OERC fixes tariff for solar photovoltaic power

The Orissa Electricity Regulatory Commission (OERC) has fixed the tariff for solar grid connected photo voltaic power in the state. While the tariff has been fixed at Rs 15 per KWH from the first year to 12th year, it will be Rs 7.5 per KWH from 13th to 25th year.

The above tariff is generic and all the incentives/subsidies received by the developer from the Union ministry of new and renewable energy sources (MNRE), Government of India and Orissa government will be factored into it.

So the state owned Grid Corporation of Orissa (Gridco) will pay the net amount after deducting the incentives and subsidies. However, both Gridco as well as the developer are free to negotiate for an agreed tariff within the above ceiling rate.

This will be applicable to solar photo voltaic projects which would be established in the state by March 2010. The commission said, the connectivity of these 5 Mw solar projects will be at 33 KV level.

OERC referred to various orders of the other State Electricity Regulatory Commissions (SERC) before the determination of the the tariff. However, the fixed tariff will be provisional as OERC is in the process of formulating a comprehensive renewable energy policy, consequent to the consultative paper floated for the purpose.

It has roped in Pune based World Institute of Sustainable Energy (WISE) to prepare a report on the development of renewable energy policy guidelines for Orissa, which is in final stages.

It may be noted, Solitaire Energies Pvt. Ltd., Lanco Solar Pvt. Ltd., Sahara India Corporation Ltd. and New Era Power Corporation, had applied OERC for determination of tariff for solar photo-voltaic power in the state. The Commission also conducted a public hearing on the matter.

Solitaire Energies Pvt. Ltd proposes to set up a 5 Mw Grid interactive solar photo voltaic project at Katapalli village in Jharsuguda district and Lanco Solar Pvt. Ltd proposed to set up its 5 Mw unit at Ramdaspur in Cuttack district. Similarly, Sahara India and New Era Power Corporation also proposed to set up 5 Mw solar power plant each in the state. The determination of tariff is expected to pave the way for setting up of more solar photo voltaic power projects in Orissa.