Amendments proposed in the new tariff policy: solar purchase obligation by 8% upto march 2019

The Central government has notifies the new tariff policy today and below are the salient features proposed in it.

Amendments proposed in the new tariff policy:

Solar Purchase Obligation of 8% by 2019: SERCs shall also reserve a minimum percentage for purchase of solar energy from the date of notification in the Official Gazette which shall be such that it reaches at least 8% in energy terms by March 2019.

REC multiplier: Appropriate Commission may also provide for a suitable regulatory framework for encouraging such other emerging renewable energy technologies by prescribing separate technology-based REC or ‘REC multiplier’ (i.e. granting higher or lower number of RECs to such emerging technologies for the same level of generation). Similarly, considering the change in prices of renewable energy technologies with passage of time, the Appropriate Commission may prescribe vintage based ‘REC multiplier’ (i.e. granting higher or lower number of RECs for the same level of generation) based on year of commissioning of plant.

 To promote renewable energy generation: In order to promote renewable energy sources, any generating company proposing to establish a coal/lignite based thermal generating station after a specified date shall be required to establish a renewable energy generating station of at least 10% of the generating capacity of the thermal generating station. The renewable energy produced by each generator may be bundled with its thermal generation for the purpose of tariff determination.

 Zero inter-state transmission charges: No inter-State transmission charges may be levied till such period as may be notified by the Central Government on transmission of the electricity generated from renewable sources of energy through the inter-state transmission system.

 Cheap power to below poverty line consumers: Agriculture and below poverty line consumers should be provided with the cheapest source of power, subject to reduction to AT&C losses by a certain pre-specified percentage.

24X7 power supply by 2019: A road map to be developed by the State Commission for ensuring 24X7 supply not later than 2019.

Smart Meters: SERCs should mandate smart meters for all industrial and commercial consumers including all consumers with monthly consumption of 10,000 units and more in the next one year and consumers with monthly consumption of 1000 units and more, in the next five years and for all consumers in the next ten years.

Further, two way meters may be provided to all prosumers, who also sell back electricity to the grid, within the next one year.

New Surcharge formula:

S= T – [C/ (1-L/100)+ D+ R]


  • S is the surcharge
  • T is the Tariff payable by the relevant category of consumers, including reflecting the Renewable Purchase Obligation;
  • C is the per unit weighted average cost of power purchase by the Licensee, including meeting the Renewable Purchase Obligation
  • D is the aggregate of transmission, distribution and wheeling charge applicable to the relevant voltage level
  • L is the aggregate of transmission, distribution and commercial losses, expressed as a percentage applicable to the relevant voltage level
  • R is the per unit cost of carrying regulatory assets.

Provided that the surcharge shall not exceed 15% of the tariff applicable to the category of the consumers seeking open access.

Complete Tariff Policy



Amit Antil

After doing Power Management (MBA) from National Power Training Institute (NPTI), Amit Antil is now presently working with Today Green Energy Pvt. Ltd. and looking after business development activities for Solar. Earlier he was associated with leading power trading company Global Energy for 3 years. He has a sound knowledge about bidding, power trading, open access, REC trading, Govt. Liaisoning, Contract Negotiation, Power Purchase Agreement.

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1 Response

  1. saurabh says:

    Than You Sir

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