The Maharashtra Electricity Regulatory Commission (MERC) has set Rs. 2.90/kWh as a standard payment for residual energy purchased at the end of the financial year from the FY 2021-22 solar roof projects.

The Commission said distribution license holders needed to acquire residual value by the end of the financial year, which would, in any case, be calculated to meet their Purchase Liability (RPO) objectives.

Prices announced by MERC will apply to FY 2021-22, from April 01, 2021.

The state regulator added the existing cost of biomass and non-fossil fuel integration projects as determined under the ‘Renewable Energy Tariff Order’ dated 30 April 2019, until the variable costs of these projects are determined by The Energy and Resources Institute (TERI). The variable cost is ₹5.55/kWh for biomass renewable energy projects and Rs. 4.38 / kWh for fossil-based integration projects.

The cases will be effective from April 01, 2020, until the cost of biomass fuel and non-fossil consolidation projects is implemented.

In terms of the ‘Renewable Energy Tariff Regulations, 2019,’ the standard fee cut is limited to the standard fee information for roofing projects and the variable cost of fossil-based integration projects.

With regard to the standard fee for solar roof projects, the Commission has observed that distribution license holders acquire residual power under the net-metering system or power generated by roof projects under the net tariff system as defined under MERC roof regulations, 2019.

Under the net billing arrangement, the distribution licensee had to enter into a power purchase agreement (EPA) with the APPC, which would remain in place for the entire EPA period. Therefore, the Commission has informed the total amount of roofing projects for the remaining capacity by the end of the financial year.

In the case of the volatile prices of fossil-based consolidation projects, the Commission has indicated that it will continue with various tariffs as determined under the renewable energy directive of April 30, 2019, until the completion of the TERI study. Any variance in such costs determined will apply to FY 2020-21 and FY 2021-22 and amended in the following bills.

In April last year, the MERC said it would determine a tax on renewable energy-based renewable energy, solar energy, non-fossil fuels, using only renewable energy projects through a transparent competitive bidding process. It also adds that the scope of the standard tariff cut under the ‘Renewable Energy Tariff Regulations, 2019’ will be limited to standard pricing information for solar roofing projects as well as the variable cost of biomass and non-fossil integration projects.

Earlier, by order, MERC had stated that the standard tax imposed by the Commission in cases where competitive bidding is also permissible would serve as a ceiling price to guide the bidding process.

Source: Mercom India