Gujarat Wind Tariff Order, 2012
GERC came with its order on Tariff for Procurement of Power by Distribution Licensees And Others in Gujarat from Wind Power Projects. GERC has issued a discussion paper on determianation of tariff for procurement of power by distribution licensees & other from WPP in the month of July & invited comments on the same from the stakeholders.
The GERC has fixed a 3.5 years control period from 11th August, 2012 to 31st March, 2012. All the wind power plants using new wind turbine generators commission after this order are eligibble to claim tariff under this order. Apart from this, the useful life of the plant as well as the tariff period has been fixed as 25 years.
In the draft tariff order, the commission specified 2 different tariffs @ Rs.3.97/unit or Rs.4.21/unit, depending upon the Interconnection point at wind farm pooling substation (S/S) or Interconnection point at GETCO S/S respectively. Since, most of the objectors in the hearing supported for continuation of the 2nd option, the commission decided to scrap the 1st option and continue with the 2nd option of interconnection point at GETCO S/S.
Hence, the gross tariff has been fixed @ Rs.4.61/unit including depreciation benefits @ Rs.0.38/unit. The net tariff excluding the deprecitiation benefits comes out to Rs.4.23/unit.
The various parameters for the control period are :
- Capital Cost – Rs.5.68 Cr/MW (excluding the power evacuation cost from wind farm substation to STU substation)
- Power Evacuation System Cost – Rs.38 lakh/MW
- CUF – 24%
- Loan Tenure – 10 years
- Interest on Loan – 13% per annum
- Depreciation – 6% p.a. for the first 10 years, and 2% from 11-25th year
- Return on Equity (RoE) – 14% per annum with MAT @ 20.008% per annum for first 10 years and corporate tax @ 32.445% per annum for the next 15 years
- O&M ChargesOperation & Maintenance Charges – Rs.8 lakh/MW & escalation @ 5.72% per annum
- Interest on Working Capital – 12% per annum
- Discount Rate – 11.08% over 25 years life of WPP
Other Commercial Issues
Transmission & Wheeling Charges
- The commission has decided that WPP availing OA for third party sale shall be liable to pay OA charges and losses as applicable to normal OA Consumers where as WEGs opting for wheeling of power for own use shall be liable to pay lower transmission and wheeling charges and losses
- For wheeling of power to consumption site at 66kV and above, the user shall pay transmission charges & losses as applicable to normal user.
- For wheeling to consumption site below 66kV,
- For WEGs having more than one WEGs – Shall be allowed on payment of transmission charges, applicable to normal Open Access Consumer and transmission and wheeling losses @ 10% of the energy fed to the grid. The above loss is to be shared between the T&D licensee in the ratio of 4:6.
- For small investors having only one WEG – shall be allowed on payment of transmission charges, applicable to normal open access consumer, and transmission and wheeling losses @ 7% of the energy fed to the grid. The above losses are to be shared between the T&D licensee in the ratio of 4:3.
Cross Subsidy Surcharge
The OA consumers of wind energy, but not availing RECs have been exempted from cross subsidy surcharge but cross subsidy surcharge will be applicable in the case of third party sale availing REC benefit.
GERC has made installation of ABT compliant meters at the point of metering as well as installation of Remote Transmitting Unit (RTU) for transferring the real time data to SLDC for its monitoring purpose mandatory for WPP developers
Pricing of Reactive Power
- 10 paise/kVARh – For the drawl of reactive energy at 10% or less of the net energy exported
- 25 paise/kVARh – For the drawl of reactive energy at more than 10% of the net active energy exported
Sharing of CDM Benefits
GERC has decided that the Wind power generating company shall retail 100% of net proceeds through sale of CER generated from the energy generation in the first year after the COD of the WPP. But, the share of beneficiary to be increased to 50% by the 6th year, with an increase of 10% from 2nd year onwards.
Banking of Surplus Energy
Captive WEGs have been allowed for for one month banking of the electricity generated during the same calendar month.But, they have to utilize the same during the month in proportion to the energy generated during peak and normal hour period.
Also, GERC has not allowed any kind of banking facility for third-party sale of wind energy.
Purchase of Surplus Power from Wind Power Projects opting for Captive use and Third Party Sale under Open Access
- In case of WPP availing OA for captive use / third party sale but not opting for REC, the discom will purchase surplus power @ 85% of the tariff after set off.
- In case of WPP availing OA for captive use / third-party sale and opting for REC, the surplus power after set off will be purchased by the distribution licensee at APPC applicable for that year.
The Commission has retained the provision regarding furnishing of Bank Guarantee of Rs. 5 lakh/MW by the project developers to GETCO.
GERC has also specifiecd time limits for the the developers to complete their projects on time.