Telangana Sets Levelized Tariff of ₹7.84_kWh for Projects Based on Refuse-Derived Fuel

The Telangana State Electricity Regulatory Commission (TSERC) has determined the generic tariff for electricity generated from refuse-derived fuel (RDF) based power projects in the state.

Refuse-derived-fuel is a waste fuel produced by shredding and dehydrating solid waste. Primarily, it consists of combustible components of municipal and industrial waste such as paper, wood, and plastics.

The Commission has approved the levelized tariff of ₹7.84 (~$0.10)/kWh, which will be applicable for those RDF-based projects which have achieved commercial operation date (COD) from the financial year (FY) 2020-21 to FY 2023-24.

Further, the levelized tariff of ₹7.84 (~$0.10)/kWh is for the sale of electricity to the distribution licensees— Southern Power Distribution Company of Telangana Limited (TSSPDCL) and Northern Power Distribution Company of Telangana Limited (TSNPDCL) for 20 years.


The Commission also said that the tipping fee to the distribution licensees would be reimbursed after the generator provides a receipt under the provisions of its Concession Agreement. The tipping fee is determined by the local authorities or any state agency to be paid to the operator of waste processing facility or for the disposal of residual sold waste at the landfill.

Background

In June 2016, Telangana State Electricity Regulatory Commission had determined the generic tariff for electricity generated from municipal solid waste (MSW) and RDF-based power projects in Telangana that have achieved COD from June 13, 2016, to March 31, 2019.

However, the Commission noted that during that period (June 13, 2016, to March 31, 2019), no new projects based on MSW or RDF were operational.

The Tariff Policy 2016 mandates distribution licensees to compulsorily procure 100% power produced from all the waste-to-energy projects in the state in the ratio of their procurement of power from all sources at the tariff determined by the appropriate Commission.

The Commission initiated a suo-moto to determine the generic tariff for electricity generated from RDF-based power projects in Telangana, that achieved COD from April 1, 2020, to March 31, 2024.

On March 20, 2020, the Commission issued a public notice inviting for suggestions and comments from stakeholders on the proposed financial and technical norms and tariffs.

Later, the Commission received suggestions and comments from 19 stakeholders.

The Commission had proposed certain financial and technical norms for RDF-based power projects in Telangana that have achieved COD from April 1, 2020, to March 31, 2024.

Telangana_Financial and Technical Norms Approved by the Commission for Refuse-Derived Fuel Projects

Based on the approved financial and technical norms, the Commission determined the levelized tariff of ₹7.84 (~$0.10)/kWh comprising of levelized fixed cost of ₹3.42 (~$0.04)/kWh and levelized variable cost of ₹4.42/kWh (~$0.06)/kWh.

Further, the Commission has proposed that the impact of tipping fee of ₹3.54 (~$0.05)/kWh will be reimbursed to the DISCOMs on receipt of the tipping fee by the generator.

In March 2020, the Ministry of New and Renewable Energy (MNRE) revised the guidelines for its waste to energy program. A new addition to the guidelines was the inclusion of MSW-based projects based on the clarification by the Department of Expenditure. The objective of the program is to set up projects for biogas or bio-CNG, or power from urban, industrial and agricultural waste and captive power and thermal use through gasification in industries; to promote setting up of projects for the recovery of energy from municipal solid wastes for feeding power into the grid and for meeting captive power, thermal and vehicular fuel requirements.

Meanwhile, recently, Karnataka Power Corporation Limited (KPCL) floated a tender for an 11.5 MW waste to energy project at Bidadi in the Ramanagar district of the state.

 

Image credit: GTD Aquitaine at English Wikipedia / Public domain