Tariff Period

Technology

No. of Years

Municipal Solid Waste (MSW) and Refuse Derived Fuel (RDF) based power, Biomass(Rankine cycle & gasifier), Biogas, Cold plasma projects

20

Wind, Solar PV, Solar thermal

25

Small Hydro, Tidal energy

35

Control Period

3 years, of which the first year shall be FY 2019-20.

Useful Life of a Plant

Technology

No. of Years

Municipal Solid Waste (MSW) and Refuse Derived Fuel (RDF) based power, Biomass(Rankine cycle & gasifier), Biogas

20

Wind, Solar PV, Solar thermal, Hybrid Wind & Solar

25

Small Hydro

35

Tariff (Rs./kWh)

Project-specific tariff shall be determined for the following cases:

• Solar PV (for gross metering).
• Wind energy-based projects.
• Small Hydro based projects.
• Solar thermal
• Biomass power projects based on Rankine cycle technology.
• Biomass gasifier based projects.
• Biogas based projects.
• Municipal Solid Waste, Refuse Derived Fuel based projects with Rankine cycle technology and Cold Plasma Gasification as approved by MNRE.
•  Tidal power projects.
•  Solar PV with battery (hybrid or stand-alone).
•  Solar and Wind Hybrid.
•  Any other renewable energy technology as approved by MNRE.
•  As per the third proviso of Regulation 7.1 seeking Government subsidy.

Capital Cost

All capital costs are for FY 2019-20, and the same will remain valid for the entire duration of the control period, unless reviewed earlier.

Technology

Capital Cost

(in Rs.Crore/MW)

Wind

• Mainland: 5.25
• Andaman & Nicobar: 6.25
• Lakshadweep: 7

Small Hydro below 5 MW

• Mainland: 7.79
• Islands: 10.50

Small Hydro between 5 MW and 25 MW

• Mainland: 7.07
• Islands: 9

Solar PV

• Mainland: 5 (without subsidy)
• Islands: 6 (without subsidy)

Biomass plant on Rankine cycle

Project specific

Solar Thermal

Project specific

Biomass gasifier

Project specific

Biogas

Project specific

MSW/RDF

Project specific

Capacity Utilization Factor

Technology

CUF

Wind

Territory

CUF

Goa

18%

Andaman & Nicobar

18%

Puducherry

21%

Lakshadweep

20%

Daman

19%

Chandigarh

18%

Dadra & Nagar Haveli

18%

Diu

26%

Small Hydro

30%

Territory

CUF

Goa

18%

Solar PV

Andaman & Nicobar

17%

Puducherry

18%

Lakshadweep

17%

Daman

18%

Chandigarh

17%

Dadra & Nagar Haveli

18%

Diu

18%

Biomass plant on Rankine cycle

First year 70%

From 2^nd year onwards 80%

Solar thermal

Project specific

Biomass gasifier

85%

Biogas

90%

MSW/RDF

Stage

MSW

RDF

First year

70%

65%

From 2nd year onwards

70%

80%

Auxiliary Consumption

Technology

Usage

Wind

0.25%

Small hydro

1%

Solar PV

0.25%*

Biomass plant on Rankine cycle

Water cooled

Air cooled

1^st year

11%

13%

From  2^nd year

10%

12%

Solar thermal

10%

Biomass gasifier

10%

Biogas

12%

MSW/RDF

15%

*The Commission may deviate from the norms in case of project specific tariff determination.

Operation and Maintenance (O&M)Expenses

Technology

O&M Cost

% of Capital Cost FY 2019-20

Wind

• Mainland: 1.5
• Islands: 2

Small hydro

• Mainland: 2
• Islands: 2.5

Biomass plant on Rankine cycle

5

Solar PV

• Mainland:  1.5
• Islands: 2

Solar thermal

 Project specific

Biomass gasifier

Project specific

Biogas

Project specific

MSW/RDF

• Mainland:  5
• Islands: 6

O&M cost is escalated at 5.72% per annum over the tariff period.

Interest Rate on Loans

• Mainland: SBI MCLR 1 yr tenor + 200 basis points.
• Islands:      SBI MCLR 1 yr tenor + 300 basis points.

Depreciation

5.83% for the first 12 years and remaining depreciation spread over the residual useful life of the project considering 10% of project cost as the salvage value of the project.

Return on Equity

• Mainland: 14%
• Islands:     16%

To be grossed up by prevailing Minimum Alternate Tax as on 1 April of the available year at the time of determination of tariff for the entire useful life of the project.

Interest on Working Capital

• Mainland: Average State Bank of India Marginal Cost of Funds based Lending Rate (one-year tenor) prevalent during the last available six months plus 300 basis points.
• Islands: Average State Bank of India Marginal Cost of Funds based Lending Rate (one-year tenor) prevalent during the last available six months plus 400 basis points.

Station Heat Rate

Technology

Biomass plant on Rankine cycle

• Travelling grate boiler: 4200 kcal/kWh.

• AFBC boiler: 4125 kcal/kWh.

MSW/RDF

Project specific

Calorific Value (Only for RDF)

Project specific

Fuel Cost

Project specific

Tariff Structure and Design

• Generic or project specific.
  • Single-part tariff for technologies not using fuel.
  • Single-part with fixed cost and fuel cost component for technologies using fuel. 
  • Levelisation calculated on the useful life of renewable energy projects.

Despatch Principles

All renewable energy power plants shall be treated as ‘MUST RUN’ power plants and shall not be subjected to merit order despatch.

Subsidy or/and Incentives by Government

Any incentive or subsidy provided by the central or state government including accelerated depreciation benefit would be taken into consideration for determination of tariff.

Taxes and Duties

As pass-through, on actually incurred basis.

Rebate

• 2% - for payment through Letter of Credit.
• 1% - for payments not through Letter of Credit but within 1 month from the date of presentation of bills.

Late Payment Surcharge

1.25% per month for payment of bills beyond a period of 60 days from the date of billing.

Links

http://jercuts.gov.in/

References

http://jercuts.gov.in/writereaddata/UploadFile/finalfile636933434438348145.pdf