असाधारण

EXTRAORDINARY

भाग III- खण्ड 4 PART III-Section 4 प्राधधकार से प्रकाशित

PUBLISHED BY AUTHORITY

No. 20                                                NEW DELHI, TUESDAY, FEBRUARY 7, 2012

No.:  L-1/94/CERC/2011                                             Dated: 6th February, 2012 NOTIFICATION

In  exercise of powers conferred under Section 61  read    with  Section 178 (2) (s) of the Electricity Act, 2003 (36 of 2003), and  all  other powers enabling it in this behalf, and after previous publication, the Central Electricity Regulatory Commission hereby makes the following regulations, namely:

1.        Short  title and commencement

1)              These regulations may be called the Central Electricity Regulatory Commission (Terms and Conditions for Tariff determination from Renewable Energy Sources) Regulations, 2012.

2)              These regulations shall come into force on 1.4.2012, and unless reviewed earlier or extended by the Commission, shall remain in force for a period of 5 years from the date of commencement.

2.        Definitions  and Interpretation

1)              In these regulations, unless the context otherwise requires,

a)       ‘Act’ means the Electricity Act, 2003 (36 of 2003);

b)       'Auxiliary energy consumption' or 'AUX' in relation to a period in case of a generating station means the  quantum of energy  consumed by auxiliary equipment of the generating station, and transformer losses within the generating station, expressed as a percentage of the sum of gross energy generated at the generator terminals of all the units of the generating  station;

c)       ‘Biomass’ means wastes produced  during  agricultural and forestry operations (for example straws and stalks) or produced as a by-product of processing operations of agricultural produce (e.g., husks, shells, deoiled  cakes, etc); wood produced in dedicated energy plantations or recovered from wild bushes/weeds; and the wood waste produced in some industrial operations;

d)       ‘Biomass gasification’ means a process of incomplete combustion of biomass resulting in production of combustible gases consisting of a mixture of Carbon monoxide (CO), Hydrogen (H2) and traces of Methane (CH4), which is called producer gas;

e)       ‘Biogas’means a gas created when organic matter like crop residues, sewage and manure breaks down in an oxygen- free environment (ferments);

f)          ‘Capital cost’ means the capital cost as defined in regulations 12, 24, 28, 34, 47, 57, 61, 66 and 76;

g)       'Commission'   means     the     Central     Electricity      Regulatory Commission referred to in sub-section (1) of section 76 of the Act;

h)       ‘Conduct of Business Regulations’ means the Central Electricity Regulatory Commission (Conduct of Business) Regulations, 1999 as amended from time to    time;

i)         ‘Control Period or Review Period’ means the period during which the norms for determination of tariff specified in  these regulations  shall remain valid;

j)         ‘Gross calorific value’ or ‘GCV’ in relation to a fuel used in generating station means the heat produced in kCal by complete combustion of one kilogram of solid fuel or one liter of liquid fuel or one standard cubic meter of gaseous fuel, as the case may be;

k)         ‘Gross station heat rate’ or ‘GHR’ means the heat energy input in kCal required to generate one kWh of electrical energy at generator terminals of a thermal generating station;

l)         ‘HybridSolarThermalPowerPlant’means the solar thermal power plant that uses other forms of energy input sources along with solar thermal energy for electricity generation, and wherein not less than 75% of electricity is generated from solar energy component;

m)      ‘Installed capacity' or 'IC’ means the summation of the name plate capacities of all the units of the generating station or the capacity of the generating station (reckoned at the generator terminals), approved by the Commission from time to time;

n)       ‘Inter-connection Point’ shall mean interface point of renewable energy generating facility with the transmission system or distribution system, as the case may be:

1. in relation to wind energy projects and Solar Photovoltaic Projects, inter-connection  point shall be line isolator on outgoing  feeder  on HV side of  the pooling sub-station;
2. in  relation  to        small  hydro  power,  biomass power and non fossil fuel based cogeneration power projects and Solar Thermal Power Projects the, inter-connection point shall be line isolator on outgoing feeder on HV side of generator transformer;

o)       ‘MNRE’  means  the  Ministry  of   New   and   Renewable Energy  of  the Government of India;

[(oa) Municipalsolidwaste’means and includes commercial and residential wastes generated in a municipal or notified areas in either solid or semi-solid form excluding industrial hazardous wastes but including treated bio-medical wastes]1

p)       ‘Non-firm power’ means the power generated from renewable sources, the hourly variation of which is dependent upon nature’s phenomenon like sun, cloud, wind,  etc.,  that  cannot  be  accurately  predicted;

q)       ‘Non fossil fuel based co-generation’ means the process in which  more than one form of energy (such as steam and electricity) are produced in a sequential  manner by use of biomass provided the project may qualify to be a co-generation project if it fulfills  the eligibility criteria as specified in clause  (4) of Regulation 4;

r)        'Operation and maintenance expenses’ or ‘O&M expenses' means the expenditure incurred on operation and maintenance of the project, or part thereof, and includes  the expenditure on manpower, repairs, spares, consumables, insurance and overheads;

s)       'Project' means a generating station or the evacuation system upto inter-connection point, as the case may be, and in case of  a  small hydro generating station  includes all components of generating facility such as dam, intake water conductor system, power generating station and generating units of the scheme, as apportioned to  power generation

[(sa) ‘Refuse Derived Fuel’ means segregated combustible fraction of solid waste other than chlorinated plastics in the form of pellets or fluff produced by drying, de-stoning, shredding, dehydrating, and compacting combustible components of solid waste that can be used as fuel;]2

t)         ‘Renewable Energy’ means the grid quality electricity generated from renewable energy sources;

u)       ‘Renewable Energy Power Plants’ means the power plants other than the conventional power plants generating grid quality  electricity  from renewable energy sources;

v)       ‘Renewable Energy Sources’ means renewable sources such as small hydro, wind, solar including its integration with combined cycle, biomass, bio fuel cogeneration, urban or municipal waste and other such sources as approved by the MNRE;

w)      ‘Small Hydro’ means Hydro Power projects with a station capacity up to and including 25 MW;

x)       ‘Solar PV power’ means the Solar Photo Voltaic power project that uses sunlight for direct conversion into electricity through Photo Voltaic technology;

y)       ‘Solar Thermal power’ means the Solar Thermal power project that uses sunlight for direct conversion into electricity through Concentrated Solar Power technology based  on  either  line  focus  or  point  focus  principle;

z)       ‘Tariff period’ means the period for which tariff is to be determined  by the   Commission   on   the   basis    of norms  specified   under  these Regulations;

aa)  ‘Useful  Life’  in relation to a unit of a generating station including evacuation system shall mean the following duration from the date of commercial operation (COD) of such generation facility, namely:-

(a)   Wind energy power project 25 years

(b)   Biomass power project with Rankine cycle  technology   20 years

(c)  Non-fossil fuel cogeneration project                        20 years

(d)   Small Hydro Plant                                                     35 years

(e)   Solar PV/Solar thermal power project                      25 years

(f)   Biomass gasifier based power project                     20 years

(g)   Biogas based power project                                    20 years

[(h) Municipal solid waste (MSW) and Refuse derived fuel (RDF)  based power Projects   20 years]3

ab) ‘Year’ means a financial year.

(2)    Save  as aforesaid  and unless repugnant to  the  context or if    the subject- matter otherwise requires, words and expressions used in these regulations and not defined, but defined in the  Act, or the Indian Electricity Grid Code  or  the Central Electricity Regulatory Commission (Terms and conditions of Tariff) Regulations, 2009 shall have   the   meanings   assigned to them respectively in the Act or the Indian Electricity Grid Code or the Central Electricity Regulatory Commission (Terms   andconditions ofTariff) Regulations, 2009.

3.         Scope and extent of application

These regulations shall apply in all cases where tariff, for a generating station or a unit thereof based on renewable sources of energy, is to be determined by the Commission under Section 62 read with Section 79 of the Act.

[Provided that in cases of wind, Small Hydro projects, Biomass power based on Rankine cycle, non-fossil fuel based cogeneration projects, Solar PV, Solar Thermal power projects, Biomass gasifier, Biogas, Municipal  solid waste and Refuse  derived fuel  based power  projects, these regulations shall apply subject to the fulfillment of eligibility criteria specified in Regulation 4 of these Regulations.]4

4.        Eligibility Criteria

a)    Windpower project – using new wind turbine generators, located at the sites approved by State Nodal Agency/ State Government (only for zoning purpose).

b)    Small hydro project – located at the sites approved by State Nodal Agency/ State Government using new plant and machinery, and installed  power  plant capacity to be lower than  or equal to 25 MW at single location.

c)    [Biomass power project based on Rankine cycle technology – Biomass power projects using new plant and machinery based on Rankine cycle technology and using biomass fuel sources, provided use of fossil fuel is restricted only up to 15% in terms of calorific value on annual basis, till 31.03.2017.]5

d)    Non-fossil fuel based co-generation project: The project shall qualify to be termed as a non-fossil fuel based co-generation project, if it is using new plant and machinery and is  in accordance with the definition and also meets the qualifying requirement outlined below:

Topping cycle mode of co-generation – Any facility that uses non-fossil fuel input for the power generation and  also utilizes the thermal energy generated for useful heat applications  in other industrial activities  simultaneously.

Provided that for the co-generation facility to qualify under topping cycle mode, the sum of useful power output  and  one half the useful thermal output be greater than 45% of  the facility’s energy consumption, during season.

Explanation-For the purposes of this clause,

4 Substituted vide Fourth Amendment Regulations, 2015 w.e.f. 23.10.2015

5 Substituted vide Second Amendment Regulations, 2014 w.e.f. 5.1.2015

(a)     ‘Useful power output’ is the gross electrical output from the generator. There will be an auxiliary consumption in the cogeneration plant itself (e.g. the boiler feed  pump and the FD/ID fans). In order to compute the net power output it would be necessary to subtract the auxiliary consumption from the gross output. For simplicity of calculation, the useful power output is defined as the gross electricity (kWh) output from the  generator.

(b)     ‘Useful Thermal Output’ is the useful  heat (steam) that    is provided to the process by the cogeneration  facility.

(c)     ‘Energy Consumption’ of the facility is the useful  energy input that is supplied by the  fuel  (normally bagasse or other such biomass fuel).

(d)     'Toping Cycle' means a co-generation process in which thermal energy produces electricity followed by useful heat application in industrial  activities.

 e)    Solar PV and Solar Thermal Power  Project  –  Based  on Technologies  approved  by MNRE.

f)      BiomassGasifierbasedPowerProject– The project shall qualify to be termed as a biomass gasifier based power project, if it is using new plant and machinery and having a Grid connected system that uses 100% producer gas engine, coupled with gasifier technologies approved by MNRE.

g)    Biogas based Power Project – The project shall qualify to be termed as a biogas based power project, if it is using new plant and machinery and having grid connected system that uses 100% Biogas fired engine, coupled with Biogas technology for co- digesting agriculture residues, manure and other bio waste as may be approved by MNRE. 

h)    [Municipal solid waste based power projects – The project shall qualify to be termed as a Municipal solid waste based power project, if it is using new plant and machinery based on Rankine cycle technology and using Municipal solid waste as fuel sources]6

i)      [Refuse derived fuel based power projects – The project shall qualify to be termed as a Refuse derived fuel based power project, if it is using new plant and machinery based on Rankine cycle technology and using Refuse derived fuel as fuel sources]7

CHAPTER 1

GENERAL  PRINCIPLES

5.        Control Period or Review Period

The Control Period or Review Period under these Regulations shall be of five years, of which the first year shall be the financial  year 2012-13.

Provided that the benchmark capital cost for Solar PV and Solar thermal projects may be reviewed annually by the Commission.

Provided further that the tariff determined as per these Regulations for the RE projects commissioned during the Control Period, shall continue to be applicable for the entire duration of the Tariff Period as specified in Regulation 6 below.

Provided also that the revision in Regulations for next Control Period shall be undertaken at least six months prior to the end of the first Control Period and in case Regulations for the next Control Period are not notified until commencement of next Control Period, the tariff norms as per these Regulations shall continue to remain applicable

6 Added vide Fourth Amendment Regulations, 2015 w.e.f. 23.10.2015 

until notification of the revised Regulations subject to adjustments as per revised Regulations.

6.        Tariff Period

a)    [The Tariff Period for Renewable Energy power projects except in case of Small hydro projects below 5 MW, Solar PV, Solar thermal, Biomass Gasifier, Biogas, Municipal solid waste and Refuse derived fuel based power projects shall be thirteen (13) years.]8

b)    In case of Small hydro projects below 5 MW, the tariff period shall be thirty five (35) years.

c)    In case of Solar PV and Solar thermal power projects the Tariff Period shall be twenty five years (25) years.

d)    In case of Biomass gasifier and Biogas based power projects the Tariff Period shall be twenty years (20) years.

[da) In case of municipal solid waste and refuse derived fuel based power projects, the Tariff Period shall be twenty (20) years;]9

e)    Tariff period under these Regulations shall be considered from the date of commercial operation of the renewable energy generating stations.

f)      Tariff determined as per these Regulations shall be applicable for Renewable Energy power projects, only for the duration of the Tariff Period as stipulated under Regulation 6 (a), (b), (c), (d) and (e).

7.        Project Specific tariff

a)    Project specific tariff, on case to case basis, shall be determined by

8 Substituted vide Fourth Amendment Regulations, 2015 w.e.f. 23.10.2015

the Commission for the following types of projects:

1. [Municipal Solid Waste and Refuse Derived Fuel based power projects, if a project developer opts for project specific tariff:

Provided that the Commission while determining the project specific tariff for Municipal Solid Waste and Refuse Derived Fuel based power projects shall be guided by the provisions of Chapter 5A of these Regulations.]10

1. Solar PV and Solar Thermal Power projects, if a project developer opts for project  specific  tariff:

Provided that the Commission while  determining the project specific tariff for Solar PV and Solar Thermal shall be guided by the provisions of Chapters 7 & 8 of these Regulations.

1. Hybrid Solar Thermal Power plants;

1. Other hybrid projects include renewable–renewable or renewable– conventional sources, for which renewable technology is approved by MNRE;

1. Biomass project other than that based  on  Rankine  Cycle technology application with water cooled condenser;

1. Any other new renewable energy technologies approved by MNRE.

b)    Determination of Project specific Tariff for generation of electricity from such renewable energy sources shall be in  accordance  with such terms and conditions as stipulated under relevant Orders of the Commission.

10 Substituted vide Fourth Amendment Regulations, 2015 w.e.f 23.10.2015

Provided that the financial norms as specified under Chapter-2 of these Regulations, except for capital cost, shall be ceiling norms while  determining the project specific tariff.

8.        Petition and proceedings for determination of  tariff

(1)   The Commission shall determine the generic tariff on the basis of suo-motu petition at least six months in advance  at  the  beginning of each year of the Control period for renewable energy technologies for which norms have been specified under the Regulations.

(2)   Notwithstanding anything contained in these regulations,

a)   the generic tariff determined for Solar PV projects based on the capital cost and other norms applicable for any year of the control period shall also apply for such projects during the next year; and

b)   the generic tariff determined for Solar thermal projects based on the capital cost and other norms for the any year of the control period shall also apply for such projects during the next two years,

Provided that (i) the Power Purchase Agreements in respect of the Solar PV projects and Solar thermal projects as mentioned in this clause are signed on or before last day of the year for which generic tariff is determined and (ii) the entire capacity covered by the Power Purchase Agreements is commissioned on or before 31st March of the next year in respect of Solar PV projects and on or before 31st March of subsequent two years in respect of Solar thermal projects.

(3)     A petition for determination of project specific tariff shall be accompanied by such fee as may be determined by regulations

and shall be accompanied by:

a)          Information in forms 1.1, 1.2, 2.1 and  2.2  as  the  case  may be, and as appended in these  regulations;

b)          Detailed project report outlining technical and operational details, site specific aspects, premise for capital cost and financing plan etc.

c)     A Statement of all applicable terms and conditions and expected expenditure for the period for which tariff is to be determined.

d)      A statement containing full details of calculation of any subsidy and incentive received, due or assumed to be due from the Central Government and/or State Government.       This statement    shall    also          include                                the           proposed  tariff  calculated without consideration of the subsidy and incentive.

e)      Any other information that the Commission requires the petitioner to submit.

(4)           The proceedings for determination of tariff shall be in accordance with the Conduct of Business Regulations.

9.         Tariff Structure

(1)         The tariff for renewable energy technologies shall be single  part tariff consisting of the following fixed cost components:

(a)   Return on equity;

(b)   Interest on loan capital;

(c)  Depreciation;

(d)   Interest on working capital;

(e)   Operation and maintenance expenses;

Provided that for renewable energy technologies having fuel cost component, like biomass power projects and non-fossil fuel based cogeneration,  single  part  tariff  with  two  components,  fixed cost component  and  fuel  cost component, shall be determined.

10.      Tariff Design

(1)      The generic tariff shall be determined on levellised basis for the Tariff Period.

Provided that for renewable energy technologies having single  part tariff with two components, tariff shall be determined on levellised basis considering the year of commissioning of the project for fixed cost component while the fuel cost component shall be specified on year of operation basis.

(2)      For the purpose of levellised tariff computation, the discount factor equivalent to Post Tax weighted average cost of capital shall be considered.

(3)      Levellisation shall be carried out for the ‘useful life’ of the Renewable Energy project while Tariff shall be specified for the period equivalent to ‘Tariff Period’.

11.      Despatch principles for electricity generated from Renewable Energy Sources:

(1)     All renewable energy power plants except for biomass power plants with installed capacity of  10  MW  and  above,  and  non-fossil fuel based cogeneration plants shall be treated as ‘MUST RUN’ power plants and shall not be subjected to ‘merit order despatch’ principles.

[(1a) The Municipal Solid Waste and Refuse Derived Fuel based power projects shall be treated as 'MUST RUN' power plants and shall not

be subjected to 'merit order despatch' principles]11

(2)      [The biomass power generating station with an installed capacity of 10 MW and above, non fossil fuel based co-generation projects, municipal solid waste and refuse derived fuel shall be subjected to scheduling and despatch code as specified under CERC (Indian Electricity Grid 3 Code) Regulations, 2010 and Central Electricity Regulatory Commission (Unscheduled Interchange and related matters) Regulations, 2009 including amendments thereto.]12

(3)      Wind power generation plants where the sum of generation capacity of such plants connected at the connection point to the transmission or distribution system is 10 MW and above and connection point is 33 KV and above shall be subjected to scheduling and despatch code as specified under Indian Electricity Grid Code (IEGC) -2010, as amended form time to time.

(4)     Solar generation plants with capacity of 5 MW and above and connected at the connection point of 33 KV level and above shall be subjected to scheduling and dispatch code as specified under Indian Electricity Grid Code (IEGC) – 2010, as amended form time to time.

CHAPTER 2

FINANCIALPRINCIPLES

12.      Capital Cost

The norms      for   the   Capital  cost  as          specified  in  the        subsequent technology specific  chapters  shall  be   inclusive  of  all  capital    work

11 Added vide Fourth Amendment Regulations, 2015 w.e.f. 23.10.2015

12 Substituted vide Fourth Amendment Regulations, 2015 w.e.f. 23.10.2015 

including plant and machinery, civil work, erection and commissioning, financing and interest during construction, and evacuation infrastructure up to inter-connection point.

Provided that for project specific tariff determination, the generating company shall submit the break-up of capital cost items along with its petition in the manner specified under Regulation 8.

13.      Debt Equity Ratio

(1)      For generic tariff to be determined based on suo motu petition, the debt equity ratio shall be 70:30.

(2)      For Project specific tariff, the following provisions shall apply:-

If the equity actually deployed is more than 30% of the capital cost, equity in excess of 30% shall be treated as normative loan.

Provided that where equity actually deployed is less than 30% of the capital cost, the actual equity shall be considered for determination of tariff:

Provided further that the equity invested in foreign currency shall be designated in Indian rupees on the date of each investment.

14.      Loan and Finance Charges

(1)      LoanTenure

For the purpose of determination of tariff, loan tenure of 12 years shall be considered.

(2)      Interest Rate

(a)     The loans arrived at in the manner indicated in the Regulation 13 shall be considered as gross normative loan for calculation for interest on loan. The normative loan outstanding as on April 1st of every year shall be worked out by deducting the cumulative repayment up to March  31st of previous year  from  the  gross  normative loan.

(b)     For the purpose of computation of tariff, the normative interest rate shall be considered as average State Bank of India (SBI) Base rate prevalent during the first six months of the previous year plus 300 basis points.

(c)   Notwithstanding any moratorium period availed by the generating company, the repayment of loan shall be considered from the first year of commercial operation of  the project and shall be equal to the annual depreciation allowed.

15.      Depreciation

(1)      The value base for the purpose of depreciation shall be the Capital Cost of the asset admitted by the Commission. The Salvage value of the asset shall be considered as 10% and depreciation shall be allowed up to maximum of 90% of the Capital Cost of the asset.

(2)      Depreciation per annum shall be based on ‘Differential Depreciation Approach' over loan period beyond loan tenure over useful life computed on ‘Straight Line Method’. The depreciation rate for the first 12 years of the Tariff Period shall be 5.83% per annum and the remaining depreciation shall be spread over the remaining useful life of the project from 13th  year onwards.

(3)     Depreciation shall be chargeable from the first year of commercial operation.

Provided that in case of commercial operation of the asset for part of the year, depreciation shall be charged on pro rata basis.

16.      Return on Equity

(1)      The value base for the equity shall be 30% of the capital cost or actual equity (in case of project specific tariff determination) as determined under Regulation 13.

(2)      The normative Return on Equity shall be: 

a)      20% per annum for the first 10 years.

b)      24% per annum 11th years onwards.

17.      Interest on Working  Capital

(1)      The Working Capital requirement in respect of wind energy projects, Small Hydro Power, Solar PV and Solar thermal power projects shall be computed in accordance with the following:

Wind Energy / Small Hydro Power /Solar PV / Solar  thermal

a) Operation & Maintenance expenses for one month;

b)  Receivables equivalent to 2 (Two) months of energy charges for  sale  of electricity calculated on the normative CUF;

c)     Maintenance spare @ 15% of operation and maintenance expenses

(2)      [The Working Capital requirement in respect of biomass power projects, Municipal solid waste Refuse derived fuel based power projects and non-fossil fuel based co-generation projects shall be computed in accordance with the following clause :

Biomass, Biogas Power, Municipal solid waste, Refuse derived fuel based power projects and Non-fossil fuel Co-generation

a)  Fuel costs for four months equivalent to normative PLF;

b)   Operation & Maintenance expense for one month;

c)  Receivables equivalent to 2 (Two) months of fixed and variable charges for sale of electricity calculated on the target PLF;

d)  Maintenance spare @ 15% of operation and maintenance expenses]13

(3)      Interest on Working Capital shall be at interest rate equivalent to the average State Bank of India Base Rate prevalent during the first six months of the previous year plus 350 basis points.

18.      Operation and Maintenance  Expenses

(1)      ‘Operation and Maintenance or O&M expenses’ shall comprise repair and maintenance (R&M), establishment  including  employee expenses, and administrative and general expenses.

(2)      Operation and maintenance expenses shall be determined for the Tariff Period based on normative O&M expenses specified by the Commission subsequently in these Regulations for the first Year of Control Period.

(3)      Normative O&M expenses allowed during first year of the Control Period (i.e. FY 2012-13) under these Regulations shall be escalated at the rate of 5.72% per annum over the Tariff Period.

19.      Rebate.

(1)      For payment of bills of the generating company through letter of credit, a rebate of 2% shall be allowed.

13 Substituted vide Fourth Amendment Regulations, 2015 w.e.f. 23.10.2015

(2)      Where payments are made other than through letter of credit within a period of one month of presentation of bills by the generating company, a rebate of 1% shall be allowed.

20.      Late payment surcharge.

In case the payment of any bill for charges payable under these regulations is delayed beyond a period of 60 days from the date of billing, a late payment surcharge at the rate  of  1.25%  per  month  shall  be levied  by  the generating company.

21.      Sharing of CDM Benefits

(1)      The proceeds of carbon credit from approved CDM project shall be shared between generating company and concerned beneficiaries in the following manner, namely-

a)    100% of the gross proceeds on account of CDM benefit to be retained by  the project developer in the first year after the date of commercial operation of the generating station;

b)    In the second year, the share of the beneficiaries shall be 10% which shall be progressively increased by 10% every year till it reaches 50%, where after the proceeds shall be shared in equal proportion, by the generating company and the beneficiaries.

22.      Subsidy or incentive by the Central / State  Government

The Commission shall take into consideration any incentive or subsidy offered by  the Central or State Government, including accelerated depreciation benefit if availed by the generating company, for the  renewable  energy power plants  while   determining the tariff under these Regulations.

Provided that the following principles shall be considered for ascertaining income tax benefit on account of accelerated depreciation, if availed, for the purpose of tariff determination:

i)               Assessment of benefit shall be based on normative capital cost, accelerated depreciation rate as per relevant provisions under  Income  Tax  Act  and corporate income tax  rate.

ii)            Capitalization of RE projects during second half of the fiscal year. Per unit benefit shall be derived on levellised basis at discount factor equivalent to weighted average cost of capital.

23.    Taxes and Duties

Tariff determined under these regulations shall be exclusive of taxes and duties as may be levied by the appropriate Government:

Provided that the taxes and duties levied by the appropriate Government shall be allowed as pass through on actual incurred basis.

CHAPTER 3

TECHNOLOGY SPECIFIC PARAMETERS FOR WINDENERGY

24.      Capital Cost

(1)      The capital cost for wind energy project  shall include Wind turbine generator including its auxiliaries, land cost, site development charges and other civil works, transportation charges, evacuation cost up to inter-connection point, financing charges and IDC.

25.      Capital Cost Indexation  Mechanism

(1) The following indexation mechanism shall be applicable in case of wind energy projects for adjustments in capital cost over the Control Period with the changes in Wholesale Price  Index for Steel and Electrical Machinery.

th

CC (n)            =          Capital Cost for n

year

th

P&M (n)         =          Plant and Machinery Cost for n

year

P&M (0)         =          Plant and Machinery Cost for the base year

Note. P&M (0) is to be computed by dividing the base capital cost (for the first year of the control period) by  (1+F1+F2+F3)

26.      Capacity Utilisation Factor (CUF)

(1)      CUF norms for this control period shall be as follows:

14 Deleted vide corrigendum dated 11.10.2012

15 Deleted vide corrigendum dated 11.10.2012

(2)      The annual mean wind power density specified in sub- regulation  (1)  above shall be measured at 80 meter hub-height.

(3)      For the purpose of classification of wind energy project into particular wind zone class, as per MNRE guidelines for wind measurement, wind mast either put-up by C-WET or a private developer and validated by C-WET would be normally extended 10 km from the mast point to all directions for uniform terrain and limited to appropriate distant in complex terrain with regard to complexity of the site. Based on such validation by C-WET, state nodal agency should certify zoning of the proposed wind farm complex.

27.       Operation and Maintenance (O & M)  Expenses

(1)      Normative O&M expenses for the first year of the Control Period (i.e. FY 2012-13) shall be Rs 9 Lakh per MW.

(2)      Normative O&M expenses allowed under these Regulations shall be escalated at the rate of 5.72% per annum  over  the  tariff period  to compute the  levellised tariff.

CHAPTER 4

TECHNOLOGYSPECIFICPARAMETERSFORSMALL HYDROPROJECT

28.      Capital Cost

(1)      The  normative  capital  cost for  small  hydro projects during first

year of Control Period (FY 2012-13) shall be as follows:

(2)      The capital cost for subsequent  years  shall  be  determined on the  basis of indexation formula as outlined under Regulation 29.

29.      Capital Cost Indexation  Mechanism

(1) The following indexation mechanism shall be applicable in case of small hydro power projects for adjustments in capital cost over the Control Period with the changes in Wholesale Price Index for Steel and Electrical Machinery.

CC(n)            =         P&M(n)* (1+F1+F2+F3) P&M(n) = P&M(0) * (1+d(n))

Note. P&M (0)         is to be computed by dividing the base  capital cost (for the first year of the control period) by  (1+F1+F2+F3)

time    to    time,    (In    default      it    is    0.4),     for

16 Deleted vide corrigendum dated 11.10.2012

17 Deleted vide corrigendum dated 11.10.2012

F3                              =       Factor for IDC and Financing Cost (0.14)

30.      Capacity Utilisation Factor

Capacity Utilisation factor for the small hydro projects located in Himachal Pradesh, Uttarakhand and North Eastern States  shall  be 45% and for other States, CUF shall be 30%.

Explanation: For the purpose of this Regulation normative CUF is net of free power to the home state if any, and any quantum of free power if committed by the developer over and above the normative CUF shall not be factored into the  tariff.

31.      Auxiliary Consumption

Normative Auxiliary Consumption for the small hydro projects shall be 1.0%.

32.      Operation and Maintenance  Expenses

(1)      Normative O&M expenses for the first year of the Control period (i.e. FY 2012-13 shall be as follows.

(2)      Normative O&M expenses allowed under these Regulations shall be escalated at the rate of 5.72% per annum for the Tariff  Period for the purpose of determination of levellised  tariff.

CHAPTER             5                         TECHNOLOGY SPECIFIC PARAMETERS FOR BIOMASS POWER PROJECTS BASED ON RANKINE CYCLE TECHNOLOGY

33.      Technology Aspect

The norms for tariff determination specified hereunder are for biomass power projects based on Rankine cycle technology application  using  water  cooled  condenser.

34.      Capital Cost

[The normative capital cost for the biomass power projects based on Rankine cycle shall be as under:

1. ` 540 lakh/MW for project [other than rice straw and juliflora (plantation) based project] with water cooled condenser;

1. ` 580 lakh/MW for Project [other than rice straw and Juliflora (plantation) based project] with air cooled                              condenser;

1. ` 590 lakh/MW for rice straw and juliflora (plantation) based project with water cooled condenser;

1. ` 630 lakh/MW for rice straw and juliflora (plantation)          based project with air cooled condenser.]18

18 Substituted vide First Amendment Regulations,  2014 w.e.f 21.3.2014

35.      Capital Cost Indexation  Mechanism

(1) The  following indexation mechanism  shall be applicable  in case of biomass power projects for adjustment in capital cost over the Control Period with the changes in Wholesale Price Index for Steel and Electrical Machinery,

Note. P&M (0) is to be computed by dividing the base capital cost (for the first year of the control period) by  (1+F1+F2+F3)

36.      Plant Load Factor

(1)  Threshold       Plant      Load     Factor     for     determining        fixed      charge component of Tariff shall be:

a)  

During Stabilisation

b)   During the remaining period of the first year (after stabilization)

nd

c)  From 2

Year onwards

(2)  The stabilisation period shall not be  more  than  6  months from  the       date of commissioning of the project.

[37. Auxiliary Consumption

The auxiliary power consumption shall be as under:

1. For the project using water cooled condenser:
   1. During first year of operation: 11%;
   2. From 2nd  year onwards: 10%.
   3. For the project using air cooled condenser:
      1. During first year of operation: 13%;
      2. From 2nd  year onwards: 12%.”]21

[38. Station Heat Rate

The Station Heat Rate for biomass power projects using fossil fuel up to 15% of calorific value on annual basis shall be as under:

1. 4126 kcal/kWh for project using travelling grate boilers
   1. 4063 kcal/kWh for project using AFBC boilers]22

39. Operation and Maintenance Expenses

[(1) Normative O&M expenses for the second year of the Control period (i.e. FY 2013-14 shall be ` 40 lakh/MW.]23

(2) Normative O&M expenses allowed at the commencement of the control period (i.e. FY 2012-13) under these Regulations shall be escalated @ 5.72% per annum.

21 Substituted vide First Amendment Regulations, 2014 w.e.f. 21.3.2014

22 Initially substituted vide First Amendment Regulations 2014, w.e.f. 21.3.2014 which was later subsumed vide Third Amendment Regulations, 2015 w.e.f. 14.7.2015

23 Substituted vide First Amendment Regulations, 2014 w.e.f. 21.3.2014

40.          Fuel Mix

(1)  The biomass power plant shall be designed in such a way that it uses different types of non-fossil  fuels  available  within  the  vicinity of biomass power project such as crop residues, agro-industrial residues, forest residues etc. and other biomass fuels as may be approved by MNRE.

(2)  The Biomass Power Generating Companies shall ensure fuel management  plan to ensure adequate availability of fuel to meet  the  respective  project  requirements.

[41. Use of Fossil Fuel

“The use of fossil fuels shall be limited to the extent of 15% in terms of calorific value on annual basis, till 31.03.2017.]24

42.   Monitoring Mechanism for the use of fossil fuel

(1)      The Project developer shall furnish a monthly fuel usage statement and monthly fuel procurement statement duly certified by  Chartered  Accountant  to the beneficiary (with a copy to appropriate agency   appointed   by   the Commission   for the purpose of monitoring the fossil and non-fossil fuel consumption) for each month, along with the monthly energy bill. The statement shall cover details such as -

a)   Quantity of fuel (in tonne) for each fuel type (biomass fuels and fossil fuels) consumed and procured during the month for power generation purposes,

b)   Cumulative quantity (in tonne) of each fuel type consumed and procured till the end of that month during the  year,

24Initially substituted vide First Amendment Regulations, 2014 w.e.f. 21.3.2014 which was later substituted vide Second Amendment Regulations, 2014 w.e.f. 5.1.2015

c)    Actual (gross and net) energy generation (denominated  in  units)  during  the month,

d)    Cumulative actual (gross and net) energy generation (denominated in units) until  the end of that month during the  year,

e)    Opening fuel stock quantity (in tonne),

f)     Receipt of fuel quantity (in tonne) at the power plant site and

g)    Closing fuel stock quantity (in tonne) for each  fuel  type (biomass fuels and fossil fuels) available at the power plant site.

(2)      Non-compliance with the condition of fossil fuel usage by the project developer, during any financial year, shall result in withdrawal of applicability of tariff as per these Regulations for such biomass based power project.

[43. Calorific Value

For Biomass based projects using fossil fuel up to 15% of calorific contribution, the Calorific Value of fuel used for the purpose of determination of tariff shall be 3174 kcal/kg.]25

44.      Fuel Cost

Biomass fuel price during first year of the Control Period (i.e. FY  2012-

13) shall be as specified in the table below and shall be linked to index formulae as specified under Regulation 45. Alternatively, for each subsequent year of the Tariff Period, the normative  escalation

25 Initially substituted vide First Amendment Regulations , 2014, w.e.f. 21.3.2014 which was later substituted vide Third Amendment Regulations, 2014 w.e.f. 14.7.2015

factor of 5% per annum shall be applicable at the option of  the biomass project developer.

[Alternatively, biomass fuel price shall be decided annually by the appropriate Regulatory Commission through an independent survey which could be carried out by constituting a State level committee consisting of representatives of State Nodal Agency, State Government, Distribution Licensees, biomass power producers association and any other organization.]26

45.      Fuel Price Indexation Mechanism

(1)      In case of biomass power projects, the following indexing mechanism for adjustment of fuel prices for each year of operation will be applicable for determination of applicable variable charge component of tariff, in case developer wishes   to opt for indexing mechanism:

P (n)               =         P (n-1) * {a * (WPI(n)/WPI(n-1)) + b * (1+IRC)

(n-1) + c * (Pd(n)/Pd(n-1))}

26 Added vide First  Amendment Regulations, 2014 w.e.f. 21.3.2014

coal mine source (in %) to be applicable for   (n-

1) th year, as may be specified by CERC for ‘Payment purpose’ as per   Competitive Bidding Guidelines

Pd n                =          Weighted average price of HSD for nth year.

th

Pd n-1            =          Weighted average price of HSD for (n-1)

year.

WPI n             =         Whole sale price index for the month of April of

th

n  year

WPI n-1          =          Wholesale price index for month of April of (n-

th

1)  year.

Where a, b & c will be  specified  by the Commission  from  time   to time. In default, these factors shall be 0.2, 0.6 & 0.2 respectively.

(2)          Variable Charge for the nth year shall be determined as under:

(n-1)

i.e.      VCn = VC1x (Pn / P1) or VCn = VC1x (1.05)

(optional)

Where,

VC1represents the Variable Charge based on Biomass  Price  P1  for FY  2012-13  as                                  specified     under     Regulation      44    and    shall     be determined  as under:

VC1 = Station Heat Rate (SHR) x                               1                        x  P1 Gross Calorific Value (GCV) (1 – Aux Cons. Factor)               1000

(3)    The biomass base price shall be revised at the end of the control period for the next Control Period and same shall also be applicable to project commissioned under this Control Period.

[CHAPTER 5A

TECHNOLOGYSPECIFICPARAMETERSFORPOWERPROJECTSUSING MUNICIPAL SOLID WASTE /REFUSE DERIVED FUEL AND BASED ON RANKINE CYCLE TECHNOLOGY

33A. TechnologyAspect

The norms for tariff determination specified hereunder are for power projects which use municipal solid waste and refuse derived fuel and are based on Rankine cycle technology application, combustion or incineration, Bio-methanation, Pyrolysis and High end gasifier technologies

33B. Capital Cost

The normative capital costs for FY 2015-16,for power projects which use municipal solid waste and refuse derived fuel and are based on Rankine cycle technology application shall be as under:

1. Rs1500 lakh/MW for the power projects which use municipal solid waste and are based on Rankine cycle technology application.
2. Rs900 lakh/MW for the power projects which use refuse derived fuel and are based on Rankine cycle technology application.

Provided that the Capital Cost norms for the remaining years of the control period, for municipal solid waste and refuse derived fuel based power projects shall be reviewed on annual basis.

33C Plant Load Factor

(1)      Threshold  Plant  Load  Factor  for  determining  fixed      charge

component of tariff for the power projects which use municipal solid waste and refuse derived fuel shall be:

(2)   The stabilisation period shall not be more than 6 months from the date of commissioning of the project.

33D Auxiliary Consumption

The auxiliary power consumption for the power projects which use municipal solid waste and refuse derived fuel shall be 15%

33E Station Heat Rate

The Station Heat Rate for power projects which use municipal solid waste and refuse derived fuel shall be 4200 kcal/kWh.

33F Operation and Maintenance Expenses

(1)    Normative O&M expenses for FY 2015-16 for the power projects which use municipal solid waste or refuse derived fuel shall be 6% of normative capital cost.

(2)    Normative O&M expenses allowed for FY 2015-16 for the power projects which use municipal solid waste and refuse derived fuel respectively under these Regulations shall be escalated @ 5.72% per annum.

33G Calorific Value

The Calorific Value of the refuse derived fuel fuel used for the purpose of determination of tariff shall be at 2500 kcal/kg

33H Fuel Cost

Refuse derived fuel price during FY 2015-16 shall be Rs 1,800 per MT. For each subsequent year of the Tariff Period, the normative escalation factor of 5% per annum shall be applicable at the option of the refuse derived fuel project developer.

No fuel cost shall be considered for determination of tariff for the power projects using municipal solid waste]27

CHAPTER 6

TECHNOLOGYSPECIFICPARAMETERSFORNON-FOSSIL FUELBASEDCOGENERATIONPROJECTS

46.      Technology Aspect

A project shall qualify as a non-fossil fuel based  Co-generation project, if it is in accordance with the eligibility criteria as specified under Regulation 4(d).

47.      Capital Cost

The normative capital cost for the non-fossil fuel based cogeneration projects shall be ` 420 Lakh/MW for the first year of Control Period (i.e. FY 2012-13), and shall be linked to indexation formula as outlined under Regulation 48.

48.      Capital Cost Indexation  Mechanism

The following indexation mechanism shall be applicable in case of non-fossil fuel based cogeneration projects for adjustments in capital cost with the changes in Wholesale Price Index for Steel and  Electrical

27 Chapter 5A added vide Fourth Amendment Regulations, 2015 w.e.f. 23.10.2015

Machinery,

CC(n)            =         P&M(n)* (1+F1+F2+F3) P&M(n) = P&M(0) * (1+d(n))

d(n)               =         [a*{(SI(n-1)/SI(0))– 1} + b*{(EI(n-1)/EI(0)) –

1}]/(a+b)

Where,

CC (n)            =          Capital Cost for nth year

P&M (n)         =          Plant and Machinery Cost for nth year

P&M (0)         =          Plant and Machinery Cost for the base year

Note:  P&M (0)          is to be computed by dividing the   base capital cost (for the first year of the control period) by  (1+F1+F2+F3)

prevalent       for      calendar      year     (0)     at    the beginning of the Control Period [30]

a                    =         Constant to be determined by Commission

from time to time, (In default it is 0.7), for

28 Substituted vide corrigendum dated 11.10.2012

29 Deleted vide corrigendum dated 11.10.2012

30 Deleted vide corrigendum dated 11.10.2012

49.      Plant Load Factor

(1)     For the purpose of determining fixed charge, the plant load factor for non- fossil fuel based cogeneration projects shall be computed on the basis of plant availability for number of operating days considering operations  during crushing season and off-season as specified  under  clause  (2) below and load factor of 92%.

(2)      The number of operating days for different States shall be as follows:

50.       Auxiliary Consumption

The auxiliary power consumption factor shall be 8.5% for the computation  of tariff.

51.      Station Heat Rate

The Station Heat Rate of 3600 kCal / kWh for power generation component alone shall be consideredfor computation of tariff for non- fossil fuel based Cogeneration projects.

52.      Calorific Value

The Gross Calorific Value for Bagasse shall be considered as 2250 kCal/kg.  For  the  use of biomass fuels other than   bagasse, calorific  value  as  specified  under Regulation 43 shall be applicable.

53.      Fuel Cost

(1)      The price of Bagasse shall be as specified in the table below and shall be linked to indexation formula as outlined under Regulation 54. Alternatively, for each subsequent year of the Control Period, the normative escalation factor of 5% per annum shall be applicable at the option of the project developer.

(2)      For use of biomass other than bagasse in co-generation projects, the biomass prices as specified under Regulation 44 shall be applicable.

54.      Fuel Price Indexation Mechanism

(1)   In case of non-fossil fuel based cogeneration projects, the following indexing mechanism for adjustment of fuel prices  for each year of operation will be applicable for determination of applicable variable charge component of tariff, in case developer wishes to opt for indexing mechanism:

1)

th      year, as  may  be  specified by CERC for ‘Payment purpose’ as per Competitive Bidding Guidelines

1) th year.

Where a, b & c will be specified by the Commission from time to time. In default, these factors shall be 0.2, 0.6 & 0.2  respectively.

(2)          Variable Charge for the nth year shall be determined as under:

i.e.     VCn   =       VC1x (Pn / P1) or VCn = VC1x (1.05) (n-1)

(optional)

Where,

VC1 represents the Variable Charge based on bagasse Price P1for FY 2012-13 as specified under Regulation 55 and shall be determined as under:

VC1 = Station Heat Rate (SHR)              x                       1               x      P1 Gross Calorific Value (GCV)                             (1 – Aux Cons. Factor)      1000

55.      Operation and Maintenance  Expenses

(1)  Normative O&M expenses during first year of the Control period (i.e. FY 2012-13) shall be ` 16 Lakh per MW.

(2)  Normative O&M expenses allowed at the commencement of the Control Period (i.e. FY 2012-13) under these Regulations shall be escalated at the rate of 5.72% per annum.

CHAPTER              7 TECHNOLOGY SPECIFIC PARAMETERS FOR SOLAR PV

POWERPROJECT

56.   Technology Aspects

(1)  Norms for Solar Photovoltaic (PV) power under these Regulations shall be applicable for grid connected PV systems that directly convert solar  energy into electricity and are based  on the technologies such as crystalline silicon or thin film etc. as may be approved by MNRE.

57.   Capital Cost

(1)  The normative capital cost for setting up Solar Photovoltaic Power Project shall be ` 1000Lakh/MW for FY 2012-13.

Provided that the Commission  may  deviate  from  above  norm in case of project specific tariff determination in pursuance of Regulation 7   and Regulation 8.

58.   Capacity Utilisation Factor

(1)   The Capacity utilisation factor for Solar PV project shall be 19%.

Provided that the Commission  may  deviate  from  above  norm in case of project specific tariff determination in pursuance of Regulation 7   and Regulation 8.

59.   Operation  and Maintenance Expenses

(1)    The O&M Expenses shall be ` 11 Lakhs/MW for the 1st year of operation.

(2)   Normative O&M expenses allowed  at  the  commencement  of the Control Period under these Regulations shall  be escalated  at the rate of 5.72% per  annum.

CHAPTER 8

TECHNOLOGYSPECIFICPARAMETERSFORSOLAR      THERMAL POWER PROJECT

60.   Technology Aspects

(1)  Norms for Solar thermal power under these Regulations  shall be applicable for Concentrated solar power (CSP) technologies viz.  line  focusing  or  point focusing,   as   may   be    approved by MNRE,   and   uses   direct   sunlight, concentrating   it several times to reach higher energy densities and thus higher temperatures whereby   the   heat   generated   is   used to  operate   a conventional power cycle to generate electricity.

61.   Capital Cost

(1)    The normative capital cost for setting up Solar Thermal Power Project shall be ` 1300 Lakh/MW for FY 2012-13.

Provided that the Commission may deviate from the above norm in case of project specific tariff determination in pursuance of Regulation 7 and Regulation 8.

62.   Capacity Utilisation Factor (CUF)

(1)   The Capacity Utilisation Factor shall be 23%.

Provided that the Commission may deviate from the above norm in case of project specific tariff determination in pursuance of Regulation 7 and Regulation 8.

63.   Operation  and Maintenance Expenses

(1)     The O&M Expenses shall be Rs 15 Lakhs/MW for 1st year operation.

(2)   Normative O&M expenses allowed at the commencement  of the Control Period under these Regulations shall  be escalated  at the rate of 5.72% per  annum.

64.   Auxiliary Consumption

(1)   The auxiliary consumption factor shall be 10%.

Provided that the Commission may deviate from the above norm in case of project specific tariff determination in pursuance of Regulation 7 and Regulation 8.

CHAPTER             9                         TECHNOLOGY SPECIFIC PARAMETERS FOR BIOMASS GASIFIER  POWER PROJECTS

65.      Technology Aspect

The norms for tariff determination specified hereunder are for biomass gasifier power projects  based.

66.      Capital Cost

The  normative  capital  cost  for  the   biomass gasifier power projects based on Rankine cycle shall be ` 550 Lakh/MW (FY 2012- 13 during first year of Control Period) and shall be linked to indexation formula as outlined under Regulation 67. After taking into account of

capital subsidy net project cost shall be ` 400Lakh/MW for FY 2012- 13.

67.      Capital Cost Indexation  Mechanism

(1) The  following indexation mechanism  shall be applicable  in case of biomass gasifier power projects for adjustment in capital cost over the Control Period with the changes in Wholesale Price Index for Steel and Electrical Machinery,

Note: P&M (0) is to be computed by dividing the base capital cost (for the first year of the control period) by  (1+F1+F2+F3)

68.      Plant Load Factor

Threshold Plant Load Factor for determining fixed charge component of Tariff shall be 80%.

69.       Auxiliary Consumption

The auxiliary power consumption factor shall be 10% for the determination of tariff.

70.      Specific fuel consumption

Normative specific fuel consumption shall be 1.25 kg per kWh.

71.      Operation and Maintenance  Expenses

(1)        Normative O&M expenses for the first year of the Control period (i.e. FY 2012-13 shall be ` 40 Lakh per MW.

(2)        Normative O&M expenses allowed at the commencement of the Control Period (i.e. FY 2012-13) under these Regulations shall be escalated at the rate of 5.72% per annum.

72.      Fuel Mix

(1)      The Biomass Gasifier based power plant shall be designed in such a way that it uses different types of non-fossil fuels available within the vicinity of biomass power project  such as crop residues, agro-industrial residues, forest residues etc. and other biomass fuels as may be approved by MNRE.

(2)      The Biomass Gasifier  based  Power Generating Companies shall ensure fuel management plan to ensure adequate availability of fuel to meet the respective project   requirements.

73.      Fuel Cost

Biomass fuel price during first year of the Control Period (i.e. FY  2012-

13) shall be as per Regulation 44 and shall be linked to indexation formula as specified under Regulation 74. Alternatively, for each subsequent year of the Tariff Period, the normative escalation factor of 5% per annum shall be applicable at the option of the Biomass Gasifier project developer.

74.          Fuel Price Indexation Mechanism

(1)      In case of Biomass Gasifier power projects, the following indexing mechanism for adjustment of fuel prices  for  each  year of operation will be applicable for determination of applicable variable charge component of tariff, in case  developer wishes to opt for indexing mechanism:

1) th year.

Where a, b & c will be specified by the Commission  from time    to time. In default, these factors shall be 0.2, 0.6 & 0.2 respectively.

(2)          Variable Charge for the nth year shall be determined as under:

i.e. VCn = VC1x (Pn / P1) or VCn = VC1x (1.05)(n-1) (optional) where,

VC1represents the Variable Charge based on Biomass Price P1for FY 2012-13 as specified under Regulation 44 and shall be determined as under:

VC1 = Station Heat Rate (SHR) x                               1                        x  P1 Gross Calorific Value (GCV) (1 – Aux Cons. Factor)               1000

(3)   The biomass base price shall be revised at the end of the control period for the next Control Period and same shall also be applicable to project commissioned under this Control Period.

CHAPTER                  10                           TECHNOLOGY SPECIFIC PARAMETERS FOR BIOGAS BASED POWER PROJECTS

75.      Technology Aspect

The norms for tariff determination specified hereunder are for grid connected biogas based power projects that uses 100% Biogas fired engine, coupled with Biogas technology for co-digesting   agriculture

residues, manure and other bio waste as may be approved by MNRE.

76    Capital Cost

The normative capital cost for the biogas based power shall be ` 1000 Lakh/MW (FY 2012-13 during first year of Control Period) and shall be linked to indexation formula as outlined under Regulation 77. After taking into account of capital subsidy net project cost shall be ` 800Lakh/MW for FY 2012-13.

77.      Capital Cost Indexation  Mechanism

(1) The  following indexation mechanism  shall be applicable  in case of biogas based power projects for adjustment  in  capital  cost  over the Control Period with the changes in Wholesale Price Index for Steel and Electrical Machinery,

CC(n)            =         P&M(n)* (1+F1+F2+F3) P&M(n) = P&M(0) * (1+d(n))

d(n)               =         [a*{(SI(n-1)/SI(0))– 1} + b*{(EI(n-1)/EI(0)) –

1}]/(a+b)

Where,

CC (n)            =          Capital Cost for nth year

P&M (n)         =          Plant and Machinery Cost for nth year

P&M (0)         =          Plant and Machinery Cost for the base year

Note: P&M (0) is to be computed by dividing the base capital cost (for the first year of the control period) by  (1+F1+F2+F3)

78.      Plant Load Factor

Threshold      Plant     Load     Factor     for     determining        fixed     charge component of Tariff shall be 90%.

33 Deleted vide corrigendum dated 11.10.2012

34 Deleted vide corrigendum dated 11.10.2012

79.       Auxiliary Consumption

The auxiliary power consumption factor shall be 12% for the determination of tariff.

80.      Operation and Maintenance  Expenses

(1)        Normative O&M expenses for the first year of the Control period (i.e. FY 2012-13 shall be ` 30 Lakh per MW.

(2)        Normative O&M expenses allowed at the commencement of the Control Period (i.e. FY 2012-13) under these Regulations shall be escalated at the rate of 5.72% per annum.

81.      Specific Fuel Consumption

Normative specific fuel consumption shall be 3 kg of substrate mix per kWh.

82.      Fuel Cost (Feed stock Price)

Feed stock price during first year of the Control Period (i.e. FY 2012-13) shall be ` 990/MT for FY 2012-13.

83.      Fuel Price Indexation Mechanism

(1)      In case of biomass power projects, the following indexing mechanism for adjustment of fuel prices for each year of operation will be applicable for determination of applicable variable charge component of tariff, in case developer wishes   to opt for indexing mechanism:

P (n)               =         P (n-1) * {a * (WPI(n)/WPI(n-1)) + b * (1+IRC) (n-

1) +c * (Pd(n)/Pd(n-1))}

Where,

P (n)               =         Price per ton of biomass for the nth year to

be considered for tariff determination P (n-1)     =                      Price per ton of biomass for the (n-1)th

year to be considered for tariff

determination.

P1 shall be Biomass price for FY 2012-13 as specified under Regulation 82

IRC(n-1)   =   Average   Annual    Inflation    Rate    for indexed energy charge  component  in case of captive coal mine source (in %) to be  applicable  for  (n-1)th year, as may be    specified   by   CERC    for   ‘Payment

purpose’  as  per

Competitive Bidding Guidelines

1) th year.

Where a, b & c will be specified by the Commission  from  time to time. In default, these factors shall be 0.2, 0.6 & 0.2 respectively.

(2)          Variable Charge for the nth year shall be determined as under:

i.e. VCn = VC1x (Pn / P1) or VCn = VC1x (1.05)(n-1) (optional)

where,

VC1represents the Variable Charge based on Biomass Price P1for FY 2012-13 as specified under Regulation 44 and  shall be  determined  as under:

VC1 = Station Heat Rate (SHR) x                               1             x  P1 Gross Calorific Value (GCV)  (1–AuxCons.Factor)1000

(3)   The biomass base price shall be revised at the end of the control period for the next Control Period and same shall also be applicable to project commissioned under this Control Period.

CHAPTER 11

MISCELLANEOUS

84.      Deviation  from norms

Tariff for sale of electricity generated from a generating station based on renewable energy sources, may also be agreed between a generating company and a licensee, in deviation from the norms specified   in   these   regulations   subject   to   the conditions  that  the

levellised tariff over the useful life of the project on the basis of the norms in deviation does not exceed the levellised tariff calculated on the basis of the norms specified in these regulations.

85.      Power to Relax

The Commission may by general or special order, for reasons to be recorded in writing, and after giving an opportunity of  hearing to the parties likely to be affected may relax any of the provisions of these regulations on its own motion or on an application made before it by an interested person.

Sd/- (Rajiv Bansal)

Secretary

Note: The Principal Regulations were published in the Gazette of India (Extraordinary) No. 20, Part III, Section 4 on 7 th February, 2012, and amended vide

(a)    the First Amendment published in the Gazette of India (Extraordinary) No. 92, Part III, Section 4 on 21st March, 2014,

(b)   the Second Amendment Regulations published in the Gazette of India (Extraordinary) No. 6, Part III, Section 4 on 5th January, 2015

(c)    the Third Amendment Regulations published in the Gazette of India (Extraordinary), No. 250 Part III, Section 4 on 14th July, 2015, and

(d)   the Fourth Amendment Regulations published in the Gazette of India (Extraordinary), No 355 Part III, Section 4 on 23.10.2015

From-1.1: Form Template for (Wind Power or Small Hydro Project or Solar PV/Solar thermal)

CERC RE-Tariff Regulations, 2012

CERC RE-Tariff Regulations, 2012

Form-1.2: Form Template for (Wind Power or Small Hydro Project or Solar P.V. Solar Thermal), Determination of Tariff Components

481

From-2.1: [Form Template for (Biomass Power, Municipal Solid Waste and refuse derived fuel or Non-fossil fuel based Cogen) : Parameter Assumptions]3535

35 Substituted vide Fourth Amendment Regulation w.e.f 23.10.2015

Form-2.2: [Form Template for (Biomass Power, municipal solid waste and refuse derived fuel or Non-fossil fuel based Cogen): Determination of Tariff Components]3737

37 Substituted vide Fourth Amendment Regulation w.e.f 23.10.2015