Support, Grow, Contribute
All About Renewables

Renewable Energy

Find latest News, Industry Updates, Markets, Finance, Policies and Regulations, Tenders

Maharashtra Electricity Regulatory Commission (Terms and Conditions for Determination of RE Tariff) Regulation — 2019

  • / /

HIGHLIGHTS

 

Tariff Period

Technology

No. of Years

Biomass, non-fossil fuel projects

25

Wind, Solar PV, Solar thermal, Solar rooftop

25

Mini, Micro and Small hydro

35

Control Period

5 years, of which the first year shall be FY 2020-21.

Useful Life of a Plant

Technology

No. of Years

Biomass, non-fossil fuel projects

25

Wind, Solar PV, Solar thermal, Solar rooftop

25

Mini, Micro and Small hydro

35

Tariff for FY 2020-21

  • Due to COVID-19 outbreak a field study cannot be conducted. Hence the Commission decided to set the tariff as per FY 2019-20 until further notice.

Technology

Tariff (Rs./kWh)

Rooftop Solar (Net metering)

2.83

Biomass

5.55

Non-fossil fuel based co-generation

4.38

 

Capital Cost

Capital costs for FY 2020-21 RE projects are project-specific and must be approved by the Commission.

Capacity Utilization Factor

Technology

CUF

Wind*

30%

Small hydro*

30%

Solar PV

28%

Solar thermal

23%

Biomass

Time Period

PLF

During stabilization (max. 6 months)

60%

1 year after stabilization

70%

Onwards

80%

Non-fossil fuel

Operating period (240 days)

60%

* For tariff purpose.

Auxiliary Consumption

Technology

Power Consumption

Small hydro

1%

Solar thermal

10%

Non-fossil fuel based projects

8.50%

 

Operation and Maintenance (O&M)Expenses

Technology

O&M Cost for FY 2020-21

Wind

Rs.7.72 Lakh/MW

Hydro:

 

Up to 500 kW

4% of capital cost

500 kW ≤ 1 MW

4% of capital cost

1 MW ≤ 5MW

3.60% of capital cost

5 MW ≤ 25 MW

2.80% of capital cost

Solar PV

 Rs.6 Lakh/MW

Solar thermal

 Rs.15 Lakh/MW

Biomass

5.32 % of capital cost

Non-fossil fuel

3.54% of capital cost

 

Interest Rate on Loans

  • Average State Bank of India marginal cost of funds based lending rate (one-year tenor) prevalent during the last available six months plus 200 basis points.
  • For SHP, the interest on loan is calculated at 10.51%

Depreciation

  • 5.28% for the first 13 years and the remaining depreciation is spread over the residual useful life of the project taking 10% of the project cost as the salvage value.
  • SHP rate of depreciation is 5.28% for the first 13 years and 1.425% for the remaining life of the project.

Return on Equity

14%, to be grossed up by the prevailing minimum alternate tax as on 1 April of the previous year, for the entire useful life of the project.

Interest on Working Capital

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.

Station Heat Rate for Non-fossil fuel based Projects

3600 kcal/kWh

Calorific Value

Biomass project (Existing plant) : 3611 kcal/kg

Biomass project (New plant): 3100 kcal/kg

Non-fossil fuel based plant: 2250 kcal/kg

Fuel Cost

Biomass fuel cost will be based on a study by the Commission.

         

 

OTHER PROVISIONS

 

Tariff Structure and Design

Generic or project specific:

  • Levelised
  • Single part tariff for technologies not using fuel.
  • Single part with fixed cost and fuel cost component for technologies that are using fuel. 

Despatch Principles

 

  • All renewable energy power plants shall be treated as ‘MUST RUN’ power plants.
  • Scheduling of wind and solar energy shall be governed by MERC Forecasting, Scheduling and Despatch of solar and wind generation 2018.
  • Biomass and co-generation projects are covered as per scheduling and dispatch of the State grid code, as amended from time to time.

Links

https://www.merc.gov.in/faces/merc/common/outputClient.xhtml

References

https://www.merc.gov.in/

 

About Portal

'All About Renewables' aims to bring about a change in the way we 'look and search' for data on renewables today, by providing access to the latest developments in the renewable energy sector (specifically renewable electricity), along with cross-linkages to the conventional energy sector, all on one single platform... Read More

Contact

Plot No.44, Hindustan Estates,
Kalyani Nagar, Pune 411 006, India

+91 20 26613855
+91 20 26613832