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BERC (Terms and Conditions for Tariff Determination from Renewable Energy Sources) Regulations, 2017, including First Amendment 2018

  • / /

HIGHLIGHTS

 

Tariff Period

Technology

No. of Years

Wind, solar PV, solar thermal.

25

Biomass Rankine cycle, biomass gasifier, biogas, non-fossil fuel based co-generation, municipal solid waste and refuse derived fuel based projects.

 

20

Small hydro power projects.

35

 

Control Period

Three years, of which the first year shall be FY 2017-18.

Useful Life of a Plant

Technology

No. of Years

Wind, solar PV, solar thermal.

25

Biomass Rankine cycle, biomass gasifier, biogas, non-fossil fuel based co-generation, municipal solid waste and refuse derived fuel based projects.

 

20

Small hydro power projects.

35

 

Technology-wise Tariff

Technology

Net Tariff (Rs./kWh)

Case I*

Case II**

Solar PV (less than 5 MW).

3.91

3.89

Solar thermal (less than 5 MW).

9.66

9.62

Biomass gasifier.

 6.669

6.663

Bagasse based power projects.

5.76

5.75

Municipal solid waste based on Rankine cycle.

5.91

5.88

Refuse derived fuel based on Rankine cycle.

7.20

7.18

Biomass [other than rice straw and juliflora (plantation)] based projects with air cooled condenser.

7.25

7.24

Biomass [for rice straw and juliflora (plantation)] based projects with air cooled condenser.

7.33

7.32

Biomass [other than rice straw and juliflora (plantation)] based projects with water cooled condenser.

7.07

7.06

Biomass [for rice straw and juliflora (plantation)] based projects with water cooled condenser.

7.18

7.17

*If a project is not located in a specified area as per Income Tax Notification No. 71/2015/F and No.142/13/2015-TPL, vide notification dated 17 Aug 2015, additional depreciation allowable is 20%.

**If a project is located in a specified area as per Income Tax Notification No. 71/2015/F and No.142/13/2015-TPL, vide notification dated 17 Aug 2015,  additional depreciation allowable is 35% instead of 20%.

 
  • Tariff for all other technologies is project specific.

 

Capacity Utilization Factor (CUF)/Plant Load Factor (PLF)

Technology

CUF/PLF

Biomass based on Rankine cycle (water cooled condenser).

Stages

PLF (%)

Stabilization period - maximum up to 6 months.

60

After stabilization - up to 1 year.

70

Beyond 1 year.

80

Bagasse based co-generation

Based on 210 operating days and load factor of 92%.

Biomass gasifier.

                                               85

Solar PV (less than 5 MW).*

                                              19

Solar thermal (less than 5 MW).*

                                             23

MSW/RDF based on Rankine cycle

Stages

PLF (%)

MSW

RDF

Stabilization period - maximum up to 6 months.

65

65

After stabilization - up to 1 year.

65

65

Beyond 1 year.

75

80

* Commission may deviate in case of project specific tariff.

Auxiliary Consumption

Technology

Aux. Cons. (%)

Biomass based on Rankine cycle (water cooled condenser).

Stages

Aux. Con. (%)

1st year

11

2nd year onwards

10

Non-fossil fuel based co-generation.

                                        8.50

Solar PV and rooftop solar PV (less than 5 MW).*

                                        0.25

Solar thermal (less than 5 MW).*

                                       10.00

Biomass gasifier.

                                        10.00

MSW/RDF based on Rankine cycle.

                                       15.00

*Commission may deviate in case of project specific tariff.

Capital Cost

Technology

Capital Cost (in Rs. lakh/MW)

Biomass [other than rice straw and juliflora (plantation)] based projects with air cooled condenser.

600.44

Biomass [for rice straw and juliflora (plantation)] based projects with air cooled condenser.

652.20

Biomass [other than rice straw and juliflora (plantation)] based projects with water cooled condenser.

559.03

Biomass [for rice straw and juliflora (plantation)] based projects with water cooled condenser.

610.80

Non-fossil fuel based co-generation

492.50

Solar PV including rooftop (less than 5 MW).

442.18

Biomass gasifier based on Rankine cycle.

442.88

(net for FY 2017-18)

MSW based on Rankine cycle.

1500.00

RDF based on Rankine cycle.

900.00

 

Operation and Maintenance (O&M) Expenses

Technology

O&M Expenses (Rs. lakh/MW)

FY 2017-18

Solar PV including rooftop (less than 5 MW).

07.40

Biomass based on Rankine cycle.

40.00

Biomass gasifier.

52.83

Non-fossil fuel based co-generation.

21.13

MSW based on Rankine cycle.

90.00

RDF based on Rankine cycle.

54.00
  • O&M cost shall be escalated @ of 5.72% per annum.

Interest Rate on Loan
  • 200 basis points above the average State Bank of India MCLR (1-year tenor) prevalent during the last available six months.
  • 9.983% (FY 2017-18).

 

Depreciation

7% for the first 10 years and balance depreciation spread over the remaining useful life of the project.

 

Return on Equity
  • 14% grossed up by prevailing MAT as on 1 April of the previous year.
  • 17.56% for FY 2017-18.

 

Interest on Working Capital
  • 300 basis points above the average State Bank of India MCLR (1-year tenor) prevalent during the last available six months.
  • 10.983%

 

Station Heat Rate (SHR)

Technology

SHR (kCal/kWh)

Biomass with Rankine cycle.

3174

Non-fossil fuel based co-generation.

2250

MSW/RDF.

4200

 

Gross Calorific Value (GCV)

Technology

GCV (kCal/kg)

Biomass.

3200

Bagasse based co-generation.

2250

MSW/RDF.

2500

 

Specific Fuel Consumption (SFC)

Technology

SFC (kg/kWh)

Biomass gasifier.

1.25

 

Fuel Cost

Technology

Fuel Cost (Rs./MT) (FY 2017-18)

Biomass.

3073.05

Bagasse.

1964.71

RDF.

1800.00
  • Fuel cost shall be escalated @ 5% per annum.
  • No fuel cost shall be allowed for MSW based projects.

 

OTHER PROVISIONS

 

Tariff Structure and Design
  • Single part, levelised tariff with two components for projects having fuel cost component.
  • Single part, levelised tariff for all other technologies.

Merit Order Dispatch Principle

All power plants, except biomass power plants, with capacity of 10 MW and above and non-fossil fuel based co-generation plants.

 

Subsidy or/and Incentives by Government

Any incentives or subsidy offered by the government, including accelerated depreciation benefit, shall be considered.

Taxes and Duties

Allowable as a pass-through on actual basis.

 

Rebate
  • 2% for payment through Letter of Credit.
  • 1% for payment within 1 month of bill presentation not through Letter of Credit.

 

Late Payment Interest
  • 1.25% if bill is paid after 60 days from the billing date.

Links

https://berc.co.in/rules-requlations/regulations/individual-regulation

https://berc.co.in/orders/other-orders

 

References

https://berc.co.in/rules-requlations/regulations/individual-regulation/1313-terms-and-conditions-for-tariff-determination-from-renewable-energy-sources-regulations-2017

https://berc.co.in/orders/other-orders/1412-in-the-matter-of-suo-motu-proceeding-for-determination-of-generic-levellised-tariff-of-power-generated-from-renewable-energy-sources-for-fy-2017-18

https://berc.co.in/rules-requlations/regulations/individual-regulation/1580-1st-amendment-to-terms-and-conditions-for-tariff-determination-from-renewable-energy-sources-regulations-2018

 

 

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