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Home KSEB Capital cost for waste-to-energy plant exorbitantly high: KSEB

Capital cost for waste-to-energy plant exorbitantly high: KSEB

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Waste to energy projectThe Kerala State Electricity Board (KSEB) has termed the capital cost claimed by GJ Eco Power Private Limited for its proposed waste-to-energy plant at Brahmapuram “exorbitantly high” and the estimated power tariff as “very high compared to the present average purchase cost of KSEB”.
The KSEB’s objections to the project cost and power tariff were made known by N. Venugopal, the Chief Engineer (Commercial and Tariff), in an objection filed to the Kerala State Electricity Regulatory Commission (KSERC), which considered a “tariff petition for 10 MW municipal solid waste-based waste-to-energy plant located at Brahmapuram”.

Considering the social implications of the project, KSEB contended that it was ready to procure power from the project at a tariff determined by the regulatory commission based on the norms fixed by the Central Electricity Regulatory Commission (CERC).
The KSEB arrived at the conclusion that the power tariff quoted by the company was exorbitantly high after comparing the “tariff fixed by various State Electricity Regulatory Commissions for the electricity generated from municipal solid waste or refuse derived fuel”. The KSEB also quoted the tariff prevailing in other States, which was “much lower than that claimed by the petitioner”.
The KSEB urged the Commission to fix a “reasonable capital cost for the project” as it felt that the projected capital cost was unrealistic. The agency reached this conclusion after comparing the “capital cost adopted by CERC and other Commissions and the market rate”.
The prime factor influencing the tariff is the project cost. The estimated project cost was ₹295 crore and the cost for one MW would work out to be ₹29.5 crore, which was “exorbitantly high by any standards,” it said.
The CERC had specified a capital cost for municipal solid waste-based waste-to-energy projects using technologies including high-end gasifiers at ₹15 crore per MW for 2015-16, it argued.


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