The Haryana Electricity Regulatory Commission (HERC) has set a levelized tariff of Rs2.86/kilowatt-hour (kWh) for a 50 megawatts (MW) solar project in Haryana’s Sirsa district.
Avaada Green HN Project Private, a special purpose vehicle (SPV) of Avaada Energy, had filed a petition to determine the tariff for the project. For the project the Commission has approved the minimum CUF (capacity utlisation factor) of 21 per cent for solar projects.
The regulator has further approved O&M expenses of Rs 303,000/MW inclusive of insurance and taxes for the 50 MW project for the first year with an escalation at the rate of 2.93 per cent per annum for subsequent years.
HERC has calculated the capital cost at Rs1.62 billion against the Rs1.89 billion claimed by the developer. The Commission has further noted that the developer had revised the debt-equity ratio to 75:25 and proposed passing on the benefit of reduced tariff to the respondent and consumers at large.
Accordingly, in line with the RE Regulations, 2021, the Commission considered 25 per cent of the approved capital cost as equity eligible for return on equity and balance, i.e., 75 per cent to be considered loan eligible for interest, for tariff determination. The approved interest on the term loan and working capital was 8.50 per cent per annum.
In September, HERC set a tariff of Rs2.58/kWh for 20 MW of LR Energy’s solar project. The tariff was determined after examining the capital cost component submitted by the developer. Earlier, HERC had approved a tariff of Rs2.48/kWh for 50 MW of Amplus Sun Solutions’ solar power projects in Bhiwani, Haryana, after re-examining the capital cost component of the developer’s tariff determination submission.