The Karnataka Electricity Regulatory Commission (KERC) recently announced a hike in the wind and the solar power tariff.
KERC increased the tariff for wind power generation to Rs. 4.20 per unit from Rs. 3.70 after the petitioners told the commission that it was difficult to set up a new project due to the surge in the cost.
HSBC had said in its report that wind energy was cost competitive and adequate support from the government would provide the much needed impetus to the generation of power. However, the industry expressed its disappointment with the Commission’s decision and in a statement the Indian Wind Power Association said that the order would adversely take toll on the wind energy sector.
Meanwhile, KERC also announced new tariffs for grid-connected solar power plants and rooftop solar plants. The revised tariffs are Rs 8.40 per unit for solar PV, Rs 10.92 per unit for solar thermal, Rs 9.56 per unit for small solar PV plants and rooftop installation, and Rs 7.20 per unit for rooftop and small solar PV plants with 30 per cent government subsidy on capital costs.
The new hike in solar power tariff would apply to solar power generators who inked power purchase agreements with ESCOMS on or after April 1, 2013 and it will be applicable for five years.
Source: Energy Next