The Uttarakhand Electricity Regulatory Commission (UERC) has issued benchmark tariffs and capital costs for solar power projects in the state.

The commission had issued draft regulations in December 2018 and had invited comments from stakeholders.

After addressing the responses from the stakeholders, the commission has determined benchmark capital costs and tariffs for solar PV, solar thermal power, grid-interactive rooftop, and small solar PV power projects commissioned on or after April 1, 2019, and on or before March 31, 2020.

Highlights from the order:

• Benchmark costs are set at ₹35.63 million (~$447,190)/MW for solar PV projects
• The commission has determined the gross tariff of ₹4.49 ($0.065)/kWh for solar PV sources and accelerated depreciation (AD) of ₹0.24 ($0.003)/kWh for projects. This tariff will continue to be the maximum tariff at which the distribution companies (DISCOMs) invite bids from developers for the procurement of power. For the financial year (FY) 2018-19, the gross tariff for solar PV projects was ₹4.73 ($0.068)/kWh with AD of ₹0.25 ($0.003)/kWh

The commission has determined the benchmark capital costs of rooftop and small solar PV based projects as below:

• For projects up to 10 kW, the cost approved is ₹43,282/kW ($623), and the gross tariff is ₹5.50 ($0.079)/kWh without subsidy or AD
• For projects between 10 kW to 100 kW, the cost approved is ₹39,676/kW ($571), and the gross tariff is ₹4.98 ($0.071)/kWh without subsidy or AD
• For projects between 100 kW to 500 kW, the cost determined is ₹37,278/kW ($537). The gross tariff approved is ₹4.63 ($0.066)/kWh without subsidy or AD
• For projects between 500 kW to 1 MW, the cost approved is ₹35,922/kW ($517). The gross tariff approved is ₹4.52 ($0.065)/kWh without subsidy or AD, compared to ₹4.77 ($0.069)/kWh in FY 2018-2019

The commission has determined the benchmark cost of solar thermal projects at ₹120 million/MW ($1.73 million), the gross tariff of ₹14.24 ($0.20)/kWh and AD of ₹0.80 ($0.011)/kWh.

In May 2019, Mercom reported on the news of the Uttarakhand Irrigation department extending the last date for the submission of Request for Proposal for its proposed tender for the installation of 40 MW of solar projects.

Previously, the UERC had also introduced a cross-subsidy surcharge for open access consumers in the state.

Recently, the Central Electricity Regulatory Commission (CERC) announced setting the national average power purchase cost at ₹3.60 (~$0.051)/kWh for open access for FY 2019-20.

Shaurya is a staff reporter at MercomIndia.com with experience working in the Indian solar energy industry for the past four years in various roles. Prior to joining Mercom, Shaurya worked with a renewable energy developer and a consulting company. Shaurya holds a Bachelors Degree in Business Management from Lancaster University in the United Kingdom.