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Home News Power Sector News GERC fixes tariff for bagasse-based power plants

GERC fixes tariff for bagasse-based power plants

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bagasseAs part of its efforts to promote power generation from renewable energy sources, Gujarat Electricity Regulatory Commission (GERC) has fixed the tariff for procurement of power to be generated from bagasse-based co-generation power plants. The state power regulator, through its recent tariff order, has determined a tariff of Rs 4.55 per unit for the first 10 years of supply and Rs 4.90 per unit for the period from 11th year to 20th year. The newly fixed tariff will be applicable to bagasse-based power projects to be commissioned before 31 March, 2013.

All the power distribution licensees in the state will have to pay these tariff to project developer for purchasing power. Earlier in its discussion paper, the commission had proposed a tariff of Rs 4.50 per unit for the initial ten years starting from the date of commercial operation of the project and Rs 4.90 unit from the eleventh year to twentieth year.

The fixation of tariff for power to be generated from bagasse, a residue from the crushed cane, is likely to be proved beneficial to co-operative sugar factories in the state. Many of them have co-generation facility to produce power from bagasse.

Last month GERC also announced tariff for procurement of power produced from biomass power plants. The commission has pegged the tariff at Rs 4.40 per unit for the first 10 years of supply and Rs 4.75 per unit for the period from 11th year to 20th year.

In order to promote electricity generation from renewable energy sources, the commission has fixed a tariff of Rs 15 per unit for procurement of power from solar photovoltaic power plant and Rs 11 per unit for solar thermal power. In January 2010, GERC had raised tariff for wind power at Rs 3.56 per unit.

Source- Business standard
 

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