Tamil Nadu

TNERC suggests tariff of ₹6.54 per unit for biomass power

Regulator seeks views from stakeholders before January 10

The Tamil Nadu Electricity Regulatory Commission (TNERC) has suggested a tariff of ₹6.54 per unit for 2020-21 and ₹6.79 per unit for 2021-22 for the procurement of biomass power by Tamil Nadu Generation and Distribution Corporation (Tangedco).

“Biomass is an industry term for getting energy by burning organic material that comes from plants and animals,” it said in a consultative paper.

The Commission said it was seeking views/suggestions from the stakeholders before January 10, for tariff determination for the next control period, which comes into force from Apirl 1, 2020.

According to the paper, the capacity of renewable power in Tamil Nadu is 12180 MW, of which biomass power constitutes 265.59 MW.

The TNERC has issued a tariff order for biomass power in March 2018, which expires on March 31, next year. The order fixed the tariff at ₹5.89 per unit for 2018-19 and ₹6.11 per unit for 2019-20. It said various fixed and variable cost had been taken into account to arrive at the suggested tariff.

The Commission said that it assumed the capital cost at ₹6.11 crore/MW, as fixed by the Central Electricity Regulatory Commission (CERC). In the earlier tariff order, the capital cost was considered at ₹5.50 crore/ MW.

The regulator said that it proposed to withdraw incentives in phases for biomass power plants and levy 100% cross subsidy surcharge as applicable in case of conventional power plants.

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Printable version | Feb 17, 2020 1:22:39 AM | https://www.thehindu.com/news/national/tamil-nadu/tnerc-suggests-tariff-of-654-per-unit-for-biomass-power/article30314936.ece

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