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.”
ADVERTISEMENT
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