Karnataka Retains Generic Tariff of ₹3.26_kWh for Wind Projects in FY 2020-21

The Karnataka Electricity Regulatory Commission (KERC) has issued an order stating that the generic tariff for wind power projects will continue to remain the same at ₹3.26 (~$0.04)/kWh as determined in February 2019.

The Commission has said that the tariff of ₹3.26 (~$0.04)/kWh will also be the ceiling tariff for tariff-based reverse bidding for wind projects. It added that the generic tariff determined will also be applicable for payment towards any banked energy purchased by the distribution licensees. The tariff will be effective from April 1, 2020, to March 31, 2021.

The Commission stated that since the government of Karnataka is yet to begin calling bids for wind projects, it has decided to continue the tariff of ₹3.26 (~$0.04)/kWh for wind projects for FY 2021 also.

Background


To promote electricity generation from renewable sources of energy, the Karnataka Electricity Regulatory Commission under the Electricity Act 2003, has been determining the generic tariff periodically based on the financial and operational parameters.

In February 2019, the Commission had determined the levelized tariff of ₹3.26 (~$0.04)/kWh for wind power projects.

Back in 2018, the KERC had issued an order directing all distribution companies to procure wind power only through a competitive bidding process, with the generic tariff serving as the ceiling price.

According to the Commission, as of January 2020, the installed capacity of wind in Karnataka was 4,819.34 MW against the net allotted capacity of 10,141.29 MW, which is about 47.5%.

The Commission has also noted that during FY 2019-2020 (up to December 2019), the addition of wind capacity was 86.50 MW and 58.50 MW, respectively, compared to the wind capacity addition of 875 MW in FY 2018 and 882.30 MW in FY 2017.

Recently, the Gujarat Electricity Regulatory Commission decided that the tariff for all wind projects in the state will be determined through competitive bidding, removing the practice of generic tariffs.