AP power regulator approves Rs 4.83/unit for wind projects

V. Rishi Kumar Hyderabad | Updated on January 23, 2018 Published on August 01, 2015


The Andhra Pradesh Electricity Regulatory Commission today approved a tariff of Rs 4.83 per unit, without accelerated depreciation, and Rs 4.25 per unit with accelerated depreciation benefit for wind power projects.

In an order passed today, G. Bhavani Prasad, Chairman, APERC, and members P. Raghu and P. Rama Mohan, have approved a capital cost of Rs 6 crore per mw including evacuation cost.

The tariff structure is applicable for all new wind power projects entering into power purchase agreements with effect from July 31, 2015 and valid till March 31, 2016.

The commission has taken a number of parameters in fixing up with tariff structure for new wind power projects coming up in the State.

These include a capital cost of Rs 6 crore per MW, including evacuation cost, the tariff period validity of 25 years, operations maintenance expenses of Rs 8.57 lakh per MW, depreciation of 7 per cent per annum for 10 years, capacity utilisation of 23.5 per cent and return on equity at 16 per cent.

The interest cost on debt is pegged at 13 per cent with the loan tenure of 10 years. The interest on working capital has been fixed at 13.5 per cent with the debt equity ratio of 70:30.

The State Government has been seeking to aggressively attract wind power firms as a part of its efforts to encourage renewable energy sector.

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Published on August 01, 2015
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