In a move aimed at bolstering its solar energy initiative, the Uttarakhand Electricity Regulatory Commission (UERC) has prolonged the prevailing generic tariff of ₹4.64/kWh for the fiscal year 2023-24. This extension applies to solar power projects designated under the Mukhyamantri Saur Swarojgar Yojna (MSSY) Program, spanning a duration of three years until March 31, 2026.
The MSSY program, a cornerstone of the Uttarakhand state government’s efforts, was devised to foster self-employment through solar farming. The program’s focus is to provide small and marginal farmers with opportunities for self-sufficiency by setting up compact solar power installations on unused or unproductive land. These installations enable them to supply the generated electricity to the Uttarakhand Power Corporation (UPCL).
The Uttarakhand Renewable Energy Development Agency (UREDA), the agency tasked with implementing the MSSY program, had petitioned the UERC for a gross generic tariff of either ₹4.49/kWh or higher. The proposal sought to encompass 246.5 MW of solar projects for FY 2023-24, catering to various capacities of 20/25/50/100/200 kW.
During deliberations, concerns were raised over the potential impact of fluctuating costs due to factors like the Goods and Services Tax (GST) and customs duty on solar modules, which could affect the project’s viability. The UPCL also highlighted the complexities of establishing a fixed tariff for three years, in light of evolving regulatory conditions.
In its assessment, the Commission acknowledged revisions to the MSSY program, expanding project capacity and scope. It emphasized the need for uniform tariff treatment, noting that the existing tariff would remain applicable to projects commissioned under the scheme. Consequently, the Commission ruled to retain the tariff at ₹4.64/kWh for the MSSY solar power plants until 2026.
The Commission’s decision resonates with the UPCL’s stance that disparate tariff rates for similar technologies could create disparities. This move ensures consistency in solar power rates and supports the MSSY program’s objectives.
Looking ahead, the Commission underscored the importance of timely project commissioning and the support of beneficiaries by UREDA. As Uttarakhand extends its commitment to sustainable energy, the MSSY program’s continuation reflects a steadfast stride toward empowering local communities while contributing to the state’s renewable energy aspirations.
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