HomeRenewable energy ›Uttarakhand Electricity Regulatory Commission to Extend Tariff of INR 4.64/kWh for Solar Projects Until 2026

Uttarakhand Electricity Regulatory Commission to Extend Tariff of INR 4.64/kWh for Solar Projects Until 2026

This extension executes solar power projects made under the Mukhyamantri Saur Swarojgar Yojna (MSSY) Program, covering a duration of three years until March 31, 2026.

August 19, 2023. By Nivedita Ojha

Uttarakhand Electricity Regulatory Commission (UERC) has extended the duration of the prevailing generic tariff of INR 4.64/kWh for the fiscal year 2023-24. This extension executes solar power projects made under the Mukhyamantri Saur Swarojgar Yojna (MSSY) Program, covering a duration of three years until March 31, 2026.

The MSSY program, a foundation of the Uttarakhand state government’s efforts, was framed to foster self-employment through solar farming. The program’s objective is to give small and marginal peasants with opportunities for self-sufficiency by establishing compact solar power installations on unutilised or unproductive land.

The Uttarakhand Renewable Energy Development Agency (UREDA), the agency assigned with executing the MSSY program, had petitioned the UERC for a gross generic tariff of either INR 4.49/kWh or higher. The proposal is perceived to enclose 246.5 MW of solar projects for FY 2023-24, serving to various capacities of 20/25/50/100/200 kW.

During deliberations, concerns arose about potential cost fluctuations due to factors like Goods and Services Tax (GST) and customs duty on solar modules, which could impact the project's viability. The Uttarakhand Power Corporation Limited (UPCL) also highlighted the challenge of establishing a fixed tariff for three years, given evolving regulatory conditions.

In its assessment, the Commission acknowledged revisions to the MSSY program, expanding project capacity and scope. It stressed the need for consistent tariff treatment, confirming that the existing tariff would apply to projects commissioned under the scheme. Consequently, the Commission decided to maintain the tariff at INR 4.64/kWh for MSSY solar power plants until 2026.

This decision aligns with UPCL's concerns about varying tariff rates for similar technologies, ensuring uniformity in solar power rates and supporting the MSSY program's objectives. As Uttarakhand continues its commitment to sustainable energy, the MSSY program's continuation represents a significant step toward empowering local communities while contributing to the state's renewable energy goals.
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