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Transcript of RAJASTHAN ELECTRICITY REGULATORY …rerc.rajasthan.gov.in/cnpl/PDFs/Solar.pdfPage 1 of 15 RAJASTHAN...
Page 1 of 15
RAJASTHAN ELECTRICITY REGULATORY COMMISSION, JAIPUR
Suo-Motu
In the matter of Determination of Benchmark Capital Cost for Solar PV
and Solar Thermal Power Projects for FY 2013-14 and resultant Generic
Levellised Tariff.
Coram :
Shri D.C. Samant, Chairman
Shri S.K. Mittal, Member
Shri S. Dhawan, Member
DRAFT ORDER
BACKGROUND
1. In accordance with the provisions of Electricity Act, 2003 and
National Tariff Policy notified by Govt. of India (GoI), the
Commission under its RERC (Terms and Conditions for
Determination of Tariff) Regulations, 2009 had incorporated the
enabling provisions for determination of generic tariff for solar
power projects.
2. Commission had issued the last Tariff Order on 30.05.2012, wherein
Commission had determined generic tariff for solar power plants,
which was applicable for solar PV plants (SPV) where PPA was
signed on or before 31.03.2013 and getting commissioned on or
before 31.03.2014 and solar thermal plants where PPA was signed
on or before 31.03.2013 and getting commissioned on or before
31.03.2015. The tariff as per the above mentioned Order is given in
the following table:
Table-1: Solar Tariffs in Rajasthan as per Tariff Order dated 30.05.2012
S.
No. Particulars
Tariff (`/kWh) if
AD benefit is
not availed
Tariff (`/kWh) if
AD benefit is
availed
1 2 3 4
1 Solar Photo Voltaic (PV) Power
Plants commissioned by 31.3.2014
9.63 8.42
2 Solar Thermal Power Plants 11.95 10.45
Page 2 of 15
S.
No. Particulars
Tariff (`/kWh) if
AD benefit is
not availed
Tariff (`/kWh) if
AD benefit is
availed
1 2 3 4
commissioned by 31.3.2015
3 Roof Top Solar PV installations and
other small solar PV power
generation plants covered in
MNRE’s scheme or Rajasthan Solar
Energy Policy to be commissioned
by 31.3.2014
9.63 8.42
4 Small Solar Thermal Power
generation plants covered in
MNRE’s scheme or Rajasthan Solar
Energy Policy to be commissioned
by 31.03.2015
11.95 10.45
3. CERC has recently issued Order on 28.02.2013 (Petition No.
243/SM/2012 (Suo-Motu) in the matter of determination of generic
levellised generation tariff for FY 2013-14 of various RE sources
which include the category of Solar Photo Voltaic (PV) and Solar
Thermal Power Projects. CERC in the above Order has determined
a generic tariff of `8.75 per unit (`7.87 per unit if AD benefit is
availed) in respect of solar PV projects and a generic tariff of
`11.90 per unit (`10.69 per unit if AD benefit is availed) for solar
thermal projects whose PPAs would be signed by 31.03.2014 and
to be commissioned by 31.03.2015 in the case of solar PV projects
and by 31.03.2016 in the case of solar thermal projects.
TARIFFS FOR MW SCALE SOLAR POWER PROJECTS WHERE PPA IS SIGNED
ON OR BEFORE 31.03.2014 AND TO BE COMMISSIONED ON OR BEFORE
31.03.2015 IN CASE OF SOLAR PV PLANTS AND TO BE COMMISSIONED
ON OR BEFORE 31.03.2016 IN CASE OF SOLAR THERMAL PLANTS
4. The RERC Tariff Order dated 30.05.2012 is applicable for the Solar
projects that have signed PPA on or before 31.3.2013 and to be
commissioned on or before 31.3.2014 in the case of solar PV and
on or before 31.3.2015 in the case of solar thermal projects. The
Commission through this Order now proposes to determine tariff for
the MW scale solar projects where PPA is signed on or before
Page 3 of 15
31.03.2014 and to be commissioned on or before 31.03.2015 in the
case of solar PV projects and to be commissioned on or before
31.03.2016 in the case of solar thermal projects.
Norms and Financial Parameters
5. In the previous Solar Tariff Order issued on 30.05.2012, Commission
adopted the financial norms, as stipulated in Part – III of RERC Tariff
Regulations, 2009 i.e. debt: equity ratio, RoE, Depreciation and
O&M escalation etc, that are applicable for the tariff
determination of other RE sources like wind/bio-mass. The summary
of key normative parameters considered in the said Tariff Order
are as under:
Table-2: Summary of key normative parameters for solar PV
S.No. Parameter Value
1 2 3
1 Capital cost `9.40 crore per MW for FY 2012-13
2 Capacity Utilization Factor
(CUF)
20% with a deration of 0.5% every
year after second year.
3 Interest on term loan 12.3% p.a
4 Interest on working capital 11.8%p.a.
5 O&M Expenses
`11 lakhs/MW for FY 2012-13 with
an escalation of 5.72% p.a. plus
0.3% of depreciated project cost
in each year towards insurance.
6 Auxiliary consumption 0.25%
Table-3: Summary of key normative parameters for solar thermal
S.No. Parameter Value
1 2 3
1 Capital cost ` 12.75 crore per MW for FY 2012-13
2 Capacity Utilization
Factor (CUF)
23% with a deration of 0.25% every
year after fourth year.
3 Interest on term loan 12.3% p.a
4 Interest on working
capital
11.8% p.a.
5 O&M Expenses ` 15 lakhs /MW for FY 2012-13 with an
Page 4 of 15
S.No. Parameter Value
1 2 3
escalation of 5.72% p.a. plus 0.3% of
depreciated project cost in each
year towards insurance.
6 Auxiliary consumption 6.5%
6. Commission considers it appropriate to continue to retain the
financial norms, as stipulated in Part – III of RERC Tariff Regulations,
2009 i.e. debt: equity ratio, RoE, depreciation and O&M escalation
that are applicable for the tariff determination of other RE sources
like wind/bio-mass and were used for tariff order dt 30.05.2012 for
both Solar PV and Solar thermal projects. Parameters like auxiliary
consumption, CUF and de-ration are proposed to be retained as
adopted in Tariff Order dated 30.05.2012.
7. Accordingly, the following parameters for determination of tariff
for FY 2013-14 have been reviewed based on the latest
developments and current trends:
(a) Capital cost; and
(b) Operation and Maintenance (O&M) Expenses.
Norms for Solar PV Projects
8. Capital Cost
(1) CERC in their other Order dated 28 February, 2013 in the
matter of determination of benchmark capital cost norm for
solar PV power projects and Solar Thermal power projects
have carried out detailed analysis for evolving the
benchmark capital cost norm for solar PV Power Projects for
the FY 2013‐14. In their Order, CERC based on discussion with
various stakeholders observed that some of the top Solar PV
manufacturers are currently selling their first tier crystalline
modules in India at a price as low as $ 0.60/Wp. Relying on
Mercom's market intelligence report on Solar, CERC has also
Page 5 of 15
observed that prices of Solar components continue to drop
moderately. The said report further says that even with
demand from China, Japan and Germany, oversupply
continues to pressure the solar component projects. CERC
has also referred PV insights report on solar module spot price
(last updated on 23.01.2013), which reveals that silicon
module prices were being traded in the range of 0.55 US $ to
1.00 US$ with an average of around 0.657 US$. CERC also
observed that based on solar market report of Mercom
(21.01.2013), there is a downward trend in the module prices
which may not remain same as observed in FY 2011-12. CERC
finally decided a module cost of 0.60 US $/Wp for
determination of benchmark capital cost for solar PV for FY
2013-14. Considering an average of daily exchange rate of
`54.32/US$ of past six months, CERC has given the breakup of
benchmark capital cost norm for solar PV projects as under:
Table-4: Break-up for capital cost projection
S.No. Particulars
Capital cost
Norm for
Solar PV
project
(Rs Lakh/MW)
1 PV Modules 325.92
2 Additional module cost as against
degradation
9.79
2 Land Cost 16.80
3 Civil and General Works 94.50
4 Mounting Structures 105.00
5 Power Conditioning Unit 60.00
6 Evacuation cost up to interconnection
point (cables and Transformers)
105.00
7 Preliminary and Pre-operative expenses
including IDC and contingency
80.00
8 Total Capital Cost 797.01
Finally, CERC arrived at the benchmark capital cost for solar
PV power projects, after rounding off, as `8.00 Crores/MW.
Page 6 of 15
(2) According to the pvinsights, one of the source, which CERC
included in their analysis, the Silicon and Thin Film Module’s
weekly spot prices per watt on 06.03.2013 range from
US$0.55 to US$0.99 per watt for Silicon Solar Module
averaging to US$0.667 and from US$0.52 to US$0.94 per watt
for Thin Film Solar Module averaging to US$0.620. It can be
seen that the prices are almost at the same level as
indicated by CERC in their analysis in their order dated
28.02.2013:
Table-5: Silicon cell & Module weekly spot prices
Item High Low Average Avg. Chg Avg. Chg %
Silicon Solar
Module 0.99 0.55 0.667 ↑ 0.004 ↑ 0.6%
Thin Film
Solar
Module
0.94 0.52 0.620 ↑ 0.002 ↑ 0.32%
Unit: USD Per Watt Last updated: 06.03.2013
(Source: http://pvinsights.com/)
(3) CERC in their capital cost break up for solar PV projects has
included Rs 9.79 Lakh/MW towards additional module cost as
against degradation. It may be mentioned that Commission
has provided for a de-ration at the rate of 0.50% p.a. from 2nd
year separately as mentioned later in this Order ,therefore,
Commission considers it appropriate that degradation may
not be required to be accounted for separately in the capital
cost.
(4) Further, the capital cost arrived at as above by CERC is in the
all India context, however, situation varies from State to State.
The State Government through Rajasthan Solar Policy 2011 is
also extending support for setting up of Solar Plants including
offering land at concessional rates of 10% of DLC rate
(agriculture land) as per the provisions of Rajasthan Land
Revenue (Allotment of Land for setting up of power plant
Page 7 of 15
based on Renewable Energy Sources) Rules 2007 as
amended from time to time.
(5) In light of the position brought out as above, Commission
proposes to adopt a benchmark capital cost of `7.60 Crores
per MW for Solar PV projects for FY 2013-14, including
connectivity charges of ` 2.0 Lakh/MW.
9. Interest Rate
Following the same principle as adopted in tariff order of previous
year, Commission has taken interest rate equivalent to the
average SBI Base rate prevailing during the first six months of the
previous year i.e. FY 2012-13 plus 300 basis points for working out
interest on long term loans for FY 2013-14. The average SBI Base
rate of first six months of previous year i.e. FY 2012-13 was 10% and
the long term interest rate, therefore, works out to be 13%.
For working out the interest on working capital requirement for FY
2013-14, Commission based on the principle adopted in the Tariff
Order for previous year has taken average SBI Base rate prevailing
during first six months of previous year i.e. FY 2012-13 plus 250 basis
points. The interest rate for working capital requirement, therefore,
works out to be 12.50%.
10. O&M Expenses
For solar PV plants, Commission, in Order dt. 30.05.2012, considered
the O&M expenses of ` 11.0 Lakh per MW for the year 2012-13 with
an annual escalation of 5.72% along with 0.3% towards insurance
cost every year on the depreciated value of the asset. CERC has
adopted O&M norm of ` 11.63 Lakh per MW towards O&M
expenses of solar PV plants in their recent RE Tariff Order dated
28.02.2013 for FY 2013-14. Commission observes that norm of `11.00
Page 8 of 15
Lakh/MW for FY 2012-13 when escalated at the rate of 5.72%,
works out to `11.63 Lakh/MW for FY 2013-14. Therefore, Commission
proposes to adopt a benchmark norm for O&M Expenses of `11.63
Lakh/MW for FY 2013-14 and annual escalation of 5.72% and
additionally, 0.3% of the depreciated value of the asset would be
provided towards insurance of the plant.
Summary of Norms for solar PV projects
11. Based on the above discussion and other parameters of the earlier
Order dtd. 30.05.2012, which are being retained, the key
normative parameters being adopted for solar PV are given in the
following Table:
Table-6: Summary of key normative parameters for solar PV
S.No. Parameter Value
1 2 3
1 Capital cost `7.60 crore per MW for FY 2013-14
2 Capacity Utilisation Factor
(CUF)
20% with a deration of 0.5% every
year after second year
3 Interest on term loan 13.00% p.a.
4 Interest on working capital 12.50% p.a.
5 O&M Expenses
`11.63 Lakh/MW for FY 2013-14
with an escalation of 5.72% p.a.
plus 0.3% of depreciated project
cost in each year towards
insurance.
6 Auxiliary Consumption 0.25%
The complete tariff parameters/assumptions along with detailed
computations for the generic tariff for solar PV tariff are given at
Annexure-1.
12. Applicable Tariff for Solar PV Plants
Considering the parameters discussed above, the generic tariff for
Solar PV plants is being determined as ` 8.15/kWh, as per
calculation sheet placed at Annnexure-II. This tariff is levellised
tariff for 25 years and applicable for plants commissioned without
Page 9 of 15
availing benefit of Accelerated Depreciation. With AD benefit, the
tariff would be lower by ` 0.99/kWh i.e. ` 7.16/kWh. This tariff
would be applicable for solar PV plants where PPA is signed on or
before 31.03.2014 and which get commissioned on or before
31.03.2015.
Norms for Solar Thermal projects
13. Capital Cost
(1) CERC in their Order dated 28.02.2013 in the matter of
Benchmark Capital Cost Norms for Solar PV and Solar
Thermal Power projects to be applicable for the year 2013-
14 has referred the study report on “Concentrated Solar
Power: Heating Up India’s Solar Thermal Market under the
National Solar Mission-September, 2012”, prepared by
Council on Energy, Environment and Water and Natural
Resources Defense Council. As per the said report,
according to Indian developers consulted, the cost of a
parabolic trough CSP plant in India ranges from `10.5 Crores
to `13.00 Crores per MW (approximately $ 1.9 million to $ 2.3
million per MW) in capital cost. It is also mentioned that
storage increases the capital cost further but also increases
electricity generation. CERC has adopted the project cost
as `12.00 Crores per MW.
(2) IRENA in their report titled “IEA-ETSAP and IRENA©
Technology Brief E10 – January 2013 for Concentrating Solar
Power Technology Brief” suggests that as the global installed
capacity is limited and the technology is still under
deployment, the cost of Concentrated Solar Power (CSP)
plants and CSP electricity varies significantly depending on
local labour and land cost, the size of the plant, the thermal
Page 10 of 15
storage system (if any), and – last but not least – the level of
maturity (i.e. demo, pilot, commercial) of the project.
(3) Commission also observes that no significant experience is
available about performance of CSP plants in the State. In
light of the above discussion and considering the support
from the State Government, Commission proposes to adopt
a benchmark capital cost of ` 11.80 Crores per MW for Solar
Thermal Projects for FY 2013-14, including connectivity
charges of ` 2.0 Lakh/MW.
14. Interest Rate
On the similar lines to Solar PV plants, for Solar thermal power
plants also, Commission has taken interest rate for long term loans
for FY 2013-14 as the average SBI base rate prevailing during the
first six months of the previous year i.e. FY 2012-13 plus 300 basis
points, which works out to be 13% (=10%+3.00%).
For working out the interest on working capital requirement for FY
2013-14, on similar lines to solar PV plants, Commission has taken
interest rate as the average SBI Base rate prevailing during first six
months of previous year i.e. FY 2012-13 plus 250 basis, which works
out to be 12.50% (=10%+2.50%).
15. O&M Expenses
For solar thermal plants, Commission, in Order dt. 30.05.2012, has
considered the O&M expenses of ` 15.00 Lakh/MW for 2012-13
with an annual escalation of 5.72% along with 0.3% towards
insurance cost every year on the depreciated value of the asset.
CERC has adopted ` 15.86 Lakh/MW towards O&M expenses of
solar thermal plants in their recent RE Tariff Order dated 28.02.2013
for FY 2013-14. Commission observes that norm of `15.00 Lakh/MW
Page 11 of 15
for FY 2012-13 when escalated at the rate of 5.72%, works out to
`15.86 Lakh/MW for FY 2013-14. Therefore, Commission proposes to
adopt a benchmark norm for O&M Expenses of `15.86 Lakh/MW
for FY 2013-14 and annual escalation of 5.72% and additionally
0.3% of the depreciated value of the asset would be provided
towards insurance of the plant.
16. Summary of Norms for Solar Thermal projects
Based on the above discussion and other parameters of the earlier
Order dtd. 30.05.2012 being retained, the normative parameters
being adopted by the Commission for solar thermal power plants
are given in the following table:
Table-7: Summary of key normative parameters for solar thermal
S.No. Parameter Value
1 2 3
1 Capital cost ` 11.80 Crores per MW for FY 2013-
14
2 Capacity Utilisation Factor
(CUF)
23% with a deration of 0.25%
every year after fourth year.
3 Interest on term loan 13.00% p.a.
4 Interest on working capital 12.50% p.a.
5 O&M Expenses ` 15.86 Lakh /MW for FY 2013-14
with an escalation of 5.72% p.a.
plus 0.3% of depreciated project
cost in each year towards
insurance.
6 Auxiliary Consumption 6.5%
The complete tariff parameters/assumptions along with detailed
computations for the generic tariff for solar thermal tariff are given
at Annexure-2.
17. Applicable Tariff for Solar Thermal projects
Considering the parameters discussed above, the generic tariff for
the solar thermal power plants is being determined as `
11.37/kWh, as per calculation sheet given at Annexure-2. This tariff
Page 12 of 15
is levellised for 25 years and applicable for plants commissioned
without availing benefit of Accelerated Depreciation. The tariff
would be lower by ` 1.40/kWh if accelerated depreciation is
availed i.e. the tariff would be ` 9.97/kWh. This tariff would be
applicable for solar thermal plants where PPA is signed on or
before 31.03.2014 and which get commissioned on or before
31.03.2016.
Roof top and small solar PV and thermal systems: Applicable Tariff
18. Commission is of the considered view that the generic tariff as
applicable for MW scale solar PV plants be extended to roof top
and small solar power generation systems also. However, this tariff
would not be applicable to roof top and small solar power
generation systems which are getting support by way of capital
subsidy etc., under MNRE/JNNSM schemes. The tariff for these roof
top PV and small solar plants, which would get support by way of
capital subsidy, would be determined separately based on terms
and conditions of the relevant scheme.
Guidelines for Metering, Billing and other Requirements
19. The guidelines laid down as per order dtd. 25.05.2010 as regards (i)
Metering and Billing arrangement; (ii) Technical requirements; and
(iii) General Terms and Conditions are being retained and would
be suitably incorporated in the PPA.
Conclusion
20. The generic tariff levellised for 25 years for two different
technologies (solar PV & solar thermal) and for Roof Top and small
solar plants is summarized as under:
Page 13 of 15
Table- 8: Summary of Solar PV and Solar Thermal Tariffs
S.
No. Particulars
Tariff (`/kWh) if
AD benefit is
not availed
Tariff (`/kWh) if
AD benefit is
availed
1 2 3 4
1 Solar Photo Voltaic (PV) Power
Plants commissioned by 31.3.2015
8.15 7.16
2 Solar Thermal Power Plants
commissioned by 31.3.2016
11.37 9.97
3 Roof Top Solar PV installations and
other small solar PV power
generation plants to be
commissioned by 31.3.2015
8.15 7.16
4 Small Solar Thermal Power
generation plants to be
commissioned by 31.03.2016
11.37 9.97
21. Both the tariff mentioned in the above table i.e. with or without
availing accelerated depreciation would be valid tariff for
purchase of Solar Power by distribution licensees from solar
generation plants set up in Rajathan.
22. For a solar power generator claiming the higher tariff worked out
as above for projects not availing Accelerated Depreciation
benefit, Commission considers it appropriate to lay down
modalities as under:
(1) The PPA should include an undertaking of the solar power
generator that Accelerated Depreciation benefit would not
be availed for the generating plant/unit;
(2) The first bill raised by the solar power generator shall be
accompanied by an undertaking that Accelerated
Depreciation benefit shall not be claimed. Based on this,
the applicable tariff would be allowed;
(3) The claims of energy charges as per applicable tariff may
be entertained based on the said undertaking upto the due
date of filing of Income Tax Return of the relevant financial
year. This would mean 30th September, 2014 for payment for
Page 14 of 15
the financial year 13-14 and for the first six months (upto 30th
September) of financial year 14-15 and so on;
(4) After filing of Income Tax Return a certificate from a
Chartered Accountant (CA) that Accelerated Depreciation
has not been claimed would have to be submitted or in the
alternative a copy of Income Tax Return filed with Income
Tax Department wherein Accelerated Depreciation has not
been claimed along with verification of Tax Consultant may
be furnished;
(5) As Income Tax Return is required to be filed in the next year,
the payment of amount corresponding to non-availment of
Accelerated Depreciation in respect of energy supplied in
the month of October onwards of the financial year
following the financial year of commissioning of the plant
would be made only after the said certificate/copy of
Income Tax Return is furnished;
(6) For the energy supplied in the months of October onwards,
the methodology as given in sub-paras (4) & (5) above be
followed.
Commission also considers it appropriate that undertaking of the
power generator in PPA saying that benefit of Accelerated
Depreciation would not be availed should also include an
undertaking that in case it is found that benefit of Accelerated
Depreciation has been claimed, the licensee would be entitled to
recover the additional amount wrongly claimed by power
generator along with penal charges @ 1.50% per month.
Page 15 of 15
23. A solar power generator not availing CDM benefit would need to
give an annual undertaking that CDM benefit has not been
availed. However, if CDM benefit is availed, it would have to be
shared with distribution licensee as envisaged in Regulation 42 of
RERC Tariff Regulations 2009.
24. Grid connectivity charges are governed by regulation 89(2) of
current MYT Regulations and therefore, Connectivity charges @ `
2.00 Lakh per MW, would be payable.
25. Purchase beyond RPO would be in accordance with the decision
to be taken by the Commission in respect of policy directive issued
by the State Govt. under Section 108 of the Electricity Act,2003.
26. The metering shall be at the generator premises as provided in
CEA Metering Regulations.
27. This Suo-Motu Draft Order is issued to invite comments and
suggestions from all the stakeholders including RE developers,
Distribution Licensee, RREC etc. All stakeholders may submit their
views, comments and suggestions by 4th July, 2013. The
Commission shall finalise the Order after taking a view on the
submissions received from the stakeholders on the Draft Order.
Jaipur,dated the 7th June,2013.
(S. Dhawan)
Member
(S.K. Mittal)
Member
(D.C. Samant)
Chairman
TARIFF DETERMINATION FOR SOLAR PHOTO VOLTAIC POWER PLANTS LOCATED IN RAJASTHAN
Levelised Tariff (Rs/kWh) without AD 8.15
Accelerated Depreciation benefit(Rs/kWh) 0.99
Levelised Tariff (Rs/kWh) with AD 7.16
S. No.Assumption
HeadSub-Head Sub-Head (2) Unit
Base Case
(SPV)
1 Power Generation
Capacity
Installed Power Generation Capacity MW 1
CUF % 20.00%
Deration p.a. after 2nd year % 0.50%
Auxiliary Consumption % 0.25%
Tariff Period Years 25
Life of Power Plant Years 25
2 Project Cost
Capital Cost/MW Including Land & Connectivity charges Rs Lakh/MW 760
3 Sources of Fund
Debt: Equity
Debt % 70.00%
Equity % 30.00%
Total Debt Amount Rs Lakh 532.00
Total Equity Amout Rs Lakh 228.00
Funding Options-1 (Domestic Loan Source-1)
Loan Amount Rs Lakh 532.00
Moratorium Period years 0
Repayment Period(incld Moratorium) years 12
Intrest Rate % 13.00%
Funding Options-2 ( Equity Finance )
Equity amount Rs Lakh 228
Return on Equity % p.a 16.00%
Discount Rate (CERC Notification 1.04.13) 13.10%
4 Financial Assumptions
Fiscal Assumptions
Income Tax (11th year onwards) % 30.90%
MAT Rate (for yr-1) % 20.01%MAT Rate (for yr-2 ) % 19.06%
MAT Rate (for yr-2 to yr-10) 19.06%
80 IA benefits Yes/No Yes
Depreciation
Depreciation Rate(upto 12-yrs) % 5.28%
Depreciation Rate(after 12-yrs) % 2.05%
Years for 5.28% SLM rate years 12
5 Working Capital
For Fixed Charges
O&M Charges Months 1
Maintenance Spare (% of O&M expenses) 15.00%
Receivables for Debtors Months 1.5
Intrest On Working Capital % 12.50%
6 Operation & Maintenance Expenses
Power plant Rs Lakh per MW Rs Lakh/MW 11.63
Insurance charges % of depreciated capital cost % 0.30%
O & M Expenses Escalation % 5.72%
Annexure-1
TARIFF DETERMINATION FOR SOLAR PHOTO VOLTAIC POWER PLANTS LOCATED IN RAJASTHAN1 0.884 0.782 0.691 0.611 0.540 0.478 0.422 0.374 0.330 0.292 0.258 0.228 0.202 0.178 0.158 0.140 0.123 0.109 0.096 0.085 0.075 0.067 0.059 0.052
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Aux Consumption % 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Deration factor % 0.50% 1 1.000 0.995 0.990 0.985 0.980 0.975 0.970 0.966 0.961 0.956 0.951 0.946 0.942 0.937 0.932 0.928 0.923 0.918 0.914 0.909 0.905 0.900 0.896 0.891
Generation MU 1.75 1.75 1.74 1.73 1.72 1.71 1.70 1.70 1.69 1.68 1.67 1.66 1.65 1.65 1.64 1.63 1.62 1.61 1.60 1.60 1.59 1.58 1.57 1.57 1.56
Cost of generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
O&M Expenses Rs Lacs 13.91 14.45 15.04 15.66 16.33 17.04 17.79 18.60 19.46 20.38 21.36 22.40 23.50 24.75 26.08 27.48 28.97 30.54 32.21 33.97 35.84 37.81 39.91 42.12 44.46
Depreciation Rs Lacs 40.13 40.13 40.13 40.13 40.13 40.13 40.13 40.13 40.13 40.13 40.13 40.13 15.57 15.57 15.57 15.57 15.57 15.57 15.57 15.57 15.57 15.57 15.57 15.57 15.57
Interest on term loan Rs Lacs 66.28 60.52 54.75 48.99 43.23 37.46 31.70 25.94 20.17 14.41 8.65 2.88 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest on working Capital Rs Lacs 3.05 2.97 2.91 2.84 2.78 2.72 2.67 2.61 2.56 2.51 2.58 2.54 2.15 2.21 2.27 2.34 2.40 2.47 2.55 2.63 2.72 2.81 2.90 3.00 3.11
Return on Equity Rs Lacs 45.60 45.07 45.07 45.07 45.07 45.07 45.07 45.07 45.07 45.07 52.79 52.79 52.79 52.79 52.79 52.79 52.79 52.79 52.79 52.79 52.79 52.79 52.79 52.79 52.79
Total Cost of generation Rs Lacs 168.97 163.14 157.89 152.69 147.53 142.42 137.35 132.34 127.39 122.49 125.51 120.74 94.03 95.33 96.72 98.18 99.74 101.38 103.12 104.97 106.92 108.99 111.17 113.49 115.94
Per unit Cost of generation Rs/kWh 9.67 9.33 9.08 8.82 8.57 8.31 8.06 7.80 7.55 7.30 7.51 7.26 5.69 5.79 5.91 6.03 6.15 6.29 6.43 6.57 6.73 6.89 7.07 7.25 7.44
Levellised cost of generation (Rs/kWh) (25 yrs) 8.15
Note(s):
1. Levellised tariff has been worked out by carrying out levelisation over 25 years and Discount Rate has been considered as 13.10% as per CERC Notification 1.04.13.
2. Figures may not tally exactly on account of rounding off.
Annexure-1…contd…
Determination of Accelerated Depreciation Benefit for Solar PV Power Projects
Depreciation amount 90%
Book Depreciation rate 5.28%
Tax Depreciation rate 80%
Additional depreciation rate
applicable during first year20%
Income Tax 32.45% 30.90%
Capital Cost 760.0 Rs Lakh/MW
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Book Depreciation Rs Lakh 20.06 40.13 40.13 40.13 40.13 40.13 40.13 40.13 40.13 40.13 40.13 40.13 40.13 40.13 40.13 40.13 40.13 21.89 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Accelerated Depreciation
Opening % 100.00% 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Allowed during the year % 50% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Accelrated Deprn. Rs Lakh 380.00 342.00 30.40 6.08 1.22 0.24 0.05 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Depreciation Benefit Rs Lakh 359.94 301.87 (9.73) (34.05) (38.91) (39.88) (40.08) (40.12) (40.13) (40.13) (40.13) (40.13) (40.13) (40.13) (40.13) (40.13) (40.13) (21.89) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Tax Benefit Rs Lakh 116.78 93.28 (3.01) (10.52) (12.02) (12.32) (12.38) (12.40) (12.40) (12.40) (12.40) (12.40) (12.40) (12.40) (12.40) (12.40) (12.40) (6.76) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Energy generation MU 0.87 1.75 1.74 1.73 1.72 1.71 1.70 1.70 1.69 1.68 1.67 1.66 1.65 1.65 1.64 1.63 1.62 1.61 1.60 1.60 1.59 1.58 1.57 1.57 1.56
Per unit benefit Rs/Unit 13.36 5.34 (0.17) (0.61) (0.70) (0.72) (0.73) (0.73) (0.73) (0.74) (0.74) (0.75) (0.75) (0.75) (0.76) (0.76) (0.76) (0.42) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Discounting Factor,DF 1.00 0.88 0.78 0.69 0.61 0.54 0.48 0.42 0.37 0.33 0.29 0.26 0.23 0.20 0.18 0.16 0.14 0.12 0.11 0.10 0.09 0.08 0.07 0.06 0.05
Applicable DF 1.00 0.94 0.83 0.74 0.65 0.58 0.51 0.45 0.40 0.35 0.31 0.28 0.24 0.22 0.19 0.17 0.15 0.13 0.12 0.10 0.09 0.08 0.07 0.06 0.06
Levellised AD benefit 0.99 Rs/kWh
Note(s):
1. In the above calculations, depreciation for the first year has been considered as 50%(=50% of (80%+20%) and for second year as 90%(=80%+50% of 20%) as per CERC methodology.
2. Generation for the first year has been considered as 50% of normative generation for second half of the financial year.
3. Figures may not tally exactly on account of rounding off.
TARIFF DETERMINATION FOR SOLAR THERMAL POWER PLANTS LOCATED IN RAJASTHAN
Levellised Tariff (Rs/kWh) without AD 11.37
Accelerated Depreciation benefit (Rs/kWh) 1.40
Levellised Tariff (Rs/kWh) with AD 9.97
S. No.Assumption
HeadSub-Head Sub-Head (2) Unit
Base
Case
(CSP)
1 Power Generation
Capacity
Installed Power Generation Capacity MW 1
CUF % 23.00%
Deration p.a. after 4th year % 0.25%
Auxiliary Consumption % 6.50%
Tariff Period Years 25
Life of Power Plant Years 25
2 Project Cost
Capital Cost/MW Including Land & Connectivity charges Rs Lakh/MW 1180
Connectivity Charges Rs Lacs/MW 2
3 Sources of Fund
Debt: Equity
Debt % 70.00%
Equity % 30.00%
Total Debt Amount Rs Lakh 826
Total Equity Amout Rs Lakh 354
Funding Options-1 (Domestic Loan Source-1)
Loan Amount Rs Lakh 826
Moratorium Period years 0
Repayment Period(incld Moratorium) years 12
Interest Rate % 13.00%
Funding Options-2 ( Equity Finance )
Equity amount Rs Lakh 354
Return on Equity % p.a 16.00%
Discount Rate (CERC Notification 1.04.13) 13.10%
4 Financial Assumptions
Fiscal Assumptions
Income Tax (11th year onwards) % 30.90%
MAT Rate (for yr-1) % 20.01%
MAT Rate (for yr-2 to yr-10) % 19.06%
80 IA benefits Yes/No Yes
Depreciation
Depreciation Rate(upto 12-yrs) % 5.28%
Depreciation Rate(after 12-yrs) % 2.05%
Years for 5.28% SLM rate 12
5 Working Capital Requirement
O&M Expenses Months 1
Maintenance Spare (% of O&M expenses) 15.00%
Receivables from Debtors Months 1.5
Interest On Working Capital % 12.50%
6 Operation & Maintenance Expenses
Power plant Rs Lakh per MW Rs Lakh/MW 15.86
Insurance charges % of depreciated capital cost % 0.30%
O & M Expenses Escalation % 5.72%
Annexure - 2
TARIFF DETERMINATION FOR SOLAR THERMAL POWER PLANTS LOCATED IN RAJASTHAN
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Aux Consumption % 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50%
Deration factor % 1.000 1.000 1.000 1.000 0.998 0.995 0.993 0.990 0.988 0.985 0.983 0.980 0.978 0.975 0.973 0.970 0.968 0.966 0.963 0.961 0.958 0.956 0.954 0.951 0.949
Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Generation MU 1.884 1.884 1.884 1.884 1.879 1.874 1.870 1.865 1.860 1.856 1.851 1.846 1.842 1.837 1.833 1.828 1.824 1.819 1.814 1.810 1.81 1.80 1.80 1.79 1.79
Cost of generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
O&M Expenses Rs Lakh 19.40 20.12 20.89 21.72 22.60 23.55 24.56 25.64 26.79 28.02 29.33 30.72 32.21 33.91 35.70 37.61 39.62 41.76 44.02 46.42 48.95 51.64 54.49 57.50 60.69
Depreciation Rs Lakh 62.30 62.30 62.30 62.30 62.30 62.30 62.30 62.30 62.30 62.30 62.30 62.30 24.18 24.18 24.18 24.18 24.18 24.18 24.18 24.18 24.18 24.18 24.18 24.18 24.18
Interest on term loan Rs Lakh 102.91 93.96 85.01 76.06 67.11 58.16 49.22 40.27 31.32 22.37 13.42 4.47 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest on working Capital Rs Lakh 4.63 4.51 4.40 4.30 4.19 4.09 4.00 3.91 3.82 3.73 3.84 3.76 3.15 3.23 3.31 3.40 3.49 3.59 3.69 3.80 3.91 4.03 4.16 4.30 4.45
Return on Equity Rs Lakh 70.81 69.97 69.97 69.97 69.97 69.97 69.97 69.97 69.97 69.97 81.97 81.97 81.97 81.97 81.97 81.97 81.97 81.97 81.97 81.97 81.97 81.97 81.97 81.97 81.97
Total Cost of generation Rs Lakh 260.04 250.86 242.58 234.35 226.19 218.08 210.05 202.09 194.20 186.40 190.86 183.23 141.51 143.28 145.16 147.15 149.26 151.49 153.86 156.36 159.02 161.83 164.80 167.95 171.28
Per unit Cost of generation Rs/kWh 13.80 13.32 12.88 12.44 12.04 11.63 11.23 10.84 10.44 10.04 10.31 9.92 7.68 7.80 7.92 8.05 8.19 8.33 8.48 8.64 8.81 8.99 9.17 9.37 9.58
Levellised Tariff (Rs/kWh) (25 yrs) 11.37
Note(s)
1. Levellised tariff has been worked out by carrying out levelisation over 25 years and Discount Rate has been considered as 13.10% as per CERC Notification 1.04.13
2. Figures may not tally exactly on account of rounding off.
Determination of Accelerated Depreciation Benefit for Solar Thermal Power Projects
Depreciation amount 90%
Book Depreciation rate 5.28%
Tax Depreciation rate 80%
Additional depreciation rate
applicable during first year20%
Income Tax 32.45% 30.90%
Capital Cost 1180.0 Rs Lakh/MW
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Book Depreciation Rs Lacs 31.15 62.30 62.30 62.30 62.30 62.30 62.30 62.30 62.30 62.30 62.30 62.30 62.30 62.30 62.30 62.30 62.30 33.98 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Accelerated Depreciation
Opening % 100.00% 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Allowed during the year % 50% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Closing % 50% 5% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Accelrated Deprn. Rs Lakh 590.00 531.00 47.20 9.44 1.89 0.38 0.08 0.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Depreciation Benefit Rs Lakh 558.85 468.70 (15.10) (52.86) (60.42) (61.93) (62.23) (62.29) (62.30) (62.30) (62.30) (62.30) (62.30) (62.30) (62.30) (62.30) (62.30) (33.98) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Tax Benefit Rs Lakh 181.32 144.83 (4.67) (16.33) (18.67) (19.14) (19.23) (19.25) (19.25) (19.25) (19.25) (19.25) (19.25) (19.25) (19.25) (19.25) (19.25) (10.50) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Energy generation MU 0.94 1.88 1.88 1.88 1.88 1.87 1.87 1.87 1.86 1.86 1.85 1.85 1.84 1.84 1.83 1.83 1.82 1.82 1.81 1.81 1.81 1.80 1.80 1.79 1.79
Per unit benefit Rs/Unit 19.25 7.69 (0.25) (0.87) (0.99) (1.02) (1.03) (1.03) (1.03) (1.04) (1.04) (1.04) (1.05) (1.05) (1.05) (1.05) (1.06) (0.58) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Discounting Factor,DF 1.00 0.88 0.78 0.69 0.61 0.54 0.48 0.42 0.37 0.33 0.29 0.26 0.23 0.20 0.18 0.16 0.14 0.12 0.11 0.10 0.09 0.08 0.07 0.06 0.05
Applicable DF 1.00 0.94 0.83 0.74 0.65 0.58 0.51 0.45 0.40 0.35 0.31 0.28 0.24 0.22 0.19 0.17 0.15 0.13 0.12 0.10 0.09 0.08 0.07 0.06 0.06
Levellised AD benefit 1.40 Rs/kWh
Note(s)
1. In the above calculations, depreciation for the first year has been considered as 50%(=50% of (80%+20%)) and for second year as 90%(=80% + 50% of 20%) as per CERC methodology.
2. Generation for the first year has been considered as 50% of normative generation for second half of the Financial Year.
3. Figures may not tally excatly on account of rounding off.
C:\Users\GSV\Desktop\Draft_Solar _TO_13_14\Draft_Solar-Order_13_14\Pub_notice - solar_tariff(English).doc
Rajasthan Electricity Regulatory Commission Vidyut Viniyamak Bhawan, Near State Motor Garage, Sahkar Marg, JAIPUR -302001
Phone: EPBX 0141-2741299, Fax: 0141-2741018
Website: www.rerc.rajasthan.gov.in E-mail: [email protected]
PUBLIC NOTICE
Notice is hereby issued under Section 64(2) read with 61(h),62(1)(a) and 86(1)(e) of the
Electricity Act,2003 for determination of Bench Mark Capital Cost for Solar PV and Solar Thermal
Projects and resultant Generic levellised Tariff. The resultant Generic levellised tariff is proposed
as under:
S.No. Particulars
Tariff
(Rs/kWh)
if AD
benefit is
not availed
Tariff
(Rs/kWh)
if AD
benefit is
availed
1 2 3 4
1 Solar Photo Voltaic (PV) Power Plants commissioned by
31.3.2015
8.15 7.16
2 Solar Thermal Power Plants commissioned by 31.3.2016 11.37 9.97
3 Roof Top Solar PV installations and other small solar PV
power generation plants to be commissioned by 31.3.2015
8.15 7.16
4 Small Solar Thermal Power generation plants to be
commissioned by 31.03.2016
11.37 9.97
The above tariff is levellised for 25 years.
Any persons desirous of offering suggestions/comments on the aforesaid tariff proposal
may do so in five copies, so as to reach this office by 4th July, 2013 with copies of supporting
details. The suggestions/comments can also be sent to the Commission through e-mail at
[email protected]. The copy of the draft order is also available with the Receiving Officer of
the Commission and can be obtained on payment of Rs 100/-. The draft order is also available
on Commission’s website www.rerc.rajasthan.gov.in. The hearing in the matter shall be held on
16th July, 2013 at 11.30 AM in RERC’s office, Jaipur. Persons giving suggestions/comments by the
said date and desiring personal hearing could do so during the said hearing.
(G.K.Sharma)
Secretary
(Not to be published)
(G.K.Sharma)
Secretary
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