APERC Seeks Stakeholder Input On Biomass, Industrial Waste, And Bagasse Variable Costs For FY 2024-25 To FY 2028-29

In the matter of determining variable costs for Biomass, Industrial Waste, and Bagasse-based power plants from FY 2024-25 to FY 2028-29, the Andhra Pradesh Electricity Regulatory Commission (APERC) is revisiting its previous decision made in O.P.No.75 of 2019. Back in 2020, the Commission set the variable costs for these projects for FY 2019-20 to FY 2023-24, with an annual fuel price escalation of 5%. For FY 2023-24, the fuel prices were ₹5.8/unit for Biomass/Industrial Waste and ₹3.82/unit for Bagasse.

As the Commission moves towards fixing tariffs for the next control period, spanning from FY 2024-25 to FY 2028-29, there’s a proposal to maintain the same variable costs approved for FY 2023-24. This means that the prices set for Biomass, Industrial Waste, and Bagasse for the previous fiscal year would carry over into the upcoming years, providing consistency in cost calculations for stakeholders in the industry.

However, the Commission recognizes the importance of considering input from stakeholders. Thus, it invites objections or suggestions regarding this proposal. Stakeholders are encouraged to submit their objections or suggestions, supported by relevant data and reasoning, to the Commission Secretary via mail or email before 5 PM on April 15, 2024. This opportunity allows for a transparent and inclusive decision-making process, ensuring that all perspectives are considered before finalizing the variable costs for the specified period.

Overall, this move by the Commission aims to maintain stability and predictability in variable costs for Biomass, Industrial Waste, and Bagasse-based projects while also fostering an environment of open communication and collaboration with stakeholders.

Please view the document here.