A day after it recommended an average hike of 8% in power tariffs, the Karnataka Electricity Regulatory Commission (KERC) has revised the tariff for all new grid-connected megawatt-scale solar PV plants. The tariff, applicable to plants entering into Power Purchase Agreements (PPA) on or after April 1, 2017 but before April 2018, has been reduced from ₹6.51 to ₹4.36 a unit.
“Currently, the rate determined by the commission, as per its order dated July 30, 2015, is ₹6.51 a unit for plants to be commissioned till March 31, 2018. Media reports show that some States have received bids from developers to supply solar power around ₹4 a unit. The commission therefore considered that the tariff and control period set in its order is to be revised,” the new KERC order said.
Explaining the need for a mid-course revision, the KERC order said: “The commission considers that if there [has been] substantive mid-course improvement in technology, reduction in manufacturing cost of solar panels and allied equipment, and reduction of cost in solar power generation, non-consideration of such factors would militate against the interest of consumers and also discourage innovation in technology, mass production and adoption of more cost-effective implementation of solar projects.”
The order also cites clause 9 of the KERC (Procurement of Energy from Renewable Sources) Regulations, 2011, under which the commission has been conferred with the power to modify the tariff any time, either suo moto or on application filed by a generator or distribution licensee.
