The regulations empower CERC to relax provisions under special circumstances and address implementation difficulties.
The Central Electricity Regulatory Commission (CERC), using its authority under the Electricity Act, 2003, has issued regulations for tariff determination from renewable energy sources. These regulations, effective from April 1, 2024, to March 31, 2027, apply to grid-connected generating stations using renewable energy.
The regulations cover wind power, small hydro, biomass, solar PV, floating solar, solar thermal, renewable hybrid energy, renewable energy with storage, biomass gasifier, biogas, municipal solid waste, and refuse-derived fuel projects. Projects must meet specific conditions to be eligible under these regulations.
The Control Period, from April 1, 2024, to March 31, 2027, sets the timeframe for the validity of tariffs determined under these regulations. Tariffs established during this period will remain in effect until the end of the tariff period, and the tariff norms will persist until revised in future regulations.
CERC will determine generic tariffs annually for various renewable energy projects, ensuring stability and predictability in the sector. These tariffs are valid for projects commissioned within the same year.
The regulations also specify procedures for determining project-specific tariffs and outline the treatment of excess energy generated beyond specified capacity utilisation factors. Tariffs for excess energy are determined based on the applicable tariff for the year.
Capital costs for renewable energy projects are determined considering market trends, and minimum capacity utilisation factors are established to ensure optimal performance. Renewable hybrid energy projects have specific capacity utilisation factor requirements, and their tariffs are computed on a levelized basis.
For renewable energy with storage projects, the efficiency of storage components is important, and tariffs may be composite or differential based on time of day or other parameters. The regulations empower CERC to relax provisions under special circumstances and address implementation difficulties.
Overall, these regulations provide a structured framework for tariff determination from renewable energy sources, promoting transparency, consistency, and sustainability in India’s renewable energy sector.
