The Karnataka Electricity Regulatory Commission (KERC) issued an order to revise the wheeling and banking charges for renewable power projects on May 14, 2018. The order has been in effect since April 1, 2018 and will be in effect till March 31, 2020.
As per the order, all renewable energy projects (other than the captive projects availing the benefit of the renewable energy certificate mechanism) which have not completed 10 years of commercial operation as on March 31, 2018 are required to pay 25 per cent of the normal transmission or wheeling charges fixed by Central Electricity Regulatory Commission in cash.
These projects will also be liable to bear the losses incurred in the applicable line, as approved by the KERC, by deductions from the net injected energy. KERC has also directed these projects to pay two per cent in banking charges.