Renewable Energy to Fetch More for Small Producers

Published: 03rd January 2015 06:00 AM  |   Last Updated: 03rd January 2015 03:54 AM   |  A+A-

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.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp