The Central Electricity Regulatory Commission (CERC) has finalized the tariff for various renewable energy (RE) projects, including small hydro, biomass, biogas, and waste-to-energy. The new tariffs will be applicable for the control period starting from July 1, 2024, to March 31, 2025. This order for determination of the levellised generic tariff was issued on August 2, 2024.
It may be recalled, that in June 2024, CERC had notified new regulations for determining tariffs for renewable energy sources. Subsequently on July 15, 2024, CERC had invited comments from stakeholders on its proposal for determining generic tariffs for renewable energy projects in India.
Key Points of the Order
The CERC has stated that it has received comments and suggestions only from NSL Group of Companies, during the public consultation process. NSL Group of Companies submitted that the price of bagasse fuel shall be equivalent to the price set by the Coal Ministry for G8 grade coal in the National Coal Index, updated regularly.
The Commission has maintained the proposed bagasse fuel prices for the first year of the control period for bagasse-based cogeneration plants. The CERC states that the review of the basis of fuel cost is outside the scope of the present exercise of determination of levellised generic tariff. However, the CERC has emphasized that the fuel cost for bagasse will be reviewed in the future based on a dedicated study.
The final levellized generic tariff for Renewable Energy (RE) projects has been determined for various projects and for different states of the country. It is available in Annexure-I of the present order.
This order is expected to provide clarity and stability to the renewable energy sector, encouraging further investments in clean energy projects.
