Tamil Nadu sets new levellised generic tariff for wind power projects

The Tamil Nadu Electricity Regulatory Commission (TNERC) has issued the levellised generic tariff for the procurement of wind power in the state for the year 2018-19. The tariff for wind power has been fixed at Rs 2.86 per kWh without accelerated depreciation (AD). The AD component of the tariff has been set as Rs 0.06 per kWh making the levellised generic tariff with AD as Rs 2.80 per kWh.

The tariff has been calculated by considering the average useful life of a wind project as 25 years and the capacity utilization factor as 29.15 per cent. TNERC has also considered Rs 50.25 million per MW as the project cost and has fixed operation and maintenance (O&M) expenses at 1.1 per cent on 85 per cent of the capital investment and 0.22 per cent on 15 per cent of the capital investment. The O&M expenses have a yearly escalation factor of 5 per cent starting from the second year. Moreover, a discount factor of 8.75 per cent and a normative debt equity ratio (70:30) has been accounted for.  The order retains the duration for payment by the discom as 60 days, and has adopted the rate of interest of one per cent per month for any delayed payment by the discom beyond this period.