JERC Sets Generic Tariffs for Solar and Other Renewable Projects for 2019-20 in Goa
The rates discovered by the competitive bidding process are considerably lower than the generic tariffs, the commission has observed
The Joint Electricity Regulatory Commission (JERC) for the state of Goa and union territories has issued an order for generic tariff applicable to the renewable projects for the financial year (FY) 2019-20.
The commission states that since the rates discovered by competitive bidding process are considerably lower than the generic tariffs determined in the earlier years, many of the distribution companies have been procuring renewable energy power by way of competitive bidding rather than the generic tariff. With this tariff revision, the commission intends to rectify this problem.
The order has been in force since September 2, 2019, and will be applicable until March 31, 2020. The tariff determined under the order will be applicable for projects commissioned after the issuance of this order in FY 2019-20 for the entire duration of the tariff period, which is 25 years.
In August 2019, Mercom had reported that for solar PV (gross metering), the JERC had considered 25 years as the ideal tariff period with an interest rate of 10.52% in mainland areas, and 11.52% in island areas.
According to the order, the generic tariff for solar PV power projects (for gross metering) for the state of Goa is ₹4.98 (~$0.069)/kWh and the benefit of accelerated depreciation (AD) is ₹0.37 (~$0.005)/kWh. The net levelized tariff is, therefore, ₹4.61 (~$0.064)/kWh. Similarly, for Chandigarh, the levelized tariff is ₹5.27 (~$0.073)/kWh, and the benefit of accelerated depreciation is ₹0.39 (~$0.005)/kWh, making the net levelized tariff ₹4.88 (~$0.068)/kWh.
The levelized tariff for four union territories, namely Dadra and Nagar Haveli, Daman, Puducherry, and Diu is ₹4.98 (~$0.069)/kWh. The net levelized tariff for these union territories after factoring in the AD is ₹4.61 (~$0.064)/kWh.
The highest levelized tariff rate has been given to Andaman and Nicobar Islands and Lakshadweep. The levelized tariff rates for these two islands is ₹7.16 (~$0.099)/kWh and the net levelized tariff is ₹6.63 (~$0.092)/kWh.
Earlier, the JERC had proposed for the same generic tariff rates for the state of Goa and union territories.
Similarly, the generic tariff for wind energy-based projects in the state of Goa and two union territories of Chandigarh, and Dadra and Nagar Haveli is ₹5.22 (~$0.073)/kWh and the net levelized tariff is ₹4.82 (~$0.067)/kWh. The lowest levelized tariff has been given to Diu, amounting to ₹3.62 (~$0.050)/kWh while Lakshadweep has the highest tariff of ₹7.1 (~$0.099)/kWh. The benefit of accelerated depreciation provided here is ₹0.54 (0.008)/kWh and the net levelized tariff for the island is ₹6.56 (~$0.091)/kWh.
According to the order, for small hydropower projects in mainland areas, the levelized tariff is ₹4.77 (~$0.066)/kWh. The tariff rate will apply for those projects which are lower than or equal to 5 MW. However, the tariff for projects which are above 5 MW but lower than 25 MW is ₹4.33 (~$0.060)/kWh, with the benefit of AD being ₹0.29 (~$0.0040)/kWh.
Similarly, for projects which are lower than or equal to 5 MW in island areas, the levelized tariff rate is ₹7.29 (~$0.101)/kWh, and for those small hydropower projects which are above 5 MW but not more than 25 MW, the tariff is ₹6.25 (~$0.087)/kWh.
The tariff period for small hydro projects both for mainland and island areas is 35 years.
In May 2019, the JERC issued draft net metering regulations for grid-connected rooftop-mounted, ground-mounted and floating solar PV power projects in Goa and the union territories.
Anjana is a news editor at Mercom India. Before joining Mercom, she held roles of senior editor, district correspondent, and sub-editor for The Times of India, Biospectrum and The Sunday Guardian. Before that, she worked at the Deccan Herald and the Asianlite as chief sub-editor and news editor. She has also contributed to The Quint, Hindustan Times, The New Indian Express, Reader’s Digest (UK edition), IndiaSe (Singapore-based magazine) and Asiaville. Anjana holds a Master’s degree in Geography from North Bengal University, and a diploma in mass communication and journalism from Guru Ghasidas University, Bhopal.