GERC fixes tariff for biomass plants

In a bid to encourage project developers to take up biomass-based power generation in the state, Gujarat Electricity Commission (GERC) has finalised tariff at which power distribution companies will have to procure electricity generated from biomass power plants.

In its recently issued order, the state power regulator has decided to fix tariff for biomass-based power project at Rs 4.40 per unit for the first 10 years of supply and Rs 4.75 per unit for the period from 11th year to 20th year.

"The newly fixed tariff will be applicable to biomass-based power projects to be commissioned before 31 March, 2013," sources in GERC said.

Earlier in its discussion paper on determination of tariff for power generated from biomass-based power projects,  the commission had proposed a tariff of Rs 4.25 per unit for the initial ten years starting from the date of commercial operation of the project and Rs 4.50 per unit from the eleventh year to twentieth year.

However, it has fixed higher tariff in its order after hearing various stakeholders, so that more and more project developers could be encouraged to start their plants in the state.

According to industry players, some of the companies have already come forward to set up their biomass-based power projects in the state.

Amreli Power Projects Pvt Ltd. and Ahmedabad-based Abellon Clean Energy Limited have plans to establish biomass based power projects in the state.

In line with Gujarat government's strategy to promote power generation from renewable energy sources, the power regulator is likely to come out with another order to finalise the power tariff from bagasse-based power plants. The power regulatory has already proposed a tariff of Rs 4.50 per unit for the initial ten years starting from the date of Commercial operation of the project and Rs 4.90 unit from the eleventh year to twentieth year.

Determination of tariff for power produced from bagasse will be beneficial to sugar co-operative factories in Gujarat as they already have power co-generation facility to generate power from bagasse.

Apart from fixing power tariff for solar power, the commissioned had raised the procurement tariff for wind power in January this year.