The Chhattisgarh State Electricity Regulatory Commission (CSERC) has framed the Chhattisgarh State Electricity Regulatory Commission (Terms and Conditions for Tariff Determination of Renewable Energy Sources) Regulations, 2024. These draft regulations aim to foster the development of renewable energy projects in the state, emphasizing sustainability and alignment with India’s broader commitments to clean energy and carbon neutrality.
India has set ambitious goals for renewable energy, including achieving 500 GW from non-fossil sources by 2030. In line with this, the regulations are designed to promote diverse renewable technologies such as solar, wind, biomass, and waste-to-energy projects. The Central and State Government policies, including the Electricity Act 2003 and the Electricity (Green Energy Open Access) Rules, 2022, have been significant in guiding the formulation of these rules. Specific provisions include the determination of tariffs based on technology-specific parameters, project-specific capital costs, and operational norms.
The draft regulations categorize renewable energy projects based on their generation technology, capacity, and type. For instance, new projects commissioned between April 2025 and March 2030 will fall under these regulations if they supply power to state distribution licensees. Older projects with long-term power purchase agreements will be governed by previous tariff orders and energy charge provisions.
For each renewable technology, the Commission has detailed norms. These include capital costs, capacity utilization factors, auxiliary consumption, and operation and maintenance expenses. For example, solar photovoltaic projects with capacities between 0.5 MW and 2 MW have a normative capital cost of ₹3.5 crores per MW for FY 2025-26, while their capacity utilization factor is set at 21%. Similar specificities are provided for wind energy, biomass, and other technologies.
Tariff structures are bifurcated into generic and project-specific models, ensuring flexibility while maintaining uniformity. Generic tariffs are determined at the start of each year for technologies with standardized norms, while project-specific tariffs are decided based on unique project characteristics. Moreover, the regulations emphasize “must-run” status for renewable projects, ensuring their prioritization in grid operations.
Additionally, financial norms like debt-equity ratios, return on equity, and interest on working capital are standardized. Provisions for depreciation rates, working capital requirements, and late payment surcharges are also outlined. The regulations ensure transparency by mandating developers to furnish data on fuel usage and project-specific operations.
To support these efforts, the Chhattisgarh Renewable Energy Development Agency (CREDA) plays a key role in monitoring compliance and maintaining data. CREDA is tasked with publishing reports and ensuring adherence to the regulations, particularly concerning fuel usage in biomass projects.
These comprehensive guidelines reflect CSERC’s commitment to integrating renewable energy into the state’s power sector while supporting India’s sustainable development goals.
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