Chhattisgarh State Electricity Regulatory Commission Proposes Renewable Energy Generic Tariffs For FY 2026-27

The Chhattisgarh State Electricity Regulatory Commission (CSERC) has released a draft order proposing generic tariffs for various renewable energy projects for the financial year 2026-27. The draft has been issued under the provisions of the CSERC Renewable Energy Tariff Regulations, 2025, and is aimed at setting benchmark tariffs for projects such as solar photovoltaic (PV), small hydro, biogas, and non-fossil fuel co-generation plants operating in the state.

According to the draft, the Commission has proposed a levelised tariff of Rs. 3.40 per unit for solar PV projects with capacities ranging from 0.5 MW to 2 MW. The tariff is intended to provide long-term pricing certainty for renewable energy developers planning projects in Chhattisgarh. For small hydro projects, the tariff structure has been divided according to project size. Projects below 5 MW have been proposed at Rs. 7.68 per unit, while projects between 5 MW and 25 MW are proposed in the range of Rs. 7.47 to Rs. 7.87 per unit, depending on their capacity category.

For renewable energy projects that require fuel inputs, such as biogas and non-fossil fuel co-generation plants, the Commission has proposed a two-part tariff mechanism. This structure includes a fixed charge to recover capital and operational expenses, along with a variable charge linked to fuel costs. Under the proposal, biogas projects would receive a fixed charge of Rs. 4.90 per unit and a variable energy charge of Rs. 6.21 per unit.

The draft order also outlines the financial and technical assumptions considered while calculating these tariffs. The Commission has estimated the capital cost for solar projects at Rs. 3.5 crore per MW, while biogas-based plants are estimated to require around Rs. 13.54 crore per MW. Most renewable energy projects have been assigned a useful project life of 25 years. However, small hydro projects have been given a longer operational life of 40 years due to their infrastructure characteristics.

In terms of financing assumptions, the Commission has considered a debt-to-equity ratio of 70:30. Interest on loan has been calculated at 10.72%, while project developers are allowed a Return on Equity (RoE) ranging between 14% and 15% to maintain financial viability and investor confidence.

The Commission has also specified operational performance norms for various technologies. Solar projects are expected to achieve a Capacity Utilisation Factor (CUF) of 21%, whereas biogas projects are projected at a significantly higher CUF of 90% due to their continuous operating nature.

CSERC has invited comments, suggestions, and objections from stakeholders and the public on the draft order. Interested parties can submit their responses until June 5, 2026. The Commission has also scheduled a public hearing on June 9, 2026, at its courtroom in Raipur. The final tariffs will apply to renewable energy projects commissioned during FY 2026-27 that sign long-term power purchase agreements with state distribution companies.