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FEB 24 2015

KERC re-determines the tariff for wind power projects

  • Economic Times, ET Bureau / Hyderabad
  • Created: Tue 24th FEB 2015

In a modification to the earlier order dated October 10, 2013, the Karnataka Electricity Regulatory Commission (KERC) has re-determined the tariff rates from Rs 4.5 per kWh to Rs 4.2 per kWh for wind power projects established during the control period of five years commencing from October 10, 2013. This tariff will be applicable to all new wind power projects entering into power purchase agreements (PPAs) on or after October 10, 2013 for a period of five years. The tariff determined in the present order will also be applicable for projects that have already signed PPAs with electricity supply companies since October 2013.


The revision in tariff is in response to a November 2014 order by the Appellate Tribunal for Electricity (ATE) which directed the KERC to consider the requests of Gutta Seema Wind Energy Company Private Limited, Indian Wind Power Association and Indian Wind Turbine Manufacturers Association for revision in various tariff parameters.


 KERC approved parameters for determination of new wind power tariff


Values adopted for category-B projects

Capital cost (Rs million per MW)


Debt equity ratio


Debt (Rs million per MW)


Equity (Rs million per MW)


Debt repayment tenure (years)


Interest charges on debt (per cent)


Capacity utilisation factor (per cent)


Return on equity (per cent)


Discount factor (per cent)


Auxiliary consumption (per cent)


O&M expenses (Rs million per MW)


O&M expenses’ escalation (per cent per annum)


Working capital (months receivables)


Interest on working capital (per cent)


Depreciation for first 12 years (per cent)


Depreciation for next 13 years (per cent)


O&M: operation and maintenance

Source: KERC


Karnataka Wind Turbine Wind Tariff Wind Power Energy Electricity Regulatory Commission Appellate Tribunal for Electricity Karnataka Elecricity regulatory commission Power Electricity

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