cerc regulation renewable electricity
TRANSCRIPT
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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