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Renewable energy gets power card

The Karnataka Electricity Regulatory Commission (KERC) on Wednesday notified the tariff rates for renewable sources of energy (from wind, cogeneration, biomass and minihydel plants.)

The tariff, fixing the rates at which power utilities (KPTCL and ESCOMs) have to buy power from non-conventional energy producers, will help out these producers to the extent that they will not lose out in a price war against conventional sources.

In its tariff order, KERC stated that merit order shall not be applicable to purchase of power from renewable soruces and that a single-part tariff has been fixed to promote their usage. So far, only about 500 MW of non-conventional power is bought by power utlities - a mere 3.5 per cent of their total power purchase.

Higher usage of non-conventional sources could mean that consumers may have to pay more, as this energy is costlier than thermal and hydel power.

The tariffs finalised on Wednesday is applicable for the next ten years with regard to all power purchase agreements (PPAs) that non-conventional power companies have signed with the KPTCL before June 10, 2004.

The KERC has asked KPTCL to file, within a month, standard PPAs for all renewable sources considering the views of developers.
T A R I F F     R A T E S
Mini-hydel Rs. 2.80 per unit
Wind energy Rs. 3.40 per unit
Cogeneration Rs. 2.80 per unit
with two per cent annual escalation on base tariff
Bio-mass Rs. 2.85 per unit
with two per cent annual escalation on base tariff