 0.24 3.87

Wind Zone -5 (CUF 32%) 3.86 0.22 3.64

SMALL HYDRO

Capacity below 5 MW 4.40 0.39 4.01

Capacity 5 MW upto 25 MW 3.73 0.35 3.38

SOLAR PV/ SOLAR THERMAL

Solar PV 5.62 0.64 4.98

Solar Thermal 11.66 1.32 10.34

MUNICIPAL SOLID WASTE 6.87 0.58 6.29

Table 4: Generic tariff for RE technologies with fuel component, approved for FY 2016-17 (Rs/ kWh)

Particulars Levellised

fixed cost

Variable

cost

Applicable

Tariff

Benefit of

Accelerated

Depreciation

(if availed)

Net Levellised

Tariff

(upon

adjusting for

Accelerated

Depreciation

benefit,

if availed)

BIOMASS (Rice straw and Juliflora (plantation)

based project with water cooled condenser and using

Travelling Grate boiler)

3.06 4.10 7.16 0.21 6.95


based project with air cooled condenser and using


3.24 4.19 7.43 0.23 7.20



AFBC boiler)

3.05 4.03 7.08 0.21 6.87



AFBC boiler)

3.23 4.13 7.36 0.23 7.13

BIOMASS (other than Rice straw and Juliflora

(plantation) based project with water cooled

condenser and using Travelling Grate boiler)

2.92 4.10 7.02 0.19 6.83


(plantation) based project with air cooled condenser

and using Travelling Grate boiler)

3.10 4.19 7.29 0.21 7.08


JKSERC Order Page 6


fixed cost

Variable

cost

Applicable

Tariff

Benefit of

Accelerated

Depreciation

(if availed)

Net Levellised

Tariff

(upon

adjusting for

Accelerated

Depreciation

benefit,

if availed)



condenser and using AFBC boiler)

2.92 4.03 6.95 0.19 6.76



and using AFBC boiler)

3.10 4.13 7.23 0.21 7.02

NON FOSSIL FUEL BASED COGENERATION 2.53 3.17 5.70 0.22 5.48

BIOMASS GASIFIER 2.44 5.04 7.48 0.13 7.35

BIOGAS 3.11 2.04 5.15 0.35 4.80

REFUSE DERIVED FUEL 4.16 3.74 7.90 0.33 7.57

19. This Order does not take into account the incentive or subsidy or financial assistance, other

than accelerated depreciation benefits, as may be available from the Central / State

Government for renewable energy technologies except for biomass gasifier and biogas

based power projects. Accordingly, the Commission directs the developer availing any

such incentive or subsidy (other than accelerated depreciation benefits) to submit a Petition

in accordance with the Regulations 7 and Regulation 8 of the RE Tariff Regulations 2013

for determination of project specific tariff.

20. The determination and basis of approval of generic levellised tariff for generation from

renewable energy technologies for FY 2016-17 has been explained in ensuing chapter of

this Tariff Order.

Implementation of Order

21. In exercise of the powers vested in it under the Jammu & Kashmir Electricity Act, 2010

(Act XIII of 2010), the Commission hereby passes this Order today i.e. on the 21st April,

2016. The tariff approved by the Commission herewith, shall be applicable for the RE

projects commissioned during FY 2016-17 and shall remain in force till 31st March, 2017

unless amended or modified by an Order of the Commission.

Dated: 21st April, 2016

Place: Jammu

Basharat Ahmad Dhar

Chairperson,

JKSERC


JKSERC Page 1

TABLE OF CONTENTS

CHAPTER 1: PUBLIC CONSULTATION PROCESS ....................................................... 3

CHAPTER 2: GENERIC LEVELLISED GENERATION TARIFF FOR VARIOUS

RENEWABLE ENERGY TECHNOLOGIES FOR FY 2016-17 ........................................ 8

Generic norms ............................................................................................................................ 8

Generation norms ..................................................................................................................... 10

Determination of Capital cost .................................................................................................. 12

Determination of fixed cost components ................................................................................. 20

Determination of fuel cost components ................................................................................... 25

Subsidy or incentive by the Central / State Government ......................................................... 28

APPENDIX-1 ........................................................................................................................ 32

APPENDIX-2 ........................................................................................................................ 33

APPENDIX-3 ........................................................................................................................ 34

APPENDIX-4 ........................................................................................................................ 36

APPENDIX-5 ........................................................................................................................ 37

APPENDIX-6 ........................................................................................................................ 38

APPENDIX-7 ........................................................................................................................ 39

APPENDIX-8 ........................................................................................................................ 41

APPENDIX-9 ........................................................................................................................ 43

ANNEXURES ....................................................................................................................... 45

Annexure 1(a) Wind Power Projects- Wind Zone 1……………………………………….47

Annexure 1(b) Wind Power Projects- Wind Zone 2………………………………………..50

Annexure 1(c) Wind Power Projects- Wind Zone 3………………………………………..53

Annexure 1(d) Wind Power Projects- Wind Zone 4………………………………………..56

Annexure 1(e) Wind Power Projects- Wind Zone 5………………………………………...59

Annexure 2(a) Small Hydro Power Projects- Below 5 MW………………………………..62

Annexure 2(b) Small Hydro Power Projects- 5 MW to 25 MW…………………………....65


JKSERC Page 2

Annexure 2(c) Small Hydro Power Projects (in private/cooperative/joint sector) availing

MNRE subsidy…………………………………………………………...…………………..68

Annexure 2(d) Small Hydro Power Projects (in Government/State Sector) availing MNRE

subsidy……………………………………………………………………..............................69

Annexure 3A Biomass Rice straw and Juliflora (plantation) based project with water cooled

condenser and using Travelling Grate......................................................................................70

Annexure 3B Biomass Rice straw and Juliflora (plantation) based project with air cooled

condenser and using Travelling Grate......................................................................................73

Annexure 3C Biomass Rice straw and Juliflora (plantation) based project with water cooled

condenser and using ABFC Boiler...........................................................................................76

Annexure 3D Biomass Rice straw and Juliflora (plantation) based project with air cooled

condenser and using ABFC Boiler...........................................................................................79

Annexure 3E Biomass Other than Rice straw and Juliflora (plantation) based project with

water cooled condenser and using Travelling Grate…………………………………………81

Annexure 3F Biomass Other than Rice straw and Juliflora (plantation) based project with

air cooled condenser and using Travelling………………………………………………...... 84

Annexure 3G Biomass Other than Rice straw and Juliflora (plantation) based project with

water cooled condenser and using ABFC Boiler…………………………………………….87

Annexure 3H Biomass Other than Rice straw and Juliflora (plantation) based project with

air cooled condenser and using ABFC Boiler………………………………………………..90

Annexure 4 Non-fossil fuel based Cogeneration Power Projects…………………………93

Annexure 5 Solar PV Power Projects……………………………………………………...96

Annexure 6 Solar Thermal Power Projects…………………………………………………99

Annexure 7 Biomass Gasifier Power Projects……………………………………………..102

Annexure 8 Biogas Power Projects………………………………………………………..105

Annexure 9 Municipal Solid Waste……………………………………………………….108

Annexure 10 Refuse Derived Fuel………………………………………………………….111

Annexure A List of Participants in the Public Consultation Process …………………… 114

Annexure B List of Participants in the State Advisory Committee……………………… 117

Annexure C Comparison of Generic Tariff of the RE Projects for FY 2014-15, FY 2015-16

and FY 2016-17……………………………………………………………………………. 119


JKSERC Page 3

CHAPTER 1: PUBLIC CONSULTATION PROCESS

1.1. The Commission published the gist of the suo-motu Petition in various widely read

newspapers of the State in February 2016 to elicit the comments/suggestions/objections

of the stakeholders on the proposal.

1.2. The Petition was also made available on the website of the Commission.

1.3. The stakeholders were requested to submit their written comments/ suggestions /

objections latest by 3rd March, 2016. The Commission received objections/ comments

in writing from two (2) respondents. The list of stakeholders who responded to the

public notice on the Petition in writing are as follows:

Table 5: List of Objectors

Sl. No. Name

1. Mr Yogesh Raheja

2. Mr. A. A Khatana,

1.4. In order to maintain transparency in the process for approval of generic levellised tariffs

for generation of power from RES for FY 2016-17, the Commission involved the

stakeholders by initiating a public consultation process to understand their views on

various aspects of suo-motu Petition initiated by the Commission. Accordingly, the

public hearings on the suo-motu Petition were held at Srinagar and Jammu on 12th and

15th March 2016 respectively.

1.5. During the public hearings, the Commission made a detailed presentation on the

determination of the generic levellised tariffs for generation of power from Renewable

Energy Sources for FY 2016-17 and the methodology used for computation of generic

levellised tariff for each RES.

1.6. The issues raised during the public hearing process and the point wise responses of the

Commission are detailed below:

Useful Life

Public Comments/Suggestions

1.7. The stakeholder has asked the Hon’ble Commission to reduce the useful life of Biomass

Gasifier and Biogas plants to 10 years and 15 years respectively. The stakeholder is of

the view that these technologies are not commercial technologies and biomass gasifiers

requires highly skilled maintenance staff and its life is between 5-10 years. Moreover,

the stakeholder also added that biogas plants are primarily used for bottling plants and

its useful life can be stretched to 15 years if it is used for power generation.


JKSERC Page 4

Response

1.8. The Commission appreciates the suggestions of the stakeholder. However the

suggestions do not pertain to the suo motu petition for determination of generic

levellised generation tariff for Renewable Energy Technologies.

1.9. If the stakeholder is of the opinion that the useful life of gasifier and biogas plants

should be reduced, the stakeholder should submit a Petition for amendment of JKSERC

(Terms and Conditions for Tariff determination from Renewable Energy Sources)

Regulations, 2013 along with due justification and references supporting the useful life

suggested.

Control Period


1.10. The stakeholder has asked the Hon’ble Commission to determine the tariff only for the

control period with due consideration of escalation in O&M expenses. The stakeholder

further stated that after the control period, the tariff can be reviewed on year to year

basis or for the rest of the control period.

Response

1.11. The generation tariff for Renewable Energy Technologies is determined for the entire

tariff period as per Regulation 6 of JKSERC (Terms and Conditions for Tariff

determination from Renewable Energy Sources) Regulations, 2013. The stakeholder

has not provided any reasoning to support its suggestion to determine the tariff for only

the duration of the control period.

Tariff Period


1.12. The stakeholder has asked the Hon’ble Commission to account for interest on term

loans for Tariff Period.

1.13. The stakeholder has also asked the Hon’ble Commission to provide for additional

depreciation to account for total repayments after deducting normal depreciation.

1.14. The stakeholder has stated that there is a mismatch in tariff period in table 2 in sub

section 1.5 of the suo motu petition.

Response

1.15. As per Regulation 9 of JKSERC (Terms and Conditions for Tariff determination from

Renewable Energy Sources) Regulations, 2013, Interest on loan capital is accounted

for while determination of tariff for renewable energy technologies.


JKSERC Page 5

1.16. Regulation 15 of the JKSERC (Terms and Conditions for Tariff determination from

Renewable Energy Sources) Regulations, 2013 provides for Depreciation. Accordingly

the Commission accounts for depreciation on the approved capital cost of the assets.

The Commission provides depreciation at the rate of 5.83% per annum for the first 12

years to support the developer in repayment of its normative loans.

1.17. The JKSERC (Terms and Conditions for Tariff determination from Renewable Energy

Sources) Regulations, 2013 do not provide for additional depreciation. This is also in

line with the norms specified by CERC. Moreover repayment of entire debt component

as per normative capital structure is already accounted for in the aforesaid calculation

of depreciation.

1.18. The Commission clarifies that the tariff period in respect of RE projects is as under:

Table 6: Tariff Period for RE Projects

Renewable Energy Projects Tariff Period (in years)

Wind Energy 13

Biomass power project with rankine cycle technology 13

Non-fossil fuel based co-generation 13

Small hydro plant below 5 MW capacity 35

Small hydro plant - 5 MW upto 25 MW capacity 13

Solar PV/ Solar thermal power project 25

Biomass gasifier & Biogas 20

Capacity Utilization Factor


1.19. The stakeholder is of the opinion that 85% and 90% CUF for biomass gasifier and

biogas based power projects respectively is very high.

Response

1.20. The stakeholder’s comment does not pertain to the suo- motu petition for determination

of generic levellised generation tariff for Renewable Energy Technologies.

1.21. If the stakeholder is of the opinion that the Capacity Utilization Factor (CUF) of gasifier

and biogas plants should be reduced, the stakeholder should submit a Petition for

amendment of JKSERC (Terms and Conditions for Tariff determination from

Renewable Energy Sources) Regulations, 2013 along with due justification and

references supporting the CUF suggested for these technologies.


JKSERC Page 6

1.22. Further, if the developer is of the opinion that the norms determined as per these

Regulations are not appropriate for a particular project, the developer can approach the

Commission for determination of project specific tariff as per Regulation 7 of JKSERC


Regulations, 2013.

Capital Cost


1.23. The stakeholder pointed out that actual capitalized cost on COD is available for all

technologies and projects commissioned over last three years should be the basis for

determination of capital cost. Further, the stakeholder is of the opinion that factor F1-

Factor for land and Civil Works, F2- Factor for erection and commissioning, F3- Factor

for IDC and Financing Cost should be worked on the basis of data collected from

Financial Institutions and banks for projects commissioned over last 3 years.

1.24. It has also been pointed out that the capital cost for small hydro projects should be

increased to Rs 1111.08 lacs/MW in accordance to the findings of the report submitted

by Alternate Hydro Energy Center, Indian Institute of Technology (IIT), Roorkee. The

stakeholder further mentioned that the Institute has been entrusted by Ministry of New

and Renewable Energy Sources (MNES) to propose a benchmark cost for small hydro

projects and they have studied the projects nationwide on the capital costs and studied

the cost deviation v/s the head and capacity of the project and have established the

benchmark costs accordingly.

Response

1.25. In regard to the suggestion on considering the actual capitalized cost on COD for

determination of capital cost, The Commission states that the approach for

determination of capital cost suggested by the stakeholder is not in line with the

JKSERC (Terms and Conditions for Tariff determination from Renewable Energy

Sources) Regulations, 2013.

1.26. The capital cost considered by the Commission for determination of generic levellised

generation tariff for FY 2016-17 is as per the technology specific norms specified under

the JKSERC (Terms and Conditions for Tariff determination from Renewable Energy

Sources) Regulations, 2013.

1.27. If the stakeholder is of the opinion that the methodology for determination of capital

cost as well as the factors of cost components are not appropriate, the stakeholder

should submit a Petition for amendment of JKSERC (Terms and Conditions for Tariff

determination from Renewable Energy Sources) Regulations, 2013 along with due

justification and references supporting its suggestions.


JKSERC Page 7

1.28. Further, if the developer is of the opinion that the norms determined as per these

Regulations are not appropriate for a particular project, the developer can approach the

Commission for determination of project specific tariff as per Regulation 7 of JKSERC


Regulations, 2013.

Incentive or Subsidy by the Central/State Government


1.29. The stakeholder is of the opinion that subsidy and other incentive such as accelerated

depreciation should not be considered in fixation of tariff and treated as additional

incentives only.

Response

1.30. Regulation 22 of the JKSERC (Terms and Conditions for Tariff determination from

Renewable Energy Sources) Regulations, 2013 specifies:

“The Commission shall take into consideration any incentive or subsidy offered by the

Central or State Government, including accelerated depreciation benefit if availed by

the generating company, for the renewable energy power plants while determining the

tariff under these Regulations”

1.31. In accordance to the above regulations, The Commission has to consider any

subsidy/incentive availed by the generating company for determination of tariff.


JKSERC Page 8

CHAPTER 2: GENERIC LEVELLISED GENERATION TARIFF FOR

VARIOUS RENEWABLE ENERGY TECHNOLOGIES FOR FY 2016-17

2.1. The generic levellised generation tariffs for various Renewable Energy Technologies

(RETs) for FY 2016-17 are discussed below:

Generic norms

Useful life

2.2. Sub-Regulation (1) (aa) of Regulation 2 of the RE Tariff Regulations, 2013 and

amendments thereof defines ‘useful life’ in relation to a unit of a generating station

including evacuation system to mean the following duration from the date of

commercial operation (COD) of such generation facility:

Table 7: Useful life of RE Projects

Renewable energy projects Useful Life (in years)

Wind energy 25



Small hydro plant 35


Biomass gasifier 20

Biogas 20

Municipal Solid Waste 20

Refuse Derived Fuel 20

Control Period

2.3. Regulation 5 of the RE Tariff Regulations, 2013 and amendments thereof, provides that

the Control Period for determination of tariff for renewable energy projects

(RE projects) shall be of five years. The first year of the Control Period was FY 2013-

14.

2.4. The Provision to the said Regulation stipulates that the tariff determined for the RE

projects commissioned during the Control Period shall continue to be applicable for the

entire duration of the tariff Period as specified in Regulation 6 of the RE Tariff

Regulations, 2013 and amendments thereof.

Tariff Period

2.5. In terms of Regulation 6 of the RE Tariff Regulations 2013 and its subsequent

amendments, the tariff Period in respect of the RE projects is as under:


JKSERC Page 9

Table 8: Tariff Period for RE Projects

Renewable energy projects Tariff Period (in years)

Wind energy 13



Small hydro plant below 5 MW capacity 35

Small hydro plant - 5 MW upto 25 MW capacity 13


Biomass gasifier & Biogas 20



2.6. In terms of clauses (e) and (f) of the said Regulation, the tariff Period specified above

shall be reckoned from the date of commercial operation of the RE projects and the

tariff determined under the Regulations shall be applicable for the duration of the tariff

Period.

Tariff structure

2.7. Clause (1) of Regulation 9 of the RE Tariff Regulations, 2013 and amendments thereof

stipulates that the tariff for RE projects shall be single part tariff consisting of the

following fixed cost components:

a) Return on equity;

b) Interest on loan capital;

c) Depreciation;

d) Interest on working capital;

e) Operation and maintenance expenses;

2.8. For renewable energy technologies having fuel cost component, like biomass power

projects and non-fossil fuel based cogeneration, single part tariff with two components,

fixed cost component and fuel cost component, is to be determined.

Tariff design

2.9. In terms of Regulation 10 of the RE Tariff Regulations 2013 and amendments thereof,

the tariff design for renewable energy generating stations is as under:

"(1) The generic tariff shall be determined on levellised basis for the Tariff Period.

Provided that for renewable energy technologies having single part tariff with

two components, tariff shall be determined on levellised basis considering the

year of commissioning of the project for fixed cost component while the fuel cost

component shall be specified on year of operation basis.


JKSERC Page 10

(2) For the purpose of levellised tariff computation, the discount factor equivalent to

Post Tax weighted average cost of capital shall be considered.

(3) Levellisation shall be carried out for the ‘useful life’ of the Renewable Energy

project while Tariff shall be specified for the Period equivalent to ‘Tariff Period.”

2.10. Accordingly, levellised tariff is calculated by carrying out levellisation for ‘useful life’ of

each technology considering the discount factor for time value of money.

2.11. The discount factor considered for this purpose is equal to the post-tax weighted

average cost of the capital on the basis of normative debt: equity ratio (70:30) specified

in the RE Tariff Regulations, 2013. Considering the normative debt equity ratio and

weighted average of the post-tax rates for interest and equity component, the discount

factor is calculated.

2.12. Interest Rate considered for the loan component (i.e.70% of capital cost) is 13.05% (as

discussed in detail in para 2.58 of this Order). For equity component (i.e. 30% of capital

cost) rate of Return on Equity (ROE) is considered at post-tax ROE of 16%. Thus, the

discount factor derived by this method for all technology is 10.77% [{13.05% ×0.70×

(1 – 34.60%)} + {16.0% × 0.30}].

Generation norms

Capacity utilisation factor (CUF)/ Plant load factor (PLF)

2.13. Regulations 26, 30, 58 and 62 of the RE Tariff Regulations, 2013 and amendments

thereof, specify the norms for Capacity Utilization Factor (CUF) in respect of the Wind

Energy, Small Hydro, Solar PV and Solar Thermal based power generating stations as

per the details given in the table below which has been considered for determination of

tariff.

Table 9: Capacity utilisation factor for RE projects

Sl. No. Renewable energy projects CUF (%)

(A) Wind energy

i. Wind Zone 1 (annual Mean Wind Power Density upto 200 w/m2) 20%

ii. Wind Zone 2 (annual Mean Wind Power Density 201 - 250 w/m2) 22%

iii. Wind Zone 3 (annual Mean Wind Power Density 251 - 300 w/m2) 25%

iv. Wind Zone 4 (annual Mean Wind Power Density 301 - 400 w/m2) 30%

v. Wind Zone 5 (annual Mean Wind Power Density above 400 w/m2) 32%

(B) Small hydro plant 45%

(C) Solar PV power project 18%

(D) Solar thermal power project 23%


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2.14. Regulations 36, 49, 68, 78 and 33C of the RE Tariff Regulations 2013 and

amendments thereof, specify the plant load factor (PLF) for Biomass, Non-fossil fuel

based cogeneration, Biomass Gasifier, Biogas, Municipal Solid Waste and Refuse

Derived Fuel based renewable energy generating stations as given in the following

table which has been considered for determination of fixed charges component

of tariff.

Table 10: Plant Load factor for RE projects

Sl. No. Renewable energy projects PLF (%)

(A) Biomass based on rankine cycle technology project

i. During stabilization (first 6 months of operation) 60%

ii. During remaining Period of first year (i.e. after stabilization) 70%

iii. Second year onwards 80%

(B)

Non-fossil fuel based cogeneration power project

(based on plant availability for 210 operating days i.e. 150

crushing days and 60 off-season days and load factor of 92%)

53%

(C) Biomass gasifier based power project 85%

(D) Biogas based power project 90%

(E) Municipal Solid Waste




(F) Refuse Derived Fuel




Auxiliary consumption factor

2.15. The Regulations 31, 37, 50, 64, 69, 79 and 33D of the RE Tariff Regulations 2013

and amendments thereof stipulate the auxiliary power consumption factor as under

which has been considered for determination of tariff of the RE projects.

Table 11: Auxiliary consumption factor for RE projects

Sl. No. Renewable energy projects Auxiliary consumption

factor (%)

(A) Small hydro plant 1%

(B) (i) Biomass projects using water cooled condenser a) During first year of operation: 11%

b) From 2nd year onwards: 10%

(B) (ii) Biomass projects using air cooled condenser a) During first year of operation: 13%

b) From 2nd year onwards: 12%

(C) Non-fossil fuel based cogeneration power project 8.50%

(D) Solar thermal power project 10%

(E) Biomass gasifier based power project 10%

(F) Biogas based power project 12%

(G) Municipal Solid Waste 15%


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Sl. No. Renewable energy projects Auxiliary consumption

factor (%)

(H) Refuse Derived Fuel 15%

Determination of Capital cost

2.16. Regulation 12 of the RE Tariff Regulations, 2013 stipulates that the norms for the

capital cost as specified in the technology specific chapter shall be inclusive of all

capital works like plant and machinery, civil works, erection & commissioning,

financing & interest during construction, and evacuation infrastructure up to inter-

connection point.

2.17. The Commission has specified the normative capital cost, applicable for the first year

of Control Period i.e. FY 2013-14, for various RE technologies viz. Wind Energy,

Small Hydro Power, Biomass Power, Non-Fossil Fuel based Cogeneration, Solar PV,

Solar Thermal, Biomass Gasifier and Biogas based power projects.

2.18. In order to determine the normative capital cost for FY 2016-17, the Regulations

stipulate the indexation mechanism for Wind Energy, Small Hydro Power, Biomass

Power, Non-Fossil Fuel based Cogeneration, Biomass Gasifier and Biogas based power

projects. The indexation mechanism shall take into account adjustments in capital cost

with the changes in Wholesale Price Index of Steel and Wholesale Price Index of

Electrical Machinery as per formulation stipulated under the RE Tariff Regulations,

2013 and amendments thereof, which is reproduced below:

CC(n) = P&M(n)* (1+F1+F2+F3)

P&M(n) = P&M(0) * (1+d(n))

d(n) = [a*{(SI(n-1)/SI(0))– 1} + b*{(EI(n-1)/EI(0)) – 1}]/(a+b)

Where,

CC (n) = Capital Cost for nth year i.e. in this case for FY 2016-17

P&M (n) = Plant and Machinery Cost for nth year

P&M (0) = Plant and Machinery Cost for base year i.e. in this case for FY 2013-14

Note: P&M (0) is to be computed by dividing the base capital cost (for the first

year of the Control Period) by (1+F1+F2+F3). Factors F1, F2, F3 for each RE

technology has been specified separately, as summarized in following table.

d (n) = Capital Cost escalation factor for year (n) of Control Period


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SI (n-1) = Average WPI Steel Index prevalent for calendar year (n-1) of the Control

Period (2015)

SI (0) = Average WPI Steel Index prevalent for calendar year (0) at the beginning of

the Control Period (2012)

EI (n-1) = Average WPI Electrical Machinery Index prevalent for calendar year (n-1)

of the Control Period (2015)

EI(0) = Average WPI Electrical Machinery Index prevalent for calendar year (0)

at the beginning of the Control Period (2012)

a = Constant to be determined by Commission from time to time,(for weightage

to Steel Index)

b = Constant to be determined by Commission from time to time,(for weightage

to Electrical Machinery Index)

F1 = Factor for Land and Civil Works

F2 = Factor for Erection and Commissioning

F3 = Factor for IDC and Financing Cost

2.19. The default values of the factors for various RE technologies as stipulated under the

said Regulations, is summarized in the following table.

Table 12: Default value of constant parameters as per RE Tariff Regulations 2013

Constant

Parameters

Wind

energy

projects

Small

hydro

projects

Biomass based on rankine cycle technology,

non-fossil fuel based co-generation, Biomass

Gasifier and Biogas projects

a 0.6 0.6 0.7

b 0.4 0.4 0.3

F1 0.08 0.16 0.10

F2 0.07 0.10 0.09

F3 0.10 0.14 0.14

2.20. However, the Capital Cost norms for Solar PV, Solar Thermal Power Projects,

Municipal Solid Waste and Refuse Derived Fuel as determined in the RE Tariff

Regulations, 2013, and amendments thereof shall be reviewed on annual basis and have

been discussed in detail in following sub-section.

2.21. Technology specific capital cost of each type of RE projects is discussed here in under:


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(A) Capital cost for wind energy projects for FY 2016-17

2.22. Regulation 24 of the RE Tariff Regulations, 2013 and amendments thereof states that

the capital cost for wind energy project shall include wind turbine generator including

its auxiliaries, land cost, site development charges and other civil works, transportation

charges, evacuation cost up to inter-connection point, financing charges and IDC.

2.23. The Commission, under Regulation 24 (2), has specified the normative capital cost for

wind energy projects as Rs. 575.00 Lakh/ MW for FY 2013-14 which shall be linked

to the indexation mechanism specified under Regulation 25 of the above mentioned

Regulations. Thus, the normative capital cost of the wind energy projects shall be

Rs. 596.22 Lakh/ MW for FY 2016-17. The detailed computations of the indexation

mechanism and determination of the capital cost for wind energy projects for

FY 2016-17 thereof, has been enclosed as Appendix-1 of this Order.

(B) Capital cost for small hydro projects for FY 2016-17

2.24. Small Hydro Projects for the purpose of the RE Tariff Regulations, 2013 cover those

projects which are located at the sites approved by the State Nodal Agencies/ State

Governments using new plant and machinery and with installed power plant capacity

lower than or equal to 25 MW at single location.

2.25. It should be noted that tariff for existing small hydro projects i.e. projects commissioned

prior to notification of RE Tariff Regulations, 2013, with installed power plant capacity

lower than or equal to 25 MW at single location will be determined in accordance with

provisions of JKSERC (Hydro Generation Tariff) Regulations, 2011 and Notification

No. JKSERC/13/2011 dated April 20, 2011.

2.26. The Commission under Regulation 28 (1) of the RE Tariff Regulations 2013 has specified

the normative capital cost for small hydro projects for FY 2013-14 as summarised in

following table.

Table 13: Capital cost for small hydro projects for FY 2013-14

Project size Capital cost (Rs Lakhs/MW)

Below 5 MW 770.00

5 MW upto 25 MW 700.00

2.27. In line with the indexation mechanism specified under Regulation 29 of the RE Tariff

Regulations 2013, the normative capital cost for small hydro Projects for FY 2016-17 shall

be as under:

Table 14: Capital cost for small hydro projects for FY 2016-17

Project size Capital cost (Rs Lakhs/MW)

Below 5 MW 798.41

5 MW upto 25 MW 725.83


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2.28. The detailed computations of the indexation mechanism and determination of the capital

cost for small hydro projects for FY 2016-17 thereof, has been enclosed as Appendix-2

of this Order.

(C) Capital cost for biomass projects based on rankine cycle technology for FY 2016-17

2.29. Biomass power project for the purpose of these Regulations covers the projects using new

plant and machinery based on Rankine cycle technology and using biomass fuel sources,

provided use of fossil fuel is restricted only up to 15% of total fuel consumption on annual

basis.

2.30. The Commission, under Regulation 34 of the RE Tariff (First Amendment) Regulations,

has specified the normative capital cost for the biomass power projects based on Rankine

cycle technology for FY 2013-14 as under:

a) 540 lakh/MW for project [other than rice straw and Juliflora (plantation)

based project] with water cooled condenser;

b) 580 lakh/MW for Project [other than rice straw and Juliflora (plantation)

based project] with air cooled condenser;

c) 590 lakh/MW for rice straw and Juliflora (plantation) based project with water

cooled condenser;

d) 630 lakh/MW for rice straw and Juliflora (plantation) based project with air cooled

condenser.”

2.31. The normative capital cost for FY 2013-14 shall be linked to the indexation mechanism

specified under Regulation 35 of the RE Tariff Regulations, 2013 and amendments

thereof, to determine the capital cost for FY 2016-17. Thus, the normative capital cost of

biomass power projects based on Rankine cycle technology for FY 2016-17 shall be as

under:

Table 15: Capital cost for Biomass projects for FY 2016-17

Biomass Rankine Cycle Projects Capital cost (Rs Lakhs/MW)

Other than rice straw and Juliflora (plantation) based project with

water cooled condenser 559.05

Other than rice straw and Juliflora (plantation) based project with

air cooled condenser 600.46

For rice straw and Juliflora (plantation) based project with water

cooled condenser 610.82

For rice straw and Juliflora (plantation) based project with air

cooled condenser 652.23

2.32. The detailed calculations of the indexation mechanism and determination of the capital

cost for FY 2016-17 thereof, has been enclosed as Appendix -3 of this Order.


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(D) Capital cost for non-fossil fuel based cogeneration projects for FY 2016-17

2.33. Non-fossil based cogeneration has been defined as the process in which more than one

form of energy (such as steam and electricity) is produced in a sequential manner by use

of biomass. As per Regulation 4(d) of RE Tariff Regulations, 2013, for a project to qualify

as non-fossil based co-generation, project must be using new plant and machinery with

topping cycle mode of operation which uses non-fossil fuel input for power generation

and also utilizes the thermal energy generated for useful heat applications in other

industrial activities simultaneously, and where sum of useful power output and half useful

thermal output is greater than 45% of plant’s energy consumption during season.

2.34. The Commission under Regulation 47 has specified the normative capital cost for the Non-

Fossil Fuel Based Cogeneration Projects as Rs. 420 Lakh/MW for FY 2013-14 which

shall be linked to the indexation mechanism specified under Regulation 48 of the RE Tariff

Regulations, 2013. Thus, the normative capital cost of Non-Fossil Fuel based

Cogeneration power projects shall be Rs. 434.82 Lakh/MW for FY 2016-17. The detailed

computations of the indexation mechanism and determination of the capital cost for

FY 2016-17 thereof, has been enclosed as Appendix-4 of this Order.

(E) Capital cost for Solar PV based projects for FY 2016-17

2.35. Solar Photo Voltaic (PV) power projects which directly convert solar energy into

electricity using the crystalline silicon or thin film technology or any other technology as

approved by the Ministry of New and Renewable Energy (MNRE) and are connected to

the grid, qualify for purpose of tariff determination under RE Tariff Regulations 2013.

2.36. The Regulation 57 of the above-mentioned Regulations specifies the normative capital

cost for the Solar PV power projects as Rs. 1,000 Lakh/ MW for the FY 2013-14.

However, the Commission notes that with the decline in capital cost for Solar PV projects

owing to regulatory and technological developments, the normative capital cost specified

in the RE Tariff Regulations, 2013 is on a higher side. Further, the Regulation 5 of the

above mentioned Regulations, specify that the benchmark capital cost for Solar PV and

Solar thermal projects may be reviewed annually by the Commission.

2.37. The CERC has also taken similar recourse while determining the benchmark capital

cost for Solar PV projects. The CERC vide the CERC (RE Tariff Regulations), 2012

specified the benchmark capital cost norm for Solar PV projects for FY 2012-13 as

Rs. 1,000 Lakh/MW. Owing to decline in capital cost in the market for Solar PV

technology over the years, the CERC vide its Order dated 23rd March, 2016 has

determined the benchmark capital cost for Solar PV projects applicable during

FY 2016-17 as Rs 530.02 Lakh/MW.

2.38. Based on above, and in exercise of its powers under Regulation 5 of the RE Tariff

Regulations, 2013, and amendments thereof, the JKSERC also adopts the benchmark

capital cost for Solar PV power projects as Rs. 530.02 Lakh/MW for FY 2016-17.


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(F) Capital cost for Solar Thermal based projects for FY 2016-17

2.39. In order to qualify for tariff determination under the RE Tariff Regulations 2013 , Solar

Thermal Power Project shall be based on concentrated solar power technologies with line

focusing or point focusing as may be approved by the MNRE and which uses direct

sunlight to generate sufficient heat to operate a conventional power cycle to generate

electricity.

2.40. The Regulation 61 of the above-mentioned Regulations specifies the normative capital

cost for the Solar thermal power projects as Rs. 1300 Lakh/MW for the FY 2013-14.

However, the Commission notes that with the decline in capital cost for Solar PV and

Solar thermal projects owing to regulatory and technological developments, the normative

capital cost specified in the RE Tariff Regulations, 2013 is on the higher side. Further, the

Regulation 5 of the above mentioned Regulations, specify that the benchmark capital cost

for Solar PV and Solar thermal projects may be reviewed annually by the Commission.

2.41. The CERC vide its Order dated 23rd March , 2016 has determined the benchmark capital

cost for Solar thermal projects applicable during FY 2016-17 as Rs. 1,200 Lakh/ MW.

2.42. Based on above, and in exercise of its powers under Regulation 5 of the RE Tariff

Regulations, 2013, the JKSERC also adopts the benchmark capital cost for Solar thermal

power projects as Rs. 1,200 Lakh/MW for FY 2016-17.

(G) Capital cost for biomass gasifier based power projects for FY 2016-17

2.43. The Commission under Regulation 66 has specified that the normative capital cost

for the Biomass Gasifier power projects based on Rankine cycle shall be Rs 550.00

Lakh/MW for the FY 2013-14. The normative capital cost specified for FY 2013-14

shall be linked to the indexation mechanism specified under Regulation 67 of the

RE Tariff Regulations, 2013 and amendments thereof to determine normative

capital cost for FY 2016-17.

2.44. Accordingly, the normative capital cost of Biomass gasifier power projects shall be

Rs 569.41 Lakh/MW for FY 2016-17. After taking into account capital subsidy of

Rs 150.00 Lakh/MW, net project cost shall be Rs 419.41 Lakh/MW for the FY 2016-

17. The detailed computations of the indexation mechanism and determination of the

capital cost for FY 2016-17 thereof, has been enclosed as Appendix-5 of this Order.

(H) Capital cost for biogas based power projects for FY 2016-17

2.45. In order to qualify for tariff determination under the RE Tariff Regulations, 2013,

the project should use new plant and machinery, having grid connected system that

uses 100% Biogas fired engine, coupled with Biogas technology for co-digesting

agriculture residues, manure and other bio waste as may be approved by the MNRE.


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2.46. The Commission under Regulation 76 has specified that the normative capital cost

for the Biogas based power projects shall be Rs 1100.00 Lakh/MW for the

FY 2013-14. The normative capital cost specified for FY 2013-14 shall be linked to

the indexation mechanism specified under Regulation 77 of the RE Tariff

Regulations 2013 to determine normative capital cost for FY 2016-17.

2.47. Accordingly, the normative capital cost of Biogas based power projects shall be

Rs 1138.81 Lakh/MW for FY 2016-17. After taking into account the capital

subsidy of Rs 300.00 Lakh/MW, net project cost shall be Rs. 838.81 Lakh/MW for

the FY 2016-17. The detailed computations of the indexation mechanism and

determination of the capital cost for FY 2016-17 thereof, has been enclosed as

Appendix-6 of this Order.

(I) Capital cost for Municipal Solid Waste based power projects for FY 2016-17

2.48. Municipal Solid Waste power projects for the purpose of these Regulations covers

the projects using new plant and machinery based on Rankine cycle technology and

using Municipal solid waste as fuel sources.

2.49. The Commission under Regulation 33B of the RE Tariff (First Amendment)

Regulations, has specified that the normative capital cost for the Municipal Solid

Waste based power projects shall be Rs 1,500.00 Lakh/MW for the FY 2015-16.

Further, the capital cost norms for the remaining years of the control period, for

municipal solid waste and refuse derived fuel based power projects shall be

reviewed on annual basis.

2.50. Since, the aforesaid First Amendment to the RE Tariff Regulations, 2013, were

notified by the Commission on 22nd March, 2016, the Commission is of the opinion

that not much time has lapsed since the notification of the capital cost for FY 2015-

16 and therefore it is prudent to fix/ revise the capital cost of such projects once

more data is available with the Commission. Therefore, the Commission continues

with the same capital cost for FY 2016-17 as fixed for FY 2015-16 vide the First

Amendment to the RE Tariff Regulations, 2013. Accordingly, the normative capital

cost of Municipal Solid Waste based power projects shall be Rs 1,500.00 Lakh/MW

for FY 2016-17.

(J) Capital cost for Refuse Derived Fuel based power projects for FY 2016-17

2.51. Refuse Derived Fuel power projects for the purpose of these Regulations covers

the projects using new plant and machinery based on Rankine cycle technology and

using Refuse derived fuel as fuel sources.

2.52. The Commission, under Regulation 33 B of the RE Tariff (First Amendment)

Regulations has specified that the normative capital cost for the Refuse Derived

Fuel based power projects shall be Rs 900.00 Lakh/MW for the FY 2015-16.


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2.53. As mentioned in Para 2.50 above, the Commission finds it prudent to continue with

the same capital cost for FY 2016-17 as fixed for FY 2015-16 vide the First

Amendment to the RE Tariff Regulations, 2013. Accordingly, the normative capital

cost of Refuse Derived Fuel based power projects shall be Rs 900.00 Lakh/MW for

FY 2016-17.

2.54. The generic tariff is determined on the basis of normative capital cost without

considering capital subsidy except in case of biomass gasifier and biogas power

projects. However, in case capital subsidy is available, the same shall be considered

for determination of capital cost.

2.55. The normative capital cost in respect of the renewable energy power generating

stations, for FY 2016-17 is summarized as under:

Table 16: Normative capital cost for RE projects for FY 2016-17 (Rs Lakhs / MW)

Sl. No. Renewable energy project Normative Capital

Cost for FY 2016-17

1. Wind energy projects 596.22

2. Small hydro projects

a) Below 5 MW 798.41

b) 5 MW upto 25 MW 725.83

3. Biomass power projects

a) Other than rice straw and Juliflora (plantation)

based project with water cooled condenser 559.05

b) Other than rice straw and Juliflora (plantation)

based project with air cooled condenser 600.46

c) For rice straw and Juliflora (plantation) based

project with water cooled condenser 610.82

d) For rice straw and Juliflora (plantation) based

project with air cooled condenser 652.23

4. Non-fossil fuel based cogeneration power projects 434.82

5. Solar PV power projects 530.02

6. Solar thermal power projects 1200.00

7. Biomass gasifier power projects (after subsidy) 419.41

8. Biogas power projects (after subsidy) 838.81

9. Municipal Solid Waste 1500.00

10. Refuse Derived Fuel 900.00


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Determination of fixed cost components

Debt-Equity ratio

2.56. Sub-Regulation (1) of Regulation 13 of the RE Tariff Regulations, 2013 and

amendments thereof provides that the debt-equity ratio of 70:30 is to be considered

for determination of generic tariff based on suo-motu Petition. Accordingly, the debt

and equity components of the normative capital cost for determination of tariff for the

RE projects have been worked out as under:

Table 17: Debt-Equity component for RE projects for FY 2016-17

Sl. No. Renewable energy project Debt

(Rs Lakhs/MW)

Equity

(Rs Lakhs/MW)

1. Wind energy projects 417.35 178.86

2. Small hydro projects

a) Below 5 MW 558.89 239.52

b) 5 MW upto 25 MW 508.08 217.75

3. Biomass power projects

a) Other than rice straw and

Juliflora (plantation) based

project with water cooled

condenser

391.33 167.71

b) Other than rice straw and

Juliflora (plantation) based

project with air cooled

condenser

420.32 180.13

c) For rice straw and Juliflora

(plantation) based project

with water cooled condenser

427.57 183.24

d) For rice straw and Juliflora

(plantation) based project

with air cooled condenser

456.56 195.66

4. Non-fossil fuel based

cogeneration power projects 304.37 130.44

5. Solar PV power projects 371.01 159.01

6. Solar thermal power projects 840.00 360.00

7. Biomass gasifier power

projects 293.58 125.82

8. Biogas power projects 587.17 251.64

9. Municipal Solid Waste 1050.00 450.00

10. Refuse Derived Fuel 630.00 270.00

Return on equity

2.57. Sub-Regulation (1) of Regulation 16 of the RE Tariff Regulations, 2013 thereof

provides that the value base for the equity shall be 30% of the capital cost for generic

tariff determination. Sub-Regulation (2) of the said Regulation stipulates that the

normative return on equity (ROE) shall be as under:


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a) 18% per annum for the first 10 years; and

b) 22% per annum from the 11th year onwards.

Interest on loan capital

2.58. Sub-Regulation (1) of Regulation 14 of the RE Tariff Regulations, 2013 thereof

provides that the loan tenure is to be considered as 12 years for the purpose of

determination of generic tariff for RE projects. Sub-Regulation (2) of the said

Regulation provides for computation of the rate of interest on loan as under:

“(a) The loans arrived at in the manner indicated in the Regulation 13 shall be

considered as gross normative loan for calculation for interest on loan. The

normative loan outstanding as on April 1st of every year shall be worked out by

deducting the cumulative repayment up to March 31st of previous year from the

gross normative loan.

(b) For the purpose of computation of tariff, the normative interest rate shall be

considered as average Jammu and Kashmir Bank Base rate prevalent during

the first six months of the previous year plus 300 basis points.

(c) Notwithstanding any moratorium Period availed by the generating company, the

repayment of loan shall be considered from the first year of commercial

operation of the project and shall be equal to the annual depreciation allowed.”

2.59. The average Jammu and Kashmir Bank Base rate prevalent during the first six months

of the previous financial year FY 2015-16 considered for determination of tariff is

10.05%.

2.60. Accordingly, interest on loan capital has been computed by considering value base of

loan as 70% of the capital cost and the rate of interest as the weighted average of J&K

Bank Base rate prevalent during the first six months of the FY 2015-16 (i.e. 10.05%)

plus 300 basis points viz. 13.05%.

Depreciation

2.61. Regulation 15 of the RE Tariff Regulations, 2013 thereof provides for computation

of depreciation in the following manner:

“(1) The value base for the purpose of depreciation shall be the Capital Cost of the

asset admitted by the Commission. The Salvage value of the asset shall be

considered as 10% and depreciation shall be allowed up to maximum of 90% of

the Capital Cost of the asset.

(2) Depreciation per annum shall be based on ‘Differential Depreciation Approach'

over loan Period beyond loan tenure over useful life computed on ‘Straight Line

Method’. The depreciation rate for the first 12 years of the Tariff Period shall

be 5.83% per annum and the remaining depreciation shall be spread over the

remaining useful life of the project from 13th year onwards.


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(3) Depreciation shall be chargeable from the first year of commercial operation.

Provided that in case of commercial operation of the asset for part of the year,

depreciation shall be charged on pro rata basis”

2.62. In accordance with the above, the rate of depreciation for the first 12 years has been

considered as 5.83% and the rate of depreciation from the 13th year onwards has been

spread over the balance useful life of the RE project as summarised in following table.

Table 18: Applicable depreciation rates for RE projects

Details Wind Small

hydro Biomass*

Non-

fossil fuel

Solar

PV

Solar

thermal

Biomass

gasifier Biogas MSW RDF

Useful life

(in years) 25 35 20 20 25 25 20 20 20 20

Depreciation

rate for first

12 years (%)

5.83 5.83 5.83 5.83 5.83 5.83 5.83 5.83 5.83% 5.83%

Depreciation

rate after first

12 years (%)

1.54 0.87 2.50 2.50 1.54 1.54 2.50 2.50 2.51% 2.51%

Note*: The rate of depreciation is same for all the technologies of Biomass based power projects.

Interest on working capital

2.63. The working capital requirements for RE projects in accordance with Regulation 17 of

the RE Tariff Regulations, 2013 and amendments thereof has been summarised in

following table.

Table 19: Working capital requirement for RE projects

Particulars Wind/ Small hydro/

Solar PV/ Solar Thermal

Biomass/ Non-fossil fuel/

Biomass gasifier/

Biogas/RDF/MSW

Operation & maintenance (O&M) expenses 1 month 1 month

Receivables (equivalent to energy charges for

sale of electricity calculated on normative

CUF) 2 months 2 months*

Maintenance spares 15% of O&M 15% of O&M

Fuel costs (equivalent to normative PLF) N.A. 4 months

Note: *In case of Biomass/ non-fossil fuel/ Biomass gasifier/ biogas/ Municipal Solid Waste and Refuse Derived Fuel

based projects, receivables are estimated on the basis of fixed and variable charges for sale of electricity calculated on

the target PLF.

2.64. The rate of interest for computation of interest on working capital is considered in

accordance with the sub-Regulation (3) of Regulation 17 of the RE Tariff Regulation

2013, which provides as under:

“Interest on Working Capital shall be at interest rate equivalent to the average Jammu

and Kashmir Bank Base Rate prevalent during the first six months of the previous year

plus 350 basis points”


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2.65. The average Jammu and Kashmir Bank Base rate during the first six months of

FY 2015-16 considered for determination of tariff is 10.05%. Accordingly, rate of

interest for computation of interest on working capital requirements works out to

13.55% (i.e. 10.05% plus 350 basis points) for all the RE technologies.

Operation and maintenance (O&M) expenses

2.66. Regulation 18 of the RE Tariff Regulations, 2013 and amendments thereof provides for

O&M expenses in respect of RE projects as under:

“(1) ‘Operation and Maintenance or O&M expenses’ shall comprise repair and

maintenance (R&M), establishment including employee expenses and administrative

& general expenses.

(2) Operation and maintenance expenses shall be determined for the Tariff Period based

on normative O&M expenses specified by the Commission subsequently in these

Regulations for the first Year of Control Period.

(3) Normative O&M expenses allowed during first year of the Control Period

(i.e. FY 2013-14) under these Regulations shall be escalated at the rate of 5.72% per

annum over the Tariff Period.”

2.67. The normative O&M expenses for various RE technologies specified under the

relevant provisions of the RE Tariff Regulations, 2013 and amendments thereof have

been summarised as under:

a) Wind Energy: Regulation 27 of RE Tariff Regulations, 2013 provides that the

normative O&M expenses for FY 2013-14 as Rs. 9 lakh/ MW and shall be escalated

at the rate of 5.72% per annum over the tariff Period for determination of the

levellised tariff. Accordingly, the Commission has considered O&M cost norm for

wind energy as Rs 10.63 Lakh/MW for FY 2016-17.

b) Small Hydro: Regulation 32 of RE Tariff Regulations 2013 provided for the

normative O&M expenses for small hydro projects for the FY 2013-14 which shall

be escalated at the rate of 5.72% per annum over the tariff Period for determination

of the levellised tariff. The table below presents the normative O&M Expenses

considered by the Commission for small hydro projects for FY 2013-14:

Table 20: O&M cost for small hydro projects for FY 2013-14

Project size O&M cost (Rs Lakhs/MW)

Below 5 MW 25.00

5 MW upto 25 MW 18.00

Based on escalation rate of 5.72% p.a., the normative O&M Expenses considered

by Commission for small hydro projects for FY 2016-17:


JKSERC Page 24

Table 21: O&M cost for small hydro projects for FY 2016-17

Project size O&M cost (Rs Lakhs/MW)

Below 5 MW 29.54

5 MW upto 25 MW 21.27

c) Biomass: Regulation 39 of RE Tariff (First Amendment) Regulations provides that

the normative O&M expenses for biomass based projects for the FY 2013-14 shall

be Rs 40 Lakh/ MW, which shall be escalated at the rate of 5.72% per annum over

the tariff Period for determination of the levellised tariff. Accordingly, the

Commission has considered O&M cost norm for biomass based power projects as

Rs. 47.26 Lakh/MW for FY 2016-17.

d) Non-fossil fuel based co-generation: As per Regulation 55 of RE Tariff

Regulations, 2013, the normative O&M Expenses for non-fossil fuel based co-

generation projects for the FY 2013-14 has been specified as Rs. 16 Lakh/ MW

which shall be escalated at the rate of 5.72% per annum over the tariff Period for

determination of the levellised tariff. Accordingly, the Commission has considered

O&M cost norm for non-fossil fuel based co-generation as Rs. 18.91 Lakh/MW for

FY 2016-17.

e) Solar PV: Regulation 63 of RE Tariff (Second Amendment) Regulations provides

that the normative O&M expenses for the last two years of the Control Period (i.e.

FY 2016-17 and FY 2017-18) shall be 1.5% of the capital cost. Accordingly, O&M

expense norm for solar PV power project has been considered as Rs. 7.95 Lakh/

MW for FY 2016-17 based on the capital cost of Rs 530.02 Lakhs/ MW for

FY 2016-17.

f) Solar Thermal: Regulation 63 of RE Tariff Regulations provides that the

normative O&M expenses for solar thermal projects for the FY 2013-14 shall be

Rs 15 Lakh per MW which shall be escalated at the rate of 5.72% per annum over

the tariff Period for determination of the levellised tariff. Accordingly, O&M

expense norm for solar thermal power project has been considered as Rs. 17.72

Lakh/ MW for FY 2016-17.

g) Biomass Gasifier: Regulation 71 of the RE Tariff Regulations, 2013, specified the

normative O&M expenses for biomass gasifier based power projects shall be

Rs. 40 Lakh/ MW for the FY 2013-14, which shall be escalated at the rate of 5.72%

per annum over the tariff Period for determination of the levellised tariff.

Accordingly, the Commission has considered O&M cost norm for biomass gasifier

based power plant as Rs. 47.26 Lakh/ MW for FY 2016-17.

h) Biogas: Regulation 80 of the RE Tariff Regulations 2013 specified the normative

O&M expenses for biogas based power projects shall be Rs. 40 Lakh/MW for the

FY 2013-14, which shall be escalated at the rate of 5.72% per annum over the tariff

Period for determination of the levellised tariff. Accordingly, the Commission has

considered O&M cost norm for biogas based power plant as Rs. 47.26 Lakh/ MW for

FY 2016-17.


JKSERC Page 25

i) Municipal Solid Waste: Regulation 33F of the RE Tariff Regulations, 2013, and

amendments thereof specified the normative O&M expenses for municipal solid

waste based power projects as 6% of the normative capital cost which shall be

escalated at the rate of 5.72% per annum. Accordingly, the Commission has

considered O&M cost norm for Municipal Solid Waste based power plant as

Rs 90.00 Lakh/ MW for FY 2016-17.

j) Refuse Derived Fuel: Regulation 33F of the RE Tariff Regulations 2013 and

amendments thereof specified the normative O&M expenses for refuse derived fuel

based power projects as 6% of the normative capital cost which shall be escalated

at the rate of 5.72% per annum. Accordingly, the Commission has considered O&M

cost norm for refuse derived fuel based power plant as Rs 54.00 Lakh/MW for

FY 2016-17.

2.68. The normative O&M expenses have been worked out as specified above for

determination of generic levellised tariff for the renewable energy generating stations.

Determination of fuel cost components

Station heat rate (SHR)

2.69. The Regulations 38, 51 and 33E of the RE Tariff Regulations, 2013, and amendments

thereof specify the SHR for biomass and non-fossil fuel based co-generation projects as

under:

Table 22: SHR for RE Projects

RE Project SHR (kCal/kWh)

Biomass power projects

a) 4126: for projects using travelling grate

boilers;

b) 4063: for projects using AFBC boilers;

Non-fossil fuel based

cogeneration power projects 3600



Fuel mix

2.70. Sub-Regulation (1) of Regulation 40 and 72 of the RE Tariff Regulations, 2013, stipulates

that the Biomass and Biomass gasifier based power generating stations are to be designed

in a way that it uses different types of non-fossil fuels available within the vicinity of

biomass power project such as crop residues, agro-industrial residues, forest residues etc.

and other biomass fuels as may be approved by the MNRE.

2.71. Further, the biomass and biomass gasifier based power generating companies are to ensure

adequate availability of fuel to meet the respective project requirements.


JKSERC Page 26

2.72. In addition to above, Regulation 70 of the RE Tariff Regulations, 2013 stipulates that the

normative specific fuel consumption shall be 1.25 kg per kWh for Biomass Gasifier based

power generating stations, while the Regulation 81 of the RE Tariff Regulations, 2013

stipulates that the normative specific fuel consumption shall be 3 kg of substrate mix per

kWh for Biogas based power generating stations.

Use of fossil fuel

2.73. In case of biomass based projects, as per Regulation 41 of the RE Tariff Regulations, 2013

and amendments thereof, the use of fossil fuel is to be limited to the extent of 15% in terms

of calorific value on annual basis and Regulation 42 of the RE Tariff Regulations, 2013

provides the mechanism for monitoring the use of fossil fuel for these projects.

Gross Calorific value

2.74. Regulation 43 of the RE Tariff (First Amendment) Regulations, provides that the gross

calorific value of biomass fuel used for determination of tariff shall be 3,174 kCal/kg.

2.75. Further, Regulation 52 of the RE Tariff Regulations, 2013 provides that the gross

calorific value for bagasse to be considered in case of non-fossil fuel co-generation

projects shall be 2250 kCal/kg and for the use of biomass fuels other than bagasse, the

calorific value as specified above shall be applicable.

2.76. Also, Regulation 33G of the RE Tariff (First Amendment) Regulations provides that

the calorific value used for determination of tariff for refuse derived fuel shall be Rs.

2,500 kcal/kg.

Fuel cost

A) Biomass power project

2.77. The Commission, in terms of Regulation 44 of the RE Tariff Regulations, 2013, has

specified the biomass fuel price applicable during FY 2013-14 as Rs. 2,500 per tonne

and has specified fuel price indexation mechanism, in case developer wishes to opt, for

the remaining years of the Control Period.

2.78. The data for price of diesel and WPI, as per Regulations, latest figures for April, 2015

and April, 2014 corresponding to nth and (n-1)th year has been considered while

calculating the fuel price indexation for biomass and non-fossil fuel based co-

generation power projects.

2.79. The detailed computations of the fuel price indexation mechanism and the

determination of the biomass fuel price for FY 2016-17 thereof, has been enclosed as

Appendix-7 of this Order. Accordingly, the biomass fuel price applicable for

FY 2016-17 is computed as Rs. 2,833 per tonne.

B) Non-fossil fuel based cogeneration projects


JKSERC Page 27


specified the price of bagasse applicable during FY 2013-14 for non-fossil fuel based

cogeneration projects as Rs. 1,600 per tonne and has specified fuel price indexation

mechanism, in case developer wishes to opt, for the remaining years of the Control

Period.


determination of the bagasse fuel prices for FY 2016-17 thereof, has been enclosed as

Appendix-8 of this Order. Accordingly, the price of bagasse (for non-fossil fuel based

co-generation projects) applicable for FY 2016-17 shall be Rs. 1,813 per tonne.

C) Biomass gasifier projects


specified the biomass fuel price during first year of the Control Period i.e. FY 2013-14

as Rs 2,500 per tonne and has specified fuel price indexation mechanism for the

Biomass Gasifier project developer. Accordingly, the biomass fuel price for the

Biomass gasifier based power project applicable for FY 2016-17 shall be the same as

for the biomass based power project (Rankine cycle) i.e. Rs. 2,833 per tonne.


determination of the biomass fuel prices for FY 2016-17 thereof, has been enclosed as

Appendix-7 of this Order.

D) Biogas projects


specified the feed stock price during first year of the Control Period i.e. FY 2013-14 at

Rs. 990/MT (net of any cost recovery from digester effluent) and has specified fuel

price indexation mechanism for the biogas project developer.


determination of the fuel prices for FY 2016-17 thereof, has been enclosed as

Appendix-9 of this Order. The price of fuel applicable for the biogas based power

plant for FY 2016-17 shall be at Rs 1,122/ MT (net of any cost recovery from digester

effluent).

2.86. In case of biomass projects, non-fossil fuel based co-generation projects, Biomass

Gasifier based projects and Biogas based power projects, variable component of tariff

is calculated based on the fuel cost for FY 2016-17. This variable component will

change every year based on whether a Renewable Energy project developer opts for

fuel price indexation or escalation factor of 5% p.a. Hence, while calculating the total

applicable tariff for biomass projects, non-fossil fuel based co-generation projects,

biomass gasifier based power projects and Biogas based power projects, levellisation

of only fixed component is considered and the variable component for the first year of

operation (i.e. FY 2016-17) is specified.

E) Refuse Derived Fuel based Projects


JKSERC Page 28

2.87. The Commission, in terms of Regulation 33H of the RE Tariff (First Amendment)

Regulations has specified the refuse derived fuel price during. FY 2015-16 at

Rs. 1,800/MT and specified that 5% escalation factor for each year of the tariff period

shall be applicable at the option of the refuse derived fuel project developer.

Subsidy or incentive by the Central / State Government

2.88. Regulation 22 of the RE Tariff Regulations, 2013, provides as under:

“The Commission shall take into consideration any incentive or subsidy offered by the

Central or State Government, including accelerated depreciation benefit if availed by

the generating company, for the renewable energy power plants while determining the

tariff under these Regulations.

Provided that the following principles shall be considered for ascertaining income tax

benefit on account of accelerated depreciation, if availed, for the purpose of tariff

determination:

i) Assessment of benefit shall be based on normative capital cost, accelerated

depreciation rate as per relevant provisions under Income Tax Act and corporate

income tax rate.

ii) Capitalization of RE projects during second half of the fiscal year. Per unit benefit

shall be derived on levellised basis at discount factor equivalent to Post Tax

weighted average cost of capital.”

2.89. In terms of the above regulation, for the projects availing the benefit of accelerated

depreciation as per applicable Income tax rate @ 34.60% has been considered. For the

purpose of determining net depreciation benefits, depreciation @ 5.28% as per straight

line method (Book depreciation as per Companies Act, 1956) has been compared with

depreciation as per Income Tax rate i.e. 80% of the written down value method (except

for Wind energy generator, as per Income-tax (Fourth Amendment Rules), 2012,

depreciation is now restricted to 15% on wind mills installed after 31-3-2012),

Notification No. 15/2012 [F.No.149/21/2010-SO(TPL)] S.O.694(E), dated 30-3-2012).

Moreover, additional 20% depreciation in the initial year is proposed to be extended to

new assets acquired by power generation companies vide amendment in the section 32,

sub-section (1) clause (iia) of the Income Tax Act.

2.90. Depreciation for the first year has been calculated at the rate of 50% of accelerated

depreciation of 80% and 50% of additional depreciation 20% (as project is capitalized

during the second half of the financial year as per proviso (ii) to Regulation 22). Income

tax benefits of accelerated depreciation and additional depreciation, has been worked

out as per normal tax rate on the net depreciation benefit. Per unit levellised accelerated

depreciation benefit has been computed considering the post-tax weighted average cost

of capital as discount factor.

2.91. Further, the MNRE also provides financial assistance/ support to setup new Small

Hydro Power (SHP) projects upto 25 MW capacity as indicated in the following table:


JKSERC Page 29

Table 23: Quantum of Financial Support to be provided by MNRE for SHP projects

Sector Financial Support ( Above 0.1 MW to 25 MW)

Private, Co-operative, Joint Sector Rs 1.5 Cr/MW limited to Rs 5.00 Cr per project

Government, State Sector Rs 7.5 Cr/MW limited to Rs 20.00 Cr per project

2.92. The Commission has determined the generic levellised tariff for small hydro projects

after considering the MNRE subsidy for capacities ranging from 1 MW to 25 MW as

enclosed in Annexure 2C (for private/co-operative/joint sector) and Annexure 2D (for

government/state sector) of this Order. The project developer is directed to approach

the Commission for a project specific tariff, if the plant capacity is different than those

mentioned in Annexure 2C and 2D and the developer wishes to avail the MNRE

subsidy.

2.93. Also, as highlighted in Para 2.44 and 2.47 above, The Commission has determined

the generic tariff for biomass gasifier and biogas projects after considering the

capital subsidy.

2.94. In the light of the discussion made in the preceding paragraphs, the generic tariffs of

the RE projects for the financial year 2016-17 have been summarised in the following

tables:

Table 24: Generic Levellised tariff for RE technologies without fuel component, approved for FY 2016-17

Rs/ kWh)

Particulars Levellised Total

Tariff

Benefit of Accelerated

Depreciation

(if availed)

Net Levellised Tariff

(upon adjusting for

Accelerated

Depreciation

benefit) (if availed)

WIND ENERGY

Wind Zone -1 (CUF 20%) 6.17 0.36 5.81

Wind Zone -2 (CUF 22%) 5.61 0.33 5.28

Wind Zone -3 (CUF 25%) 4.94 0.29 4.65

Wind Zone -4 (CUF 30%) 4.11 0.24 3.87

Wind Zone -5 (CUF 32%) 3.86 0.22 3.64

SMALL HYDRO




Solar PV 5.62 0.64 4.98

Solar Thermal 11.66 1.32 10.34

MUNICIPAL SOLID WASTE 6.87 0.58 6.29


JKSERC Page 30

Table 25: Generic tariff for RE technologies with fuel component, approved for FY 2016-17 (Rs/ kWh)


fixed cost

Variable

cost

Applicable

Tariff

Benefit of

Accelerated

Depreciation

(if availed)

Net Levellised

Tariff

(upon

adjusting for

Accelerated

Depreciation

benefit,

if availed)




3.06 4.10 7.16 0.21 6.95




3.24 4.19 7.43 0.23 7.20



AFBC boiler)

3.05 4.03 7.08 0.21 6.89



AFBC boiler)

3.23 4.13 7.36 0.23 7.13



condenser and using Travelling Grate boiler)

2.92 4.10 7.02 0.19 6.83



and using Travelling Grate boiler)

3.10 4.19 7.29 0.21 7.08



condenser and using AFBC boiler)

2.92 4.03 6.95 0.19 6.76



and using AFBC boiler)

3.10 4.13 7.23 0.21 7.02

NON FOSSIL FUEL BASED COGENERATION 2.53 3.17 5.70 0.22 5.48

BIOMASS GASIFIER 2.44 5.04 7.48 0.13 7.35

BIOGAS 3.11 2.04 5.15 0.35 4.80

REFUSE DERIVED FUEL 4.16 3.74 7.90 0.33 7.57

2.95. The comparison of generic tariff of the RE projects approved for FY 2014-15, FY

2015-16 and FY 2016-17 has been summarized and enclosed as Annexure C

2.96. The detailed computations for the generic tariff for various RE technologies have been

enclosed as Annexures as per the details given hereunder:

Sl. No. Renewable Energy Projects Annexures

1. Wind Power Projects

Wind Zone – I Annexure 1A

Wind Zone – II Annexure 1B

Wind Zone – III Annexure 1C

Wind Zone – IV Annexure 1D

Wind Zone - V Annexure 1E

2. Small Hydro Power Projects


JKSERC Page 31


Without MNRE subsidy

Capacity below 5 MW Annexure 2A

Capacity 5 MW upto 25 MW Annexure 2B

With MNRE subsidy

Capacity 1 MW to 25 MW (for Private/Co-operative/

Joint Sector) Annexure 2C

Capacity 1 MW to 25 MW (for Government/State

sector) Annexure 2D

3. Biomass Power Projects

Rice straw and Juliflora (plantation) based project with water

cooled condenser and using Travelling Grate boiler Annexure 3A

Rice straw and Juliflora (plantation) based project with air

cooled condenser and using Travelling Grate boiler Annexure 3B


cooled condenser and using AFBC boiler Annexure 3C


cooled condenser and using AFBC boiler Annexure 3D

Other than Rice straw and Juliflora (plantation) based project

with water cooled condenser and using Travelling Grate

boiler

Annexure 3E


with air cooled condenser and using Travelling Grate boiler Annexure 3F


with water cooled condenser and using AFBC boiler Annexure 3G


with air cooled condenser and using AFBC boiler Annexure 3H

4. Non-fossil fuel based cogeneration Power Projects Annexure 4

5. Solar PV Power Projects Annexure 5

6. Solar Thermal Power Projects Annexure 6

7. Biomass Gasifier Power Projects Annexure 7

8. Biogas Power Projects Annexure 8

9 Municipal Solid Waste Annexure 9

10 Refuse Derived Fuel Annexure 10


JKSERC Page 32

Appendix-1

Capital cost for wind energy project (FY 2016-17)

Indexation Formulation:

CC (n) = P&M (n) * [1 + F1 + F2 + F3]

P&M (n) = P&M(0)*(1+ d (n))

P&M (0) = CC (0) / [1 + F1 + F2 + F3]

d (n) = (a *(SI(n-1)/SI(0))-1) +b* (EI(n-1)/EI(0))-1)) / (a+b)

Variable Description Value

a Weightage for Steel Index 0.60

b Weightage for Electrical Machinery Index 0.40

F1 Factor for Land and Civil Work 0.08

F2 Factor for Erection and Commissioning 0.07

F3 Factor for IDC and Financing 0.10

Month Electrical Machinery Steel

2015 2012 2015 2012

January 139.00 130.90 129.40 126.20

February 139.00 130.90 130.10 126.20

March 138.20 130.90 130.10 126.20

April 137.90 130.70 130.10 126.20

May 137.90 131.20 130.10 126.20

June 138.20 132.20 130.10 126.20

July 138.30 133.00 130.10 126.20

August 138.40 133.20 130.10 126.20

September 138.40 133.10 130.10 126.20

October 138.30 133.10 130.10 126.20

November 138.30 133.60 130.10 126.20

December 138.40 133.60 130.10 126.20

Average 138.36 132.20 130.04 126.20

Source: Office of Economic Advisor, Ministry of Commerce and Industry (www.eaindustry.nic.in)

Description Parameters Value

Capital Cost for the Base Year i.e. FY 2013-14 (Rs Lakh/MW) CC(0) 575.000

Plant & Machinery Cost for the Base Year i.e. for FY 2013-14 (Rs Lakh/MW) P&M(0) 460.000

Capital Cost escalation Factor (%) d(n) (%) 3.690%

Plant & Machinery Cost for the nth Year i.e. FY 2016-17 (Rs Lakh/MW) P&M(n) 476.97

Capital Cost for the nth Year i.e. FY 2016-17 (Rs Lakh/MW) CC(n) 596.22

http://www.eaindustry.nic.in/


JKSERC Page 33

Appendix-2

Capital cost for small hydro project (FY 2016-17)


CC( n ) = P&M (n) * [1 + F1 + F2 + F3]

P&M(n) = P&M(0)*(1+ d (n))

P&M(0) = CC (0) / [1 + F1 + F2 + F3]

d (n) = (a * (SI(n-1)/SI(0))-1) +b* (EI(n-1)/EI(0))-1)) / (a+b)








2015 2012 2015 2012

January 139.00 130.90 129.40 126.20

February 139.00 130.90 130.10 126.20

March 138.20 130.90 130.10 126.20

April 137.90 130.70 130.10 126.20

May 137.90 131.20 130.10 126.20

June 138.20 132.20 130.10 126.20

July 138.30 133.00 130.10 126.20

August 138.40 133.20 130.10 126.20

September 138.40 133.10 130.10 126.20

October 138.30 133.10 130.10 126.20

November 138.30 133.60 130.10 126.20

December 138.40 133.60 130.10 126.20

Average 138.36 132.20 130.04 126.20


Description Parameters SHP

(<5MW)

SHP

(5-25 MW)

Capital Cost for the Base Year i.e. FY 2013-14 (Rs Lakh/MW) CC(0) 770.000 700.000

P&M Cost for the Base Year i.e. for FY 2013-14 (Rs Lakh/MW) P&M(0) 550.000 500.000

Capital Cost escalation Factor (%) d(n) (%) 3.690% 3.690%

P&M Cost for the nth Year i.e. FY 2016-17 (Rs Lakh/MW) P&M(n) 570.29 518.45

Capital Cost for the nth Year i.e. FY 2016-17 (Rs Lakh/MW) CC(n) 798.41 725.83



JKSERC Page 34

Appendix-3

Capital cost for biomass based project (FY 2016-17)


CC( n ) = P&M (n) * [1 + F1 + F2 + F3]

P&M(n) = P&M(0)*(1+ d (n))

P&M(0) = CC (0) / [1 + F1 + F2 + F3]









2015 2012 2015 2012

January 139.00 130.90 129.40 126.20

February 139.00 130.90 130.10 126.20

March 138.20 130.90 130.10 126.20

April 137.90 130.70 130.10 126.20

May 137.90 131.20 130.10 126.20

June 138.20 132.20 130.10 126.20

July 138.30 133.00 130.10 126.20

August 138.40 133.20 130.10 126.20

September 138.40 133.10 130.10 126.20

October 138.30 133.10 130.10 126.20

November 138.30 133.60 130.10 126.20

December 138.40 133.60 130.10 126.20

Average 138.36 132.20 130.04 126.20


Description Parameters a* b* c* d*

Capital Cost for the Base Year i.e. FY 2013-14

(Rs Lakh/MW) CC(0) 540.00 580.00 590.00 630.00

Plant & Machinery Cost for the Base Year i.e. for

FY 2013-14 (Rs Lakh/MW) P&M(0) 406.015 436.09 443.609 473.684

Capital Cost escalation Factor (%) d(n) (%) 3.528% 3.528% 3.528% 3.528%

Plant & Machinery Cost for the nth Year i.e. FY 2016-

17 (Rs Lakh/MW) P&M(n) 420.341 451.477 459.261 490.398



JKSERC Page 35

Description Parameters a* b* c* d*

Capital Cost for the nth Year i.e. FY 2016-17

(Rs Lakh/MW) CC(n) 559.053 600.465 610.817 652.229

a* Project [other than rice straw and juliflora (plantation) based project] with water cooled condenser;

b* Project [other than rice straw and Juliflora (plantation) based project] with air cooled condenser;

c* For rice straw and juliflora (plantation) based project with water cooled condenser;

d* For rice straw and juliflora (plantation) based project with air cooled condenser.


JKSERC Page 36

Appendix-4

Capital cost for non-fossil fuel cogeneration projects (FY 2016-17)


CC( n ) = P&M (n) * [1 + F1 + F2 + F3]

P&M(n) = P&M(0)*(1+ d (n))

P&M(0) = CC (0) / [1 + F1 + F2 + F3]

d(n) = (a * (SI(n-1)/SI(0))-1) +b* (EI(n-1)/EI(0))-1)) / (a+b)








2015 2012 2015 2012

January 139.00 130.90 129.40 126.20

February 139.00 130.90 130.10 126.20

March 138.20 130.90 130.10 126.20

April 137.90 130.70 130.10 126.20

May 137.90 131.20 130.10 126.20

June 138.20 132.20 130.10 126.20

July 138.30 133.00 130.10 126.20

August 138.40 133.20 130.10 126.20

September 138.40 133.10 130.10 126.20

October 138.30 133.10 130.10 126.20

November 138.30 133.60 130.10 126.20

December 138.40 133.60 130.10 126.20

Average 138.36 132.20 130.04 126.20







Capital Cost for the nth Year i.e. FY 2016-17 (Rs Lakh/MW) CC(n) 434.819



JKSERC Page 37

Appendix-5

Capital cost for biomass gasifier based power projects (FY 2016-17)


CC( n ) = P&M (n) * [1 + F1 + F2 + F3]

P&M(n) = P&M(0)*(1+ d (n))

P&M(0) = CC (0) / [1 + F1 + F2 + F3]









2015 2012 2015 2012

January 139.00 130.90 129.40 126.20

February 139.00 130.90 130.10 126.20

March 138.20 130.90 130.10 126.20

April 137.90 130.70 130.10 126.20

May 137.90 131.20 130.10 126.20

June 138.20 132.20 130.10 126.20

July 138.30 133.00 130.10 126.20

August 138.40 133.20 130.10 126.20

September 138.40 133.10 130.10 126.20

October 138.30 133.10 130.10 126.20

November 138.30 133.60 130.10 126.20

December 138.40 133.60 130.10 126.20

Average 138.36 132.20 130.04 126.20







Capital Cost for the nth Year i.e. FY 2016-17 (Rs Lakh/MW) (excluding

subsidy) *

CC(n) 569.406*

*Biomass gasifier based projects are eligible for capital subsidy of Rs 150 Lakhs/MW as stated in para 2.44 of

this Order.



JKSERC Page 38

Appendix-6

Capital cost for biogas based power projects (FY 2016-17)


CC( n ) = P&M (n) * [1 + F1 + F2 + F3]

P&M(n) = P&M(0)*(1+ d (n))

P&M(0) = CC (0) / [1 + F1 + F2 + F3]









2015 2012 2015 2012

January 139.00 130.90 129.40 126.20

February 139.00 130.90 130.10 126.20

March 138.20 130.90 130.10 126.20

April 137.90 130.70 130.10 126.20

May 137.90 131.20 130.10 126.20

June 138.20 132.20 130.10 126.20

July 138.30 133.00 130.10 126.20

August 138.40 133.20 130.10 126.20

September 138.40 133.10 130.10 126.20

October 138.30 133.10 130.10 126.20

November 138.30 133.60 130.10 126.20

December 138.40 133.60 130.10 126.20

Average 138.36 132.20 130.04 126.20







Capital Cost for the nth Year i.e. FY 2017-17 (Rs Lakh/MW) (excluding

subsidy)*

CC(n) 1138.812*

*Biogas based projects are eligible for capital subsidy of Rs 300 Lakhs/MW as stated in para 2.472.46 of this

Order.



JKSERC Page 39

Appendix-7

Biomass fuel price (FY 2016-17)

(As per fuel price Index Mechanism outlined under Regulation 45 & 74

and the availability of required information)

Fuel Price Indexation Formulation:

P(n) = P(n-1)*{a*(WPI(n)/WPI(n-1)+b*(1+IRC(n-1)+c*(Pd(n)/Pd(n-1))}

Description Parameter Value

Wholesale Price Index for all commodities for month of April 2014* WPI n-1 180.800

Wholesale Price Index for all commodities for month of April 2015* WPI n 176.400

Average Annual Inflation Rate for Indexed Energy Charge Component

for (n-1) i.e. FY 2015-16 ** IRC n-1 -1.91%

Price/Ton for HSD for (n-1)th (2014) year* Pdn-1 231.518

Price/Ton for HSD for (n)th (2015) year* Pd n 191.145

Factor Representing Fuel Handling Cost a 0.20

Factor Representing Fuel Cost b 0.60

Factor Representing Transportation Cost c 0.20

Biomass fuel price for FY 2015-16 (Rs/MT) P n-1 2,986

Biomass Fuel Price for FY 2016-17 (Rs/MT) P n 2,833

Sources: *Office of Economic Advisor, Ministry of Commerce and Industry (www.eaindustry.nic.in);

**CERC Order for determination of Annual Inflation Rate for Indexed Energy charge component for ‘payment

purpose’ of Competitive bidding guidelines for FY 2015-16 (www.cercind.gov.in)

Notes:

1. The calculation of WPI (n) and WPI (n-1) is based on the figures available on April 2015

and April 2016 respectively.

2. The calculation of Pd (n) is based on the weighted average of the WPI (Price of HSD)

figures available for the months from January 2015 to December 2015 and the calculation

of Pd (n-1) is based on the weighted average of the WPI (Price of HSD) figures available

for the months from January 2014 to December 2014, as shown below.

Month 2015 2014

Jan 200.700 226.600

Feb 188.400 228.600

Mar 203.200 231.200

Apr 195.600 230.100

May 209.600 232.300

Jun 212.000 235.200

Jul 200.800 238.800


http://www.cercind.gov.in/


JKSERC Page 40

Month 2015 2014

Aug 179.400 240.400

Sep 174.000 242.000

Oct 176.500 239.200

Nov 181.400 218.100

Dec 181.700 210.800

Average Pd (n): 191.146 Pd (n-1): 231.518


JKSERC Page 41

Appendix-8

Bagasse price (FY 2016-17)

(As per fuel price Index Mechanism outlined under Regulation 54








for (n-1) i.e. FY 2015-16 ** IRC n-1 -1.91%






Bagasse fuel price for FY 2015-16 (Rs/MT) P n-1 1,991

Bagasse Fuel Price for FY 2016-17 (Rs/MT) P n 1,813

Sources: * Office of Economic Advisor, Ministry of Commerce and Industry (www.eaindustry.nic.in);



Notes:







Month 2015 2014

Jan 200.700 226.600

Feb 188.400 228.600

Mar 203.200 231.200

Apr 195.600 230.100

May 209.600 232.300

Jun 212.000 235.200

Jul 200.800 238.800




JKSERC Page 42

Month 2015 2014

Aug 179.400 240.400

Sep 174.000 242.000

Oct 176.500 239.200

Nov 181.400 218.100

Dec 181.700 210.800

Average Pd (n): 191.146 Pd (n-1): 231.518


JKSERC Page 43

Appendix-9

Biogas price (FY 2016-17)

(As per fuel price Index Mechanism outlined under Regulation 83








for (n-1) i.e. FY 2015-16 ** IRC n-1 -1.91%






Biogas fuel price for FY 2015-16 (Rs/MT) P n-1 1,182

Biogas Fuel Price for FY 2016-17 (Rs/MT) P n 1,122

Sources: *Office of Economic Advisor, Ministry of Commerce and Industry (www.eaindustry.nic.in);



Notes:







Month 2015 2014

Jan 200.700 226.600

Feb 188.400 228.600

Mar 203.200 231.200

Apr 195.600 230.100

May 209.600 232.300

Jun 212.000 235.200

Jul 200.800 238.800




JKSERC Page 44

Month 2015 2014

Aug 179.400 240.400

Sep 174.000 242.000

Oct 176.500 239.200

Nov 181.400 218.100

Dec 181.700 210.800

Average Pd (n): 191.146 Pd (n-1): 231.518


JKSERC Page 45

Annexures

Details of Annexures


1 Wind Power ProjectsWind Zone – I Annexure 1(a)

Wind Zone – II Annexure 1(b)

Wind Zone – III Annexure 1(c)

Wind Zone – IV Annexure 1(d)

Wind Zone - V Annexure 1(e)

2 Small Hydro Power Projects

Without MNRE SubsidyCapacity below 5 MW Annexure 2(a)

Capacity 5 MW upto 25 MW Annexure 2(b)

With MNRE SubsidyCapacities 1 MW to 25 MW (private/co-operative/joint sector) Annexure 2.(c)

Capacities 1 MW to 25 MW (Government/State sector) Annexure 2(d)

3 Biomass Power ProjectsRice straw and Juliflora (plantation) based project with water

cooled condenser and using Travelling Grate boilerAnnexure 3A


cooled condenser and using Travelling Grate boilerAnnexure 3B


cooled condenser and using AFBC boilerAnnexure 3C


cooled condenser and using AFBC boilerAnnexure 3D


with water cooled condenser and using Travelling Grate boilerAnnexure 3E


with air cooled condenser and using Travelling Grate boilerAnnexure 3F


with water cooled condenser and using AFBC boilerAnnexure 3G


with air cooled condenser and using AFBC boilerAnnexure 3H

4 Non-fossil Fuel Based Cogeneration Power Projects Annexure 4

5 Solar PV Power Projects Annexure 5

6 Solar Thermal Power Projects Annexure 6

7 Biomass Gasifier Power Projects Annexure 7

8 Biogas Power Projects Annexure 8

9 Municipal Solid Waste Annexure 9

10 Refuse Derived Fuel Annexure 10

Sl. No. Particulars Annexures

12 List of participants in Public Hearings Annexure A

11List of participants in the State Advisory Committeemeeting

Annexure B

11Comparison of Generic Tariff of RE Projects approved forFY 2014-15, FY 2015-16 and FY 2016-17

Annexure C

JKSERC Page 46

Annexure 1(a)Wind Power Projects (Wind Zone 1)

Assumptions

S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount

1 Power GenerationCapacity

Installed Power Generation Capacity MW 1Capacity Utilization Factor % 20%Auxiliary consumption % 0.00%Commercial operation date mm/yyyy Apr-16

Useful Life Years 25

2 Project Cost Base Year (FY 2013-14) Rs Lacs 575Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 596.216

Capital subsidy (if any) Rs Lacs 0

Net capital cost Rs Lacs 596

3 Sources of FundTariff Period Years 13

Debt: EquityDebt % 70%Equity % 30%Total Debt Amount Rs Lacs 417.351Total Equity Amout Rs Lacs 178.865

Debt ComponentLoan Amount Rs Lacs 417Moratorium Period years 0Repayment Period(incld Moratorium) years 12Interest Rate % 13.05%

Equity ComponentEquity amount Rs Lacs 179Return on Equity for first 10 years % p.a 18.0%RoE Period Year 10Return on Equity 11th year onwards % p.a 22.0%Weighted average of ROE % 20.4%

Discount Rate (WACC) % 10.77%

4 Financial AssumptionsFiscal Assumptions

Income Tax % 34.60%MAT Rate (for first 10 years) % 21.34%80 IA benefits Yes/No Yes

DepreciationDepreciation Rate for first 12 years % 5.83%Depreciation Rate 13th year onwards % 1.54%Years for 5.83% rate Years 12

Salvage value % 10%

5 Working CapitalFor Fixed ChargesO&M Charges Months 1

Maintenance Spare (% of O&M exepenses) % 15%

Receivables for Debtors Months 2

on energy chargesInterest On Working Capital % 13.55%

6 Operation & MaintenanceBase Year - FY 2013-14 Rs Lakh 9.00FY 2016-17 10.63Total O & M Expenses Escalation % 5.72%

7 Incentives (if any)GBI Rs Lakh p.a. 0.00

Period for GBI Years 0.00

JKSERCPage 47

Determination of Tariff Component

Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Gross/Net Generation MU 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75

Tariff Components

(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25O&M Expenses Rs Lakh 10.63 11.24 11.89 12.57 13.28 14.04 14.85 15.70 16.59 17.54 18.55 19.61 20.73 21.92 23.17 24.49 25.90 27.38 28.94 30.60 32.35 34.20 36.16 38.22 40.41Depreciation Rs Lakh 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17Interest on term loan Rs Lakh 52.20 47.66 43.12 38.58 34.04 29.50 24.96 20.42 15.89 11.35 6.81 2.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 3.34 3.27 3.20 3.14 3.07 3.01 2.95 2.89 2.83 2.78 2.90 2.85 2.27 2.34 2.41 2.48 2.56 2.64 2.73 2.82 2.91 3.02 3.13 3.24 3.36Return on Equity Rs Lakh 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35Total Fixed Cost Rs Lakh 133.15 129.15 125.18 121.25 117.37 113.53 109.73 105.99 102.29 98.65 102.38 98.86 71.52 72.78 74.10 75.50 76.98 78.54 80.19 81.94 83.79 85.74 87.80 89.99 92.29

Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit Levellised 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25O&M expn Rs/kWh 0.86 0.61 0.64 0.68 0.72 0.76 0.80 0.85 0.90 0.95 1.00 1.06 1.12 1.18 1.25 1.32 1.40 1.48 1.56 1.65 1.75 1.85 1.95 2.06 2.18 2.31Depreciation Rs/kWh 1.67 1.99 1.99 1.99 1.99 1.99 1.99 1.99 1.99 1.99 1.99 1.99 1.99 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52Int. on term loan Rs/kWh 1.48 2.98 2.72 2.46 2.20 1.94 1.68 1.42 1.17 0.91 0.65 0.39 0.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.17 0.19 0.19 0.18 0.18 0.18 0.17 0.17 0.16 0.16 0.16 0.17 0.16 0.13 0.13 0.14 0.14 0.15 0.15 0.16 0.16 0.17 0.17 0.18 0.18 0.19RoE Rs/kWh 1.99 1.84 1.84 1.84 1.84 1.84 1.84 1.84 1.84 1.84 1.84 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25Total COG per unit Rs/kWh 6.16 7.60 7.37 7.15 6.92 6.70 6.48 6.26 6.05 5.84 5.63 5.84 5.64 4.08 4.15 4.23 4.31 4.39 4.48 4.58 4.68 4.78 4.89 5.01 5.14 5.27

LevellisedDiscount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143 0.129 0.117 0.105 0.095 0.086Levellised Tariff 6.17 Rs/Unit

JKSERC Page 48

Accelerated DepreciationDepreciation amount 90%Book Depreciation rate 5.28%Tax Depreciation rate 15%Additional Depreciation 20.00%Income Tax (Normal Rates) 33.990%Capital Cost 595.881

Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%Book Depreciation Rs Lakh 15.74 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 17.17 0.00 0.00

Accelerated DepreciationOpening % 100.00% 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91%Allowed during the year % 17.50% 20.63% 9.28% 7.89% 6.71% 5.70% 4.84% 4.12% 3.50% 2.98% 2.53% 2.15% 1.83% 1.55% 1.32% 1.12% 0.95% 0.81% 0.69% 0.59%Closing % 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91% 3.32%Accelerated Deprn. Rs Lakh 104.34 122.97 55.34 47.04 39.98 33.98 28.89 24.55 20.87 17.74 15.08 12.82 10.89 9.26 7.87 6.69 5.69 4.83 4.11 3.49

Net Depreciation Benefit Rs Lakh 88.60 91.49 23.86 15.56 8.50 2.50 -2.59 -6.93 -10.61 -13.74 -16.40 -18.66 -20.59 -22.22 -23.61 -24.79 -25.79 -12.34 4.11 3.49Tax Benefit Rs Lakh 30.65 31.66 8.25 5.38 2.94 0.87 -0.90 -2.40 -3.67 -4.75 -5.67 -6.46 -7.12 -7.69 -8.17 -8.58 -8.92 -4.27 1.42 1.21Energy generation MU 0.88 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75Per unit benefit Rs/Unit 3.50 1.81 0.47 0.31 0.17 0.05 -0.05 -0.14 -0.21 -0.27 -0.32 -0.37 -0.41 -0.44 -0.47 -0.49 -0.51 -0.24 0.08 0.07Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143

0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.41 0.37 0.34 0.30 0.27 0.25 0.22 0.20 0.18 0.16 0.15Tax Benefit Levellised 5.93 Rs LakhElectricity Generation (Levellised) 1.65 MULevellised benefit 0.36 Rs/Unit

JKSERC Page 49

Annexure 1(b)Wind Power Projects (Wind Zone 2)

Assumptions



Installed Power Generation Capacity MW 1

Capacity Utilization Factor % 22%

Auxiliary consumption % 0.00%


2 Project Cost Base Year (FY 2013-14) Rs Lacs 575

Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 596.216




Debt: Equity

Debt % 70%

Equity % 30%

Total Debt Amount Rs Lacs 417.351

Total Equity Amout Rs Lacs 178.865

Debt Component

Loan Amount Rs Lacs 417

Moratorium Period years 0

Repayment Period(incld Moratorium) years 12

Interest Rate % 13.05%

Equity Component

Equity amount Rs Lacs 179

Return on Equity for first 10 years % p.a 18.0%

RoE Period Year 10

Return on Equity 11th year onwards % p.a 22.0%

Weighted average of ROE % 20.4%



Income Tax % 34.60%

MAT Rate (for first 10 years) % 21.34%

80 IA benefits Yes/No Yes

Depreciation

Depreciation Rate for first 12 years % 5.83%

Depreciation Rate 13th year onwards % 1.54%

Years for 5.83% rate Years 12

Salvage value % 10%

5 Working CapitalFor Fixed Charges

O&M Charges Months 1



on energy charges

Interest On Working Capital % 13.55%

6 Operation & MaintenanceBase Year - FY 2013-14 Rs Lakh 9.00

FY 2016-17 10.63

Total O & M Expenses Escalation % 5.72%



JKSERC Page 50



Tariff Components(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25O&M Expenses Rs Lakh 10.63 11.24 11.89 12.57 13.28 14.04 14.85 15.70 16.59 17.54 18.55 19.61 20.73 21.92 23.17 24.49 25.90 27.38 28.94 30.60 32.35 34.20 36.16 38.22 40.41Depreciation Rs Lakh 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17Interest on term loan Rs Lakh 52.20 47.66 43.12 38.58 34.04 29.50 24.96 20.42 15.89 11.35 6.81 2.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 3.34 3.27 3.20 3.14 3.07 3.01 2.95 2.89 2.83 2.78 2.90 2.85 2.27 2.34 2.41 2.48 2.56 2.64 2.73 2.82 2.91 3.02 3.13 3.24 3.36Return on Equity Rs Lakh 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35Total Fixed Cost Rs Lakh 133.15 129.15 125.18 121.25 117.37 113.53 109.73 105.99 102.29 98.65 102.38 98.86 71.52 72.78 74.10 75.50 76.98 78.54 80.19 81.94 83.79 85.74 87.80 89.99 92.29



JKSERC Page 51

Accelerated Depreciation

Depreciation amount 90%

Book Depreciation rate 5.28%

Tax Depreciation rate 15%

Additional Depreciation 20.00%

Income Tax (Normal Rates) 33.990%

Capital Cost 595.881

Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%

Book Depreciation Rs Lakh 15.74 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 17.17 0.00 0.00


Opening % 100.00% 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91%

Allowed during the year % 17.50% 20.63% 9.28% 7.89% 6.71% 5.70% 4.84% 4.12% 3.50% 2.98% 2.53% 2.15% 1.83% 1.55% 1.32% 1.12% 0.95% 0.81% 0.69% 0.59%

Closing % 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91% 3.32%

Accelerated Deprn. Rs Lakh 104.34 122.97 55.34 47.04 39.98 33.98 28.89 24.55 20.87 17.74 15.08 12.82 10.89 9.26 7.87 6.69 5.69 4.83 4.11 3.49

Net Depreciation Benefit Rs Lakh 88.60 91.49 23.86 15.56 8.50 2.50 -2.59 -6.93 -10.61 -13.74 -16.40 -18.66 -20.59 -22.22 -23.61 -24.79 -25.79 -12.34 4.11 3.49

Tax Benefit Rs Lakh 30.65 31.66 8.25 5.38 2.94 0.87 -0.90 -2.40 -3.67 -4.75 -5.67 -6.46 -7.12 -7.69 -8.17 -8.58 -8.92 -4.27 1.42 1.21

Energy generation MU 0.96 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93

Per unit benefit Rs/Unit 3.18 1.64 0.43 0.28 0.15 0.04 -0.05 -0.12 -0.19 -0.25 -0.29 -0.34 -0.37 -0.40 -0.42 -0.45 -0.46 -0.22 0.07 0.06

Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143

Tax Benefit Levellised 5.93 Rs Lakh 0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.41 0.37 0.34 0.30 0.27 0.25 0.22 0.20 0.18 0.16 0.15

Electricity Generation (Levellised) 1.82 MU

Levellised benefit 0.33 Rs/Unit

JKSERC Page 52

Annexure 1.(c)Wind Power Projects (Wind Zone 3)

Assumptions



Installed Power Generation Capacity MW 1Capacity Utilization Factor % 25%Auxiliary consumption % 0.00%













Salvage value % 10%

5 Working CapitalFor Fixed ChargesO&M Charges Months 1Maintenance Spare (% of O&M exepenses) % 15%Receivables for Debtors Months 2on energy chargesInterest On Working Capital % 13.55%




JKSERC Page 53


Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Gross/Net Generation MU 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19

Tariff Components

(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

O&M Expenses Rs Lakh 10.63 11.24 11.89 12.57 13.28 14.04 14.85 15.70 16.59 17.54 18.55 19.61 20.73 21.92 23.17 24.49 25.90 27.38 28.94 30.60 32.35 34.20 36.16 38.22 40.41Depreciation Rs Lakh 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17Interest on term loan Rs Lakh 52.20 47.66 43.12 38.58 34.04 29.50 24.96 20.42 15.89 11.35 6.81 2.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 3.34 3.27 3.20 3.14 3.07 3.01 2.95 2.89 2.83 2.78 2.90 2.85 2.27 2.34 2.41 2.48 2.56 2.64 2.73 2.82 2.91 3.02 3.13 3.24 3.36Return on Equity Rs Lakh 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35Total Fixed Cost Rs Lakh 133.15 129.15 125.18 121.25 117.37 113.53 109.73 105.99 102.29 98.65 102.38 98.86 71.52 72.78 74.10 75.50 76.98 78.54 80.19 81.94 83.79 85.74 87.80 89.99 92.29

Levallised tariff corresponding to Useful life

Per Unit Cost of Generation Unit Levellised 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

O&M expn Rs/kWh 0.69 0.49 0.51 0.54 0.57 0.61 0.64 0.68 0.72 0.76 0.80 0.85 0.90 0.95 1.00 1.06 1.12 1.18 1.25 1.32 1.40 1.48 1.56 1.65 1.75 1.85Depreciation Rs/kWh 1.33 1.59 1.59 1.59 1.59 1.59 1.59 1.59 1.59 1.59 1.59 1.59 1.59 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42Int. on term loan Rs/kWh 1.18 2.38 2.18 1.97 1.76 1.55 1.35 1.14 0.93 0.73 0.52 0.31 0.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.14 0.15 0.15 0.15 0.14 0.14 0.14 0.13 0.13 0.13 0.13 0.13 0.13 0.10 0.11 0.11 0.11 0.12 0.12 0.12 0.13 0.13 0.14 0.14 0.15 0.15RoE Rs/kWh 1.59 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80Total COG per unit Rs/kWh 4.93 6.08 5.90 5.72 5.54 5.36 5.18 5.01 4.84 4.67 4.50 4.68 4.51 3.27 3.32 3.38 3.45 3.51 3.59 3.66 3.74 3.83 3.92 4.01 4.11 4.21

Levellised

Discount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143 0.129 0.117 0.105 0.095 0.086

Levellised Tariff 4.94 Rs/Unit

JKSERCPage 54











Opening % 100.00% 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91%


Closing % 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91% 3.32%







0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.41 0.37 0.34 0.30 0.27 0.25 0.22 0.20 0.18 0.16 0.15

Tax Benefit Levellised 5.93 Rs Lakh



JKSERC Page 55

Annexure 1 (d)Wind Power Projects (Wind Zone 4)

Assumptions
















Salvage value % 10%





JKSERC Page 56





Tariff Components






Levellised

Discount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143 0.129 0.117 0.105 0.095 0.086


JKSERC Page 57











Opening % 100.00% 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91%


Closing % 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91% 3.32%







0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.41 0.37 0.34 0.30 0.27 0.25 0.22 0.20 0.18 0.16 0.15




JKSERC Page 58

Annexure 1.(e)Wind Power Projects (Wind Zone 5)

Assumptions




Capacity Utilization Factor % 32%








Debt: Equity

Debt % 70%

Equity % 30%



Debt Component





Equity Component



RoE Period Year 10





Income Tax % 34.60%



Depreciation




Salvage value % 10%





on energy charges



FY 2016-17 10.63




JKSERC Page 59



Tariff Components

(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25O&M Expenses Rs Lakh 10.63 11.24 11.89 12.57 13.28 14.04 14.85 15.70 16.59 17.54 18.55 19.61 20.73 21.92 23.17 24.49 25.90 27.38 28.94 30.60 32.35 34.20 36.16 38.22 40.41Depreciation Rs Lakh 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17Interest on term loan Rs Lakh 52.20 47.66 43.12 38.58 34.04 29.50 24.96 20.42 15.89 11.35 6.81 2.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 3.34 3.27 3.20 3.14 3.07 3.01 2.95 2.89 2.83 2.78 2.90 2.85 2.27 2.34 2.41 2.48 2.56 2.64 2.73 2.82 2.91 3.02 3.13 3.24 3.36Return on Equity Rs Lakh 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35Total Fixed Cost Rs Lakh 133.15 129.15 125.18 121.25 117.37 113.53 109.73 105.99 102.29 98.65 102.38 98.86 71.52 72.78 74.10 75.50 76.98 78.54 80.19 81.94 83.79 85.74 87.80 89.99 92.29



JKSERC Page 60











Opening % 100.00% 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91%


Closing % 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91% 3.32%







0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.41 0.37 0.34 0.30 0.27 0.25 0.22 0.20 0.18 0.16 0.15




JKSERC Page 61

Annexure 2 (a)

Small Hydro Power Projects (capacity below 5 MW)

Assumptions




Capacity Utilization Factor % 45%Auxiliary Consumption % 1.00%Useful Life Years 35

2 Project Cost Base Year (FY 2013-14) Rs Lacs 770.00


MNRE subsidy (if any) Rs Lacs 0

Net capital cost Rs Lacs 798.41


Debt: Equity

Debt % 70%

Equity % 30%



Debt Component

Net Loan Amount ( after accounting for MNRE subsidy)Rs Lacs 559


Repayment Period (incld Moratorium) years 12


Equity Component



RoE Period Year 10





Income Tax % 34.600%



Depreciation




Salvage value % 10%





on energy charges



FY 2016-17 29.54




JKSERC Page 62


Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Net Generation MU 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90

Tariff Components

(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35O&M Expenses Rs Lakh 29.54 31.23 33.02 34.90 36.90 39.01 41.24 43.60 46.10 48.73 51.52 54.47 57.58 60.88 64.36 68.04 71.93 76.05 80.40 85.00 89.86 95.00 100.43 106.18 112.25 118.67 125.46 132.63 140.22 148.24 156.72 165.69 175.16 185.18 195.77Depreciation Rs Lakh 46.57 46.57 46.57 46.57 46.57 46.57 46.57 46.57 46.57 46.57 46.57 46.57 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94Interest on term loan Rs Lakh 69.90 63.82 57.74 51.66 45.58 39.51 33.43 27.35 21.27 15.19 9.12 3.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 5.33 5.28 5.24 5.20 5.17 5.15 5.13 5.12 5.12 5.13 5.36 5.38 4.57 4.75 4.95 5.15 5.37 5.59 5.84 6.09 6.36 6.65 6.95 7.27 7.60 7.96 8.33 8.73 9.15 9.60 10.07 10.57 11.09 11.65 12.23Return on Equity Rs Lakh 43.11 43.11 43.11 43.11 43.11 43.11 43.11 43.11 43.11 43.11 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70Total Fixed Cost Rs Lakh 194.45 190.01 185.68 181.46 177.35 173.35 169.49 165.76 162.18 158.74 165.27 162.16 121.79 125.27 128.94 132.83 136.94 141.28 145.87 150.72 155.86 161.28 167.02 173.08 179.49 186.27 193.43 201.00 209.01 217.48 226.43 235.89 245.89 256.47 267.65

Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit Levellised 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35O&M expn Rs/kWh 1.00 0.76 0.80 0.85 0.89 0.95 1.00 1.06 1.12 1.18 1.25 1.32 1.40 1.48 1.56 1.65 1.74 1.84 1.95 2.06 2.18 2.30 2.43 2.57 2.72 2.88 3.04 3.21 3.40 3.59 3.80 4.02 4.25 4.49 4.75 5.02Depreciation Rs/kWh 1.02 1.19 1.19 1.19 1.19 1.19 1.19 1.19 1.19 1.19 1.19 1.19 1.19 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18Int. on term loan Rs/kWh 0.94 1.79 1.64 1.48 1.32 1.17 1.01 0.86 0.70 0.55 0.39 0.23 0.08 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.13 0.14 0.14 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.14 0.14 0.12 0.12 0.13 0.13 0.14 0.14 0.15 0.16 0.16 0.17 0.18 0.19 0.19 0.20 0.21 0.22 0.23 0.25 0.26 0.27 0.28 0.30 0.31RoE Rs/kWh 1.18 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35Total COG per unit Rs/kWh 4.27 4.98 4.87 4.76 4.65 4.54 4.44 4.34 4.25 4.16 4.07 4.23 4.16 3.12 3.21 3.30 3.40 3.51 3.62 3.74 3.86 3.99 4.13 4.28 4.44 4.60 4.77 4.96 5.15 5.36 5.57 5.80 6.04 6.30 6.57 6.86

LevellisedDiscount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143 0.129 0.117 0.105 0.095 0.086 0.077 0.070 0.063 0.057 0.051 0.046 0.042 0.038 0.034 0.031Levellised Tariff 4.40 Rs/Unit

JKSERC Page 63



Accelerated DepreciationOpening % 100% 50% 5% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Accelrated Deprn. Rs Lakh 399.21 359.29 31.94 6.39 1.28 0.26 0.05 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Net Depreciation Benefit Rs Lakh 378.13 317.13 -10.22 -35.77 -40.88 -41.90 -42.11 -42.15 -42.15 -42.16 -42.16 -42.16 -42.16 -42.16 -42.16 -42.16 -42.16 -22.99 0.00 0.00Tax Benefit Rs Lakh 130.83 109.73 -3.54 -12.38 -14.14 -14.50 -14.57 -14.58 -14.59 -14.59 -14.59 -14.59 -14.59 -14.59 -14.59 -14.59 -14.59 -7.96 0.00 0.00Energy generation MU 1.95 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90Per unit benefit Rs/Unit 6.70 2.81 -0.09 -0.32 -0.36 -0.37 -0.37 -0.37 -0.37 -0.37 -0.37 -0.37 -0.37 -0.37 -0.37 -0.37 -0.37 -0.20 0.00 0.00Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143


JKSERC Page 64

Annexure 2 (b)

Small Hydro Power Projects (capacity 5 MW and upto 25 MW)

Assumptions




Capacity Utilization Factor % 45%Auxiliary Consumption % 1.00%Useful Life Years 35


Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 4355

MNRE subsidy (if any) Rs Lacs 0



Debt: Equity

Debt % 70%

Equity % 30%

Total Debt Amount Rs Lacs 3,048.480

Total Equity Amout Rs Lacs 1,306.492

Debt Component

Net Loan Amount ( after accounting for MNRE subsidy)Rs Lacs 3,048


Repayment Period (incld Moratorium) years 12


Equity Component



RoE Period Year 10





Income Tax % 34.600%



Depreciation




Salvage value % 10%





on energy charges



FY 2016-17 127.61




JKSERC Page 65


Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35Installed Capacity MW 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6Net Generation MU 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42

Tariff Components(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35O&M Expenses Rs Lakh 127.61 134.91 142.63 150.79 159.41 168.53 178.17 188.36 199.14 210.53 222.57 235.30 248.76 262.99 278.03 293.94 310.75 328.52 347.32 367.18 388.18 410.39 433.86 458.68 484.92 512.65 541.98 572.98 605.75 640.40 677.03 715.76 756.70 799.98 845.74Depreciation Rs Lakh 254.04 254.04 254.04 254.04 254.04 254.04 254.04 254.04 254.04 254.04 254.04 254.04 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87Interest on term loan Rs Lakh 381.25 348.10 314.95 281.79 248.64 215.49 182.34 149.19 116.03 82.88 49.73 16.58 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 27.19 26.83 26.49 26.18 25.89 25.63 25.40 25.20 25.03 24.89 26.00 25.94 21.31 22.10 22.93 23.82 24.75 25.73 26.78 27.88 29.04 30.27 31.57 32.95 34.41 35.94 37.57 39.29 41.11 43.03 45.06 47.21 49.48 51.88 54.41Return on Equity Rs Lakh 235.17 235.17 235.17 235.17 235.17 235.17 235.17 235.17 235.17 235.17 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43Total Fixed Cost Rs Lakh 1025.26 999.05 973.27 947.97 923.15 898.86 875.11 851.95 829.41 807.51 839.77 819.29 595.37 610.39 626.26 643.05 660.79 679.55 699.39 720.36 742.52 765.96 790.74 816.93 844.62 873.90 904.84 937.57 972.16 1008.73 1047.39 1088.26 1131.48 1177.16 1225.46

Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit Levellised 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35O&M expn Rs/kWh 0.72 0.54 0.58 0.61 0.64 0.68 0.72 0.76 0.80 0.85 0.90 0.95 1.00 1.06 1.12 1.19 1.26 1.33 1.40 1.48 1.57 1.66 1.75 1.85 1.96 2.07 2.19 2.31 2.45 2.59 2.73 2.89 3.06 3.23 3.42 3.61Depreciation Rs/kWh 0.92 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16Int. on term loan Rs/kWh 0.85 1.63 1.49 1.35 1.20 1.06 0.92 0.78 0.64 0.50 0.35 0.21 0.07 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.11 0.12 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.09 0.09 0.10 0.10 0.11 0.11 0.11 0.12 0.12 0.13 0.13 0.14 0.15 0.15 0.16 0.17 0.18 0.18 0.19 0.20 0.21 0.22 0.23RoE Rs/kWh 1.08 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23Total COG per unit Rs/kWh 3.69 4.38 4.27 4.16 4.05 3.94 3.84 3.74 3.64 3.54 3.45 3.59 3.50 2.54 2.61 2.67 2.75 2.82 2.90 2.99 3.08 3.17 3.27 3.38 3.49 3.61 3.73 3.86 4.00 4.15 4.31 4.47 4.65 4.83 5.03 5.23

LevellisedDiscount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143 0.129 0.117 0.105 0.095 0.086 0.077 0.070 0.063 0.057 0.051 0.046 0.042 0.038 0.034 0.031Levellised Tariff 3.73 Rs/Unit

JKSERC Page 66






JKSERC Page 67

Annexure 2.(c)

Levellised Tariff w/o

Acc Dep benefitAcc Dep benefit

Levellised Tariff with

Acc Dep benefit

Rs/kWh Rs/kWh Rs/kWh

1 4.173 0.386 3.788

2 4.173 0.386 3.788

3 4.173 0.386 3.788

4 4.211 0.386 3.825

5 3.582 0.351 3.231

6 3.606 0.351 3.256

7 3.624 0.351 3.274

8 3.637 0.351 3.287

9 3.648 0.351 3.297

10 3.656 0.351 3.306

11 3.663 0.351 3.312

12 3.669 0.351 3.318

13 3.673 0.351 3.323

14 3.677 0.351 3.327

15 3.681 0.351 3.330

16 3.684 0.351 3.334

17 3.687 0.351 3.336

18 3.689 0.351 3.339

19 3.691 0.351 3.341

20 3.691 0.351 3.341

21 3.695 0.351 3.345

22 3.697 0.351 3.346

23 3.698 0.351 3.348

24 3.700 0.351 3.349

25 3.701 0.351 3.350

Capacity (in

MW)

Levellised Tariff for Small Hydro Projects after considering MNRE subsidy

( for private/co-operative/joint sector)

JKSERC Page 68

Annexure 2 (d)

Levellised Tariff w/o

Acc Dep benefitAcc Dep benefit

Levellised Tariff with

Acc Dep benefit

Rs/kWh Rs/kWh Rs/kWh

1 3.564 0.386 3.178

2 3.564 0.386 3.178

3 3.564 0.386 3.178

4 3.652 0.386 3.266

5 3.134 0.351 2.784

6 3.234 0.351 2.883

7 3.305 0.351 2.954

8 3.358 0.351 3.007

9 3.399 0.351 3.049

10 3.432 0.351 3.082

11 3.460 0.351 3.109

12 3.482 0.351 3.132

13 3.501 0.351 3.151

14 3.518 0.351 3.167

15 3.532 0.351 3.181

16 3.544 0.351 3.194

17 3.555 0.351 3.205

18 3.565 0.351 3.214

19 3.574 0.351 3.223

20 3.580 0.351 3.229

21 3.589 0.351 3.238

22 3.595 0.351 3.245

23 3.601 0.351 3.250

24 3.606 0.351 3.256

25 3.611 0.351 3.261

Levellised Tariff for Small Hydro Projects after considering MNRE subsidy

( for Government/ State sector)

Capacity (in

MW)

JKSERC Page 69

Annexure 3ARice straw and Juliflora (plantation) based project with water cooled condenser and using Travelling Grate boiler

Assumptions



Installed Power Generation Capacity MW 1Plant Load Factor % 80%Auxiliary consumption (1st Year) % 11.00%Auxiliary consumption (2nd Year onwards) % 10.00%Commercial operation date mm/yyyy Apr-14













Salvage value % 10%

5 Working CapitalFor Fixed ChargesO&M Charges Months 1Maintenance Spare (% of O&M exepenses) % 15%Receivables for Debtors Months 2Fuel cost Months 4Interest On Working Capital % 13.55%


7 Fuel related component

Heat Rate After Stabilisation period Kcal/kwh 4126During Stablization Period Kcal/kwh 4126

Biomass Base Price(FY 2013-14) Rs/T 2500FY 2014-15 Rs/T 2773FY 2015-16 Rs/T 2986FY 2016-17 Rs/T 2833GCV - Biomass Kcal/kg 3174Biomass Price Escalation Factor 5%



JKSERC Page 70

Determination of Tariff Component1 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143

Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Net Generation MU 5.07 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31

Vaiable Cost Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Biomass Cost Rs Lakh 209.70 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09

Tariff Components(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20O&M Expenses Rs Lakh 47.26 49.97 52.83 55.85 59.04 62.42 65.99 69.76 73.75 77.97 82.43 87.15 92.13 97.40 102.97 108.87 115.09 121.68 128.64 135.99Depreciation Rs Lakh 35.63 35.63 35.63 35.63 35.63 35.63 35.63 35.63 35.63 35.63 35.63 35.63 15.27 15.27 15.27 15.27 15.27 15.27 15.27 15.27Interest on term loan Rs Lakh 53.47 48.82 44.17 39.52 34.87 30.22 25.57 20.92 16.27 11.62 6.97 2.32 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 19.98 23.37 23.42 23.48 23.55 23.63 23.72 23.83 23.94 24.07 24.38 24.53 24.28 24.57 24.88 25.21 25.56 25.92 26.31 26.71Return on Equity Rs Lakh 32.98 32.98 32.98 32.98 32.98 32.98 32.98 32.98 32.98 32.98 40.31 40.31 40.31 40.31 40.31 40.31 40.31 40.31 40.31 40.31Total Fixed Cost Rs Lakh 189.33 190.78 189.04 187.47 186.09 184.89 183.90 183.13 182.58 182.28 189.73 189.95 172.00 177.56 183.44 189.66 196.23 203.18 210.53 218.29

Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Variable cost Rs/kWh 4.14 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09O&M expn Rs/kWh 0.93 0.79 0.84 0.89 0.94 0.99 1.05 1.11 1.17 1.24 1.31 1.38 1.46 1.54 1.63 1.73 1.82 1.93 2.04 2.16Depreciation Rs/kWh 0.70 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24Int. on term loan Rs/kWh 1.06 0.77 0.70 0.63 0.55 0.48 0.41 0.33 0.26 0.18 0.11 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.39 0.37 0.37 0.37 0.37 0.37 0.38 0.38 0.38 0.38 0.39 0.39 0.38 0.39 0.39 0.40 0.41 0.41 0.42 0.42RoE Rs/kWh 0.65 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.64 0.64 0.64 0.64 0.64 0.64 0.64 0.64 0.64 0.64Total COG per unit Rs/kWh 7.87 7.12 7.09 7.06 7.04 7.02 7.01 7.00 6.99 6.98 7.10 7.10 6.82 6.91 7.00 7.10 7.20 7.31 7.43 7.55

Discount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143Variable cost 4.10 Rs/UnitLevellised Tariff (Fixed) 3.06 Rs/UnitLevellised Tariff (for TariffPeriod) 7.16 Rs/Unit

JKSERCPage 71




Net Depreciation Benefit Rs Lakh 289.28 242.62 -7.82 -27.36 -31.27 -32.06 -32.21 -32.24 -32.25 -32.25 -32.25 -32.25 -32.25 -32.25 -32.25 -32.25 -32.25 -17.59 0.00 0.00Tax Benefit Rs Lakh 100.09 83.95 -2.71 -9.47 -10.82 -11.09 -11.15 -11.16 -11.16 -11.16 -11.16 -11.16 -11.16 -11.16 -11.16 -11.16 -11.16 -6.09 0.00 0.00Energy generation MU 2.53 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143


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Page 72

Annexure 3B

Rice straw and Juliflora (plantation) based project with air cooled condenser and using Travelling Grate boiler

Assumptions



Installed Power Generation Capacity MW 1Plant Load Factor % 80%Auxiliary consumption (1st Year) % 13.00%Auxiliary consumption (2nd Year onwards) % 12.00%













Salvage value % 10%



7 Fuel related componentHeat Rate After Stabilisation period Kcal/kwh 4126

During Stablization Period Kcal/kwh 4126




JKSERCPage 73







JKSERCPage 74






JKSERC Page 75

Annexure 3C

Rice straw and Juliflora (plantation) based project with water cooled condenser and using AFBC boiler

Assumptions
















Salvage value % 10%





Biomass Base Price(FY 2013-14) Rs/T 2500FY 2014-15 Rs/T 2773FY 2015-16 Rs/T 2986

12 Rs/T 2833GCV - Biomass Kcal/kg 3174Biomass Price Escalation Factor 5%



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JKSERCPage 77






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Annexure 3D

Rice straw and Juliflora (plantation) based project with air cooled condenser and using AFBC boiler

Assumptions
















Salvage value % 10%








JKSERC Page 79







JKSERC Page 80






JKSERC Page 81

Annexure 3E

Assumptions
















Salvage value % 10%








Other than Rice straw and Juliflora (plantation) based project with water cooled condenser and using Travelling Grate boiler

JKSERCPage 81







JKSERC Page 82






JKSERC Page 83

Annexure 3F

Assumptions
















Salvage value % 10%








Other than Rice straw and Juliflora (plantation) based project with air cooled condenser and using Travelling Grate boiler

JKSERCPage 84



Vaiable Cost Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Biomass Cost Rs Lakh 209.70 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09Per unit Var Cost Rs/kWh 4.23 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18




JKSERC Page 85






JKSERC Page 86

Annexure 3G

Other than Rice straw and Juliflora (plantation) based project with water cooled condenser and using AFBC boiler

Assumptions
















Salvage value % 10%








JKSERC Page 87







JKSERC Page 88






JKSERCPage 89

Annexure 3HOther than Rice straw and Juliflora (plantation) based project with air cooled condenser and using AFBC boiler

Assumptions
















Salvage value % 10%








JKSERCPage 90







JKSERC Page 91






JKSERC Page 92

Annexure 4

Non-fossil Fuel Based Cogeneration Power Projects

Assumptions




Plant Load Factor % 53%








Debt: Equity

Debt % 70%

Equity % 30%



Debt Component





Equity Component



RoE Period Year 10





Income Tax % 34.60%



Depreciation




Salvage value % 10%





Fuel cost Months 4



FY 2016-17 18.91




Non fossil cogen Base Price(FY 2013-14) Rs/T 1600

FY 2014-15 Rs/T 1775

FY 2015-16 Rs/T 1911

FY 2016-17 Rs/T 1813

GCV Kcal/kg 2250Biomass Price Escalation Factor 5%



JKSERC Page 93




Tariff Components

(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20O&M Expenses Rs Lakh 18.91 19.99 21.13 22.34 23.62 24.97 26.40 27.91 29.50 31.19 32.97 34.86 36.85 38.96 41.19 43.55 46.04 48.67 51.45 54.40Depreciation Rs Lakh 25.36 25.36 25.36 25.36 25.36 25.36 25.36 25.36 25.36 25.36 25.36 25.36 10.87 10.87 10.87 10.87 10.87 10.87 10.87 10.87Interest on term loan Rs Lakh 38.07 34.76 31.45 28.14 24.83 21.52 18.21 14.90 11.59 8.28 4.97 1.66 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 12.39 12.38 12.36 12.35 12.35 12.35 12.35 12.36 12.37 12.39 12.53 12.56 12.29 12.41 12.53 12.66 12.80 12.95 13.10 13.27Return on Equity Rs Lakh 23.48 23.48 23.48 23.48 23.48 23.48 23.48 23.48 23.48 23.48 28.70 28.70 28.70 28.70 28.70 28.70 28.70 28.70 28.70 28.70Total Fixed Cost Rs Lakh 118.21 115.96 113.78 111.67 109.63 107.67 105.79 104.00 102.30 100.69 104.53 103.13 88.72 90.94 93.29 95.78 98.41 101.19 104.13 107.23Per unit Fixed Cost Rs/kWh 2.78 2.73 2.68 2.63 2.58 2.53 2.49 2.45 2.41 2.37 2.46 2.43 2.09 2.14 2.20 2.25 2.32 2.38 2.45 2.52

Total cost of generation Rs Lakh 252.90 250.65 248.47 246.36 244.32 242.36 240.48 238.69 236.99 235.38 239.22 237.82 223.40 225.63 227.98 230.47 233.10 235.88 238.81 241.92

Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit Levellised 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Variable cost Rs/kWh 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17O&M expn Rs/kWh 0.59 0.45 0.47 0.50 0.53 0.56 0.59 0.62 0.66 0.69 0.73 0.78 0.82 0.87 0.92 0.97 1.03 1.08 1.15 1.21 1.28Depreciation Rs/kWh 0.54 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26Int. on term loan Rs/kWh 0.47 0.90 0.82 0.74 0.66 0.58 0.51 0.43 0.35 0.27 0.19 0.12 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.30 0.29 0.29 0.30 0.30 0.30 0.30 0.31 0.31RoE Rs/kWh 0.59 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.68 0.68 0.68 0.68 0.68 0.68 0.68 0.68 0.68 0.68Total COG per unit Rs/kWh 5.59 5.95 5.90 5.85 5.80 5.75 5.71 5.66 5.62 5.58 5.54 5.63 5.60 5.26 5.31 5.37 5.43 5.49 5.55 5.62 5.69

LevellisedDiscount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143Variable cost 3.17 Rs/UnitLevellised Tariff (Fixed) 2.53 Rs/Unit


JKSERCPage 94






JKSERC

Page 95

Annexure 5Solar PV Power Projects

Assumptions



Installed Power Generation Capacity MW 1Capacity Utilization Factor % 19%Auxiliary consumption % 0%


2 Project Cost Base Year (FY 2013-14) Rs Lacs 530Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 530









Income Tax % 34.60%MAT Rate (for first 10 years) % 21.34%80 IA benefits Yes/ No Yes


Salvage value % 10%





JKSERC Page 96

Determination of Tariff Component1 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143 0.129 0.117 0.105 0.095 0.086


Tariff Components(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25O&M Expenses Rs Lakh 7.95 8.41 8.89 9.39 9.93 10.50 11.10 11.74 12.41 13.12 13.87 14.66 15.50 16.38 17.32 18.31 19.36 20.47 21.64 22.88 24.18 25.57 27.03 28.58 30.21Depreciation Rs Lakh 30.92 30.92 30.92 30.92 30.92 30.92 30.92 30.92 30.92 30.92 30.92 30.92 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15Interest on term loan Rs Lakh 46.40 42.37 38.33 34.30 30.26 26.23 22.19 18.16 14.12 10.09 6.05 2.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 2.89 2.82 2.75 2.69 2.63 2.56 2.50 2.45 2.39 2.34 2.43 2.38 1.86 1.91 1.96 2.01 2.07 2.13 2.20 2.27 2.34 2.41 2.50 2.58 2.67Return on Equity Rs Lakh 28.62 28.62 28.62 28.62 28.62 28.62 28.62 28.62 28.62 28.62 34.98 34.98 34.98 34.98 34.98 34.98 34.98 34.98 34.98 34.98 34.98 34.98 34.98 34.98 34.98Total Fixed Cost Rs Lakh 116.78 113.13 109.51 105.92 102.36 98.83 95.33 91.88 88.46 85.08 88.25 84.96 60.49 61.42 62.41 63.46 64.57 65.73 66.97 68.28 69.66 71.12 72.66 74.29 76.02



JKSERC Page 97







Capital Cost 530

Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Book Depreciation Rs Lakh 13.99 27.99 27.99 27.99 27.99 27.99 27.99 27.99 27.99 27.99 27.99 27.99 27.99 27.99 27.99 27.99 27.99 15.26 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Opening % 100% 50% 5% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Accelrated Deprn. Rs Lakh 265.01 238.51 21.20 4.24 0.85 0.17 0.03 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Net Depreciation Benefit Rs Lakh 251.02 210.52 -6.78 -23.74 -27.14 -27.82 -27.95 -27.98 -27.98 -27.98 -27.99 -27.99 -27.99 -27.99 -27.99 -27.99 -27.99 -15.26 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Tax Benefit Rs Lakh 86.85 72.84 -2.35 -8.22 -9.39 -9.62 -9.67 -9.68 -9.68 -9.68 -9.68 -9.68 -9.68 -9.68 -9.68 -9.68 -9.68 -5.28 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Energy generation MU 0.83 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66

Per unit benefit Rs/Unit 10.44 4.38 -0.14 -0.49 -0.56 -0.58 -0.58 -0.58 -0.58 -0.58 -0.58 -0.58 -0.58 -0.58 -0.58 -0.58 -0.58 -0.32 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143 0.129 0.117 0.105 0.095 0.086

0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.42 0.38 0.34 0.31 0.28 0.25 0.23 0.20 0.18 0.17 0.15




JKSERC Page 98

Annexure 6Solar Thermal Power Projects

Assumptions





2 Project Cost Base Year (FY 2013-14) Rs Lacs 1200Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 1200









Income Tax % 34.60%MAT Rate (for first 10 years) % 21.34%80 IA benefits Yes/ No Yes


Salvage value % 10%





JKSERCPage 99





Tariff Components






Levellised

Discount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143 0.129 0.117 0.105 0.095 0.086


JKSERC Page 100







Capital Cost 1200

Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Book Depreciation Rs Lakh 31.68 63.36 63.36 63.36 63.36 63.36 63.36 63.36 63.36 63.36 63.36 63.36 63.36 63.36 63.36 63.36 63.36 34.56 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Opening % 100% 50% 5% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Accelrated Deprn. Rs Lakh 600.00 540.00 48.00 9.60 1.92 0.38 0.08 0.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Net Depreciation Benefit Rs Lakh 568.32 476.64 -15.36 -53.76 -61.44 -62.98 -63.28 -63.34 -63.36 -63.36 -63.36 -63.36 -63.36 -63.36 -63.36 -63.36 -63.36 -34.56 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Tax Benefit Rs Lakh 196.64 164.92 -5.31 -18.60 -21.26 -21.79 -21.90 -21.92 -21.92 -21.92 -21.92 -21.92 -21.92 -21.92 -21.92 -21.92 -21.92 -11.96 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Energy generation MU 0.91 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81

Per unit benefit Rs/Unit 21.69 9.09 -0.29 -1.03 -1.17 -1.20 -1.21 -1.21 -1.21 -1.21 -1.21 -1.21 -1.21 -1.21 -1.21 -1.21 -1.21 -0.66 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143 0.129 0.117 0.105 0.095 0.086

0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.41 0.37 0.34 0.30 0.27 0.25 0.22 0.20 0.18 0.16 0.15




JKSERC Page 101

Annexure 7Biomass Gasifier Power Projects

Assumptions



Installed Power Generation Capacity MW 1Plant Load Factor % 85%Auxiliary consumption % 10.00%


2 Project Cost Base Year (FY 2013-14) Rs Lacs 400.00Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 569.41

Capital subsidy (if any) Rs Lacs 150.00










Salvage value % 10%



7 Fuel related component Sp. Fuel consumption kg/kWh 1.25Heat Rate After Stabilisation period Kcal/kwh 3600

During Stablization Period Kcal/kwh 3600Non fossil cogen Base Price(FY 2013-14) Rs/T 2500

FY 2014-15 Rs/T 2773FY 2015-16 Rs/T 2986FY 2016-17 Rs/T 2833GCV Kcal/kg 2250Biomass Price Escalation Factor 5%



JKSERCPage 102




Tariff Components



Per Unit Cost of Generation Unit Levellised 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Variable cost Rs/kWh 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04O&M expn Rs/kWh 0.94 0.71 0.75 0.79 0.83 0.88 0.93 0.98 1.04 1.10 1.16 1.23 1.30 1.37 1.45 1.54 1.62 1.72 1.82 1.92 2.03Depreciation Rs/kWh 0.33 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16Int. on term loan Rs/kWh 0.29 0.55 0.50 0.45 0.40 0.36 0.31 0.26 0.21 0.17 0.12 0.07 0.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.43 0.43 0.43 0.43 0.44 0.44 0.44 0.44 0.45 0.45 0.46 0.46 0.47 0.47RoE Rs/kWh 0.36 0.34 0.34 0.34 0.34 0.34 0.34 0.34 0.34 0.34 0.34 0.41 0.41 0.41 0.41 0.41 0.41 0.41 0.41 0.41 0.41Total COG per unit Rs/kWh 7.27 7.41 7.40 7.40 7.40 7.40 7.40 7.41 7.42 7.44 7.45 7.55 7.58 7.42 7.50 7.59 7.68 7.78 7.88 7.99 8.11

LevellisedDiscount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143Variable cost 5.04 Rs/UnitLevellised Tariff (Fixed) 2.44 Rs/UnitLevellised Tariff (for Tariff

Period) 7.48 Rs/Unit

JKSERC Page 103

Accelerated DepreciationDepreciation amount 90%Book Depreciation rate 5.28%Tax Depreciation rate 80%Additional Depreciation 20.00%Income Tax (Normal Rates) 33.99%Capital Cost 404




0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.41 0.37 0.34 0.30 0.27 0.25 0.22 0.20 0.18 0.16 0.15Tax Benefit Levellised 8.43 Rs LakhElectricity Generation

(Levellised)6.33 MU


JKSERCPage 104

Annexure 8

Biogas Power Projects

Assumptions



Installed Power Generation Capacity MW 1Plant Load Factor % 90%Auxiliary consumption % 12.00%


2 Project Cost Base Year (FY 2013-14) Rs Lacs 800.00Capital Cost/MW Power Plant Cost - FY 2015-16 Rs Lacs 1138.81











Salvage value % 10%



7 Fuel related component Sp. Fuel consumption kg/kWh 3.00Heat Rate After Stabilisation period Kcal/kwh 3600

During Stablization Period Kcal/kwh 3600Non fossil cogen Base Price(FY 2013-14) Rs/T 990

FY 2014-15 Rs/T 1098FY 2015-16 Rs/T 1182FY 2016-17 Rs/T 1122GCV Kcal/kg 2250Biomass Price Escalation Factor 5%



JKSERC Page 105



Vaiable Cost Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Biogas Cost Rs Lakh 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52Per unit Var Cost Rs/kWh 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04

Tariff Components




LevellisedDiscount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143Variable cost 2.04 Rs/UnitLevellised Tariff (Fixed) 3.11 Rs/UnitLevellised Tariff 5.15 Rs/Unit

JKSERC Page 106






JKSERC Page 107

Annexure 9

Municipal Solid Waste

Assumptions




Auxiliary Consumption during Stabilisation % 15%

Auxiliary Consumption after Stabilisation % 15%

PLF (Stabilisation for 6 months) % 65%

PLF (During first year after stabilisation) % 65%

PLF (Second Year Onwards) % 75%


2 Project Cost Capital Cost/MW Power Plant Cost - FY 2015-16 Rs Lacs 1500



3 Sources of FundDebt: Equity

Debt % 70%

Equity % 30%

Total Debt Amount Rs Lacs 1,050

Total Equity Amout Rs Lacs 450

Debt Component

Loan Amount Rs Lacs 1,050




Equity Component



RoE Period Year 10





Income Tax % 34.60%



Depreciation




Salvage value % 10%





on energy charges


6 Operation & MaintenanceNorm ( % of capital cost) % 6%

FY 2015-16 90.00




JKSERC Page 108


Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Gross/Net Generation MU 4.84 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58


Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit Levellised 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20O&M expn Rs/kWh 2.42 1.86 1.70 1.80 1.90 2.01 2.13 2.25 2.38 2.51 2.66 2.81 2.97 3.14 3.32 3.51 3.71 3.92 4.15 4.39 4.64Depreciation Rs/kWh 1.42 1.81 1.57 1.57 1.57 1.57 1.57 1.57 1.57 1.57 1.57 1.57 1.57 0.67 0.67 0.67 0.67 0.67 0.67 0.67 0.67Int. on term loan Rs/kWh 1.23 2.71 2.15 1.94 1.74 1.53 1.33 1.12 0.92 0.72 0.51 0.31 0.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.23 0.25 0.21 0.21 0.22 0.22 0.22 0.22 0.22 0.23 0.23 0.24 0.24 0.23 0.24 0.25 0.26 0.27 0.29 0.30 0.31RoE Rs/kWh 1.56 1.67 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.77 1.77 1.77 1.77 1.77 1.77 1.77 1.77 1.77 1.77Total COG per unit Rs/kWh 6.87 8.30 7.08 6.97 6.87 6.78 6.69 6.61 6.54 6.47 6.42 6.70 6.66 5.82 6.01 6.21 6.42 6.64 6.88 7.13 7.40

LevellisedDiscount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143Levellised Tariff 376.97 Rs LakhsLevellised Tariff 6.87 Rs/Unit

JKSERC Page 109



Accelerated DepreciationOpening % 100.00% 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Accelerated Deprn. Rs Lakh 750.00 675.00 60.00 12.00 2.40 0.48 0.10 0.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00



JKSERC Page 110

Annexure 10

Refuse Derived Fuel

Assumptions




Auxiliary Consumption during Stabilisation % 15%

Auxiliary Consumption after Stabilisation % 15%

PLF (Stabilisation for 6 months) % 65%

PLF (During first year after stabilisation) % 65%

PLF (Second Year Onwards) % 80%


2 Project Cost Capital Cost/MW Power Plant Cost - FY 2015-16 Rs Lacs 900




Debt: Equity

Debt % 70%

Equity % 30%



Debt Component





Equity Component



RoE Period Year 10





Income Tax % 34.60%



Depreciation




Salvage value % 10%





Fuel cost Months 4


6 Operation & MaintenanceNorm ( % of capital cost) % 6%

FY 2016-17 54.00




RDF FY 2016-17 Rs/T 1800

GCV Kcal/kg 2500RDF Price Escalation Factor 5%



JKSERCPage 111



Vaiable Cost Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20RDF Cost Rs Lakh 180.80 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52Per unit Var Cost Rs/kWh 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74

Tariff Components(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20O&M Expenses Rs Lakh 54.00 57.09 60.35 63.81 67.46 71.31 75.39 79.71 84.27 89.09 94.18 99.57 105.26 111.29 117.65 124.38 131.49 139.02 146.97 155.37Depreciation Rs Lakh 52.47 52.47 52.47 52.47 52.47 52.47 52.47 52.47 52.47 52.47 52.47 52.47 22.55 22.55 22.55 22.55 22.55 22.55 22.55 22.55Interest on term loan Rs Lakh 78.79 71.94 65.09 58.24 51.38 44.53 37.68 30.83 23.98 17.13 10.28 3.43 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 19.68 22.59 22.61 22.64 22.69 22.74 22.81 22.89 22.99 23.09 23.47 23.61 23.15 23.49 23.84 24.21 24.61 25.03 25.47 25.93Return on Equity Rs Lakh 48.60 48.60 48.60 48.60 48.60 48.60 48.60 48.60 48.60 48.60 59.40 59.40 59.40 59.40 59.40 59.40 59.40 59.40 59.40 59.40Total Fixed Cost Rs Lakh 253.54 252.68 249.12 245.76 242.60 239.66 236.96 234.50 232.30 230.38 239.80 238.47 210.36 216.72 223.44 230.54 238.05 245.99 254.38 263.25Per unit Fixed Cost Rs/kWh 5.24 4.24 4.18 4.13 4.07 4.02 3.98 3.94 3.90 3.87 4.03 4.00 3.53 3.64 3.75 3.87 4.00 4.13 4.27 4.42

Total cost of generation Rs Lakh 434.34 475.20 471.64 468.27 465.12 462.18 459.47 457.02 454.82 452.90 462.32 460.99 432.88 439.24 445.95 453.06 460.57 468.51 476.90 485.778.97 7.98 7.92 7.86 7.81 7.76 7.71 7.67 7.64 7.60 7.76 7.74 7.27 7.37 7.49 7.61 7.73 7.87 8.01 8.15


LevellisedDiscount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143Variable cost 3.74 Rs/UnitLevellised Tariff (Fixed) 4.16 Rs/UnitLevellised Tariff 7.90 Rs/Unit

JKSERC Page 112






JKSERC Page 113

S.No. Name Department/Organisation

1 Sh. Basharat Ahmad Dhar Chairman, JKSERC

2 Sh. R.K.Seli Technical Consultant, JKSERC

3 Sh. Anil Kumar Gupta Secretary, JKSERC

4 Sh. Romesh Kumar Sharma Supdtt. Engineer, JKSERC

5 Sh. Ram Krishan Sharma Accounts Officer, JKSERC

6 Sh. Abdul Hamid Baba Pvt. Secretary, JKSERC

7 Sh. Abdul Gani Kotay Senior Assistant, JKSERC

8 Sh. Babu Ram Sharma Computer Operator , JKSERC

9 Sh. Ankit Choudhary Consultant (PwC), JKSERC

10 Sh. K.H. Rizvi (IAS) Managing Director, JKSPDC

11 Sh. Ajay Gupta Executive Director (Electrical),JKSPDC, Jammu

12 Sh. Upinder Jit Singh Director Finance, JKSPDC

13 Sh. Muzaffar Mattu Chief Engineer, Generation, Kashmir

14 Sh. Fida Mohammad Farooqi Chief Engineer, NGHEP, CID Kashmir

15 Sh. Ab. Rashid Ganai Executive Engineer, JKSPDC, CMD, SVP Kangan

16 Sh. Asif Maqbool Dandru AGM (Finance), JKSPDC

17 Sh. T.Rasool Finance Assistant, JKSPDC, Srinagar

18 Sh. Fazal Mehmood Qari JKSPDC, Srinagar

19 Sh. T. Ahmed JKSPDC, Srinagar

20 Sh. Mohamad Ahsan-ul-Haq JKSPDC, Srinagar

21 Sh. Bashir Ahmed JKSPDC, Srinagar

22 Sh. Gul Ayaz Development Commissioner (Power),JKPDD

23 Smt. Shahnaz Goni Chief Engineer, C&S, JKPDD

24 Sh. B.A. Khan Chief Engineer, EM&RE

25 Sh. Ravi Chanyal Chief Engineer, S&O, Jammu

26 Sh. Hashmat Qazi Supdtt. Engineer, JKPDD, Srinagar

27 Sh. Naseer Ahmad Khan Supdtt. Engineer, S&O Circle-II, Sgr.

28 Sh. Syed Fayaz Andrabi Supdtt. Engineer, S&O Circle-I, Sgr.

29 Sh. Showkat Banday Supdtt. Engineer, M&RE, Circle-I, Srinagar

30 Sh. Gourav Lohani Consultant , JKPDD, Srinagar

31 Sh. Gulam Mohammad KhanConsumer, Bemina, Srinagar/ Ex Member Finance

JKSERC

32 Sh. Gh. Nabi Wani Consumer, Raj Bagh, Srinagar

33 Sh. Gh. Rasool Consumer ,Alich Bagh, Srinagar

34 Sh. Khurshid Ahmad Consumer, Srinagar

STAKEHOLDERS

Annexure A: List of participants in Public HearingParticipants at Public Hearing held in Srinagar on 12th March 2016

J&K STATE ELECTRICITY REGULATORY COMMISSION

J&K STATE POWER DEVELOPMENT CORPORATION LIMITED

J&K POWER DEVELOPMENT DEPARTMENT

JKSERCPage 114


35 Sh. Shakeel Qalander Civil Society Member, KCSOS

36 Sh. Mohammad Ashraf Mir President, FCIK

37 Sh. Afaq Qadri Sr. Vice President ,FCIK

38 Dr. Mubeen Shah Kashmir Chamber of Commerce & Industry

39 Sh. Nasir Hamid Khan Kashmir Chamber of Commerce & Industry

40 Sh. Abid Ali Bazaz President, FCIK

41 Sh. Ghulam Nabi Khan President , Kashmir Printer Association

42 Sh. Mukhmoor Gowhar Secretary, FCIK

43 Sh. G.M.Dug Past President ,Kashmir Chamber of Commerce

44 Sh. Shakeel Ahmed Khan Kashmir Printer Association

45 Sh. Ab. Rashid Consumer,Srinagar

46 Sh. Farooq Ahmad Bhat Consumer, Srinagar

47 Sh. Mohammad Yousaf Tichoo Consumer, Srinagar

STAKEHOLDERS

JKSERC Page 115



2 Sh. R.K. Seli Technical Consultant, JKSERC


4 Smt. Villy Kaul Dy. Secretary (Law), JKSERC

5 Sh. Ram Krishan Sharma Accounts Officer, JKSERC

6 Sh. Abdul Hamid Baba Pvt. Secretary, JKSERC

7 Sh. Sunil Bakshi Estate Officer/Draftsman, JKSERC

8 Sh. Abdul Gani Kotay Senior Assistant, JKSERC

9 Sh. Babu Ram Sharma Computer Operator, JKSERC

10 Sh. Ankit Choudhary Consultant, PwC

11 Sh. Ajay Gupta Executive Director (Elect), JKSPDC

12 Sh. A.Muzaffar Lankar Executive Director (Civil), JKSPDC

13 Sh. Mumtaz Ahmed SGM (Elect), JKSPDC

14 Sh. S.K. Zutshi Supdtt. Engineer, Gen. Circle Jammu

15 Sh. K.K. Thappa GM (Elect), JKSPDC

16 Sh. N.A. Kakroo GM (Tech), JKSPDC

17 Sh. Bashir Ahmad Dar DGM (Elect),JKSPDC

18 Smt. Iram Qayam Reshi AGM,JKSPDC

19 Sh. Afshan Wani AGM ,JKSPDC

20 Sh. S.S. Kambo DGM (Civil), JKSPDC

21 Sh. Asif Maqbool Dandru AGM (Finance), JKSPDC

22 Sh. Byomkesh Mallick Consultant , JKSPDC

23 Sh. Ravi Chanyal Chief Engineer, System & Operation Wing, Jammu

24 Sh. Manhar Gupta Supdtt. Engineer, S&O Circle-I, Jammu

25 Sh. S. K. Koul Supdtt. Engineer, Commercial & Survey Wing, PDD

26 Sh. Sudhir K. Gupta Executive Engineer, ED-II, Jammu

27 Sh. M.Y.Baba Executive Engineer, Technical Officer to DC(P)

28 Sh. Siddharth Mehta Consultant, JKPDD

29 Sh. Gourav Lohani Consultant, JKPDD

30 Sh. Annil Suri Former President, BBIA Jammu

31 Sh. Chander Vadan Company Secretary, Subash Nagar Jammu

32 Sh. Vikrant Kuthiala Chairman PHD, Canal Road Jammu

33 Sh. D.S. Pawar Consumer /Ex-Member (Tech.) JKSERC, Jammu

34 Sh. Dev Raj Sharma Consumer, Bari Brahmana

35 Sh. Harbans Choudhary Consumer, Jammu

36 Sh. Ashok Gupta Consumer, Sarwal, Jammu

37 Sh. Vinay K. Gupta Consumer , Channi Himmat

STAKEHOLDERS

Participants at Public Hearing held in Jammu on 15th March 2016

JKSERC

JKSPDC

JKPDD

JKSERC Page 116

S.No. Name of the Member/Officers Department/Organization


2 Dr. S.S.Jamwal Director, Agriculture Department, Jammu

3 Dr. Aijaz Ahmad Prof. & HOD, EE Dept. NIT Srinagar

4 Maj. Gen. Goverdhan Singh Jamwal President, J&K Ex-Services League & J&K Paryavaran Sanstha

5 Sh. Rakesh Gupta President, Chamber of Commerce & Industries (CCI)

6 Sh. Mohd. Ashraf Mir, President, Federation Chamber of Industries, Kashmir (FCIK).

7 Sh. Lalit Mahajan President, Bari Brahmana Industries Association, Jammu.

8 Sh. Mushtaq Ahmed Wani, President, Kashmir Chamber of Commerce and Industry, Srinagar.

9 Sh. Vikram Gour President, Consumer Welfare Association, Jammu

10 Sh. Ramesh ChanderAddl. Secretary, Consumer Affairs and Public Distribution Department

& TA (Representing Adm. Secretary CAPD)

11 Sh. Ajay Singh JawalJoint Commissioner, Transport Commissioner, Govt. of J&K, Jammu.

(Representing Transport Commissioner J&K)

12 Sh. D.S. Pawar Ex. Member (T), JKSERC

13 Sh. Shafat Sultan CEO, JAKEDA, Jammu

14 Sh. R.K.Seli Technical Consultant, JKSERC


16 Sh. R.K. Sharma Supdtt. Engineer, JKSERC

17 Smt. Villy Kaul Dy. Secretary Law, JKSERC

18 Sh. Paavan Bargava Senior Consultant, PWC

19 Sh. Kifayat Hussain Rizvi (IAS) MD, JKSPDC

20 Sh. Ajay Gupta ED, (Electric) JKSPDC

21 Sh. A.Muzaffar Lanker ED (Civil) JKSPDC

22 Sh. Upnder Jit Singh Director Finance (JKSPDC)

23 Sh. Abdul Wahid Chief Engineer (CID)

24 Sh. N.A. Kakroo GM-Technical (JKSPDC)

25 Sh. Asif Maqbool Dedru AGM (A&F)

26 Sh. Byomkesh Mallick Consultant (JKSPDC)

27 Sh. Sheikh Gul Ayaz DCP, JKPDD

28 Smt. Shahnaz Goni Chief Engineer, Commercial & Survey Wing, PDD, J&K

29 Sh. B. A. Khan Chief Engineer, EM & RE Wing, Kashmir

30 Sh. Ravi Chanyal Chief Engineer, System & Operation Wing, PDD

31 Sh. Ashwani Kumar Gupta Chief Engineer, EM & RE, Jammu

OFFICERS OF JKSERC

OFFICERS/REPRESENTATIVES OF JKSPDC

OFFICERS/REPRESENTATIVES OF JKPDD

Annexure B: List of participants in the State Advisory Committee meeting

List of participants in the State Advisory Committee meeting held on 17th March, 2016 in the meeting hall of

JKSERC at Jammu under the chairmanship of Sh. Basharat Ahmad Dhar, Chairman JKSERC

MEMBERS OF THE STATE ADVISORY COMMITTEE (SAC), JKSERC

REPRESENTATIVES

SPECIAL INVITEES

JKSERC Page 117

S.No. Name of the Member/Officers Department/Organization

32 Sh. S.K. Kaul SE, Commercial and Survey, PDD.

33 Sh. Azhar Vakil AEE, DCP Office , PDD

34 Sh. Rohit Bhagotra AEE, SLDC

35 Sh. Siddharth Mehta Consultant, JKPDD

36 Sh. Gaurav Lohani Consultant, JKPDD

37 Sh. C.M.Sharma Dy. Director Agriculture, Jammu

38 Sh. Abdul Hammid Baba Pvt. Secretary, JKSERC

OFFICERS/REPRESENTATIVES OF JKPDD

OTHER PARTICIPANTS

JKSERC Page 118

Particulars FY 2014-15 FY 2015-16 FY 2016-17

Wind Zone -1 (CUF 20%) 6.16 6.15 6.17

Wind Zone -2 (CUF 22%) 5.60 5.59 5.61

Wind Zone -3 (CUF 25%) 4.93 4.92 4.94

Wind Zone -4 (CUF 30%) 4.11 4.10 4.11

Wind Zone -5 (CUF 32%) 3.85 3.84 3.86



Solar PV 7.50 6.79 5.62

Solar Thermal 11.55 11.63 11.66

Rice straw and Juliflora (plantation) based

project with water cooled condenser and using

Travelling Grate boiler

- - 7.16


project with air cooled condenser and using


- - 7.43



AFBC boiler

- - 7.08



AFBC boiler

- - 7.36

Other than Rice straw and Juliflora


condenser and using Travelling Grate boiler

- - 7.02


(plantation) based project with air cooled


- - 7.29



condenser and using AFBC boiler

- - 6.95




- - 7.23

NON FOSSIL FUEL

BASED COGENERATION

BIOMASS GASIFIER 7.27 7.68 7.48

BIOGAS 5.04 5.15 5.15

MUNICIPAL SOLID WASTE - - 6.87

REFUSE DERIVED FUEL - - 7.90

Annexure C: Comparison of Generic Tariff of the RE Projects for FY 2014-15, FY

2015-16 and FY 2016-17

Note: *In case of Biomass/ non-fossil fuel/ Biomass gasifier/ biogas and Refuse Derived Fuel based

projects, the generic levellised tariff represents sum of both fixed cost and variable cost.

WIND ENERGY

SMALL HYDRO


BIOMASS 5.84 6.17

Generic Levellised tariff for RE technologies without benefits of Accelerated Depreciation

approved for FY 2014-15, FY 2015-16 and FY 2016-17 (Rs/ kWh)

5.58 5.81 5.70

JKSERC Page 119

Particulars FY 2014-15 FY 2015-16 FY 2016-17

Wind Zone -1 (CUF 20%) 5.80 5.79 5.81

Wind Zone -2 (CUF 22%) 5.27 5.27 5.28

Wind Zone -3 (CUF 25%) 4.64 4.63 4.65

Wind Zone -4 (CUF 30%) 3.87 3.86 3.87

Wind Zone -5 (CUF 32%) 3.62 3.62 3.64



Solar PV 6.67 6.06 4.98

Solar Thermal 10.23 10.31 10.34

BIOMASS 5.68 6.01




- - 6.95




- - 7.20



AFBC boiler

- - 6.89



AFBC boiler

- - 7.13




- - 6.83




- - 7.08




- - 6.76




- - 7.02

NON FOSSIL FUEL

BASED COGENERATION

BIOMASS GASIFIER 7.13 7.55 7.35

BIOGAS 4.69 4.81 4.80

MUNICIPAL SOLID WASTE - - 6.29

REFUSE DERIVED FUEL - - 7.57

Note: *In case of Biomass/ non-fossil fuel/ Biomass gasifier/ biogas and Refuse Derived Fuel

based projects, the net generic levellised tariff represents sum of both fixed cost and variable cost

after adjusting for benefits of Accelerated Depreciation

Net Generic Levellised tariff for RE technologies with benefits of Accelerated

Depreciation approved for FY 2014-15, FY 2015-16 and FY 2016-17 (Rs/ kWh)

WIND ENERGY

SMALL HYDRO


5.36 5.60 5.48

JKSERC Page 120

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