Uniform tariff for renewable power

Expected to attract investors

Published: Friday 15 January 2010

in the  second week of December, the Central Electricity Regulatory Commission (cerc)  announced new tariffs for renewable energy which would apply uniformly across the country. At present, state regulators negotiate tariffs with renewable energy generators based on a state’s policy. A cerc  official said uniform tariff would attract more investments. Three months ago, in September, the commission had announced 19-24 per cent profit on investment in renewable energy (see ‘After talk, action on renewables’, Down To Earth, October 31, 2009).

Under the new tariffs announced, wind energy would cost between Rs 3.75 and Rs 5.63 per kWh, depending on which wind zone the power producing plant is located. This would mean a Rs 0.85 per kWh hike for states such as Tamil Nadu. For hydroelectric projects that generate below 25 MW, the tariff would be between Rs 4 and Rs 4.62. This translates into more than a rupee hike for consumers in states such as Andhra Pradesh where the per unit tariff is Rs 2.60.

For bagasse-based cogeneration, the tariff would be between Rs 4.29 and Rs 5.78. In Maharashtra the existing tariff is Rs 3.05, against the new tariff of Rs 4.80. Tariff on solar energy would be between Rs 13.45 and Rs 18.44, depending on the technology used. The tariffs are very attractive, said Jagat S Jawa of Solar Energy Society of India, a non-profit.

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