Kerala Commission Approves Tariff For ANERT’s 2 MW Solar Project

The Kerala State Electricity Regulatory Commission (KSERC) has recently approved the tariff for electricity generated by the Agency for Non-conventional Energy and Rural Technology (ANERT) from its 2 MW Solar PV project in Kuzhalmannam. This decision comes after a series of deliberations between ANERT and the Kerala State Electricity Board Limited (KSEBL), shedding light on various financial and operational aspects of the project.

ANERT initiated the petition for tariff approval before the Commission, highlighting its establishment of the 2 MW Solar Plant in Kuzhalmannam, Palakkad District, in 2016. With a total project cost of approximately ₹14.58 crore, including EPC and O&M expenses, ANERT aimed to supply electricity generated from the project to KSEBL.

The project, which commenced operations in December 2016, has contributed significantly to the state’s renewable energy grid, generating around 17.8 million units of electricity since its inception. ANERT sought approval for a tariff rate of ₹2.69 per unit, referencing the government’s directive to KSEBL to sign a Power Purchase Agreement (PPA) at the tariff fixed by KSERC.

During the proceedings, KSEBL expressed concerns about the project’s delayed commissioning and discrepancies in cost allocation. While ANERT received government grants and utilized its funds for the project, KSEBL emphasized the need for a fair assessment of costs and tariffs.

The Commission meticulously evaluated both parties’ arguments and examined relevant regulatory frameworks to ensure a balanced decision. Despite ANERT’s request for a specific tariff rate, the Commission emphasized the necessity of a reasonable tariff structure that could sustain the project’s operational costs over its useful life.

After thorough analysis, the Commission approved a tariff of ₹2.69 per unit, aligning with the Average Pooled Purchase Cost (APPC) for the financial year 2016-17. This decision reflects the mutual agreement reached between ANERT and KSEBL in the initial PPA, emphasizing the importance of regulatory compliance and financial viability.

The approved tariff rate will govern the electricity supply from ANERT’s 2MW Solar PV project to KSEBL for the entire duration of the PPA, spanning 25 years from the project’s Commercial Operation Date (CoD) in December 2016. ANERT and KSEBL are mandated to finalize the PPA within one month of the Commission’s order, ensuring adherence to regulatory directives. The Commission’s decision underscores its commitment to fostering sustainable energy practices while upholding the interests of all stakeholders involved. By establishing a transparent and equitable tariff structure, the Commission aims to encourage further investments in renewable energy initiatives across the state. The approval of the tariff for ANERT’s 2 MW Solar PV project represents a significant milestone in Kerala’s renewable energy landscape. With regulatory clarity and stakeholder collaboration, the state can continue its journey toward a greener and more sustainable future.

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