Average Power Purchase Cost for Open Access Solar and Wind Projects Set At ₹3.60/kWh

The new average power purchase cost for FY 2019-2020 is around 2% higher than the previous year


The Central Electricity Regulatory Commission (CERC) has approved the new national average power purchase cost (APPC) of ₹3.60 (~$0.051)/kWh for open access for FY 2019-20.

In May 2019, the CERC had proposed setting the APPC at ₹3.60 (~$0.051)/kWh for open access for FY 2019-20. Further, the proposal was up for comments up to May 28, 2019. However, no comments were received from the stakeholder, and the proposed APPC of ₹3.60 (~$0.051)/kWh has been approved.

In June 2018, the CERC had set ₹3.53 (~$0.050)/kWh as the APPC for open access. This APPC was applicable during FY 2018-19. The APPC for FY 2017-18 was ₹3.48 (~$0.0497)/kWh, and for FY 2016-17, it was ₹3.40 (~$0.0485)/kWh.

The commission in the petition:

Based on the tariff orders issued by the SERCs/JERCs for FY 2018-19, the APPC at the National level has been determined as 3.60/kWh. This APPC shall be applicable during FY 2019-20 and until further orders for the purpose of deviation settlement in respect of the open access and captive wind and solar generators fulfilling the requirement of regional entities.”

The total cost of power purchase considered for the computation of APPC excludes the cost of generation or procurement from renewable energy sources and transmission charges. The exclusion of the cost of generation or procurement from renewable sources is in alignment with the objective of determining APPC, which is to determine the average cost of power from conventional sources of electricity.

The approved APPC at the national level was determined by calculating the average of APPC of all states and union territories, weighted by the volume of conventional power purchased by the respective state or union territory.

The CERC also finalized the amended regulations for open access in interstate transmission in January 2019.