APTEL Reinstates Tariff of ₹4.50/kWh for Five Karnataka Wind Generators

The Appellate Tribunal for Electricity (APTEL) granted relief to five wind generators after in Karnataka after the Karnataka Electricity Regulatory Commission (KERC) had issued an order which had reduced the generic tariff to ₹3.74 per kWh for wind projects commissioned before September 2017.

It was declared that the tariff of Rs. 4.50 per kwh determined by the KERC by its generic tariff order dated February 2015 is applicable to the Wind Power Projects for a period of twenty-five years with effect from the date of March 2017 and then the State Commission will approve the Power Purchase Agreements with HESCOM.

The companies which had appealed against the KERC order were Eswari Green Energy LLP, The Impetus Associates LLP, Ahill Apparel Export Private Limited, Laurel Apparels, and Shakti Masala Private Limited. They had filed appeals before the tribunal against the order passed by KERC which denied the tariff of ₹4.50 /kWh and instead reduced the tariff to ₹3.74 /kWh.

The companies are Limited Liability Partnership/Companies which own and operate wind power protects of capacities from 2 MW to 10 MW at Basavana Bagewadi Village of Basavana Basewadi Taluk, Vijaypura District The second respondent, Hubli Electricity Supply Company Limited (HESCOM) is the Distribution Licensee in the State of Karnataka and is responsible for power distribution in Dharwad, Gadag, Vijayapura, Bagalkot, Uttar Kannada, Haveri and Belgaum districts of Karnataka

On September 2017, the State Commission passed the impugned order revising the generic tariff for Wind Power Projects and the mandatory procurement of wind power through Competitive Bidding. By this order, it modified its earlier order dated February 24, 2015 and determined the lower  tariff for wind power projects at Rs. 3.74/- per kWh instead of Rs.4.50/- per kWh.