CERC Revises National Level Average Power Purchase Cost (APPC) to INR 3.85/Kwh for FY 2021-2022

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In a recent order, CERC has revised National APPC (Average Power Purchase Cost) for wind or solar generators that are regional entities and selling power under Open Access, which is not accounted for RPO (Renewable Purchase Obligation) compliance of obligated entities, and for captive power plants where PPAs do not exist, settlement shall be done at APPC determined at the national level. CERC has calculated APPC by taking into account of APPC of all states , UTs for FY 2020-2021 weighted by volume of conventional power purchased by the respective state/UT for FY2020-2021. The total cost of power purchase considered for calculating the APPC excluded the cost of generation or procurement from renewable energy sources and transmission charges. The exclusion is in line with the determination of APPC to calculate the average cost of power from conventional sources.

The trend of APPC (National Level) from FY 2015 to FY 2022.

Financial YearAPPC (National Level) (INR/Kwh)
FY 2015-20163.4
FY 2016-20173.4
FY 2017-20183.48
FY 2018-20193.53
FY 2019-20203.6
FY 2020-20213.6
FY 2021-20223.85

The commission received comments/ suggestions in response of public notice by CERC for the proposal of “Calculation of Average Power Purchase Cost (APPC)” at national level for FY 2021-2022 from KERC, PCKL & Anushka Garg (Data Analytics Professional).

In response to PCKL’s request to consider tariff obtained through competitive bidding in respect of wind and solar power projects, commission confirm the approved purchase cost and volume of power for FY 2020-2021 as approved by SERCs in their respective FY 2020-2021 tariff orders, have been considered.

In another observation, from Anushka Garg , data from SHP (Small Hydro Project) from the states (Uttarakhand, Uttar Pradesh) and baggasse co-generation plant has been missed while calculating renewable component. Commission has agreed and updated their data accordingly.

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