The Chhattisgarh State Electricity Regulatory Commission (CSERC) has issued the “Terms and Conditions for Determination of Tariff for Renewable Energy Sources” Regulations, 2025. These regulations will come into effect from April 1, 2025, and will remain valid for five years. The new regulations aim to support India’s clean energy goals, facilitate renewable energy development in Chhattisgarh, and align with national policies such as the Electricity Act 2003 and the Green Energy Open Access Rules, 2022.
The regulation applies to renewable energy projects that will begin commercial operations between April 1, 2025, and March 31, 2030. It also includes conditions for existing projects that have long-term power purchase agreements (PPAs) with distribution licensees. These include solar PV, wind, hydro, biomass, biogas, municipal solid waste (MSW), renewable hybrid, and storage projects.
For solar PV projects of 0.5 MW to 2 MW capacity, the Commission has set a normative capital cost of ₹3.5 crore per MW for FY 2025–26. The capacity utilization factor (CUF) for these projects is set at 21%, with auxiliary consumption at 0.25%. Operation and maintenance (O&M) expenses for the first year are fixed at ₹9.26 lakh per MW and will escalate by 5.25% annually.
Small hydro projects are categorized by size, with capital costs set at ₹1,106.79 lakh per MW for up to 5 MW and ₹1,006.46 lakh per MW for projects above 5 MW up to 25 MW. CUF is defined at 30%, and auxiliary consumption is capped at 1.5%. The O&M expenses for the first year are ₹41.74 lakh/MW for projects up to 5 MW and ₹30.23 lakh/MW for those above 10 MW.
For biomass projects using Rankine cycle technology, the CUF is 80%, auxiliary consumption is 10%, and the normative station heat rate is 4000 kcal/kWh. O&M expenses are ₹57.57 lakh/MW for FY 2025–26 and escalate by 5.25% each year. The use of fossil fuel is banned for new projects, while projects commissioned before March 31, 2022, are allowed up to 15% fossil fuel use by calorific value.
Biogas power projects are assigned a capital cost of ₹1,354 lakh per MW. The plant load factor (PLF) is 90%, auxiliary consumption is 12%, and O&M expenses are ₹76.04 lakh per MW in the first year. Specific fuel consumption is 3 kg per kWh, and the feedstock price is set at ₹1,761 per MT for FY 2025–26, with an annual escalation of 3.45%.
The Commission will determine both generic and project-specific tariffs. Generic tariffs will apply to technologies like small hydro and solar PV up to 2 MW, while project-specific tariffs apply to larger or more complex projects like floating solar, hybrid, or storage-based systems. Tariffs will be levelized over the useful life of the project.
Renewable projects are to be treated as “must-run” plants and will not be subjected to merit-order dispatch, except for certain types like biomass or hybrid with storage. Projects must adhere to fuel usage reporting, and violations of fossil fuel limits will lead to the withdrawal of renewable energy benefits. The regulation is expected to promote investor confidence and ensure predictable returns, supporting Chhattisgarh’s contribution to India’s renewable energy goals.
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