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

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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

3.91

3.89

Solar thermal

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

  • **If project is located in specified area as per Income Tax Notification No. 71/2015/F and No.142/13/2015-TPL vide notification dated 17 Aug 2015 for which 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 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*

19

Solar thermal*

23

MSW/RDF based on Rankine cycle

Stages

PLF (%)

MSW

RDF

Stabilization 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*

0.25

Solar thermal*

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

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

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 first 10 years and remaining depreciation spread over the remaining useful life of the project. 

Return on Equity

  • 14% grossed up by prevailing MAT as on 1st 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 and not through Letter of Credit.

Late Payment Interest

·         1.25% if bill is paid after 60 days from the billing date.

Banking of Solar Power

  • Allowable against a charge of 2% of banked energy paid to BSPHCL.
  • Unused part of banked energy will not be allowed to be used in the subsequent year.
  • Drawal of banked energy shall not be allowed during peak hours.

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 

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