CERC Regulation Renewable Electricity

8/2/2019 CERC Regulation Renewable Electricity

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CERC (Terms & Conditions for Tariff

Determination from Renewable

Energy Sources) Regulation, 2009

11.08.2011AK


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CERC (T&C for tariff determination from renewable

sources) Reg. 2009 Applicable

WPD 200 W/m2 & hub height 50 m

Small Hydro

Biomass

Co-gen

Solar PV & Solar Thermal

Provision for Project specific tariff

Tariff Period

13 years Small Hydro 35 years

Solar PV & Solar Thermal 25 years


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CERC() Regulation 2009

Useful Life

Wind energy power project 25 years

Biomass power project, non-fossil fuel co-gen 20 yr

Small Hydro 35 years

Solar PV/ Solar Thermal 25 years


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Capital Cost Norms

Wind energy (FY 2009-10): Capital 5.15 Cr/ MW

Small Hydro (FY 2009-10) Himachal, Uttarakhand, NE States Plant below 5 MW = 7.00 Cr/MW Plant 5 to 25 MW = 6.30 Cr/ MW

Other states Plant below 5 MW = 5.50 Cr/MW

Plant 5 to 25 MW = 5.00 Cr/ MW Biomass based generation: Capital Cost for FY 2009-10 - 4.50 Cr

/MW Non-fossil fuel based Co-generation Projects: Capital Cost for

FY 2009-10 - 4.45 Cr /MW

Solar PV Plant: Capital Cost for FY 2009-10 17.00 Cr /MW Solar thermal Plant: Capital Cost for FY 2009-10 13.00 Cr

/MW Capital Cost for subsequent years is indexed


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Tariff Determination

Annual Revenue Requirement (ARR)

Fixed Cost Return on Equity 19% pre-tax for 10 years, 24% pre-tax

for remaining period on equity 30% of the asset value ofplant.

Interest on Loan 70% of the asset value is loan Repayment period 10 years Weighted average interest rate Interest rate Long term prime lending rate of SBI in previous year

+ 150 basis point

Depreciation 7 % of the asset value for repayment period.remaining depreciation (i.e. 20%) spread over remaining

useful life of plant. Prorata depreciation for part of the year. Interest on Working Capital

Operations & Maintenance expenses (Employee Cost,Repair & Maintenance Expenses, Admin & Gen Expenses)

Corporate tax at actual


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Tariff DeterminationARR (Cont.)

Interest on Working Capital Wind, Small Hydro, Solar PV, Solar Thermal

O&M Expenses of 1 month

Receivable for 2 months

Maintenance spares of 15% of O&M

Biomass and Non-fossil Fuel (Cogeneration) Fuel Cost of 4 months for normative PLF

O&M Expenses of 1 month

Receivable for 2 months of Fixed & Energy Charges for target PLF Maintenance spares of 15% of O&M

Interest rate Long term prime lending rate of SBI inprevious year + 100 basis point


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Tariff DeterminationARR (Cont.) O&M Expenses

Wind based energy: For year FY 2009-10 6.50 lakh/ MW & 5.72%escalation/ year thereafter

Small Hydro Generation for year FY 2009-10 Plant below 5 MW for Hill States Rs. 21 lakh/ MW Plant 5 to 25 MW for Hill States Rs. 15 lakh/ MW Plant below 5 MW for other States Rs. 17 lakh/ MW Plant 5 to 25 MW for other States Rs. 12 lakh/ MW Escalation factor for control period 5.72%

Biomass based generation: For FY 2009-10 20.25 lakh/ MW & 5.72%escalation/year thereafter

Non-fossil fuel based co-generation Plant For FY 2009-10 13.35 lakh/ MW & 5.72% escalation/ year thereafter

Solar PV generation

for FY 2009-10 Rs. 9 Lakh/ MW & 5.72%escalation/ year thereafter Solar thermal generation for FY 2009-10 Rs. 13 Lakh/ MW & 5.72%

escalation/ year thereafter Auxiliary energy consumption 10%


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Tariff DeterminationARR (Cont.) Fuel Cost

Biomass based generation

Station heat rate 3800 kCal/ kWh

Plant to be designed for multifuels (crop residue, agro-industrialresidue, forest residue)

Usage of fossil fuel shall be limited to 15%

Statewise calorific value of biomass for tariff(kCal/kg) Andhra Pradesh 3275

Haryana 3458

Maharashtra 3611

Madhya Pradesh 3612

Punjab 3368 Rajasthan 3689

Tamilnadu 3300

Uttar Pradesh 3371

Other States 3467


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Tariff DeterminationARR (Cont.) Fuel Cost Biomass based generation (Cont..)

State Biomass Price (Rs/MT) Andhra Pradesh 1301 Haryana 2168 Maharashtra 1801 Madhya Pradesh 1299 Punjab 2092 Rajasthan 1822 Tamilnadu 1823 Uttar Pradesh 1518 Other States 1797

Non-fossil fuel based co-generation SHR 3600 kCal/ kWh for power generation only. For cane-bagasse calorific value 2250 kCal/ kg For other fuels in co-gen plant biomass parameters shall apply


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Tariff DeterminationARR (Cont.) Fuel Cost non-fossil fuel based co-generation

(Cont..) Statewise Bagassse Prices (Rs/MT) FY 2009-10

Andhra Pradesh 899

Haryana 1411

Maharashtra 1123 Madhya Pradesh 809

Punjab 1398

Tamilnadu 1243

Uttar Pradesh 1013

Other States 1163

Thereafter 5% escalation shall be considered

Fuel Price Indexation mechanism given separately


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Other Principles for approval of charges

Discounting factor for levelalized tariff

Levellisation for useful, while tariff shall be determined forcontrol period. Must run (not subjected to merit order)

Wind, Small hydro

Municipal solid waste Solar Biomass based generation below 10 MW

Despatches against merit order Biomass plant larger than 10 MW

Non-fossil fuel Co-generation Sharing of CDM benefits: 1st year 100%, 2nd year 90%, 3rd year

80%, 4th year 70%, 5th year 60%, 6th year onwards 50% of theproceed shall be retained by project developers. Remaining shallbe shared by beneficiary.


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Capacity Utilization Factor Wind Generation

For place with Annual Mean Wind Power Density 200 to 250 w/m2 20%

For place with Annual Mean Wind Power Density 250 to 300 w/m2 23% For place with Annual Mean Wind Power Density 300 to 400 w/m2 27% For place with Annual Mean Wind Power Density more than 400 w/m2 30%

Annual Mean Wind Power Density to be measured at 50 m hub height

Small Hydro Power 45% in Hill States & 30% in other states (net of free power to the host state)

Auxiliary consumption

1% Biomass based generation

PLF in stabilization period 60%,

during remaining period of 1st year 70%,

2nd year onwards 80%

Auxiliary consumption 10%

Non-fossil fuel based Co-gen Plant PLF based on number of days plant is available considering 92% loading factor Number of operating days in AP & UP 180 days PLF 45%

Number of operating days in Tamilnadu & Maharashtra 240 days PLF 60%

Number of operating days in Other states 210 days PLF 53%

Auxiliary consumption 8.5%

Solar PV Plant Capacity utilization factor 19%

Solar Thermal Plant Capacity utilization factor 23%


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End

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CERC Regulation Renewable Electricity