Saturday, May 4, 2024

Retro Karnataka charges irk green power companies

Wednesday, May 23, 2018, 17:26
This news item was posted in Business category and has 0 Comments so far.

Renewable energy developers in Karnataka are agitated over an order passed by the state power regulator imposing “transmission and wheeling charges” on them retrospectively — on solar projects from end-March 2017, on wind projects from October 2013 and on mini hydel projects from January 2015. This applies, however, only to “open access” transmission — those selling power directly to a corporate entity, and not to a state utility. They claim that earlier orders of Karnataka Electricity Regulatory Commission (KERC) had made it clear there would be no change in transmission and wheeling charges till end-March 2018, and the new order is a breach of that promise.So far, solar developers using open access were fully exempt from paying transmission and wheeling charges, while non-solar renewable power generators paid 5% of the tariff they charged for their power. KERC has now decreed that they should all pay 25% of the charges applicable to conventional power transmission.In its new order, passed in mid-May, it has noted that its earlier orders on the matter starting June 2005 had exempted or provided concessions to renewable energy developers for the first 10 years after commissioning of their projects because they “cannot compete with conventional sources of energy”. But the order adds that the situation had since changed. “With the cost of wind and solar reducing substantially, renewable energy sources can compete with conventional sources of energy,” it says, emphasising that concessions were only being partially discontinued.

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