tariff regulation for renewable energy sourceswith bar 18.10.2010
TRANSCRIPT
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8/13/2019 Tariff Regulation for Renewable Energy Sourceswith Bar 18.10.2010
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CERC
TARIFF REGULATIONS
FOR
RENEWABLE ENERGY PROJECTS
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Scope
These Regulations shall apply for tariff of Renewable
Sources of Energy to be determined by Commission u/s
62 and 79 of EA,2003.
These Regulations shall apply in case of wind power,
small hydro, biomasspower, non-fossil fuelbased co-
generation, Solar PV, solar Thermal subject to
fulfillment of certain eligibility criteria.
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Eligibility Criteria
Wind Power: - Annual mean wind power density 200 W/m2
Small hydro: - Capacity 25 MW at single location
Biomass: - Plants based on Rankine Cycle technology.
- Fossil fuel restricted to 15% of total fuel
consumption on annual basis.Solar PV
& Thermal : Based on technology approved by MNRE.
Non Fossil fuel
Co-generation: Power generation and utilization of thermal heat
for other industrial activities.
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Control Period or Review Period
Control period = Period during which norms remains
valid.
3 years (first year upto 31.03.2010)
Benchmark capital cost for Solar PV and Solar Thermal
Projects may be reviewed annually.
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Tariff Structure
-Single Part Tariff
-Fixed Cost Component: ROE
Interest on term loan
Depreciation Interest on working capital
O&M Expenses
-RE Technologies having fuel component like Biomass,
non-fossil fuel cogeneration shall have two component-Fixed Cost and fuel cost.
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Tariff Design
Generic Tariff shall be on Levelised basis for the tariff
period.
Discount factor shall be equivalent to weighted averagecost of capital.
Levellisation shall be carried out for the useful life while
tariff shall be specified for Tariff Period.
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Tariff Period and Useful Life
Tariff Period Useful Life
Wind energy 13 25
Solar PV/Thermal 25 25
Small Hydro 5 MW 13 35
Small Hydro < 5 MW 35 35
Biomass (+) non-fossil
fuel cogeneration
13 20
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Dispatch Principles
All RE Power except biomass plants with capacity of 10
MW and aboveand non-fossil fuel cogeneration plants
shall be treated as MUST RUN.
Biomass plants of 10 MW and above and Non-fossil fuel
cogeneration plants shall be subjected to scheduling &
Despatch code as per IEGC and UI Regulations.
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Financial Principles
Capital CostPlant & machinery,
Civil work
Erection & Commissioning
Financing, IDC
Evacuation infrastructure upto interconnection point.
For project specific tariff determination, breakup of
capital cost to be submitted to Commission.
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Financial Principles
Debt:Equity
- For generic tariff: 70:30- Equity > 30% of capital cost, excess equity shall be treated as normative loan.
- Equity < 30% of capital cost, actual equity shall be considered for tariff.
Loan Tenure: 10 years
Interest Rate: Normative Interest Rate shall be average of LTPLR of SBI
prevalent during the previous year plus 150 basis point.
Depreciation: first 10 years : 7%11thyear onwards : Spread over remaining useful life.
ROE: first 10 years : Pre tax 19%
11thyear onwards : Pre tax 24%
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Financial Principles
Interest on Working Capital(IWC):
Wind Energy/Small Hydro/Solar PV/SolarThermal.
- O&M : 1 month
- Receivables : 2 months
- Maintenance Spares :15% of O&M
Biomass/ Non-fossil fuel cogeneration
-Fuel Cost :4 months
-O&M :1 month
-Receivables : 2 months
- Maintenance Spares :15% of O&M
IWC shall be average of SBI ST PLR duringprevious year plus 100 basis point.
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Financial Principles
O&M:
First year of Control Period: As specified under Regulations. Subsequentyear to be escalated @ 5.72% per annum.
Subsidy or incentive by the Central / State Government:Any incentive or subsidy offered by the Central or State Government,
including accelerated depreciation benefit if availed by the company, shall
be taken into consideration for tariff determination.
Taxes & Duties:Allowed as pass through on actual incurred basis.
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Project Specific Tariff
MSW
RE Projects commissioned before notification.
Solar PV and Solar Thermal (if opted for project specific
tariff).
Hybrid Solar Thermal.
Biomass projects other than Rankine cycle.
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Sharing of CDM Benefits
Year ProjectDeveloper
Beneficiaries
First Year 100 % 0 %
Second Year 90 % 10 %
Third Year 80% 20%
Fourth Year 70% 30%
Fifth Year 60% 40%
Sixth Year onwards 50% 50%
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CAPITAL COST (FY 2011-12)
Wind Energy: Rs. 492.52 Lakhs/MW
Small Hydro: HP, Uttarakhand, NE States:
Rs. 669.42 lakh/MW < 5 MW.
Rs. 602.48 lakh/MW for 5 MW to 25 MW
Other States:
Rs. 525.97 lakh/MW < 5 MWRs. 478.16 lakh/MW for 5 MW to 25 MW.
Biomass Plant: Rs. 426.03 lakhs/MW
Non-fossil fuel
cogeneration: Rs. 421.30 Lakh/MW.
Solar PV Plant: Rs.1442 Lakh/MW.
Solar Thermal : Rs. 1500 lakh/MW
The above capital cost shall be subject to specific indexation
mechanism for three years.
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O&M Expenses (FY 2011-12)
Normative O&M expenses during First year.
Wind Energy : Rs. 7.26 lakh/MW
Small Hydro: HP, Uttarakhand, NE States:
Rs. 23.47 lakh/MW < 5MWRs. 16.77 lakh/MW for 5 MW to 25 MW.
Other States:
Rs. 19.00 lakhs/MW < 5 MW
Rs. 13.41 Lakh/MW for 5 MW to 25 MW.
Solar PV Project:Rs. 10.06 lakh/MW. Solar Thermal : Rs 14.53 lakh/MW
Biomass: Rs. 22.63 Lakh/MW
Non-fossil
Cogeneration: Rs. 14.92 lakh/MW
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Auxiliary Power Consumption (APC)
Wind : Nil
SHP : 1%
Biomass : 10%
Solar Thermal : 10% Solar PV : Nil
Non-Fossil Fuel
Co-generation : 8.5%
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Capacity Utilization Factor (CUF)
Wind: 200-250 W/m2 - 20 %250-300 W/m2 - 23 %
300-400 W/m2 - 27 %
>400 W/m2 - 30 %
SHP: HP,UK,NE States - 45%Other States - 30%
Solar: PV - 19%Thermal - 23%
Biomass: During Stabilization - 60%During Remaining Period (I Yr ) - 70%
From II Yr - 80 %
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Technology CUF Levelised
Tariff(CERC)
Wind Energy
200-250 W/m2
250-300 W/m2
300-400 W/m2
>400 W/m2
20%
23%
27%
30%
5.33
4.63
3.95
3.55
Solar Thermal Energy 23% 15.04
Solar PV Energy 19% 15.39
Small Hydro Energy
>5 MW HP, NE, hills,
5-25 MW HP, NE, hills
>5 MW other state
5-25 MW other state
45%
45%
30%
30%
3.78
3.22
4.49
3.84
Biomass Energy(calculation for MP) 1st Year 65%,
2nd year 80%
3.44
3.52
Calculated Tariff
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Thank You