Joint Electricity Regulatory Commission (JERC) issued an order on generic tariff order for renewable energy sources for fy 2020-2021.
In compliance of the Renewable Energy Tariff Regulations, 2019, the Commission has determined the generic tariff for Solar PV for the State of Goa, Andaman & Nicobar Islands, Lakshadweep Islands, Puducherry, Daman & Diu, Dadra & Nagar Haveli and Chandigarh Union Territories as under:
This order shall come into force with effect from 1st June, 2020 and shall, continue till 31st March, 2021 or till further orders of the Commission.
Commision stated that “The existing Generic Tariff dated 02nd September, 2019 is hereby extended till 31st May, 2020, due to unprecedented situation caused by COVID 19.”
As per Regulation 14 of Renewable Energy Tariff Regulations, 2019, the Debt Equity ratio shall be as under, for tariff determination “Debt Equity ratio of 70:30 shall be considered” .
As the tariff is being implemented with effect from 1st June, 2020 instead of 1st April, 2020, Order issued in FY 2019-20 is valid till 31st May, 2020. The tariff determined under this Order shall be applicable for Renewable Energy Projects commissioned after the issuance of this Order in FY 2020-21 for the entire useful life of the Project.
The Tariff Period for Solar PV power project and Useful Life of the project is 25 Years from COD.The Commission has considered the normative Capital Cost for Solar PV Power Projects as follows: – “The normative Capital Cost for Solar PV projects shall be as follows: a) Solar PV Projects in Mainland Areas: Rs. 5.00 Cr/MW (without capital Subsidy); b) Solar PV Projects in Island Areas: Rs. 6.00 Cr/MW (without capital Subsidy).”
In accordance with Regulation of Renewable Energy Tariff Regulations, 2019, the debt and equity components for Solar PV Power Projects (for Gross Metering) work out to Rs. 350 lakh per MW and Rs. 150 lakh per MW (i.e., 70% and 30% of the Capital Cost), respectively.
As regards Operation and Maintenance Expenses will be according to Renewable Energy Tariff Regulations which is “The normative O&M expenses for the first year of the Control Period, a) 1.5% of Capital Cost for first year, for Solar PV Projects in Mainland Areas; b) 2.0% of Capital Cost for first year, for Solar PV Projects in Island Areas.”
Commission has accordingly worked out the O&M Expenses for FY 2020-21 as
follow:O&M Expenses for Mainland Areas is 7.50 and O&M Expenses for Island Areas -is 12.00.
The escalation rate for projecting O&M expenses for subsequent years works out to 3.93% and the same has been considered for projecting the O&M Expenses for subsequent years till the useful life of the Project.
The Commission has considered the normative interest rate on working capital as 10.91% for Mainland Areas and 11.91% for Island Areas for working out the year-wise Interest on Working Capital.
In accordance with Regulation 36, CUF considered for determination of Tariff for Solar PV Power Projects is as follows: