The Karnataka Electricity Regulatory Commission (KERC) has retained the tariff for waste-to-energy projects at ₹7.08 (~$0.097)/kWh from April 1, 2021, to March 31, 2022.
The Commission had determined the tariff of ₹7.08 (~$0.097)/kWh for waste-to-energy on September 19, 2016, and in August 2020, it had extended the validity of the tariff until March 31, 2021.
On January 8, 2021, the Commission took note of the Central Electricity Regulatory Commission’s (CERC) regulations, considered the market rates, and issued a discussion paper proposing to redetermine the tariffs for the projects commissioned after April 1, 2021.
In the discussion paper, the Commission had proposed to reduce the tariff to ₹5.62 (~$0.077)/kWh.
However, in a public hearing held on March 22, 2021, several stakeholders urged the Commission to continue with the existing tariff of ₹7.08 (~$0.097)/kWh. According to the stakeholders, no new waste-to-energy projects have been set up in Karnataka despite the existing tariff.
The Commission on examining the documents submitted by the stakeholders concluded that, except for a project taken up by Karnataka Power Corporation (KPCL), no new projects had been set up between September 19, 2016, and March 31, 2021.
In March 2020, the KPCL had floated a tender for an 11.5 MW waste-to-energy project at Bidadi in the Ramanagar district of the state. The scope of work included the design, engineering, manufacturing, testing, supply, and commissioning of the project. It also included two years of operation and maintenance services for the project.
To encourage new waste-to-energy projects, the Commission decided to retain the existing tariff of ₹7.08 (~$0.097)/kWh for one year, with effect from April 1, 2021, to March 31, 2022.
In December 2019, the Union Power Minister R.K.Singh told Parliament that to recover energy from waste and effluent generated from industries, India has set up 186 waste-to-energy projects for biogas and bio CNG with a cumulative effect capacity of 317.03 MW. Out of the 186 projects, five projects are based on municipality solid waste, thus generating a total capacity of 66.5 MW of energy. In March 2020, the Ministry of New and Renewable Energy (MNRE) added municipal solid waste-based projects in its waste-to-energy program. Later the ministry also announced that its waste-to-energy program would be extended beyond March 31, 2020. It said that the program would continue without any changes to its scope, nature, or coverage.
Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.
Rahul is a staff reporter at Mercom India. Before entering the world of renewables, Rahul was head of the Gujarat bureau for The Quint. He has also worked for DNA Ahmedabad and Ahmedabad Mirror. Hailing from a banking and finance background, Rahul has also worked for JP Morgan Chase and State Bank of India. More articles from Rahul Nair.