Renewable Energy to Fetch More for Small Producers

BENGALURU: Producers of renewable energy will have a good year. The Karnataka Electricity Regulatory Commission (KERC) on Friday announced a hike in the procurement rates by electricity supply companies (ESCOMs) from sources like mini-hydel plants, co-generation plants of sugar factories and biomass-based power projects.

Rates have been increased by as much as 22 per cent for power from mini-hydel plants while energy from biomass power projects will cost 42 per cent more for ESCOMS.

At a press conference on Friday, KERC Chairman M R Sreenivasa Murthy said, “For electricity procured from mini-hydel projects, the revised rate is `4.16/unit as against `3.40/unit which was the rate determined by the Commission for projects set up during the last five years since 2010.”

Power from co-generation projects will now be procured at `4.83/unit in the first year of commissioning of the project with an increase of 16 paise per unit over the next three years. These rates were earlier fixed at `3.90/unit for the first year with an increase of 5 paise per year with a maximum of `4.37/unit in the 10th year.

For power generation from biomass like wood chips, paddy husk, crop residues like cotton and jowar stalks, the new rate will be `5.19/unit during the first year with an increase of 16 paise per unit every year. This is a 42 per cent hike over the previous rate of `3.66/unit announced in 2009.

“The revised rates determined by the Commission will be effective for new power generation units commissioned from 1/1/2015 to 31/3/2018 after which the Commission will consider further revision,” a statement from the KERC said. However, for units already established before January, the rates determined earlier will be valid.

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