KERC Invites Comments Regarding Mid-Term Tariff Revision for Wind Projects

The Karnataka Electricity Regulatory Commission (KERC) has invited comments on the discussion paper ‘Revision of Generic Tariff for Wind Power Projects and Mandatory Procurement of Wind Power through Bidding.’ According to findings in the document, KERC has identified a need for a mid-term tariff revision to ensure that consumers get the benefit of lower cost wind power generation.

According to the order dated February 24, 2015, the KERC had determined the generic tariff for wind projects at Rs.4.50 (~$0.069)/kWh for the life of the project (25 years). Due to a reduction in capital costs over the past few years, the current tariff is considerably higher than where it should be. In the recently concluded 1,000 MW wind project auction in Tamil Nadu and Gujarat, the lowest quoted tariff was Rs.3.46 (~$0.051)/kWh.

The commission has proposed a tariff of Rs.3.61 (~$0.056)/kWh, which is 20 percent lower than the existing tariff of Rs.4.50 (~$0.069)/kWh.

Mercom had previously reported, that the MNRE approved another 1,000 MW wind tender to facilitate fulfilment of non-solar renewable purchase obligations (RPO). By auctioning wind projects, the MNRE also wants to encourage competitiveness in the wind sector.

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