HPERC Approves Generic Levelized Tariff Of Solar Power At Rs 3.65/unit

HPERC Approves Generic Levelized Tariff Of Solar Power At Rs 3.65/unit

The Himachal Pradesh Electricity Regulatory Commission (HPERC) in its order has fixed the generic levelized tariff of solar energy projects at Rs 3.65 per unit for projects upto 100 MW. It also decided to fix the the tariff for projects between 100 MW to 500 MW at Rs 3.62 per unit.

The rates were finalized by the state electricity commission after hearing the comments of the solar developers in the state. HPERC heard the response against a draft regulation on the issue. These tariffs have been fixed for solar PV projects for GY 2023-24. These will come into effect from October 1, 2023. It will be applicable till March 31, 2024.

The stakeholders in their arguments also gave their estimates on normative capital cost which ranged around Rs 2 crore per MW. They also talked about the increased cost of modules due to increased import duties. They also objected to the mandated higher CUF of the solar modules. 

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HPERC after hearing the plea decided to increase the normative cost of other equipment. “In view of above, the Commission feels that the proposed rates of solar PV modules are not wholly unrealistic, as contended by some of the stakeholders. However, taking into account the various suggestions given by the stakeholders in relation to the normative capital cost and balancing various concerns and taking into account the fact that the duration of the proposed tariff is of six (6) months only, the Commission in order to promote setting up of the solar PV projects of smaller capacities in the State, decides to allow an all inclusive escalation of 40% on the basic cost instead of 15% proposed in the proposal,”

It also added, “Apart from above, the normative cost of the other components of normative capital cost shall also be increased to Rs. 225.00 Lakhs/MW as against Rs. 216.30 Lakhs/MW as per the proposal.

Discussions were also held on the mandated CUF of 21 percent by the HPERC. Several solar developers meanwhile had asked the Commission to lower down the CUF levels. However, the HPERC reiterated their minimum CUF mandate of CUF.

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“The CUF less than 21% may encourage installation of lower efficiency modules which would result in inefficient operations of the projects. The Commission also feels that with the technological development, the CUF should normally witness an increasing trend. Efficiency parameters of 23.2% is already being indicated. The Commission, however, decides to retain the same as 21% only,” the order said.