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Jammu & Kashmir
State Electricity Regulatory Commission
Order
in the matter of
Determination of Generic Levellised Generation Tariff
for Renewable Energy Sources for FY 2016-17
Jammu
April 2016
Jammu & Kashmir State Electricity Regulatory Commission
Website: http://www.jkserc.nic.in & Email ID: [email protected], [email protected]
Winter (Nov. to April): Ambedkar (Panama) Chowk, Railway Road,
Jammu-180006 (J&K)
Ph No’s 0191-2470160, 2470183 Fax: 0191-2479367, 0191-2470163
Summer (May to Oct): H.No.101, Sector-A, Bagh-I-Hyder, Hyderpora Chowk,
Srinagar-190005 (J&K) Ph: 0194-2434582, Fax: 0194-2431817
Determination of Generic Levellised Generation Tariff for RET FY 2016-17
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Before
Jammu & Kashmir State Electricity Regulatory Commission
Suo-motu Petition No.: JKSERC/ 62 of 2016
In the Matter of:
Determination of generic levellised generation tariff for the FY 2016-17 under Regulation 8 of
the Jammu and Kashmir State Electricity Regulatory Commission (Terms and Conditions for
Tariff determination from Renewable Energy Sources) Regulations, 2013 and amendments
thereof.
Order No.: 20-JKSERC of 2016
Dated 21.04.2016
1. The Jammu & Kashmir State Electricity Regulatory Commission (hereinafter referred to
as JKSERC or the Commission) notified the Jammu and Kashmir State Electricity
Regulatory Commission (Terms and Conditions for Tariff determination from Renewable
Energy Sources) Regulations, 2013 on 17th May, 2013 (hereinafter referred to as “the RE
Tariff Regulations 2013” or the “Principal Regulations”), which provide for terms and
conditions and the procedure for determination of tariff of the various categories of
Renewable Energy (RE) generating stations:
2. The Commission also notified the first amendment to the Principal Regulations vide
notification No.: 49-JKSERC of 2016 dated 22nd March, 2016, thereby including the scope
of tariff determination for generation from ‘Municipal Solid Waste’ & ‘Refuse Derived
Fuel’ besides amending various norms pertaining to the biomass power projects based on
Rankine cycle. The RE Tariff Regulations 2013 and amendments thereof provide the scope
for determination of tariff of the following categories of Renewable Energy (RE)
generating stations:
1. Wind Power Project;
2. Small Hydro plants;
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3. Biomass Power Projects
a) Rice straw and Juliflora (plantation) based project with water cooled condenser
and using Travelling Grate boiler;
b) Rice straw and Juliflora (plantation) based project with air cooled condenser
and using Travelling Grate boiler;
c) Rice straw and Juliflora (plantation) based project with water cooled condenser
and using AFBC boiler;
d) Rice straw and Juliflora (plantation) based project with air cooled condenser
and using AFBC boiler;
e) Other than Rice straw and Juliflora (plantation) based project with water cooled
condenser and using Travelling Grate boiler;
f) Other than Rice straw and Juliflora (plantation) based project with air cooled
condenser and using Travelling Grate boiler;
g) Other than Rice straw and Juliflora (plantation) based project with water cooled
condenser and using AFBC boiler;
h) Other than Rice straw and Juliflora (plantation) based project with air cooled
condenser and using AFBC boiler;
4. Non-fossil fuel-based co-generation project;
5. Solar Photo voltaic (PV) / Solar Thermal Power Projects;
6. Biomass Gasifier based Power Projects;
7. Biogas based Power Project;
8. Municipal Solid Waste; and
9. Refuse Derived Fuel;
3. The Commission, vide notification No.: -50- JKSERC of 2016 dated 20th April, 2016,
notified the second amendment to the Principal Regulations, wherein the Commission
revised the norms for determination of operation and maintenance expenses for Solar PV
projects for FY 2016-17 and FY 2017-18, in line with the amendments notified by the
CERC.
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4. The Regulations enjoin upon the Commission to determine the generic tariff on the basis
of the suo-motu Petition, for the RE technologies for which norms have been provided in
the RE Tariff Regulations 2013 and amendments thereof. Generic Tariff is different from
project specific tariff for which a project developer has to file a Petition before the
Commission as per the format provided in the RE Tariff Regulations 2013 and amendments
thereof. Pertinently, project specific tariff has been envisaged for the new RE technologies
and the technologies which are still at the nascent stage of development, and the
Commission shall determine the project specific tariff for such technologies on a case to
case basis.
5. Clause (1) of Regulation 8 of the RE Tariff Regulations, 2013 and amendments thereof,
provides that “the Commission shall determine the generic tariff on the basis of suo-motu
Petition at least six months in advance at the beginning of each year of the Control Period
for renewable energy technologies for which norms have been specified under the
Regulations”.
6. In line with above Regulations, the Commission vide its Order No. JKSERC/38 of 2014
dated 18th July, 2014 issued the Order for the ‘Determination of Generic Levellised
Generation Tariff for Renewable Energy Sources (RES) for FY 2014-15’ on suo-motu basis
applicable for Renewable Energy projects commissioned in Jammu and Kashmir during
FY 2014-15, i.e., from 1st April, 2014 to 31st March, 2015.
7. The Commission vide its Order No. 12-JKSERC of 2015 dated 28th February, 2015, issued
the Order for the ‘Determination of Generic Levellised Generation Tariff for Renewable
Energy Sources (RES) for FY 2015-16’ on suo-motu basis applicable for Renewable
Energy projects commissioned in Jammu and Kashmir during FY 2015-16, i.e. from
1st April, 2015 to 31st March, 2016.
8. In order to determine the generic tariff for RE projects commissioned during FY 2016-17
and in due discharge of the mandate under Regulation 8 (1) of RE Tariff Regulations 2013
and amendments thereof, the Commission brought out the proposal in the matter of
determination of generic tariff for renewable energy technologies for the FY 2016-17 vide
suo-motu Petition No: JKSERC/62 of 2016 dated 12th February, 2016.
9. The Commission published the gist of the suo-motu Petition in various widely read
newspapers of the State in February 2016 to elicit the comments/suggestions/objections of
the stakeholders on the proposal. The list of newspapers in which gist was published is as
follows:
Table 1: List of Newspapers in which the gist was published
Sl. No. Newspaper Date of Publication
1. Amar Ujala 13.02.2016
2. Daily Excelsior 15.02.2016
3. Greater Kashmir 16.02.2016
4. Hind Samachar 16.02.2016
5. Daily Aftab 16.02.2016
10. The Petition was also made available on the website of the Commission.
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11. The stakeholders were requested to submit their written comments/ suggestions / objections
latest by 3rd March, 2016. Comments were received from two (2) stakeholders which have
been discussed in detail in the chapter of Public Consultation Process.
Public Hearings
12. In order to maintain transparency in the process for approval of generic levellised tariffs
for generation of power from RES for FY 2016-17, the Commission involved the
stakeholders by initiating a public consultation process to understand their views on various
aspects of suo-motu Petition initiated by the Commission. Accordingly, the public hearings
on the suo-motu Petition were held at Srinagar and Jammu as per the details provided in
the following table:
Table 2: Details of Public Hearings
Place/ city Date Location
Srinagar 12.03.2016 J&K IMPA, Moulana Azad Road, Srinagar
Jammu 15.03.2016 JKSERC Conference Hall, Ambedkar (Panama) Chowk, Railway Road, Jammu
13. During the public hearings, the Commission made a detailed presentation on the
determination of the generic levellised tariffs for generation of power from Renewable
Energy Sources for FY 2016-17 and the methodology used for computation of generic
levellised tariff for each RES.
14. The comments/objections/suggestions received during the public hearings have duly been
considered while finalizing this Order on determination of generic levellised tariff for
Renewable Energy Sources for FY 2016-17. The list of stakeholders who attended the
public hearing is enclosed as Annexure A.
Meeting of the State Advisory Committee
15. The Commission convened a meeting with the members of the State Advisory Committee
(SAC) on 17th March, 2016 for the purpose of discussing the suo-motu Petition on the
generation tariff from RES for FY 2016-17.
16. The Commission made a detailed presentation on the determination of generic levellised
tariffs for generation of power from Renewable Energy Sources for FY 2016-17 and the
methodology used for computation of generic levellised tariff for each RES.
17. The SAC resolved that JKSERC should go ahead with the notification of the Tariff Order
after examining the suggestions/comments, if any, from the Public/ Stakeholders. The
participants of the SAC meeting are listed in Annexure B.
Approved generic levellised tariff for RES for FY 2016-17
18. The approved generic levellised tariff for generation from renewable energy sources for
FY 2016-17 is summarized in the following tables.
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Table 3: Generic Levellised tariff for RE technologies without fuel component, approved for FY 2016-17
(Rs/ kWh)
Particulars Levellised Total
Tariff
Benefit of Accelerated
Depreciation
(if availed)
Net Levellised Tariff
(upon adjusting for
Accelerated
Depreciation
benefit) (if availed)
WIND ENERGY
Wind Zone -1 (CUF 20%) 6.17 0.36 5.81
Wind Zone -2 (CUF 22%) 5.61 0.33 5.28
Wind Zone -3 (CUF 25%) 4.94 0.29 4.65
Wind Zone -4 (CUF 30%) 4.11 0.24 3.87
Wind Zone -5 (CUF 32%) 3.86 0.22 3.64
SMALL HYDRO
Capacity below 5 MW 4.40 0.39 4.01
Capacity 5 MW upto 25 MW 3.73 0.35 3.38
SOLAR PV/ SOLAR THERMAL
Solar PV 5.62 0.64 4.98
Solar Thermal 11.66 1.32 10.34
MUNICIPAL SOLID WASTE 6.87 0.58 6.29
Table 4: Generic tariff for RE technologies with fuel component, approved for FY 2016-17 (Rs/ kWh)
Particulars Levellised
fixed cost
Variable
cost
Applicable
Tariff
Benefit of
Accelerated
Depreciation
(if availed)
Net Levellised
Tariff
(upon
adjusting for
Accelerated
Depreciation
benefit,
if availed)
BIOMASS (Rice straw and Juliflora (plantation)
based project with water cooled condenser and using
Travelling Grate boiler)
3.06 4.10 7.16 0.21 6.95
BIOMASS (Rice straw and Juliflora (plantation)
based project with air cooled condenser and using
Travelling Grate boiler)
3.24 4.19 7.43 0.23 7.20
BIOMASS (Rice straw and Juliflora (plantation)
based project with water cooled condenser and using
AFBC boiler)
3.05 4.03 7.08 0.21 6.87
BIOMASS (Rice straw and Juliflora (plantation)
based project with air cooled condenser and using
AFBC boiler)
3.23 4.13 7.36 0.23 7.13
BIOMASS (other than Rice straw and Juliflora
(plantation) based project with water cooled
condenser and using Travelling Grate boiler)
2.92 4.10 7.02 0.19 6.83
BIOMASS (other than Rice straw and Juliflora
(plantation) based project with air cooled condenser
and using Travelling Grate boiler)
3.10 4.19 7.29 0.21 7.08
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Particulars Levellised
fixed cost
Variable
cost
Applicable
Tariff
Benefit of
Accelerated
Depreciation
(if availed)
Net Levellised
Tariff
(upon
adjusting for
Accelerated
Depreciation
benefit,
if availed)
BIOMASS (other than Rice straw and Juliflora
(plantation) based project with water cooled
condenser and using AFBC boiler)
2.92 4.03 6.95 0.19 6.76
BIOMASS (other than Rice straw and Juliflora
(plantation) based project with air cooled condenser
and using AFBC boiler)
3.10 4.13 7.23 0.21 7.02
NON FOSSIL FUEL BASED COGENERATION 2.53 3.17 5.70 0.22 5.48
BIOMASS GASIFIER 2.44 5.04 7.48 0.13 7.35
BIOGAS 3.11 2.04 5.15 0.35 4.80
REFUSE DERIVED FUEL 4.16 3.74 7.90 0.33 7.57
19. This Order does not take into account the incentive or subsidy or financial assistance, other
than accelerated depreciation benefits, as may be available from the Central / State
Government for renewable energy technologies except for biomass gasifier and biogas
based power projects. Accordingly, the Commission directs the developer availing any
such incentive or subsidy (other than accelerated depreciation benefits) to submit a Petition
in accordance with the Regulations 7 and Regulation 8 of the RE Tariff Regulations 2013
for determination of project specific tariff.
20. The determination and basis of approval of generic levellised tariff for generation from
renewable energy technologies for FY 2016-17 has been explained in ensuing chapter of
this Tariff Order.
Implementation of Order
21. In exercise of the powers vested in it under the Jammu & Kashmir Electricity Act, 2010
(Act XIII of 2010), the Commission hereby passes this Order today i.e. on the 21st April,
2016. The tariff approved by the Commission herewith, shall be applicable for the RE
projects commissioned during FY 2016-17 and shall remain in force till 31st March, 2017
unless amended or modified by an Order of the Commission.
Dated: 21st April, 2016
Place: Jammu
Basharat Ahmad Dhar
Chairperson,
JKSERC
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TABLE OF CONTENTS
CHAPTER 1: PUBLIC CONSULTATION PROCESS ....................................................... 3
CHAPTER 2: GENERIC LEVELLISED GENERATION TARIFF FOR VARIOUS
RENEWABLE ENERGY TECHNOLOGIES FOR FY 2016-17 ........................................ 8
Generic norms ............................................................................................................................ 8
Generation norms ..................................................................................................................... 10
Determination of Capital cost .................................................................................................. 12
Determination of fixed cost components ................................................................................. 20
Determination of fuel cost components ................................................................................... 25
Subsidy or incentive by the Central / State Government ......................................................... 28
APPENDIX-1 ........................................................................................................................ 32
APPENDIX-2 ........................................................................................................................ 33
APPENDIX-3 ........................................................................................................................ 34
APPENDIX-4 ........................................................................................................................ 36
APPENDIX-5 ........................................................................................................................ 37
APPENDIX-6 ........................................................................................................................ 38
APPENDIX-7 ........................................................................................................................ 39
APPENDIX-8 ........................................................................................................................ 41
APPENDIX-9 ........................................................................................................................ 43
ANNEXURES ....................................................................................................................... 45
Annexure 1(a) Wind Power Projects- Wind Zone 1……………………………………….47
Annexure 1(b) Wind Power Projects- Wind Zone 2………………………………………..50
Annexure 1(c) Wind Power Projects- Wind Zone 3………………………………………..53
Annexure 1(d) Wind Power Projects- Wind Zone 4………………………………………..56
Annexure 1(e) Wind Power Projects- Wind Zone 5………………………………………...59
Annexure 2(a) Small Hydro Power Projects- Below 5 MW………………………………..62
Annexure 2(b) Small Hydro Power Projects- 5 MW to 25 MW…………………………....65
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Annexure 2(c) Small Hydro Power Projects (in private/cooperative/joint sector) availing
MNRE subsidy…………………………………………………………...…………………..68
Annexure 2(d) Small Hydro Power Projects (in Government/State Sector) availing MNRE
subsidy……………………………………………………………………..............................69
Annexure 3A Biomass Rice straw and Juliflora (plantation) based project with water cooled
condenser and using Travelling Grate......................................................................................70
Annexure 3B Biomass Rice straw and Juliflora (plantation) based project with air cooled
condenser and using Travelling Grate......................................................................................73
Annexure 3C Biomass Rice straw and Juliflora (plantation) based project with water cooled
condenser and using ABFC Boiler...........................................................................................76
Annexure 3D Biomass Rice straw and Juliflora (plantation) based project with air cooled
condenser and using ABFC Boiler...........................................................................................79
Annexure 3E Biomass Other than Rice straw and Juliflora (plantation) based project with
water cooled condenser and using Travelling Grate…………………………………………81
Annexure 3F Biomass Other than Rice straw and Juliflora (plantation) based project with
air cooled condenser and using Travelling………………………………………………...... 84
Annexure 3G Biomass Other than Rice straw and Juliflora (plantation) based project with
water cooled condenser and using ABFC Boiler…………………………………………….87
Annexure 3H Biomass Other than Rice straw and Juliflora (plantation) based project with
air cooled condenser and using ABFC Boiler………………………………………………..90
Annexure 4 Non-fossil fuel based Cogeneration Power Projects…………………………93
Annexure 5 Solar PV Power Projects……………………………………………………...96
Annexure 6 Solar Thermal Power Projects…………………………………………………99
Annexure 7 Biomass Gasifier Power Projects……………………………………………..102
Annexure 8 Biogas Power Projects………………………………………………………..105
Annexure 9 Municipal Solid Waste……………………………………………………….108
Annexure 10 Refuse Derived Fuel………………………………………………………….111
Annexure A List of Participants in the Public Consultation Process …………………… 114
Annexure B List of Participants in the State Advisory Committee……………………… 117
Annexure C Comparison of Generic Tariff of the RE Projects for FY 2014-15, FY 2015-16
and FY 2016-17……………………………………………………………………………. 119
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CHAPTER 1: PUBLIC CONSULTATION PROCESS
1.1. The Commission published the gist of the suo-motu Petition in various widely read
newspapers of the State in February 2016 to elicit the comments/suggestions/objections
of the stakeholders on the proposal.
1.2. The Petition was also made available on the website of the Commission.
1.3. The stakeholders were requested to submit their written comments/ suggestions /
objections latest by 3rd March, 2016. The Commission received objections/ comments
in writing from two (2) respondents. The list of stakeholders who responded to the
public notice on the Petition in writing are as follows:
Table 5: List of Objectors
Sl. No. Name
1. Mr Yogesh Raheja
2. Mr. A. A Khatana,
1.4. In order to maintain transparency in the process for approval of generic levellised tariffs
for generation of power from RES for FY 2016-17, the Commission involved the
stakeholders by initiating a public consultation process to understand their views on
various aspects of suo-motu Petition initiated by the Commission. Accordingly, the
public hearings on the suo-motu Petition were held at Srinagar and Jammu on 12th and
15th March 2016 respectively.
1.5. During the public hearings, the Commission made a detailed presentation on the
determination of the generic levellised tariffs for generation of power from Renewable
Energy Sources for FY 2016-17 and the methodology used for computation of generic
levellised tariff for each RES.
1.6. The issues raised during the public hearing process and the point wise responses of the
Commission are detailed below:
Useful Life
Public Comments/Suggestions
1.7. The stakeholder has asked the Hon’ble Commission to reduce the useful life of Biomass
Gasifier and Biogas plants to 10 years and 15 years respectively. The stakeholder is of
the view that these technologies are not commercial technologies and biomass gasifiers
requires highly skilled maintenance staff and its life is between 5-10 years. Moreover,
the stakeholder also added that biogas plants are primarily used for bottling plants and
its useful life can be stretched to 15 years if it is used for power generation.
Determination of Generic Levellised Generation Tariff for RET FY 2016-17
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Response
1.8. The Commission appreciates the suggestions of the stakeholder. However the
suggestions do not pertain to the suo motu petition for determination of generic
levellised generation tariff for Renewable Energy Technologies.
1.9. If the stakeholder is of the opinion that the useful life of gasifier and biogas plants
should be reduced, the stakeholder should submit a Petition for amendment of JKSERC
(Terms and Conditions for Tariff determination from Renewable Energy Sources)
Regulations, 2013 along with due justification and references supporting the useful life
suggested.
Control Period
Public Comments/Suggestions
1.10. The stakeholder has asked the Hon’ble Commission to determine the tariff only for the
control period with due consideration of escalation in O&M expenses. The stakeholder
further stated that after the control period, the tariff can be reviewed on year to year
basis or for the rest of the control period.
Response
1.11. The generation tariff for Renewable Energy Technologies is determined for the entire
tariff period as per Regulation 6 of JKSERC (Terms and Conditions for Tariff
determination from Renewable Energy Sources) Regulations, 2013. The stakeholder
has not provided any reasoning to support its suggestion to determine the tariff for only
the duration of the control period.
Tariff Period
Public Comments/Suggestions
1.12. The stakeholder has asked the Hon’ble Commission to account for interest on term
loans for Tariff Period.
1.13. The stakeholder has also asked the Hon’ble Commission to provide for additional
depreciation to account for total repayments after deducting normal depreciation.
1.14. The stakeholder has stated that there is a mismatch in tariff period in table 2 in sub
section 1.5 of the suo motu petition.
Response
1.15. As per Regulation 9 of JKSERC (Terms and Conditions for Tariff determination from
Renewable Energy Sources) Regulations, 2013, Interest on loan capital is accounted
for while determination of tariff for renewable energy technologies.
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1.16. Regulation 15 of the JKSERC (Terms and Conditions for Tariff determination from
Renewable Energy Sources) Regulations, 2013 provides for Depreciation. Accordingly
the Commission accounts for depreciation on the approved capital cost of the assets.
The Commission provides depreciation at the rate of 5.83% per annum for the first 12
years to support the developer in repayment of its normative loans.
1.17. The JKSERC (Terms and Conditions for Tariff determination from Renewable Energy
Sources) Regulations, 2013 do not provide for additional depreciation. This is also in
line with the norms specified by CERC. Moreover repayment of entire debt component
as per normative capital structure is already accounted for in the aforesaid calculation
of depreciation.
1.18. The Commission clarifies that the tariff period in respect of RE projects is as under:
Table 6: Tariff Period for RE Projects
Renewable Energy Projects Tariff Period (in years)
Wind Energy 13
Biomass power project with rankine cycle technology 13
Non-fossil fuel based co-generation 13
Small hydro plant below 5 MW capacity 35
Small hydro plant - 5 MW upto 25 MW capacity 13
Solar PV/ Solar thermal power project 25
Biomass gasifier & Biogas 20
Capacity Utilization Factor
Public Comments/Suggestions
1.19. The stakeholder is of the opinion that 85% and 90% CUF for biomass gasifier and
biogas based power projects respectively is very high.
Response
1.20. The stakeholder’s comment does not pertain to the suo- motu petition for determination
of generic levellised generation tariff for Renewable Energy Technologies.
1.21. If the stakeholder is of the opinion that the Capacity Utilization Factor (CUF) of gasifier
and biogas plants should be reduced, the stakeholder should submit a Petition for
amendment of JKSERC (Terms and Conditions for Tariff determination from
Renewable Energy Sources) Regulations, 2013 along with due justification and
references supporting the CUF suggested for these technologies.
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1.22. Further, if the developer is of the opinion that the norms determined as per these
Regulations are not appropriate for a particular project, the developer can approach the
Commission for determination of project specific tariff as per Regulation 7 of JKSERC
(Terms and Conditions for Tariff determination from Renewable Energy Sources)
Regulations, 2013.
Capital Cost
Public Comments/Suggestions
1.23. The stakeholder pointed out that actual capitalized cost on COD is available for all
technologies and projects commissioned over last three years should be the basis for
determination of capital cost. Further, the stakeholder is of the opinion that factor F1-
Factor for land and Civil Works, F2- Factor for erection and commissioning, F3- Factor
for IDC and Financing Cost should be worked on the basis of data collected from
Financial Institutions and banks for projects commissioned over last 3 years.
1.24. It has also been pointed out that the capital cost for small hydro projects should be
increased to Rs 1111.08 lacs/MW in accordance to the findings of the report submitted
by Alternate Hydro Energy Center, Indian Institute of Technology (IIT), Roorkee. The
stakeholder further mentioned that the Institute has been entrusted by Ministry of New
and Renewable Energy Sources (MNES) to propose a benchmark cost for small hydro
projects and they have studied the projects nationwide on the capital costs and studied
the cost deviation v/s the head and capacity of the project and have established the
benchmark costs accordingly.
Response
1.25. In regard to the suggestion on considering the actual capitalized cost on COD for
determination of capital cost, The Commission states that the approach for
determination of capital cost suggested by the stakeholder is not in line with the
JKSERC (Terms and Conditions for Tariff determination from Renewable Energy
Sources) Regulations, 2013.
1.26. The capital cost considered by the Commission for determination of generic levellised
generation tariff for FY 2016-17 is as per the technology specific norms specified under
the JKSERC (Terms and Conditions for Tariff determination from Renewable Energy
Sources) Regulations, 2013.
1.27. If the stakeholder is of the opinion that the methodology for determination of capital
cost as well as the factors of cost components are not appropriate, the stakeholder
should submit a Petition for amendment of JKSERC (Terms and Conditions for Tariff
determination from Renewable Energy Sources) Regulations, 2013 along with due
justification and references supporting its suggestions.
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JKSERC Page 7
1.28. Further, if the developer is of the opinion that the norms determined as per these
Regulations are not appropriate for a particular project, the developer can approach the
Commission for determination of project specific tariff as per Regulation 7 of JKSERC
(Terms and Conditions for Tariff determination from Renewable Energy Sources)
Regulations, 2013.
Incentive or Subsidy by the Central/State Government
Public Comments/Suggestions
1.29. The stakeholder is of the opinion that subsidy and other incentive such as accelerated
depreciation should not be considered in fixation of tariff and treated as additional
incentives only.
Response
1.30. Regulation 22 of the JKSERC (Terms and Conditions for Tariff determination from
Renewable Energy Sources) Regulations, 2013 specifies:
“The Commission shall take into consideration any incentive or subsidy offered by the
Central or State Government, including accelerated depreciation benefit if availed by
the generating company, for the renewable energy power plants while determining the
tariff under these Regulations”
1.31. In accordance to the above regulations, The Commission has to consider any
subsidy/incentive availed by the generating company for determination of tariff.
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CHAPTER 2: GENERIC LEVELLISED GENERATION TARIFF FOR
VARIOUS RENEWABLE ENERGY TECHNOLOGIES FOR FY 2016-17
2.1. The generic levellised generation tariffs for various Renewable Energy Technologies
(RETs) for FY 2016-17 are discussed below:
Generic norms
Useful life
2.2. Sub-Regulation (1) (aa) of Regulation 2 of the RE Tariff Regulations, 2013 and
amendments thereof defines ‘useful life’ in relation to a unit of a generating station
including evacuation system to mean the following duration from the date of
commercial operation (COD) of such generation facility:
Table 7: Useful life of RE Projects
Renewable energy projects Useful Life (in years)
Wind energy 25
Biomass power project with rankine cycle technology 20
Non-fossil fuel based co-generation 20
Small hydro plant 35
Solar PV/ Solar thermal power project 25
Biomass gasifier 20
Biogas 20
Municipal Solid Waste 20
Refuse Derived Fuel 20
Control Period
2.3. Regulation 5 of the RE Tariff Regulations, 2013 and amendments thereof, provides that
the Control Period for determination of tariff for renewable energy projects
(RE projects) shall be of five years. The first year of the Control Period was FY 2013-
14.
2.4. The Provision to the said Regulation stipulates that the tariff determined for the RE
projects commissioned during the Control Period shall continue to be applicable for the
entire duration of the tariff Period as specified in Regulation 6 of the RE Tariff
Regulations, 2013 and amendments thereof.
Tariff Period
2.5. In terms of Regulation 6 of the RE Tariff Regulations 2013 and its subsequent
amendments, the tariff Period in respect of the RE projects is as under:
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Table 8: Tariff Period for RE Projects
Renewable energy projects Tariff Period (in years)
Wind energy 13
Biomass power project with rankine cycle technology 13
Non-fossil fuel based co-generation 13
Small hydro plant below 5 MW capacity 35
Small hydro plant - 5 MW upto 25 MW capacity 13
Solar PV/ Solar thermal power project 25
Biomass gasifier & Biogas 20
Municipal Solid Waste 20
Refuse Derived Fuel 20
2.6. In terms of clauses (e) and (f) of the said Regulation, the tariff Period specified above
shall be reckoned from the date of commercial operation of the RE projects and the
tariff determined under the Regulations shall be applicable for the duration of the tariff
Period.
Tariff structure
2.7. Clause (1) of Regulation 9 of the RE Tariff Regulations, 2013 and amendments thereof
stipulates that the tariff for RE projects shall be single part tariff consisting of the
following fixed cost components:
a) Return on equity;
b) Interest on loan capital;
c) Depreciation;
d) Interest on working capital;
e) Operation and maintenance expenses;
2.8. For renewable energy technologies having fuel cost component, like biomass power
projects and non-fossil fuel based cogeneration, single part tariff with two components,
fixed cost component and fuel cost component, is to be determined.
Tariff design
2.9. In terms of Regulation 10 of the RE Tariff Regulations 2013 and amendments thereof,
the tariff design for renewable energy generating stations is as under:
"(1) The generic tariff shall be determined on levellised basis for the Tariff Period.
Provided that for renewable energy technologies having single part tariff with
two components, tariff shall be determined on levellised basis considering the
year of commissioning of the project for fixed cost component while the fuel cost
component shall be specified on year of operation basis.
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(2) For the purpose of levellised tariff computation, the discount factor equivalent to
Post Tax weighted average cost of capital shall be considered.
(3) Levellisation shall be carried out for the ‘useful life’ of the Renewable Energy
project while Tariff shall be specified for the Period equivalent to ‘Tariff Period.”
2.10. Accordingly, levellised tariff is calculated by carrying out levellisation for ‘useful life’ of
each technology considering the discount factor for time value of money.
2.11. The discount factor considered for this purpose is equal to the post-tax weighted
average cost of the capital on the basis of normative debt: equity ratio (70:30) specified
in the RE Tariff Regulations, 2013. Considering the normative debt equity ratio and
weighted average of the post-tax rates for interest and equity component, the discount
factor is calculated.
2.12. Interest Rate considered for the loan component (i.e.70% of capital cost) is 13.05% (as
discussed in detail in para 2.58 of this Order). For equity component (i.e. 30% of capital
cost) rate of Return on Equity (ROE) is considered at post-tax ROE of 16%. Thus, the
discount factor derived by this method for all technology is 10.77% [{13.05% ×0.70×
(1 – 34.60%)} + {16.0% × 0.30}].
Generation norms
Capacity utilisation factor (CUF)/ Plant load factor (PLF)
2.13. Regulations 26, 30, 58 and 62 of the RE Tariff Regulations, 2013 and amendments
thereof, specify the norms for Capacity Utilization Factor (CUF) in respect of the Wind
Energy, Small Hydro, Solar PV and Solar Thermal based power generating stations as
per the details given in the table below which has been considered for determination of
tariff.
Table 9: Capacity utilisation factor for RE projects
Sl. No. Renewable energy projects CUF (%)
(A) Wind energy
i. Wind Zone 1 (annual Mean Wind Power Density upto 200 w/m2) 20%
ii. Wind Zone 2 (annual Mean Wind Power Density 201 - 250 w/m2) 22%
iii. Wind Zone 3 (annual Mean Wind Power Density 251 - 300 w/m2) 25%
iv. Wind Zone 4 (annual Mean Wind Power Density 301 - 400 w/m2) 30%
v. Wind Zone 5 (annual Mean Wind Power Density above 400 w/m2) 32%
(B) Small hydro plant 45%
(C) Solar PV power project 18%
(D) Solar thermal power project 23%
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2.14. Regulations 36, 49, 68, 78 and 33C of the RE Tariff Regulations 2013 and
amendments thereof, specify the plant load factor (PLF) for Biomass, Non-fossil fuel
based cogeneration, Biomass Gasifier, Biogas, Municipal Solid Waste and Refuse
Derived Fuel based renewable energy generating stations as given in the following
table which has been considered for determination of fixed charges component
of tariff.
Table 10: Plant Load factor for RE projects
Sl. No. Renewable energy projects PLF (%)
(A) Biomass based on rankine cycle technology project
i. During stabilization (first 6 months of operation) 60%
ii. During remaining Period of first year (i.e. after stabilization) 70%
iii. Second year onwards 80%
(B)
Non-fossil fuel based cogeneration power project
(based on plant availability for 210 operating days i.e. 150
crushing days and 60 off-season days and load factor of 92%)
53%
(C) Biomass gasifier based power project 85%
(D) Biogas based power project 90%
(E) Municipal Solid Waste
i. During stabilization (first 6 months of operation) 65%
ii. During remaining Period of first year (i.e. after stabilization) 65%
iii. Second year onwards 75%
(F) Refuse Derived Fuel
i. During stabilization (first 6 months of operation) 65%
ii. During remaining Period of first year (i.e. after stabilization) 65%
iii. Second year onwards 80%
Auxiliary consumption factor
2.15. The Regulations 31, 37, 50, 64, 69, 79 and 33D of the RE Tariff Regulations 2013
and amendments thereof stipulate the auxiliary power consumption factor as under
which has been considered for determination of tariff of the RE projects.
Table 11: Auxiliary consumption factor for RE projects
Sl. No. Renewable energy projects Auxiliary consumption
factor (%)
(A) Small hydro plant 1%
(B) (i) Biomass projects using water cooled condenser a) During first year of operation: 11%
b) From 2nd year onwards: 10%
(B) (ii) Biomass projects using air cooled condenser a) During first year of operation: 13%
b) From 2nd year onwards: 12%
(C) Non-fossil fuel based cogeneration power project 8.50%
(D) Solar thermal power project 10%
(E) Biomass gasifier based power project 10%
(F) Biogas based power project 12%
(G) Municipal Solid Waste 15%
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Sl. No. Renewable energy projects Auxiliary consumption
factor (%)
(H) Refuse Derived Fuel 15%
Determination of Capital cost
2.16. Regulation 12 of the RE Tariff Regulations, 2013 stipulates that the norms for the
capital cost as specified in the technology specific chapter shall be inclusive of all
capital works like plant and machinery, civil works, erection & commissioning,
financing & interest during construction, and evacuation infrastructure up to inter-
connection point.
2.17. The Commission has specified the normative capital cost, applicable for the first year
of Control Period i.e. FY 2013-14, for various RE technologies viz. Wind Energy,
Small Hydro Power, Biomass Power, Non-Fossil Fuel based Cogeneration, Solar PV,
Solar Thermal, Biomass Gasifier and Biogas based power projects.
2.18. In order to determine the normative capital cost for FY 2016-17, the Regulations
stipulate the indexation mechanism for Wind Energy, Small Hydro Power, Biomass
Power, Non-Fossil Fuel based Cogeneration, Biomass Gasifier and Biogas based power
projects. The indexation mechanism shall take into account adjustments in capital cost
with the changes in Wholesale Price Index of Steel and Wholesale Price Index of
Electrical Machinery as per formulation stipulated under the RE Tariff Regulations,
2013 and amendments thereof, which is reproduced below:
CC(n) = P&M(n)* (1+F1+F2+F3)
P&M(n) = P&M(0) * (1+d(n))
d(n) = [a*{(SI(n-1)/SI(0))– 1} + b*{(EI(n-1)/EI(0)) – 1}]/(a+b)
Where,
CC (n) = Capital Cost for nth year i.e. in this case for FY 2016-17
P&M (n) = Plant and Machinery Cost for nth year
P&M (0) = Plant and Machinery Cost for base year i.e. in this case for FY 2013-14
Note: P&M (0) is to be computed by dividing the base capital cost (for the first
year of the Control Period) by (1+F1+F2+F3). Factors F1, F2, F3 for each RE
technology has been specified separately, as summarized in following table.
d (n) = Capital Cost escalation factor for year (n) of Control Period
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SI (n-1) = Average WPI Steel Index prevalent for calendar year (n-1) of the Control
Period (2015)
SI (0) = Average WPI Steel Index prevalent for calendar year (0) at the beginning of
the Control Period (2012)
EI (n-1) = Average WPI Electrical Machinery Index prevalent for calendar year (n-1)
of the Control Period (2015)
EI(0) = Average WPI Electrical Machinery Index prevalent for calendar year (0)
at the beginning of the Control Period (2012)
a = Constant to be determined by Commission from time to time,(for weightage
to Steel Index)
b = Constant to be determined by Commission from time to time,(for weightage
to Electrical Machinery Index)
F1 = Factor for Land and Civil Works
F2 = Factor for Erection and Commissioning
F3 = Factor for IDC and Financing Cost
2.19. The default values of the factors for various RE technologies as stipulated under the
said Regulations, is summarized in the following table.
Table 12: Default value of constant parameters as per RE Tariff Regulations 2013
Constant
Parameters
Wind
energy
projects
Small
hydro
projects
Biomass based on rankine cycle technology,
non-fossil fuel based co-generation, Biomass
Gasifier and Biogas projects
a 0.6 0.6 0.7
b 0.4 0.4 0.3
F1 0.08 0.16 0.10
F2 0.07 0.10 0.09
F3 0.10 0.14 0.14
2.20. However, the Capital Cost norms for Solar PV, Solar Thermal Power Projects,
Municipal Solid Waste and Refuse Derived Fuel as determined in the RE Tariff
Regulations, 2013, and amendments thereof shall be reviewed on annual basis and have
been discussed in detail in following sub-section.
2.21. Technology specific capital cost of each type of RE projects is discussed here in under:
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(A) Capital cost for wind energy projects for FY 2016-17
2.22. Regulation 24 of the RE Tariff Regulations, 2013 and amendments thereof states that
the capital cost for wind energy project shall include wind turbine generator including
its auxiliaries, land cost, site development charges and other civil works, transportation
charges, evacuation cost up to inter-connection point, financing charges and IDC.
2.23. The Commission, under Regulation 24 (2), has specified the normative capital cost for
wind energy projects as Rs. 575.00 Lakh/ MW for FY 2013-14 which shall be linked
to the indexation mechanism specified under Regulation 25 of the above mentioned
Regulations. Thus, the normative capital cost of the wind energy projects shall be
Rs. 596.22 Lakh/ MW for FY 2016-17. The detailed computations of the indexation
mechanism and determination of the capital cost for wind energy projects for
FY 2016-17 thereof, has been enclosed as Appendix-1 of this Order.
(B) Capital cost for small hydro projects for FY 2016-17
2.24. Small Hydro Projects for the purpose of the RE Tariff Regulations, 2013 cover those
projects which are located at the sites approved by the State Nodal Agencies/ State
Governments using new plant and machinery and with installed power plant capacity
lower than or equal to 25 MW at single location.
2.25. It should be noted that tariff for existing small hydro projects i.e. projects commissioned
prior to notification of RE Tariff Regulations, 2013, with installed power plant capacity
lower than or equal to 25 MW at single location will be determined in accordance with
provisions of JKSERC (Hydro Generation Tariff) Regulations, 2011 and Notification
No. JKSERC/13/2011 dated April 20, 2011.
2.26. The Commission under Regulation 28 (1) of the RE Tariff Regulations 2013 has specified
the normative capital cost for small hydro projects for FY 2013-14 as summarised in
following table.
Table 13: Capital cost for small hydro projects for FY 2013-14
Project size Capital cost (Rs Lakhs/MW)
Below 5 MW 770.00
5 MW upto 25 MW 700.00
2.27. In line with the indexation mechanism specified under Regulation 29 of the RE Tariff
Regulations 2013, the normative capital cost for small hydro Projects for FY 2016-17 shall
be as under:
Table 14: Capital cost for small hydro projects for FY 2016-17
Project size Capital cost (Rs Lakhs/MW)
Below 5 MW 798.41
5 MW upto 25 MW 725.83
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2.28. The detailed computations of the indexation mechanism and determination of the capital
cost for small hydro projects for FY 2016-17 thereof, has been enclosed as Appendix-2
of this Order.
(C) Capital cost for biomass projects based on rankine cycle technology for FY 2016-17
2.29. Biomass power project for the purpose of these Regulations covers the projects using new
plant and machinery based on Rankine cycle technology and using biomass fuel sources,
provided use of fossil fuel is restricted only up to 15% of total fuel consumption on annual
basis.
2.30. The Commission, under Regulation 34 of the RE Tariff (First Amendment) Regulations,
has specified the normative capital cost for the biomass power projects based on Rankine
cycle technology for FY 2013-14 as under:
a) 540 lakh/MW for project [other than rice straw and Juliflora (plantation)
based project] with water cooled condenser;
b) 580 lakh/MW for Project [other than rice straw and Juliflora (plantation)
based project] with air cooled condenser;
c) 590 lakh/MW for rice straw and Juliflora (plantation) based project with water
cooled condenser;
d) 630 lakh/MW for rice straw and Juliflora (plantation) based project with air cooled
condenser.”
2.31. The normative capital cost for FY 2013-14 shall be linked to the indexation mechanism
specified under Regulation 35 of the RE Tariff Regulations, 2013 and amendments
thereof, to determine the capital cost for FY 2016-17. Thus, the normative capital cost of
biomass power projects based on Rankine cycle technology for FY 2016-17 shall be as
under:
Table 15: Capital cost for Biomass projects for FY 2016-17
Biomass Rankine Cycle Projects Capital cost (Rs Lakhs/MW)
Other than rice straw and Juliflora (plantation) based project with
water cooled condenser 559.05
Other than rice straw and Juliflora (plantation) based project with
air cooled condenser 600.46
For rice straw and Juliflora (plantation) based project with water
cooled condenser 610.82
For rice straw and Juliflora (plantation) based project with air
cooled condenser 652.23
2.32. The detailed calculations of the indexation mechanism and determination of the capital
cost for FY 2016-17 thereof, has been enclosed as Appendix -3 of this Order.
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(D) Capital cost for non-fossil fuel based cogeneration projects for FY 2016-17
2.33. Non-fossil based cogeneration has been defined as the process in which more than one
form of energy (such as steam and electricity) is produced in a sequential manner by use
of biomass. As per Regulation 4(d) of RE Tariff Regulations, 2013, for a project to qualify
as non-fossil based co-generation, project must be using new plant and machinery with
topping cycle mode of operation which uses non-fossil fuel input for power generation
and also utilizes the thermal energy generated for useful heat applications in other
industrial activities simultaneously, and where sum of useful power output and half useful
thermal output is greater than 45% of plant’s energy consumption during season.
2.34. The Commission under Regulation 47 has specified the normative capital cost for the Non-
Fossil Fuel Based Cogeneration Projects as Rs. 420 Lakh/MW for FY 2013-14 which
shall be linked to the indexation mechanism specified under Regulation 48 of the RE Tariff
Regulations, 2013. Thus, the normative capital cost of Non-Fossil Fuel based
Cogeneration power projects shall be Rs. 434.82 Lakh/MW for FY 2016-17. The detailed
computations of the indexation mechanism and determination of the capital cost for
FY 2016-17 thereof, has been enclosed as Appendix-4 of this Order.
(E) Capital cost for Solar PV based projects for FY 2016-17
2.35. Solar Photo Voltaic (PV) power projects which directly convert solar energy into
electricity using the crystalline silicon or thin film technology or any other technology as
approved by the Ministry of New and Renewable Energy (MNRE) and are connected to
the grid, qualify for purpose of tariff determination under RE Tariff Regulations 2013.
2.36. The Regulation 57 of the above-mentioned Regulations specifies the normative capital
cost for the Solar PV power projects as Rs. 1,000 Lakh/ MW for the FY 2013-14.
However, the Commission notes that with the decline in capital cost for Solar PV projects
owing to regulatory and technological developments, the normative capital cost specified
in the RE Tariff Regulations, 2013 is on a higher side. Further, the Regulation 5 of the
above mentioned Regulations, specify that the benchmark capital cost for Solar PV and
Solar thermal projects may be reviewed annually by the Commission.
2.37. The CERC has also taken similar recourse while determining the benchmark capital
cost for Solar PV projects. The CERC vide the CERC (RE Tariff Regulations), 2012
specified the benchmark capital cost norm for Solar PV projects for FY 2012-13 as
Rs. 1,000 Lakh/MW. Owing to decline in capital cost in the market for Solar PV
technology over the years, the CERC vide its Order dated 23rd March, 2016 has
determined the benchmark capital cost for Solar PV projects applicable during
FY 2016-17 as Rs 530.02 Lakh/MW.
2.38. Based on above, and in exercise of its powers under Regulation 5 of the RE Tariff
Regulations, 2013, and amendments thereof, the JKSERC also adopts the benchmark
capital cost for Solar PV power projects as Rs. 530.02 Lakh/MW for FY 2016-17.
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(F) Capital cost for Solar Thermal based projects for FY 2016-17
2.39. In order to qualify for tariff determination under the RE Tariff Regulations 2013 , Solar
Thermal Power Project shall be based on concentrated solar power technologies with line
focusing or point focusing as may be approved by the MNRE and which uses direct
sunlight to generate sufficient heat to operate a conventional power cycle to generate
electricity.
2.40. The Regulation 61 of the above-mentioned Regulations specifies the normative capital
cost for the Solar thermal power projects as Rs. 1300 Lakh/MW for the FY 2013-14.
However, the Commission notes that with the decline in capital cost for Solar PV and
Solar thermal projects owing to regulatory and technological developments, the normative
capital cost specified in the RE Tariff Regulations, 2013 is on the higher side. Further, the
Regulation 5 of the above mentioned Regulations, specify that the benchmark capital cost
for Solar PV and Solar thermal projects may be reviewed annually by the Commission.
2.41. The CERC vide its Order dated 23rd March , 2016 has determined the benchmark capital
cost for Solar thermal projects applicable during FY 2016-17 as Rs. 1,200 Lakh/ MW.
2.42. Based on above, and in exercise of its powers under Regulation 5 of the RE Tariff
Regulations, 2013, the JKSERC also adopts the benchmark capital cost for Solar thermal
power projects as Rs. 1,200 Lakh/MW for FY 2016-17.
(G) Capital cost for biomass gasifier based power projects for FY 2016-17
2.43. The Commission under Regulation 66 has specified that the normative capital cost
for the Biomass Gasifier power projects based on Rankine cycle shall be Rs 550.00
Lakh/MW for the FY 2013-14. The normative capital cost specified for FY 2013-14
shall be linked to the indexation mechanism specified under Regulation 67 of the
RE Tariff Regulations, 2013 and amendments thereof to determine normative
capital cost for FY 2016-17.
2.44. Accordingly, the normative capital cost of Biomass gasifier power projects shall be
Rs 569.41 Lakh/MW for FY 2016-17. After taking into account capital subsidy of
Rs 150.00 Lakh/MW, net project cost shall be Rs 419.41 Lakh/MW for the FY 2016-
17. The detailed computations of the indexation mechanism and determination of the
capital cost for FY 2016-17 thereof, has been enclosed as Appendix-5 of this Order.
(H) Capital cost for biogas based power projects for FY 2016-17
2.45. In order to qualify for tariff determination under the RE Tariff Regulations, 2013,
the project should use new plant and machinery, having grid connected system that
uses 100% Biogas fired engine, coupled with Biogas technology for co-digesting
agriculture residues, manure and other bio waste as may be approved by the MNRE.
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2.46. The Commission under Regulation 76 has specified that the normative capital cost
for the Biogas based power projects shall be Rs 1100.00 Lakh/MW for the
FY 2013-14. The normative capital cost specified for FY 2013-14 shall be linked to
the indexation mechanism specified under Regulation 77 of the RE Tariff
Regulations 2013 to determine normative capital cost for FY 2016-17.
2.47. Accordingly, the normative capital cost of Biogas based power projects shall be
Rs 1138.81 Lakh/MW for FY 2016-17. After taking into account the capital
subsidy of Rs 300.00 Lakh/MW, net project cost shall be Rs. 838.81 Lakh/MW for
the FY 2016-17. The detailed computations of the indexation mechanism and
determination of the capital cost for FY 2016-17 thereof, has been enclosed as
Appendix-6 of this Order.
(I) Capital cost for Municipal Solid Waste based power projects for FY 2016-17
2.48. Municipal Solid Waste power projects for the purpose of these Regulations covers
the projects using new plant and machinery based on Rankine cycle technology and
using Municipal solid waste as fuel sources.
2.49. The Commission under Regulation 33B of the RE Tariff (First Amendment)
Regulations, has specified that the normative capital cost for the Municipal Solid
Waste based power projects shall be Rs 1,500.00 Lakh/MW for the FY 2015-16.
Further, the capital cost norms for the remaining years of the control period, for
municipal solid waste and refuse derived fuel based power projects shall be
reviewed on annual basis.
2.50. Since, the aforesaid First Amendment to the RE Tariff Regulations, 2013, were
notified by the Commission on 22nd March, 2016, the Commission is of the opinion
that not much time has lapsed since the notification of the capital cost for FY 2015-
16 and therefore it is prudent to fix/ revise the capital cost of such projects once
more data is available with the Commission. Therefore, the Commission continues
with the same capital cost for FY 2016-17 as fixed for FY 2015-16 vide the First
Amendment to the RE Tariff Regulations, 2013. Accordingly, the normative capital
cost of Municipal Solid Waste based power projects shall be Rs 1,500.00 Lakh/MW
for FY 2016-17.
(J) Capital cost for Refuse Derived Fuel based power projects for FY 2016-17
2.51. Refuse Derived Fuel power projects for the purpose of these Regulations covers
the projects using new plant and machinery based on Rankine cycle technology and
using Refuse derived fuel as fuel sources.
2.52. The Commission, under Regulation 33 B of the RE Tariff (First Amendment)
Regulations has specified that the normative capital cost for the Refuse Derived
Fuel based power projects shall be Rs 900.00 Lakh/MW for the FY 2015-16.
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2.53. As mentioned in Para 2.50 above, the Commission finds it prudent to continue with
the same capital cost for FY 2016-17 as fixed for FY 2015-16 vide the First
Amendment to the RE Tariff Regulations, 2013. Accordingly, the normative capital
cost of Refuse Derived Fuel based power projects shall be Rs 900.00 Lakh/MW for
FY 2016-17.
2.54. The generic tariff is determined on the basis of normative capital cost without
considering capital subsidy except in case of biomass gasifier and biogas power
projects. However, in case capital subsidy is available, the same shall be considered
for determination of capital cost.
2.55. The normative capital cost in respect of the renewable energy power generating
stations, for FY 2016-17 is summarized as under:
Table 16: Normative capital cost for RE projects for FY 2016-17 (Rs Lakhs / MW)
Sl. No. Renewable energy project Normative Capital
Cost for FY 2016-17
1. Wind energy projects 596.22
2. Small hydro projects
a) Below 5 MW 798.41
b) 5 MW upto 25 MW 725.83
3. Biomass power projects
a) Other than rice straw and Juliflora (plantation)
based project with water cooled condenser 559.05
b) Other than rice straw and Juliflora (plantation)
based project with air cooled condenser 600.46
c) For rice straw and Juliflora (plantation) based
project with water cooled condenser 610.82
d) For rice straw and Juliflora (plantation) based
project with air cooled condenser 652.23
4. Non-fossil fuel based cogeneration power projects 434.82
5. Solar PV power projects 530.02
6. Solar thermal power projects 1200.00
7. Biomass gasifier power projects (after subsidy) 419.41
8. Biogas power projects (after subsidy) 838.81
9. Municipal Solid Waste 1500.00
10. Refuse Derived Fuel 900.00
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Determination of fixed cost components
Debt-Equity ratio
2.56. Sub-Regulation (1) of Regulation 13 of the RE Tariff Regulations, 2013 and
amendments thereof provides that the debt-equity ratio of 70:30 is to be considered
for determination of generic tariff based on suo-motu Petition. Accordingly, the debt
and equity components of the normative capital cost for determination of tariff for the
RE projects have been worked out as under:
Table 17: Debt-Equity component for RE projects for FY 2016-17
Sl. No. Renewable energy project Debt
(Rs Lakhs/MW)
Equity
(Rs Lakhs/MW)
1. Wind energy projects 417.35 178.86
2. Small hydro projects
a) Below 5 MW 558.89 239.52
b) 5 MW upto 25 MW 508.08 217.75
3. Biomass power projects
a) Other than rice straw and
Juliflora (plantation) based
project with water cooled
condenser
391.33 167.71
b) Other than rice straw and
Juliflora (plantation) based
project with air cooled
condenser
420.32 180.13
c) For rice straw and Juliflora
(plantation) based project
with water cooled condenser
427.57 183.24
d) For rice straw and Juliflora
(plantation) based project
with air cooled condenser
456.56 195.66
4. Non-fossil fuel based
cogeneration power projects 304.37 130.44
5. Solar PV power projects 371.01 159.01
6. Solar thermal power projects 840.00 360.00
7. Biomass gasifier power
projects 293.58 125.82
8. Biogas power projects 587.17 251.64
9. Municipal Solid Waste 1050.00 450.00
10. Refuse Derived Fuel 630.00 270.00
Return on equity
2.57. Sub-Regulation (1) of Regulation 16 of the RE Tariff Regulations, 2013 thereof
provides that the value base for the equity shall be 30% of the capital cost for generic
tariff determination. Sub-Regulation (2) of the said Regulation stipulates that the
normative return on equity (ROE) shall be as under:
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a) 18% per annum for the first 10 years; and
b) 22% per annum from the 11th year onwards.
Interest on loan capital
2.58. Sub-Regulation (1) of Regulation 14 of the RE Tariff Regulations, 2013 thereof
provides that the loan tenure is to be considered as 12 years for the purpose of
determination of generic tariff for RE projects. Sub-Regulation (2) of the said
Regulation provides for computation of the rate of interest on loan as under:
“(a) The loans arrived at in the manner indicated in the Regulation 13 shall be
considered as gross normative loan for calculation for interest on loan. The
normative loan outstanding as on April 1st of every year shall be worked out by
deducting the cumulative repayment up to March 31st of previous year from the
gross normative loan.
(b) For the purpose of computation of tariff, the normative interest rate shall be
considered as average Jammu and Kashmir Bank Base rate prevalent during
the first six months of the previous year plus 300 basis points.
(c) Notwithstanding any moratorium Period availed by the generating company, the
repayment of loan shall be considered from the first year of commercial
operation of the project and shall be equal to the annual depreciation allowed.”
2.59. The average Jammu and Kashmir Bank Base rate prevalent during the first six months
of the previous financial year FY 2015-16 considered for determination of tariff is
10.05%.
2.60. Accordingly, interest on loan capital has been computed by considering value base of
loan as 70% of the capital cost and the rate of interest as the weighted average of J&K
Bank Base rate prevalent during the first six months of the FY 2015-16 (i.e. 10.05%)
plus 300 basis points viz. 13.05%.
Depreciation
2.61. Regulation 15 of the RE Tariff Regulations, 2013 thereof provides for computation
of depreciation in the following manner:
“(1) The value base for the purpose of depreciation shall be the Capital Cost of the
asset admitted by the Commission. The Salvage value of the asset shall be
considered as 10% and depreciation shall be allowed up to maximum of 90% of
the Capital Cost of the asset.
(2) Depreciation per annum shall be based on ‘Differential Depreciation Approach'
over loan Period beyond loan tenure over useful life computed on ‘Straight Line
Method’. The depreciation rate for the first 12 years of the Tariff Period shall
be 5.83% per annum and the remaining depreciation shall be spread over the
remaining useful life of the project from 13th year onwards.
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(3) Depreciation shall be chargeable from the first year of commercial operation.
Provided that in case of commercial operation of the asset for part of the year,
depreciation shall be charged on pro rata basis”
2.62. In accordance with the above, the rate of depreciation for the first 12 years has been
considered as 5.83% and the rate of depreciation from the 13th year onwards has been
spread over the balance useful life of the RE project as summarised in following table.
Table 18: Applicable depreciation rates for RE projects
Details Wind Small
hydro Biomass*
Non-
fossil fuel
Solar
PV
Solar
thermal
Biomass
gasifier Biogas MSW RDF
Useful life
(in years) 25 35 20 20 25 25 20 20 20 20
Depreciation
rate for first
12 years (%)
5.83 5.83 5.83 5.83 5.83 5.83 5.83 5.83 5.83% 5.83%
Depreciation
rate after first
12 years (%)
1.54 0.87 2.50 2.50 1.54 1.54 2.50 2.50 2.51% 2.51%
Note*: The rate of depreciation is same for all the technologies of Biomass based power projects.
Interest on working capital
2.63. The working capital requirements for RE projects in accordance with Regulation 17 of
the RE Tariff Regulations, 2013 and amendments thereof has been summarised in
following table.
Table 19: Working capital requirement for RE projects
Particulars Wind/ Small hydro/
Solar PV/ Solar Thermal
Biomass/ Non-fossil fuel/
Biomass gasifier/
Biogas/RDF/MSW
Operation & maintenance (O&M) expenses 1 month 1 month
Receivables (equivalent to energy charges for
sale of electricity calculated on normative
CUF) 2 months 2 months*
Maintenance spares 15% of O&M 15% of O&M
Fuel costs (equivalent to normative PLF) N.A. 4 months
Note: *In case of Biomass/ non-fossil fuel/ Biomass gasifier/ biogas/ Municipal Solid Waste and Refuse Derived Fuel
based projects, receivables are estimated on the basis of fixed and variable charges for sale of electricity calculated on
the target PLF.
2.64. The rate of interest for computation of interest on working capital is considered in
accordance with the sub-Regulation (3) of Regulation 17 of the RE Tariff Regulation
2013, which provides as under:
“Interest on Working Capital shall be at interest rate equivalent to the average Jammu
and Kashmir Bank Base Rate prevalent during the first six months of the previous year
plus 350 basis points”
Determination of Generic Levellised Generation Tariff for RET FY 2016-17
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2.65. The average Jammu and Kashmir Bank Base rate during the first six months of
FY 2015-16 considered for determination of tariff is 10.05%. Accordingly, rate of
interest for computation of interest on working capital requirements works out to
13.55% (i.e. 10.05% plus 350 basis points) for all the RE technologies.
Operation and maintenance (O&M) expenses
2.66. Regulation 18 of the RE Tariff Regulations, 2013 and amendments thereof provides for
O&M expenses in respect of RE projects as under:
“(1) ‘Operation and Maintenance or O&M expenses’ shall comprise repair and
maintenance (R&M), establishment including employee expenses and administrative
& general expenses.
(2) Operation and maintenance expenses shall be determined for the Tariff Period based
on normative O&M expenses specified by the Commission subsequently in these
Regulations for the first Year of Control Period.
(3) Normative O&M expenses allowed during first year of the Control Period
(i.e. FY 2013-14) under these Regulations shall be escalated at the rate of 5.72% per
annum over the Tariff Period.”
2.67. The normative O&M expenses for various RE technologies specified under the
relevant provisions of the RE Tariff Regulations, 2013 and amendments thereof have
been summarised as under:
a) Wind Energy: Regulation 27 of RE Tariff Regulations, 2013 provides that the
normative O&M expenses for FY 2013-14 as Rs. 9 lakh/ MW and shall be escalated
at the rate of 5.72% per annum over the tariff Period for determination of the
levellised tariff. Accordingly, the Commission has considered O&M cost norm for
wind energy as Rs 10.63 Lakh/MW for FY 2016-17.
b) Small Hydro: Regulation 32 of RE Tariff Regulations 2013 provided for the
normative O&M expenses for small hydro projects for the FY 2013-14 which shall
be escalated at the rate of 5.72% per annum over the tariff Period for determination
of the levellised tariff. The table below presents the normative O&M Expenses
considered by the Commission for small hydro projects for FY 2013-14:
Table 20: O&M cost for small hydro projects for FY 2013-14
Project size O&M cost (Rs Lakhs/MW)
Below 5 MW 25.00
5 MW upto 25 MW 18.00
Based on escalation rate of 5.72% p.a., the normative O&M Expenses considered
by Commission for small hydro projects for FY 2016-17:
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Table 21: O&M cost for small hydro projects for FY 2016-17
Project size O&M cost (Rs Lakhs/MW)
Below 5 MW 29.54
5 MW upto 25 MW 21.27
c) Biomass: Regulation 39 of RE Tariff (First Amendment) Regulations provides that
the normative O&M expenses for biomass based projects for the FY 2013-14 shall
be Rs 40 Lakh/ MW, which shall be escalated at the rate of 5.72% per annum over
the tariff Period for determination of the levellised tariff. Accordingly, the
Commission has considered O&M cost norm for biomass based power projects as
Rs. 47.26 Lakh/MW for FY 2016-17.
d) Non-fossil fuel based co-generation: As per Regulation 55 of RE Tariff
Regulations, 2013, the normative O&M Expenses for non-fossil fuel based co-
generation projects for the FY 2013-14 has been specified as Rs. 16 Lakh/ MW
which shall be escalated at the rate of 5.72% per annum over the tariff Period for
determination of the levellised tariff. Accordingly, the Commission has considered
O&M cost norm for non-fossil fuel based co-generation as Rs. 18.91 Lakh/MW for
FY 2016-17.
e) Solar PV: Regulation 63 of RE Tariff (Second Amendment) Regulations provides
that the normative O&M expenses for the last two years of the Control Period (i.e.
FY 2016-17 and FY 2017-18) shall be 1.5% of the capital cost. Accordingly, O&M
expense norm for solar PV power project has been considered as Rs. 7.95 Lakh/
MW for FY 2016-17 based on the capital cost of Rs 530.02 Lakhs/ MW for
FY 2016-17.
f) Solar Thermal: Regulation 63 of RE Tariff Regulations provides that the
normative O&M expenses for solar thermal projects for the FY 2013-14 shall be
Rs 15 Lakh per MW which shall be escalated at the rate of 5.72% per annum over
the tariff Period for determination of the levellised tariff. Accordingly, O&M
expense norm for solar thermal power project has been considered as Rs. 17.72
Lakh/ MW for FY 2016-17.
g) Biomass Gasifier: Regulation 71 of the RE Tariff Regulations, 2013, specified the
normative O&M expenses for biomass gasifier based power projects shall be
Rs. 40 Lakh/ MW for the FY 2013-14, which shall be escalated at the rate of 5.72%
per annum over the tariff Period for determination of the levellised tariff.
Accordingly, the Commission has considered O&M cost norm for biomass gasifier
based power plant as Rs. 47.26 Lakh/ MW for FY 2016-17.
h) Biogas: Regulation 80 of the RE Tariff Regulations 2013 specified the normative
O&M expenses for biogas based power projects shall be Rs. 40 Lakh/MW for the
FY 2013-14, which shall be escalated at the rate of 5.72% per annum over the tariff
Period for determination of the levellised tariff. Accordingly, the Commission has
considered O&M cost norm for biogas based power plant as Rs. 47.26 Lakh/ MW for
FY 2016-17.
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i) Municipal Solid Waste: Regulation 33F of the RE Tariff Regulations, 2013, and
amendments thereof specified the normative O&M expenses for municipal solid
waste based power projects as 6% of the normative capital cost which shall be
escalated at the rate of 5.72% per annum. Accordingly, the Commission has
considered O&M cost norm for Municipal Solid Waste based power plant as
Rs 90.00 Lakh/ MW for FY 2016-17.
j) Refuse Derived Fuel: Regulation 33F of the RE Tariff Regulations 2013 and
amendments thereof specified the normative O&M expenses for refuse derived fuel
based power projects as 6% of the normative capital cost which shall be escalated
at the rate of 5.72% per annum. Accordingly, the Commission has considered O&M
cost norm for refuse derived fuel based power plant as Rs 54.00 Lakh/MW for
FY 2016-17.
2.68. The normative O&M expenses have been worked out as specified above for
determination of generic levellised tariff for the renewable energy generating stations.
Determination of fuel cost components
Station heat rate (SHR)
2.69. The Regulations 38, 51 and 33E of the RE Tariff Regulations, 2013, and amendments
thereof specify the SHR for biomass and non-fossil fuel based co-generation projects as
under:
Table 22: SHR for RE Projects
RE Project SHR (kCal/kWh)
Biomass power projects
a) 4126: for projects using travelling grate
boilers;
b) 4063: for projects using AFBC boilers;
Non-fossil fuel based
cogeneration power projects 3600
Municipal Solid Waste 4200
Refuse Derived Fuel 4200
Fuel mix
2.70. Sub-Regulation (1) of Regulation 40 and 72 of the RE Tariff Regulations, 2013, stipulates
that the Biomass and Biomass gasifier based power generating stations are to be designed
in a way that it uses different types of non-fossil fuels available within the vicinity of
biomass power project such as crop residues, agro-industrial residues, forest residues etc.
and other biomass fuels as may be approved by the MNRE.
2.71. Further, the biomass and biomass gasifier based power generating companies are to ensure
adequate availability of fuel to meet the respective project requirements.
Determination of Generic Levellised Generation Tariff for RET FY 2016-17
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2.72. In addition to above, Regulation 70 of the RE Tariff Regulations, 2013 stipulates that the
normative specific fuel consumption shall be 1.25 kg per kWh for Biomass Gasifier based
power generating stations, while the Regulation 81 of the RE Tariff Regulations, 2013
stipulates that the normative specific fuel consumption shall be 3 kg of substrate mix per
kWh for Biogas based power generating stations.
Use of fossil fuel
2.73. In case of biomass based projects, as per Regulation 41 of the RE Tariff Regulations, 2013
and amendments thereof, the use of fossil fuel is to be limited to the extent of 15% in terms
of calorific value on annual basis and Regulation 42 of the RE Tariff Regulations, 2013
provides the mechanism for monitoring the use of fossil fuel for these projects.
Gross Calorific value
2.74. Regulation 43 of the RE Tariff (First Amendment) Regulations, provides that the gross
calorific value of biomass fuel used for determination of tariff shall be 3,174 kCal/kg.
2.75. Further, Regulation 52 of the RE Tariff Regulations, 2013 provides that the gross
calorific value for bagasse to be considered in case of non-fossil fuel co-generation
projects shall be 2250 kCal/kg and for the use of biomass fuels other than bagasse, the
calorific value as specified above shall be applicable.
2.76. Also, Regulation 33G of the RE Tariff (First Amendment) Regulations provides that
the calorific value used for determination of tariff for refuse derived fuel shall be Rs.
2,500 kcal/kg.
Fuel cost
A) Biomass power project
2.77. The Commission, in terms of Regulation 44 of the RE Tariff Regulations, 2013, has
specified the biomass fuel price applicable during FY 2013-14 as Rs. 2,500 per tonne
and has specified fuel price indexation mechanism, in case developer wishes to opt, for
the remaining years of the Control Period.
2.78. The data for price of diesel and WPI, as per Regulations, latest figures for April, 2015
and April, 2014 corresponding to nth and (n-1)th year has been considered while
calculating the fuel price indexation for biomass and non-fossil fuel based co-
generation power projects.
2.79. The detailed computations of the fuel price indexation mechanism and the
determination of the biomass fuel price for FY 2016-17 thereof, has been enclosed as
Appendix-7 of this Order. Accordingly, the biomass fuel price applicable for
FY 2016-17 is computed as Rs. 2,833 per tonne.
B) Non-fossil fuel based cogeneration projects
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2.80. The Commission, in terms of Regulation 53 of the RE Tariff Regulations, 2013, has
specified the price of bagasse applicable during FY 2013-14 for non-fossil fuel based
cogeneration projects as Rs. 1,600 per tonne and has specified fuel price indexation
mechanism, in case developer wishes to opt, for the remaining years of the Control
Period.
2.81. The detailed computations of the fuel price indexation mechanism and the
determination of the bagasse fuel prices for FY 2016-17 thereof, has been enclosed as
Appendix-8 of this Order. Accordingly, the price of bagasse (for non-fossil fuel based
co-generation projects) applicable for FY 2016-17 shall be Rs. 1,813 per tonne.
C) Biomass gasifier projects
2.82. The Commission, in terms of Regulation 73 of the RE Tariff Regulations, 2013, has
specified the biomass fuel price during first year of the Control Period i.e. FY 2013-14
as Rs 2,500 per tonne and has specified fuel price indexation mechanism for the
Biomass Gasifier project developer. Accordingly, the biomass fuel price for the
Biomass gasifier based power project applicable for FY 2016-17 shall be the same as
for the biomass based power project (Rankine cycle) i.e. Rs. 2,833 per tonne.
2.83. The detailed computations of the fuel price indexation mechanism and the
determination of the biomass fuel prices for FY 2016-17 thereof, has been enclosed as
Appendix-7 of this Order.
D) Biogas projects
2.84. The Commission, in terms of Regulation 82 of the RE Tariff Regulations, 2013, has
specified the feed stock price during first year of the Control Period i.e. FY 2013-14 at
Rs. 990/MT (net of any cost recovery from digester effluent) and has specified fuel
price indexation mechanism for the biogas project developer.
2.85. The detailed computations of the fuel price indexation mechanism and the
determination of the fuel prices for FY 2016-17 thereof, has been enclosed as
Appendix-9 of this Order. The price of fuel applicable for the biogas based power
plant for FY 2016-17 shall be at Rs 1,122/ MT (net of any cost recovery from digester
effluent).
2.86. In case of biomass projects, non-fossil fuel based co-generation projects, Biomass
Gasifier based projects and Biogas based power projects, variable component of tariff
is calculated based on the fuel cost for FY 2016-17. This variable component will
change every year based on whether a Renewable Energy project developer opts for
fuel price indexation or escalation factor of 5% p.a. Hence, while calculating the total
applicable tariff for biomass projects, non-fossil fuel based co-generation projects,
biomass gasifier based power projects and Biogas based power projects, levellisation
of only fixed component is considered and the variable component for the first year of
operation (i.e. FY 2016-17) is specified.
E) Refuse Derived Fuel based Projects
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2.87. The Commission, in terms of Regulation 33H of the RE Tariff (First Amendment)
Regulations has specified the refuse derived fuel price during. FY 2015-16 at
Rs. 1,800/MT and specified that 5% escalation factor for each year of the tariff period
shall be applicable at the option of the refuse derived fuel project developer.
Subsidy or incentive by the Central / State Government
2.88. Regulation 22 of the RE Tariff Regulations, 2013, provides as under:
“The Commission shall take into consideration any incentive or subsidy offered by the
Central or State Government, including accelerated depreciation benefit if availed by
the generating company, for the renewable energy power plants while determining the
tariff under these Regulations.
Provided that the following principles shall be considered for ascertaining income tax
benefit on account of accelerated depreciation, if availed, for the purpose of tariff
determination:
i) Assessment of benefit shall be based on normative capital cost, accelerated
depreciation rate as per relevant provisions under Income Tax Act and corporate
income tax rate.
ii) Capitalization of RE projects during second half of the fiscal year. Per unit benefit
shall be derived on levellised basis at discount factor equivalent to Post Tax
weighted average cost of capital.”
2.89. In terms of the above regulation, for the projects availing the benefit of accelerated
depreciation as per applicable Income tax rate @ 34.60% has been considered. For the
purpose of determining net depreciation benefits, depreciation @ 5.28% as per straight
line method (Book depreciation as per Companies Act, 1956) has been compared with
depreciation as per Income Tax rate i.e. 80% of the written down value method (except
for Wind energy generator, as per Income-tax (Fourth Amendment Rules), 2012,
depreciation is now restricted to 15% on wind mills installed after 31-3-2012),
Notification No. 15/2012 [F.No.149/21/2010-SO(TPL)] S.O.694(E), dated 30-3-2012).
Moreover, additional 20% depreciation in the initial year is proposed to be extended to
new assets acquired by power generation companies vide amendment in the section 32,
sub-section (1) clause (iia) of the Income Tax Act.
2.90. Depreciation for the first year has been calculated at the rate of 50% of accelerated
depreciation of 80% and 50% of additional depreciation 20% (as project is capitalized
during the second half of the financial year as per proviso (ii) to Regulation 22). Income
tax benefits of accelerated depreciation and additional depreciation, has been worked
out as per normal tax rate on the net depreciation benefit. Per unit levellised accelerated
depreciation benefit has been computed considering the post-tax weighted average cost
of capital as discount factor.
2.91. Further, the MNRE also provides financial assistance/ support to setup new Small
Hydro Power (SHP) projects upto 25 MW capacity as indicated in the following table:
Determination of Generic Levellised Generation Tariff for RET FY 2016-17
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Table 23: Quantum of Financial Support to be provided by MNRE for SHP projects
Sector Financial Support ( Above 0.1 MW to 25 MW)
Private, Co-operative, Joint Sector Rs 1.5 Cr/MW limited to Rs 5.00 Cr per project
Government, State Sector Rs 7.5 Cr/MW limited to Rs 20.00 Cr per project
2.92. The Commission has determined the generic levellised tariff for small hydro projects
after considering the MNRE subsidy for capacities ranging from 1 MW to 25 MW as
enclosed in Annexure 2C (for private/co-operative/joint sector) and Annexure 2D (for
government/state sector) of this Order. The project developer is directed to approach
the Commission for a project specific tariff, if the plant capacity is different than those
mentioned in Annexure 2C and 2D and the developer wishes to avail the MNRE
subsidy.
2.93. Also, as highlighted in Para 2.44 and 2.47 above, The Commission has determined
the generic tariff for biomass gasifier and biogas projects after considering the
capital subsidy.
2.94. In the light of the discussion made in the preceding paragraphs, the generic tariffs of
the RE projects for the financial year 2016-17 have been summarised in the following
tables:
Table 24: Generic Levellised tariff for RE technologies without fuel component, approved for FY 2016-17
Rs/ kWh)
Particulars Levellised Total
Tariff
Benefit of Accelerated
Depreciation
(if availed)
Net Levellised Tariff
(upon adjusting for
Accelerated
Depreciation
benefit) (if availed)
WIND ENERGY
Wind Zone -1 (CUF 20%) 6.17 0.36 5.81
Wind Zone -2 (CUF 22%) 5.61 0.33 5.28
Wind Zone -3 (CUF 25%) 4.94 0.29 4.65
Wind Zone -4 (CUF 30%) 4.11 0.24 3.87
Wind Zone -5 (CUF 32%) 3.86 0.22 3.64
SMALL HYDRO
Capacity below 5 MW 4.40 0.39 4.01
Capacity 5 MW upto 25 MW 3.73 0.35 3.38
SOLAR PV/ SOLAR THERMAL
Solar PV 5.62 0.64 4.98
Solar Thermal 11.66 1.32 10.34
MUNICIPAL SOLID WASTE 6.87 0.58 6.29
Determination of Generic Levellised Generation Tariff for RET FY 2016-17
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Table 25: Generic tariff for RE technologies with fuel component, approved for FY 2016-17 (Rs/ kWh)
Particulars Levellised
fixed cost
Variable
cost
Applicable
Tariff
Benefit of
Accelerated
Depreciation
(if availed)
Net Levellised
Tariff
(upon
adjusting for
Accelerated
Depreciation
benefit,
if availed)
BIOMASS (Rice straw and Juliflora (plantation)
based project with water cooled condenser and using
Travelling Grate boiler)
3.06 4.10 7.16 0.21 6.95
BIOMASS (Rice straw and Juliflora (plantation)
based project with air cooled condenser and using
Travelling Grate boiler)
3.24 4.19 7.43 0.23 7.20
BIOMASS (Rice straw and Juliflora (plantation)
based project with water cooled condenser and using
AFBC boiler)
3.05 4.03 7.08 0.21 6.89
BIOMASS (Rice straw and Juliflora (plantation)
based project with air cooled condenser and using
AFBC boiler)
3.23 4.13 7.36 0.23 7.13
BIOMASS (other than Rice straw and Juliflora
(plantation) based project with water cooled
condenser and using Travelling Grate boiler)
2.92 4.10 7.02 0.19 6.83
BIOMASS (other than Rice straw and Juliflora
(plantation) based project with air cooled condenser
and using Travelling Grate boiler)
3.10 4.19 7.29 0.21 7.08
BIOMASS (other than Rice straw and Juliflora
(plantation) based project with water cooled
condenser and using AFBC boiler)
2.92 4.03 6.95 0.19 6.76
BIOMASS (other than Rice straw and Juliflora
(plantation) based project with air cooled condenser
and using AFBC boiler)
3.10 4.13 7.23 0.21 7.02
NON FOSSIL FUEL BASED COGENERATION 2.53 3.17 5.70 0.22 5.48
BIOMASS GASIFIER 2.44 5.04 7.48 0.13 7.35
BIOGAS 3.11 2.04 5.15 0.35 4.80
REFUSE DERIVED FUEL 4.16 3.74 7.90 0.33 7.57
2.95. The comparison of generic tariff of the RE projects approved for FY 2014-15, FY
2015-16 and FY 2016-17 has been summarized and enclosed as Annexure C
2.96. The detailed computations for the generic tariff for various RE technologies have been
enclosed as Annexures as per the details given hereunder:
Sl. No. Renewable Energy Projects Annexures
1. Wind Power Projects
Wind Zone – I Annexure 1A
Wind Zone – II Annexure 1B
Wind Zone – III Annexure 1C
Wind Zone – IV Annexure 1D
Wind Zone - V Annexure 1E
2. Small Hydro Power Projects
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Sl. No. Renewable Energy Projects Annexures
Without MNRE subsidy
Capacity below 5 MW Annexure 2A
Capacity 5 MW upto 25 MW Annexure 2B
With MNRE subsidy
Capacity 1 MW to 25 MW (for Private/Co-operative/
Joint Sector) Annexure 2C
Capacity 1 MW to 25 MW (for Government/State
sector) Annexure 2D
3. Biomass Power Projects
Rice straw and Juliflora (plantation) based project with water
cooled condenser and using Travelling Grate boiler Annexure 3A
Rice straw and Juliflora (plantation) based project with air
cooled condenser and using Travelling Grate boiler Annexure 3B
Rice straw and Juliflora (plantation) based project with water
cooled condenser and using AFBC boiler Annexure 3C
Rice straw and Juliflora (plantation) based project with air
cooled condenser and using AFBC boiler Annexure 3D
Other than Rice straw and Juliflora (plantation) based project
with water cooled condenser and using Travelling Grate
boiler
Annexure 3E
Other than Rice straw and Juliflora (plantation) based project
with air cooled condenser and using Travelling Grate boiler Annexure 3F
Other than Rice straw and Juliflora (plantation) based project
with water cooled condenser and using AFBC boiler Annexure 3G
Other than Rice straw and Juliflora (plantation) based project
with air cooled condenser and using AFBC boiler Annexure 3H
4. Non-fossil fuel based cogeneration Power Projects Annexure 4
5. Solar PV Power Projects Annexure 5
6. Solar Thermal Power Projects Annexure 6
7. Biomass Gasifier Power Projects Annexure 7
8. Biogas Power Projects Annexure 8
9 Municipal Solid Waste Annexure 9
10 Refuse Derived Fuel Annexure 10
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Appendix-1
Capital cost for wind energy project (FY 2016-17)
Indexation Formulation:
CC (n) = P&M (n) * [1 + F1 + F2 + F3]
P&M (n) = P&M(0)*(1+ d (n))
P&M (0) = CC (0) / [1 + F1 + F2 + F3]
d (n) = (a *(SI(n-1)/SI(0))-1) +b* (EI(n-1)/EI(0))-1)) / (a+b)
Variable Description Value
a Weightage for Steel Index 0.60
b Weightage for Electrical Machinery Index 0.40
F1 Factor for Land and Civil Work 0.08
F2 Factor for Erection and Commissioning 0.07
F3 Factor for IDC and Financing 0.10
Month Electrical Machinery Steel
2015 2012 2015 2012
January 139.00 130.90 129.40 126.20
February 139.00 130.90 130.10 126.20
March 138.20 130.90 130.10 126.20
April 137.90 130.70 130.10 126.20
May 137.90 131.20 130.10 126.20
June 138.20 132.20 130.10 126.20
July 138.30 133.00 130.10 126.20
August 138.40 133.20 130.10 126.20
September 138.40 133.10 130.10 126.20
October 138.30 133.10 130.10 126.20
November 138.30 133.60 130.10 126.20
December 138.40 133.60 130.10 126.20
Average 138.36 132.20 130.04 126.20
Source: Office of Economic Advisor, Ministry of Commerce and Industry (www.eaindustry.nic.in)
Description Parameters Value
Capital Cost for the Base Year i.e. FY 2013-14 (Rs Lakh/MW) CC(0) 575.000
Plant & Machinery Cost for the Base Year i.e. for FY 2013-14 (Rs Lakh/MW) P&M(0) 460.000
Capital Cost escalation Factor (%) d(n) (%) 3.690%
Plant & Machinery Cost for the nth Year i.e. FY 2016-17 (Rs Lakh/MW) P&M(n) 476.97
Capital Cost for the nth Year i.e. FY 2016-17 (Rs Lakh/MW) CC(n) 596.22
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Appendix-2
Capital cost for small hydro project (FY 2016-17)
Indexation Formulation:
CC( n ) = P&M (n) * [1 + F1 + F2 + F3]
P&M(n) = P&M(0)*(1+ d (n))
P&M(0) = CC (0) / [1 + F1 + F2 + F3]
d (n) = (a * (SI(n-1)/SI(0))-1) +b* (EI(n-1)/EI(0))-1)) / (a+b)
Variable Description Value
a Weightage for Steel Index 0.60
b Weightage for Electrical Machinery Index 0.40
F1 Factor for Land and Civil Work 0.16
F2 Factor for Erection and Commissioning 0.10
F3 Factor for IDC and Financing 0.14
Month Electrical Machinery Steel
2015 2012 2015 2012
January 139.00 130.90 129.40 126.20
February 139.00 130.90 130.10 126.20
March 138.20 130.90 130.10 126.20
April 137.90 130.70 130.10 126.20
May 137.90 131.20 130.10 126.20
June 138.20 132.20 130.10 126.20
July 138.30 133.00 130.10 126.20
August 138.40 133.20 130.10 126.20
September 138.40 133.10 130.10 126.20
October 138.30 133.10 130.10 126.20
November 138.30 133.60 130.10 126.20
December 138.40 133.60 130.10 126.20
Average 138.36 132.20 130.04 126.20
Source: Office of Economic Advisor, Ministry of Commerce and Industry (www.eaindustry.nic.in)
Description Parameters SHP
(<5MW)
SHP
(5-25 MW)
Capital Cost for the Base Year i.e. FY 2013-14 (Rs Lakh/MW) CC(0) 770.000 700.000
P&M Cost for the Base Year i.e. for FY 2013-14 (Rs Lakh/MW) P&M(0) 550.000 500.000
Capital Cost escalation Factor (%) d(n) (%) 3.690% 3.690%
P&M Cost for the nth Year i.e. FY 2016-17 (Rs Lakh/MW) P&M(n) 570.29 518.45
Capital Cost for the nth Year i.e. FY 2016-17 (Rs Lakh/MW) CC(n) 798.41 725.83
Determination of Generic Levellised Generation Tariff for RET FY 2016-17
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Appendix-3
Capital cost for biomass based project (FY 2016-17)
Indexation Formulation:
CC( n ) = P&M (n) * [1 + F1 + F2 + F3]
P&M(n) = P&M(0)*(1+ d (n))
P&M(0) = CC (0) / [1 + F1 + F2 + F3]
d (n) = (a * (SI(n-1)/SI(0))-1) +b* (EI(n-1)/EI(0))-1)) / (a+b)
Variable Description Value
a Weightage for Steel Index 0.70
b Weightage for Electrical Machinery Index 0.30
F1 Factor for Land and Civil Work 0.10
F2 Factor for Erection and Commissioning 0.09
F3 Factor for IDC and Financing 0.14
Month Electrical Machinery Steel
2015 2012 2015 2012
January 139.00 130.90 129.40 126.20
February 139.00 130.90 130.10 126.20
March 138.20 130.90 130.10 126.20
April 137.90 130.70 130.10 126.20
May 137.90 131.20 130.10 126.20
June 138.20 132.20 130.10 126.20
July 138.30 133.00 130.10 126.20
August 138.40 133.20 130.10 126.20
September 138.40 133.10 130.10 126.20
October 138.30 133.10 130.10 126.20
November 138.30 133.60 130.10 126.20
December 138.40 133.60 130.10 126.20
Average 138.36 132.20 130.04 126.20
Source: Office of Economic Advisor, Ministry of Commerce and Industry (www.eaindustry.nic.in)
Description Parameters a* b* c* d*
Capital Cost for the Base Year i.e. FY 2013-14
(Rs Lakh/MW) CC(0) 540.00 580.00 590.00 630.00
Plant & Machinery Cost for the Base Year i.e. for
FY 2013-14 (Rs Lakh/MW) P&M(0) 406.015 436.09 443.609 473.684
Capital Cost escalation Factor (%) d(n) (%) 3.528% 3.528% 3.528% 3.528%
Plant & Machinery Cost for the nth Year i.e. FY 2016-
17 (Rs Lakh/MW) P&M(n) 420.341 451.477 459.261 490.398
Determination of Generic Levellised Generation Tariff for RET FY 2016-17
JKSERC Page 35
Description Parameters a* b* c* d*
Capital Cost for the nth Year i.e. FY 2016-17
(Rs Lakh/MW) CC(n) 559.053 600.465 610.817 652.229
a* Project [other than rice straw and juliflora (plantation) based project] with water cooled condenser;
b* Project [other than rice straw and Juliflora (plantation) based project] with air cooled condenser;
c* For rice straw and juliflora (plantation) based project with water cooled condenser;
d* For rice straw and juliflora (plantation) based project with air cooled condenser.
Determination of Generic Levellised Generation Tariff for RET FY 2016-17
JKSERC Page 36
Appendix-4
Capital cost for non-fossil fuel cogeneration projects (FY 2016-17)
Indexation Formulation:
CC( n ) = P&M (n) * [1 + F1 + F2 + F3]
P&M(n) = P&M(0)*(1+ d (n))
P&M(0) = CC (0) / [1 + F1 + F2 + F3]
d(n) = (a * (SI(n-1)/SI(0))-1) +b* (EI(n-1)/EI(0))-1)) / (a+b)
Variable Description Value
a Weightage for Steel Index 0.70
b Weightage for Electrical Machinery Index 0.30
F1 Factor for Land and Civil Work 0.10
F2 Factor for Erection and Commissioning 0.09
F3 Factor for IDC and Financing 0.14
Month Electrical Machinery Steel
2015 2012 2015 2012
January 139.00 130.90 129.40 126.20
February 139.00 130.90 130.10 126.20
March 138.20 130.90 130.10 126.20
April 137.90 130.70 130.10 126.20
May 137.90 131.20 130.10 126.20
June 138.20 132.20 130.10 126.20
July 138.30 133.00 130.10 126.20
August 138.40 133.20 130.10 126.20
September 138.40 133.10 130.10 126.20
October 138.30 133.10 130.10 126.20
November 138.30 133.60 130.10 126.20
December 138.40 133.60 130.10 126.20
Average 138.36 132.20 130.04 126.20
Source: Office of Economic Advisor, Ministry of Commerce and Industry (www.eaindustry.nic.in)
Description Parameters Value
Capital Cost for the Base Year i.e. FY 2013-14 (Rs Lakh/MW) CC(0) 420.000
Plant & Machinery Cost for the Base Year i.e. for FY 2013-14 (Rs Lakh/MW) P&M(0) 315.789
Capital Cost escalation Factor (%) d(n) (%) 3.528%
Plant & Machinery Cost for the nth Year i.e. FY 2016-17 (Rs Lakh/MW) P&M(n) 326.932
Capital Cost for the nth Year i.e. FY 2016-17 (Rs Lakh/MW) CC(n) 434.819
Determination of Generic Levellised Generation Tariff for RET FY 2016-17
JKSERC Page 37
Appendix-5
Capital cost for biomass gasifier based power projects (FY 2016-17)
Indexation Formulation:
CC( n ) = P&M (n) * [1 + F1 + F2 + F3]
P&M(n) = P&M(0)*(1+ d (n))
P&M(0) = CC (0) / [1 + F1 + F2 + F3]
d (n) = (a * (SI(n-1)/SI(0))-1) +b* (EI(n-1)/EI(0))-1)) / (a+b)
Variable Description Value
a Weightage for Steel Index 0.70
b Weightage for Electrical Machinery Index 0.30
F1 Factor for Land and Civil Work 0.10
F2 Factor for Erection and Commissioning 0.09
F3 Factor for IDC and Financing 0.14
Month Electrical Machinery Steel
2015 2012 2015 2012
January 139.00 130.90 129.40 126.20
February 139.00 130.90 130.10 126.20
March 138.20 130.90 130.10 126.20
April 137.90 130.70 130.10 126.20
May 137.90 131.20 130.10 126.20
June 138.20 132.20 130.10 126.20
July 138.30 133.00 130.10 126.20
August 138.40 133.20 130.10 126.20
September 138.40 133.10 130.10 126.20
October 138.30 133.10 130.10 126.20
November 138.30 133.60 130.10 126.20
December 138.40 133.60 130.10 126.20
Average 138.36 132.20 130.04 126.20
Source: Office of Economic Advisor, Ministry of Commerce and Industry (www.eaindustry.nic.in)
Description Parameters Value
Capital Cost for the Base Year i.e. FY 2013-14 (Rs Lakh/MW) CC(0) 550.000
Plant & Machinery Cost for the Base Year i.e. for FY 2013-14 (Rs Lakh/MW) P&M(0) 413.534
Capital Cost escalation Factor (%) d(n) (%) 3.528%
Plant & Machinery Cost for the nth Year i.e. FY 2016-17 (Rs Lakh/MW) P&M(n) 428.125
Capital Cost for the nth Year i.e. FY 2016-17 (Rs Lakh/MW) (excluding
subsidy) *
CC(n) 569.406*
*Biomass gasifier based projects are eligible for capital subsidy of Rs 150 Lakhs/MW as stated in para 2.44 of
this Order.
Determination of Generic Levellised Generation Tariff for RET FY 2016-17
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Appendix-6
Capital cost for biogas based power projects (FY 2016-17)
Indexation Formulation:
CC( n ) = P&M (n) * [1 + F1 + F2 + F3]
P&M(n) = P&M(0)*(1+ d (n))
P&M(0) = CC (0) / [1 + F1 + F2 + F3]
d (n) = (a * (SI(n-1)/SI(0))-1) +b* (EI(n-1)/EI(0))-1)) / (a+b)
Variable Description Value
a Weightage for Steel Index 0.70
b Weightage for Electrical Machinery Index 0.30
F1 Factor for Land and Civil Work 0.10
F2 Factor for Erection and Commissioning 0.09
F3 Factor for IDC and Financing 0.14
Month Electrical Machinery Steel
2015 2012 2015 2012
January 139.00 130.90 129.40 126.20
February 139.00 130.90 130.10 126.20
March 138.20 130.90 130.10 126.20
April 137.90 130.70 130.10 126.20
May 137.90 131.20 130.10 126.20
June 138.20 132.20 130.10 126.20
July 138.30 133.00 130.10 126.20
August 138.40 133.20 130.10 126.20
September 138.40 133.10 130.10 126.20
October 138.30 133.10 130.10 126.20
November 138.30 133.60 130.10 126.20
December 138.40 133.60 130.10 126.20
Average 138.36 132.20 130.04 126.20
Source: Office of Economic Advisor, Ministry of Commerce and Industry (www.eaindustry.nic.in)
Description Parameters Value
Capital Cost for the Base Year i.e. FY 2013-14 (Rs Lakh/MW) CC(0) 1100.00
Plant & Machinery Cost for the Base Year i.e. for FY 2013-14 (Rs Lakh/MW) P&M(0) 827.068
Capital Cost escalation Factor (%) d(n) (%) 3.528%
Plant & Machinery Cost for the nth Year i.e. FY 2016-17 (Rs Lakh/MW) P&M(n) 856.25
Capital Cost for the nth Year i.e. FY 2017-17 (Rs Lakh/MW) (excluding
subsidy)*
CC(n) 1138.812*
*Biogas based projects are eligible for capital subsidy of Rs 300 Lakhs/MW as stated in para 2.472.46 of this
Order.
Determination of Generic Levellised Generation Tariff for RET FY 2016-17
JKSERC Page 39
Appendix-7
Biomass fuel price (FY 2016-17)
(As per fuel price Index Mechanism outlined under Regulation 45 & 74
and the availability of required information)
Fuel Price Indexation Formulation:
P(n) = P(n-1)*{a*(WPI(n)/WPI(n-1)+b*(1+IRC(n-1)+c*(Pd(n)/Pd(n-1))}
Description Parameter Value
Wholesale Price Index for all commodities for month of April 2014* WPI n-1 180.800
Wholesale Price Index for all commodities for month of April 2015* WPI n 176.400
Average Annual Inflation Rate for Indexed Energy Charge Component
for (n-1) i.e. FY 2015-16 ** IRC n-1 -1.91%
Price/Ton for HSD for (n-1)th (2014) year* Pdn-1 231.518
Price/Ton for HSD for (n)th (2015) year* Pd n 191.145
Factor Representing Fuel Handling Cost a 0.20
Factor Representing Fuel Cost b 0.60
Factor Representing Transportation Cost c 0.20
Biomass fuel price for FY 2015-16 (Rs/MT) P n-1 2,986
Biomass Fuel Price for FY 2016-17 (Rs/MT) P n 2,833
Sources: *Office of Economic Advisor, Ministry of Commerce and Industry (www.eaindustry.nic.in);
**CERC Order for determination of Annual Inflation Rate for Indexed Energy charge component for ‘payment
purpose’ of Competitive bidding guidelines for FY 2015-16 (www.cercind.gov.in)
Notes:
1. The calculation of WPI (n) and WPI (n-1) is based on the figures available on April 2015
and April 2016 respectively.
2. The calculation of Pd (n) is based on the weighted average of the WPI (Price of HSD)
figures available for the months from January 2015 to December 2015 and the calculation
of Pd (n-1) is based on the weighted average of the WPI (Price of HSD) figures available
for the months from January 2014 to December 2014, as shown below.
Month 2015 2014
Jan 200.700 226.600
Feb 188.400 228.600
Mar 203.200 231.200
Apr 195.600 230.100
May 209.600 232.300
Jun 212.000 235.200
Jul 200.800 238.800
Determination of Generic Levellised Generation Tariff for RET FY 2016-17
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Month 2015 2014
Aug 179.400 240.400
Sep 174.000 242.000
Oct 176.500 239.200
Nov 181.400 218.100
Dec 181.700 210.800
Average Pd (n): 191.146 Pd (n-1): 231.518
Determination of Generic Levellised Generation Tariff for RET FY 2016-17
JKSERC Page 41
Appendix-8
Bagasse price (FY 2016-17)
(As per fuel price Index Mechanism outlined under Regulation 54
and the availability of required information)
Fuel Price Indexation Formulation:
P(n) = P(n-1)*{a*(WPI(n)/WPI(n-1)+b*(1+IRC(n-1)+c*(Pd(n)/Pd(n-1))}
Description Parameter Value
Wholesale Price Index for all commodities for month of April 2014* WPI n-1 180.800
Wholesale Price Index for all commodities for month of April 2015* WPI n 176.400
Average Annual Inflation Rate for Indexed Energy Charge Component
for (n-1) i.e. FY 2015-16 ** IRC n-1 -1.91%
Price/Ton for HSD for (n-1)th (2014) year* Pdn-1 231.518
Price/Ton for HSD for (n)th (2015) year* Pd n 191.145
Factor Representing Fuel Handling Cost a 0.20
Factor Representing Fuel Cost b 0.60
Factor Representing Transportation Cost c 0.20
Bagasse fuel price for FY 2015-16 (Rs/MT) P n-1 1,991
Bagasse Fuel Price for FY 2016-17 (Rs/MT) P n 1,813
Sources: * Office of Economic Advisor, Ministry of Commerce and Industry (www.eaindustry.nic.in);
**CERC Order for determination of Annual Inflation Rate for Indexed Energy charge component for ‘payment
purpose’ of Competitive bidding guidelines for FY 2015-16 (www.cercind.gov.in)
Notes:
3. The calculation of WPI (n) and WPI (n-1) is based on the figures available on April 2015
and April 2014 respectively.
4. The calculation of Pd (n) is based on the weighted average of the WPI (Price of HSD)
figures available for the months from January 2015 to December 2015 and the calculation
of Pd (n-1) is based on the weighted average of the WPI (Price of HSD) figures available
for the months from January 2014 to December 2014, as shown below.
Month 2015 2014
Jan 200.700 226.600
Feb 188.400 228.600
Mar 203.200 231.200
Apr 195.600 230.100
May 209.600 232.300
Jun 212.000 235.200
Jul 200.800 238.800
Determination of Generic Levellised Generation Tariff for RET FY 2016-17
JKSERC Page 42
Month 2015 2014
Aug 179.400 240.400
Sep 174.000 242.000
Oct 176.500 239.200
Nov 181.400 218.100
Dec 181.700 210.800
Average Pd (n): 191.146 Pd (n-1): 231.518
Determination of Generic Levellised Generation Tariff for RET FY 2016-17
JKSERC Page 43
Appendix-9
Biogas price (FY 2016-17)
(As per fuel price Index Mechanism outlined under Regulation 83
and the availability of required information)
Fuel Price Indexation Formulation:
P(n) = P(n-1)*{a*(WPI(n)/WPI(n-1)+b*(1+IRC(n-1)+c*(Pd(n)/Pd(n-1))}
Description Parameter Value
Wholesale Price Index for all commodities for month of April 2014* WPI n-1 180.800
Wholesale Price Index for all commodities for month of April 2015* WPI n 176.400
Average Annual Inflation Rate for Indexed Energy Charge Component
for (n-1) i.e. FY 2015-16 ** IRC n-1 -1.91%
Price/Ton for HSD for (n-1)th (2014) year* Pdn-1 231.518
Price/Ton for HSD for (n)th (2015) year* Pd n 191.145
Factor Representing Fuel Handling Cost a 0.20
Factor Representing Fuel Cost b 0.60
Factor Representing Transportation Cost c 0.20
Biogas fuel price for FY 2015-16 (Rs/MT) P n-1 1,182
Biogas Fuel Price for FY 2016-17 (Rs/MT) P n 1,122
Sources: *Office of Economic Advisor, Ministry of Commerce and Industry (www.eaindustry.nic.in);
**CERC Order for determination of Annual Inflation Rate for Indexed Energy charge component for ‘payment
purpose’ of Competitive bidding guidelines for FY 2015-16 (www.cercind.gov.in)
Notes:
5. The calculation of WPI (n) and WPI (n-1) is based on the figures available on April 2015
and April 2016 respectively.
6. The calculation of Pd (n) is based on the weighted average of the WPI (Price of HSD)
figures available for the months from January 2015 to December 2015 and the calculation
of Pd (n-1) is based on the weighted average of the WPI (Price of HSD) figures available
for the months from January 2014 to December 2014, as shown below.
Month 2015 2014
Jan 200.700 226.600
Feb 188.400 228.600
Mar 203.200 231.200
Apr 195.600 230.100
May 209.600 232.300
Jun 212.000 235.200
Jul 200.800 238.800
Determination of Generic Levellised Generation Tariff for RET FY 2016-17
JKSERC Page 44
Month 2015 2014
Aug 179.400 240.400
Sep 174.000 242.000
Oct 176.500 239.200
Nov 181.400 218.100
Dec 181.700 210.800
Average Pd (n): 191.146 Pd (n-1): 231.518
Details of Annexures
Sl. No. Renewable Energy Projects Annexures
1 Wind Power ProjectsWind Zone – I Annexure 1(a)
Wind Zone – II Annexure 1(b)
Wind Zone – III Annexure 1(c)
Wind Zone – IV Annexure 1(d)
Wind Zone - V Annexure 1(e)
2 Small Hydro Power Projects
Without MNRE SubsidyCapacity below 5 MW Annexure 2(a)
Capacity 5 MW upto 25 MW Annexure 2(b)
With MNRE SubsidyCapacities 1 MW to 25 MW (private/co-operative/joint sector) Annexure 2.(c)
Capacities 1 MW to 25 MW (Government/State sector) Annexure 2(d)
3 Biomass Power ProjectsRice straw and Juliflora (plantation) based project with water
cooled condenser and using Travelling Grate boilerAnnexure 3A
Rice straw and Juliflora (plantation) based project with air
cooled condenser and using Travelling Grate boilerAnnexure 3B
Rice straw and Juliflora (plantation) based project with water
cooled condenser and using AFBC boilerAnnexure 3C
Rice straw and Juliflora (plantation) based project with air
cooled condenser and using AFBC boilerAnnexure 3D
Other than Rice straw and Juliflora (plantation) based project
with water cooled condenser and using Travelling Grate boilerAnnexure 3E
Other than Rice straw and Juliflora (plantation) based project
with air cooled condenser and using Travelling Grate boilerAnnexure 3F
Other than Rice straw and Juliflora (plantation) based project
with water cooled condenser and using AFBC boilerAnnexure 3G
Other than Rice straw and Juliflora (plantation) based project
with air cooled condenser and using AFBC boilerAnnexure 3H
4 Non-fossil Fuel Based Cogeneration Power Projects Annexure 4
5 Solar PV Power Projects Annexure 5
6 Solar Thermal Power Projects Annexure 6
7 Biomass Gasifier Power Projects Annexure 7
8 Biogas Power Projects Annexure 8
9 Municipal Solid Waste Annexure 9
10 Refuse Derived Fuel Annexure 10
Sl. No. Particulars Annexures
12 List of participants in Public Hearings Annexure A
11List of participants in the State Advisory Committeemeeting
Annexure B
11Comparison of Generic Tariff of RE Projects approved forFY 2014-15, FY 2015-16 and FY 2016-17
Annexure C
JKSERC Page 46
Annexure 1(a)Wind Power Projects (Wind Zone 1)
Assumptions
S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount
1 Power GenerationCapacity
Installed Power Generation Capacity MW 1Capacity Utilization Factor % 20%Auxiliary consumption % 0.00%Commercial operation date mm/yyyy Apr-16
Useful Life Years 25
2 Project Cost Base Year (FY 2013-14) Rs Lacs 575Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 596.216
Capital subsidy (if any) Rs Lacs 0
Net capital cost Rs Lacs 596
3 Sources of FundTariff Period Years 13
Debt: EquityDebt % 70%Equity % 30%Total Debt Amount Rs Lacs 417.351Total Equity Amout Rs Lacs 178.865
Debt ComponentLoan Amount Rs Lacs 417Moratorium Period years 0Repayment Period(incld Moratorium) years 12Interest Rate % 13.05%
Equity ComponentEquity amount Rs Lacs 179Return on Equity for first 10 years % p.a 18.0%RoE Period Year 10Return on Equity 11th year onwards % p.a 22.0%Weighted average of ROE % 20.4%
Discount Rate (WACC) % 10.77%
4 Financial AssumptionsFiscal Assumptions
Income Tax % 34.60%MAT Rate (for first 10 years) % 21.34%80 IA benefits Yes/No Yes
DepreciationDepreciation Rate for first 12 years % 5.83%Depreciation Rate 13th year onwards % 1.54%Years for 5.83% rate Years 12
Salvage value % 10%
5 Working CapitalFor Fixed ChargesO&M Charges Months 1
Maintenance Spare (% of O&M exepenses) % 15%
Receivables for Debtors Months 2
on energy chargesInterest On Working Capital % 13.55%
6 Operation & MaintenanceBase Year - FY 2013-14 Rs Lakh 9.00FY 2016-17 10.63Total O & M Expenses Escalation % 5.72%
7 Incentives (if any)GBI Rs Lakh p.a. 0.00
Period for GBI Years 0.00
JKSERCPage 47
Determination of Tariff Component
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Gross/Net Generation MU 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75
Tariff Components
(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25O&M Expenses Rs Lakh 10.63 11.24 11.89 12.57 13.28 14.04 14.85 15.70 16.59 17.54 18.55 19.61 20.73 21.92 23.17 24.49 25.90 27.38 28.94 30.60 32.35 34.20 36.16 38.22 40.41Depreciation Rs Lakh 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17Interest on term loan Rs Lakh 52.20 47.66 43.12 38.58 34.04 29.50 24.96 20.42 15.89 11.35 6.81 2.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 3.34 3.27 3.20 3.14 3.07 3.01 2.95 2.89 2.83 2.78 2.90 2.85 2.27 2.34 2.41 2.48 2.56 2.64 2.73 2.82 2.91 3.02 3.13 3.24 3.36Return on Equity Rs Lakh 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35Total Fixed Cost Rs Lakh 133.15 129.15 125.18 121.25 117.37 113.53 109.73 105.99 102.29 98.65 102.38 98.86 71.52 72.78 74.10 75.50 76.98 78.54 80.19 81.94 83.79 85.74 87.80 89.99 92.29
Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit Levellised 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25O&M expn Rs/kWh 0.86 0.61 0.64 0.68 0.72 0.76 0.80 0.85 0.90 0.95 1.00 1.06 1.12 1.18 1.25 1.32 1.40 1.48 1.56 1.65 1.75 1.85 1.95 2.06 2.18 2.31Depreciation Rs/kWh 1.67 1.99 1.99 1.99 1.99 1.99 1.99 1.99 1.99 1.99 1.99 1.99 1.99 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52Int. on term loan Rs/kWh 1.48 2.98 2.72 2.46 2.20 1.94 1.68 1.42 1.17 0.91 0.65 0.39 0.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.17 0.19 0.19 0.18 0.18 0.18 0.17 0.17 0.16 0.16 0.16 0.17 0.16 0.13 0.13 0.14 0.14 0.15 0.15 0.16 0.16 0.17 0.17 0.18 0.18 0.19RoE Rs/kWh 1.99 1.84 1.84 1.84 1.84 1.84 1.84 1.84 1.84 1.84 1.84 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25Total COG per unit Rs/kWh 6.16 7.60 7.37 7.15 6.92 6.70 6.48 6.26 6.05 5.84 5.63 5.84 5.64 4.08 4.15 4.23 4.31 4.39 4.48 4.58 4.68 4.78 4.89 5.01 5.14 5.27
LevellisedDiscount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143 0.129 0.117 0.105 0.095 0.086Levellised Tariff 6.17 Rs/Unit
JKSERC Page 48
Accelerated DepreciationDepreciation amount 90%Book Depreciation rate 5.28%Tax Depreciation rate 15%Additional Depreciation 20.00%Income Tax (Normal Rates) 33.990%Capital Cost 595.881
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%Book Depreciation Rs Lakh 15.74 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 17.17 0.00 0.00
Accelerated DepreciationOpening % 100.00% 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91%Allowed during the year % 17.50% 20.63% 9.28% 7.89% 6.71% 5.70% 4.84% 4.12% 3.50% 2.98% 2.53% 2.15% 1.83% 1.55% 1.32% 1.12% 0.95% 0.81% 0.69% 0.59%Closing % 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91% 3.32%Accelerated Deprn. Rs Lakh 104.34 122.97 55.34 47.04 39.98 33.98 28.89 24.55 20.87 17.74 15.08 12.82 10.89 9.26 7.87 6.69 5.69 4.83 4.11 3.49
Net Depreciation Benefit Rs Lakh 88.60 91.49 23.86 15.56 8.50 2.50 -2.59 -6.93 -10.61 -13.74 -16.40 -18.66 -20.59 -22.22 -23.61 -24.79 -25.79 -12.34 4.11 3.49Tax Benefit Rs Lakh 30.65 31.66 8.25 5.38 2.94 0.87 -0.90 -2.40 -3.67 -4.75 -5.67 -6.46 -7.12 -7.69 -8.17 -8.58 -8.92 -4.27 1.42 1.21Energy generation MU 0.88 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75Per unit benefit Rs/Unit 3.50 1.81 0.47 0.31 0.17 0.05 -0.05 -0.14 -0.21 -0.27 -0.32 -0.37 -0.41 -0.44 -0.47 -0.49 -0.51 -0.24 0.08 0.07Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.41 0.37 0.34 0.30 0.27 0.25 0.22 0.20 0.18 0.16 0.15Tax Benefit Levellised 5.93 Rs LakhElectricity Generation (Levellised) 1.65 MULevellised benefit 0.36 Rs/Unit
JKSERC Page 49
Annexure 1(b)Wind Power Projects (Wind Zone 2)
Assumptions
S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount
1 Power GenerationCapacity
Installed Power Generation Capacity MW 1
Capacity Utilization Factor % 22%
Auxiliary consumption % 0.00%
Useful Life Years 25
2 Project Cost Base Year (FY 2013-14) Rs Lacs 575
Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 596.216
Capital subsidy (if any) Rs Lacs 0
Net capital cost Rs Lacs 596
3 Sources of FundTariff Period Years 13
Debt: Equity
Debt % 70%
Equity % 30%
Total Debt Amount Rs Lacs 417.351
Total Equity Amout Rs Lacs 178.865
Debt Component
Loan Amount Rs Lacs 417
Moratorium Period years 0
Repayment Period(incld Moratorium) years 12
Interest Rate % 13.05%
Equity Component
Equity amount Rs Lacs 179
Return on Equity for first 10 years % p.a 18.0%
RoE Period Year 10
Return on Equity 11th year onwards % p.a 22.0%
Weighted average of ROE % 20.4%
Discount Rate (WACC) % 10.77%
4 Financial AssumptionsFiscal Assumptions
Income Tax % 34.60%
MAT Rate (for first 10 years) % 21.34%
80 IA benefits Yes/No Yes
Depreciation
Depreciation Rate for first 12 years % 5.83%
Depreciation Rate 13th year onwards % 1.54%
Years for 5.83% rate Years 12
Salvage value % 10%
5 Working CapitalFor Fixed Charges
O&M Charges Months 1
Maintenance Spare (% of O&M exepenses) % 15%
Receivables for Debtors Months 2
on energy charges
Interest On Working Capital % 13.55%
6 Operation & MaintenanceBase Year - FY 2013-14 Rs Lakh 9.00
FY 2016-17 10.63
Total O & M Expenses Escalation % 5.72%
7 Incentives (if any)GBI Rs Lakh p.a. 0.00
Period for GBI Years 0.00
JKSERC Page 50
Determination of Tariff Component
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Gross/Net Generation MU 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93
Tariff Components(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25O&M Expenses Rs Lakh 10.63 11.24 11.89 12.57 13.28 14.04 14.85 15.70 16.59 17.54 18.55 19.61 20.73 21.92 23.17 24.49 25.90 27.38 28.94 30.60 32.35 34.20 36.16 38.22 40.41Depreciation Rs Lakh 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17Interest on term loan Rs Lakh 52.20 47.66 43.12 38.58 34.04 29.50 24.96 20.42 15.89 11.35 6.81 2.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 3.34 3.27 3.20 3.14 3.07 3.01 2.95 2.89 2.83 2.78 2.90 2.85 2.27 2.34 2.41 2.48 2.56 2.64 2.73 2.82 2.91 3.02 3.13 3.24 3.36Return on Equity Rs Lakh 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35Total Fixed Cost Rs Lakh 133.15 129.15 125.18 121.25 117.37 113.53 109.73 105.99 102.29 98.65 102.38 98.86 71.52 72.78 74.10 75.50 76.98 78.54 80.19 81.94 83.79 85.74 87.80 89.99 92.29
Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit Levellised 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25O&M expn Rs/kWh 0.78 0.55 0.58 0.62 0.65 0.69 0.73 0.77 0.81 0.86 0.91 0.96 1.02 1.08 1.14 1.20 1.27 1.34 1.42 1.50 1.59 1.68 1.77 1.88 1.98 2.10Depreciation Rs/kWh 1.52 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48Int. on term loan Rs/kWh 1.34 2.71 2.47 2.24 2.00 1.77 1.53 1.30 1.06 0.82 0.59 0.35 0.12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.15 0.17 0.17 0.17 0.16 0.16 0.16 0.15 0.15 0.15 0.14 0.15 0.15 0.12 0.12 0.12 0.13 0.13 0.14 0.14 0.15 0.15 0.16 0.16 0.17 0.17RoE Rs/kWh 1.81 1.67 1.67 1.67 1.67 1.67 1.67 1.67 1.67 1.67 1.67 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04Total COG per unit Rs/kWh 5.60 6.91 6.70 6.50 6.29 6.09 5.89 5.69 5.50 5.31 5.12 5.31 5.13 3.71 3.78 3.84 3.92 3.99 4.08 4.16 4.25 4.35 4.45 4.56 4.67 4.79
LevellisedDiscount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143 0.129 0.117 0.105 0.095 0.086Levellised Tariff 5.61 Rs/Unit
JKSERC Page 51
Accelerated Depreciation
Depreciation amount 90%
Book Depreciation rate 5.28%
Tax Depreciation rate 15%
Additional Depreciation 20.00%
Income Tax (Normal Rates) 33.990%
Capital Cost 595.881
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%
Book Depreciation Rs Lakh 15.74 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 17.17 0.00 0.00
Accelerated Depreciation
Opening % 100.00% 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91%
Allowed during the year % 17.50% 20.63% 9.28% 7.89% 6.71% 5.70% 4.84% 4.12% 3.50% 2.98% 2.53% 2.15% 1.83% 1.55% 1.32% 1.12% 0.95% 0.81% 0.69% 0.59%
Closing % 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91% 3.32%
Accelerated Deprn. Rs Lakh 104.34 122.97 55.34 47.04 39.98 33.98 28.89 24.55 20.87 17.74 15.08 12.82 10.89 9.26 7.87 6.69 5.69 4.83 4.11 3.49
Net Depreciation Benefit Rs Lakh 88.60 91.49 23.86 15.56 8.50 2.50 -2.59 -6.93 -10.61 -13.74 -16.40 -18.66 -20.59 -22.22 -23.61 -24.79 -25.79 -12.34 4.11 3.49
Tax Benefit Rs Lakh 30.65 31.66 8.25 5.38 2.94 0.87 -0.90 -2.40 -3.67 -4.75 -5.67 -6.46 -7.12 -7.69 -8.17 -8.58 -8.92 -4.27 1.42 1.21
Energy generation MU 0.96 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93 1.93
Per unit benefit Rs/Unit 3.18 1.64 0.43 0.28 0.15 0.04 -0.05 -0.12 -0.19 -0.25 -0.29 -0.34 -0.37 -0.40 -0.42 -0.45 -0.46 -0.22 0.07 0.06
Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
Tax Benefit Levellised 5.93 Rs Lakh 0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.41 0.37 0.34 0.30 0.27 0.25 0.22 0.20 0.18 0.16 0.15
Electricity Generation (Levellised) 1.82 MU
Levellised benefit 0.33 Rs/Unit
JKSERC Page 52
Annexure 1.(c)Wind Power Projects (Wind Zone 3)
Assumptions
S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount
1 Power GenerationCapacity
Installed Power Generation Capacity MW 1Capacity Utilization Factor % 25%Auxiliary consumption % 0.00%
Useful Life Years 25
2 Project Cost Base Year (FY 2013-14) Rs Lacs 575Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 596.216
Capital subsidy (if any) Rs Lacs 0
Net capital cost Rs Lacs 596
3 Sources of FundTariff Period Years 13
Debt: EquityDebt % 70%Equity % 30%Total Debt Amount Rs Lacs 417.35Total Equity Amout Rs Lacs 178.86
Debt ComponentLoan Amount Rs Lacs 417Moratorium Period years 0Repayment Period(incld Moratorium) years 12Interest Rate % 13.05%
Equity ComponentEquity amount Rs Lacs 179Return on Equity for first 10 years % p.a 18.0%RoE Period Year 10Return on Equity 11th year onwards % p.a 22.0%Weighted average of ROE % 20.4%
Discount Rate (WACC) % 10.77%
4 Financial AssumptionsFiscal Assumptions
Income Tax % 34.60%MAT Rate (for first 10 years) % 21.34%80 IA benefits Yes/No Yes
DepreciationDepreciation Rate for first 12 years % 5.83%Depreciation Rate 13th year onwards % 1.54%Years for 5.83% rate Years 12
Salvage value % 10%
5 Working CapitalFor Fixed ChargesO&M Charges Months 1Maintenance Spare (% of O&M exepenses) % 15%Receivables for Debtors Months 2on energy chargesInterest On Working Capital % 13.55%
6 Operation & MaintenanceBase Year - FY 2013-14 Rs Lakh 9.00FY 2016-17 10.63Total O & M Expenses Escalation % 5.72%
7 Incentives (if any)GBI Rs Lakh p.a. 0.00
Period for GBI Years 0.00
JKSERC Page 53
Determination of Tariff Component
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Gross/Net Generation MU 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19
Tariff Components
(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
O&M Expenses Rs Lakh 10.63 11.24 11.89 12.57 13.28 14.04 14.85 15.70 16.59 17.54 18.55 19.61 20.73 21.92 23.17 24.49 25.90 27.38 28.94 30.60 32.35 34.20 36.16 38.22 40.41Depreciation Rs Lakh 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17Interest on term loan Rs Lakh 52.20 47.66 43.12 38.58 34.04 29.50 24.96 20.42 15.89 11.35 6.81 2.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 3.34 3.27 3.20 3.14 3.07 3.01 2.95 2.89 2.83 2.78 2.90 2.85 2.27 2.34 2.41 2.48 2.56 2.64 2.73 2.82 2.91 3.02 3.13 3.24 3.36Return on Equity Rs Lakh 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35Total Fixed Cost Rs Lakh 133.15 129.15 125.18 121.25 117.37 113.53 109.73 105.99 102.29 98.65 102.38 98.86 71.52 72.78 74.10 75.50 76.98 78.54 80.19 81.94 83.79 85.74 87.80 89.99 92.29
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation Unit Levellised 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
O&M expn Rs/kWh 0.69 0.49 0.51 0.54 0.57 0.61 0.64 0.68 0.72 0.76 0.80 0.85 0.90 0.95 1.00 1.06 1.12 1.18 1.25 1.32 1.40 1.48 1.56 1.65 1.75 1.85Depreciation Rs/kWh 1.33 1.59 1.59 1.59 1.59 1.59 1.59 1.59 1.59 1.59 1.59 1.59 1.59 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42Int. on term loan Rs/kWh 1.18 2.38 2.18 1.97 1.76 1.55 1.35 1.14 0.93 0.73 0.52 0.31 0.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.14 0.15 0.15 0.15 0.14 0.14 0.14 0.13 0.13 0.13 0.13 0.13 0.13 0.10 0.11 0.11 0.11 0.12 0.12 0.12 0.13 0.13 0.14 0.14 0.15 0.15RoE Rs/kWh 1.59 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.47 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.80Total COG per unit Rs/kWh 4.93 6.08 5.90 5.72 5.54 5.36 5.18 5.01 4.84 4.67 4.50 4.68 4.51 3.27 3.32 3.38 3.45 3.51 3.59 3.66 3.74 3.83 3.92 4.01 4.11 4.21
Levellised
Discount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143 0.129 0.117 0.105 0.095 0.086
Levellised Tariff 4.94 Rs/Unit
JKSERCPage 54
Accelerated Depreciation
Depreciation amount 90%
Book Depreciation rate 5.28%
Tax Depreciation rate 15%
Additional Depreciation 20.00%
Income Tax (Normal Rates) 33.990%
Capital Cost 595.881
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%
Book Depreciation Rs Lakh 15.74 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 17.17 0.00 0.00
Accelerated Depreciation
Opening % 100.00% 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91%
Allowed during the year % 17.50% 20.63% 9.28% 7.89% 6.71% 5.70% 4.84% 4.12% 3.50% 2.98% 2.53% 2.15% 1.83% 1.55% 1.32% 1.12% 0.95% 0.81% 0.69% 0.59%
Closing % 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91% 3.32%
Accelerated Deprn. Rs Lakh 104.34 122.97 55.34 47.04 39.98 33.98 28.89 24.55 20.87 17.74 15.08 12.82 10.89 9.26 7.87 6.69 5.69 4.83 4.11 3.49
Net Depreciation Benefit Rs Lakh 88.60 91.49 23.86 15.56 8.50 2.50 -2.59 -6.93 -10.61 -13.74 -16.40 -18.66 -20.59 -22.22 -23.61 -24.79 -25.79 -12.34 4.11 3.49
Tax Benefit Rs Lakh 30.65 31.66 8.25 5.38 2.94 0.87 -0.90 -2.40 -3.67 -4.75 -5.67 -6.46 -7.12 -7.69 -8.17 -8.58 -8.92 -4.27 1.42 1.21
Energy generation MU 1.10 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19 2.19
Per unit benefit Rs/Unit 2.80 1.45 0.38 0.25 0.13 0.04 -0.04 -0.11 -0.17 -0.22 -0.26 -0.29 -0.33 -0.35 -0.37 -0.39 -0.41 -0.19 0.06 0.06
Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.41 0.37 0.34 0.30 0.27 0.25 0.22 0.20 0.18 0.16 0.15
Tax Benefit Levellised 5.93 Rs Lakh
Electricity Generation (Levellised) 2.07 MU
Levellised benefit 0.29 Rs/Unit
JKSERC Page 55
Annexure 1 (d)Wind Power Projects (Wind Zone 4)
Assumptions
S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount
1 Power GenerationCapacity
Installed Power Generation Capacity MW 1Capacity Utilization Factor % 30%Auxiliary consumption % 0.00%
Useful Life Years 25
2 Project Cost Base Year (FY 2013-14) Rs Lacs 575Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 596.216
Capital subsidy (if any) Rs Lacs 0
Net capital cost Rs Lacs 596
3 Sources of FundTariff Period Years 13
Debt: EquityDebt % 70%Equity % 30%Total Debt Amount Rs Lacs 417.35Total Equity Amout Rs Lacs 178.86
Debt ComponentLoan Amount Rs Lacs 417Moratorium Period years 0Repayment Period(incld Moratorium) years 12Interest Rate % 13.05%
Equity ComponentEquity amount Rs Lacs 179Return on Equity for first 10 years % p.a 18.0%RoE Period Year 10Return on Equity 11th year onwards % p.a 22.0%Weighted average of ROE % 20.4%
Discount Rate (WACC) % 10.77%
4 Financial AssumptionsFiscal Assumptions
Income Tax % 34.60%MAT Rate (for first 10 years) % 21.34%80 IA benefits Yes/No Yes
DepreciationDepreciation Rate for first 12 years % 5.83%Depreciation Rate 13th year onwards % 1.54%Years for 5.83% rate Years 12
Salvage value % 10%
5 Working CapitalFor Fixed ChargesO&M Charges Months 1Maintenance Spare (% of O&M exepenses) % 15%Receivables for Debtors Months 2on energy chargesInterest On Working Capital % 13.55%
6 Operation & MaintenanceBase Year - FY 2013-14 Rs Lakh 9.00FY 2016-17 10.63Total O & M Expenses Escalation % 5.72%
7 Incentives (if any)GBI Rs Lakh p.a. 0.00
Period for GBI Years 0.00
JKSERC Page 56
Determination of Tariff Component
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Gross/Net Generation MU 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63
Tariff Components
(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
O&M Expenses Rs Lakh 10.63 11.24 11.89 12.57 13.28 14.04 14.85 15.70 16.59 17.54 18.55 19.61 20.73 21.92 23.17 24.49 25.90 27.38 28.94 30.60 32.35 34.20 36.16 38.22 40.41Depreciation Rs Lakh 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17Interest on term loan Rs Lakh 52.20 47.66 43.12 38.58 34.04 29.50 24.96 20.42 15.89 11.35 6.81 2.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 3.34 3.27 3.20 3.14 3.07 3.01 2.95 2.89 2.83 2.78 2.90 2.85 2.27 2.34 2.41 2.48 2.56 2.64 2.73 2.82 2.91 3.02 3.13 3.24 3.36Return on Equity Rs Lakh 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35Total Fixed Cost Rs Lakh 133.15 129.15 125.18 121.25 117.37 113.53 109.73 105.99 102.29 98.65 102.38 98.86 71.52 72.78 74.10 75.50 76.98 78.54 80.19 81.94 83.79 85.74 87.80 89.99 92.29
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation Unit Levellised 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
O&M expn Rs/kWh 0.57 0.40 0.43 0.45 0.48 0.51 0.53 0.56 0.60 0.63 0.67 0.71 0.75 0.79 0.83 0.88 0.93 0.99 1.04 1.10 1.16 1.23 1.30 1.38 1.45 1.54Depreciation Rs/kWh 1.11 1.32 1.32 1.32 1.32 1.32 1.32 1.32 1.32 1.32 1.32 1.32 1.32 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35Int. on term loan Rs/kWh 0.98 1.99 1.81 1.64 1.47 1.30 1.12 0.95 0.78 0.60 0.43 0.26 0.09 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.11 0.13 0.12 0.12 0.12 0.12 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.09 0.09 0.09 0.09 0.10 0.10 0.10 0.11 0.11 0.11 0.12 0.12 0.13RoE Rs/kWh 1.32 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50Total COG per unit Rs/kWh 4.11 5.07 4.91 4.76 4.61 4.47 4.32 4.18 4.03 3.89 3.75 3.90 3.76 2.72 2.77 2.82 2.87 2.93 2.99 3.05 3.12 3.19 3.26 3.34 3.42 3.51
Levellised
Discount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143 0.129 0.117 0.105 0.095 0.086
Levellised Tariff 4.11 Rs/Unit
JKSERC Page 57
Accelerated Depreciation
Depreciation amount 90%
Book Depreciation rate 5.28%
Tax Depreciation rate 15%
Additional Depreciation 20.00%
Income Tax (Normal Rates) 33.990%
Capital Cost 595.881
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%
Book Depreciation Rs Lakh 15.74 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 17.17 0.00 0.00
Accelerated Depreciation
Opening % 100.00% 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91%
Allowed during the year % 17.50% 20.63% 9.28% 7.89% 6.71% 5.70% 4.84% 4.12% 3.50% 2.98% 2.53% 2.15% 1.83% 1.55% 1.32% 1.12% 0.95% 0.81% 0.69% 0.59%
Closing % 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91% 3.32%
Accelerated Deprn. Rs Lakh 104.34 122.97 55.34 47.04 39.98 33.98 28.89 24.55 20.87 17.74 15.08 12.82 10.89 9.26 7.87 6.69 5.69 4.83 4.11 3.49
Net Depreciation Benefit Rs Lakh 88.60 91.49 23.86 15.56 8.50 2.50 -2.59 -6.93 -10.61 -13.74 -16.40 -18.66 -20.59 -22.22 -23.61 -24.79 -25.79 -12.34 4.11 3.49
Tax Benefit Rs Lakh 30.65 31.66 8.25 5.38 2.94 0.87 -0.90 -2.40 -3.67 -4.75 -5.67 -6.46 -7.12 -7.69 -8.17 -8.58 -8.92 -4.27 1.42 1.21
Energy generation MU 1.31 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63
Per unit benefit Rs/Unit 2.33 1.20 0.31 0.20 0.11 0.03 -0.03 -0.09 -0.14 -0.18 -0.22 -0.25 -0.27 -0.29 -0.31 -0.33 -0.34 -0.16 0.05 0.05
Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.41 0.37 0.34 0.30 0.27 0.25 0.22 0.20 0.18 0.16 0.15
Tax Benefit Levellised 5.93 Rs Lakh
Electricity Generation (Levellised) 2.48 MU
Levellised benefit 0.24 Rs/Unit
JKSERC Page 58
Annexure 1.(e)Wind Power Projects (Wind Zone 5)
Assumptions
S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount
1 Power GenerationCapacity
Installed Power Generation Capacity MW 1
Capacity Utilization Factor % 32%
Auxiliary consumption % 0.00%
Useful Life Years 25
2 Project Cost Base Year (FY 2013-14) Rs Lacs 575
Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 596.216
Capital subsidy (if any) Rs Lacs 0
Net capital cost Rs Lacs 596
3 Sources of FundTariff Period Years 13
Debt: Equity
Debt % 70%
Equity % 30%
Total Debt Amount Rs Lacs 417.35
Total Equity Amout Rs Lacs 178.86
Debt Component
Loan Amount Rs Lacs 417
Moratorium Period years 0
Repayment Period(incld Moratorium) years 12
Interest Rate % 13.05%
Equity Component
Equity amount Rs Lacs 179
Return on Equity for first 10 years % p.a 18.0%
RoE Period Year 10
Return on Equity 11th year onwards % p.a 22.0%
Weighted average of ROE % 20.4%
Discount Rate (WACC) % 10.77%
4 Financial AssumptionsFiscal Assumptions
Income Tax % 34.60%
MAT Rate (for first 10 years) % 21.34%
80 IA benefits Yes/No Yes
Depreciation
Depreciation Rate for first 12 years % 5.83%
Depreciation Rate 13th year onwards % 1.54%
Years for 5.83% rate Years 12
Salvage value % 10%
5 Working CapitalFor Fixed Charges
O&M Charges Months 1
Maintenance Spare (% of O&M exepenses) % 15%
Receivables for Debtors Months 2
on energy charges
Interest On Working Capital % 13.55%
6 Operation & MaintenanceBase Year - FY 2013-14 Rs Lakh 9.00
FY 2016-17 10.63
Total O & M Expenses Escalation % 5.72%
7 Incentives (if any)GBI Rs Lakh p.a. 0.00
Period for GBI Years 0.00
JKSERC Page 59
Determination of Tariff Component
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Gross/Net Generation MU 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80
Tariff Components
(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25O&M Expenses Rs Lakh 10.63 11.24 11.89 12.57 13.28 14.04 14.85 15.70 16.59 17.54 18.55 19.61 20.73 21.92 23.17 24.49 25.90 27.38 28.94 30.60 32.35 34.20 36.16 38.22 40.41Depreciation Rs Lakh 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 34.78 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17 9.17Interest on term loan Rs Lakh 52.20 47.66 43.12 38.58 34.04 29.50 24.96 20.42 15.89 11.35 6.81 2.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 3.34 3.27 3.20 3.14 3.07 3.01 2.95 2.89 2.83 2.78 2.90 2.85 2.27 2.34 2.41 2.48 2.56 2.64 2.73 2.82 2.91 3.02 3.13 3.24 3.36Return on Equity Rs Lakh 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 32.20 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35 39.35Total Fixed Cost Rs Lakh 133.15 129.15 125.18 121.25 117.37 113.53 109.73 105.99 102.29 98.65 102.38 98.86 71.52 72.78 74.10 75.50 76.98 78.54 80.19 81.94 83.79 85.74 87.80 89.99 92.29
Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit Levellised 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25O&M expn Rs/kWh 0.54 0.38 0.40 0.42 0.45 0.47 0.50 0.53 0.56 0.59 0.63 0.66 0.70 0.74 0.78 0.83 0.87 0.92 0.98 1.03 1.09 1.15 1.22 1.29 1.36 1.44Depreciation Rs/kWh 1.04 1.24 1.24 1.24 1.24 1.24 1.24 1.24 1.24 1.24 1.24 1.24 1.24 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33Int. on term loan Rs/kWh 0.92 1.86 1.70 1.54 1.38 1.21 1.05 0.89 0.73 0.57 0.40 0.24 0.08 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.11 0.12 0.12 0.11 0.11 0.11 0.11 0.11 0.10 0.10 0.10 0.10 0.10 0.08 0.08 0.09 0.09 0.09 0.09 0.10 0.10 0.10 0.11 0.11 0.12 0.12RoE Rs/kWh 1.24 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.40Total COG per unit Rs/kWh 3.85 4.75 4.61 4.47 4.33 4.19 4.05 3.91 3.78 3.65 3.52 3.65 3.53 2.55 2.60 2.64 2.69 2.75 2.80 2.86 2.92 2.99 3.06 3.13 3.21 3.29
LevellisedDiscount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143 0.129 0.117 0.105 0.095 0.086Levellised Tariff 3.86 Rs/Unit
JKSERC Page 60
Accelerated Depreciation
Depreciation amount 90%
Book Depreciation rate 5.28%
Tax Depreciation rate 15%
Additional Depreciation 20.00%
Income Tax (Normal Rates) 33.990%
Capital Cost 595.881
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%
Book Depreciation Rs Lakh 15.74 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 31.48 17.17 0.00 0.00
Accelerated Depreciation
Opening % 100.00% 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91%
Allowed during the year % 17.50% 20.63% 9.28% 7.89% 6.71% 5.70% 4.84% 4.12% 3.50% 2.98% 2.53% 2.15% 1.83% 1.55% 1.32% 1.12% 0.95% 0.81% 0.69% 0.59%
Closing % 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91% 3.32%
Accelerated Deprn. Rs Lakh 104.34 122.97 55.34 47.04 39.98 33.98 28.89 24.55 20.87 17.74 15.08 12.82 10.89 9.26 7.87 6.69 5.69 4.83 4.11 3.49
Net Depreciation Benefit Rs Lakh 88.60 91.49 23.86 15.56 8.50 2.50 -2.59 -6.93 -10.61 -13.74 -16.40 -18.66 -20.59 -22.22 -23.61 -24.79 -25.79 -12.34 4.11 3.49
Tax Benefit Rs Lakh 30.65 31.66 8.25 5.38 2.94 0.87 -0.90 -2.40 -3.67 -4.75 -5.67 -6.46 -7.12 -7.69 -8.17 -8.58 -8.92 -4.27 1.42 1.21
Energy generation MU 1.40 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80 2.80
Per unit benefit Rs/Unit 2.19 1.13 0.29 0.19 0.10 0.03 -0.03 -0.09 -0.13 -0.17 -0.20 -0.23 -0.25 -0.27 -0.29 -0.31 -0.32 -0.15 0.05 0.04
Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.41 0.37 0.34 0.30 0.27 0.25 0.22 0.20 0.18 0.16 0.15
Tax Benefit Levellised 5.93 Rs Lakh
Electricity Generation (Levellised) 2.65 MU
Levellised benefit 0.22 Rs/Unit
JKSERC Page 61
Annexure 2 (a)
Small Hydro Power Projects (capacity below 5 MW)
Assumptions
S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount
1 Power GenerationCapacity
Installed Power Generation Capacity MW 1
Capacity Utilization Factor % 45%Auxiliary Consumption % 1.00%Useful Life Years 35
2 Project Cost Base Year (FY 2013-14) Rs Lacs 770.00
Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 798.41
MNRE subsidy (if any) Rs Lacs 0
Net capital cost Rs Lacs 798.41
3 Sources of FundTariff Period Years 35
Debt: Equity
Debt % 70%
Equity % 30%
Total Debt Amount Rs Lacs 558.888
Total Equity Amout Rs Lacs 239.523
Debt Component
Net Loan Amount ( after accounting for MNRE subsidy)Rs Lacs 559
Moratorium Period years 0
Repayment Period (incld Moratorium) years 12
Interest Rate % 13.05%
Equity Component
Equity amount Rs Lacs 240
Return on Equity for first 10 years % p.a 18.0%
RoE Period Year 10
Return on Equity 11th year onwards % p.a 22.0%
Weighted average of ROE % 20.9%
Discount Rate (WACC) % 10.77%
4 Financial AssumptionsFiscal Assumptions
Income Tax % 34.600%
MAT Rate (for first 10 years) % 21.34%
80 IA benefits Yes/No Yes
Depreciation
Depreciation Rate for first 12 years % 5.83%
Depreciation Rate 13th year onwards % 0.87%
Years for 5.83% rate Years 12
Salvage value % 10%
5 Working CapitalFor Fixed Charges
O&M Charges Months 1
Maintenance Spare (% of O&M exepenses) % 15%
Receivables for Debtors Months 2
on energy charges
Interest On Working Capital % 13.55%
6 Operation & MaintenanceBase Year - FY 2013-14 Rs Lakh 25.00
FY 2016-17 29.54
Total O & M Expenses Escalation % 5.72%
7 Incentives (if any)GBI Rs Lakh p.a. 0.00
Period for GBI Years 0.00
JKSERC Page 62
Determination of Tariff Component
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Net Generation MU 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90
Tariff Components
(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35O&M Expenses Rs Lakh 29.54 31.23 33.02 34.90 36.90 39.01 41.24 43.60 46.10 48.73 51.52 54.47 57.58 60.88 64.36 68.04 71.93 76.05 80.40 85.00 89.86 95.00 100.43 106.18 112.25 118.67 125.46 132.63 140.22 148.24 156.72 165.69 175.16 185.18 195.77Depreciation Rs Lakh 46.57 46.57 46.57 46.57 46.57 46.57 46.57 46.57 46.57 46.57 46.57 46.57 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94Interest on term loan Rs Lakh 69.90 63.82 57.74 51.66 45.58 39.51 33.43 27.35 21.27 15.19 9.12 3.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 5.33 5.28 5.24 5.20 5.17 5.15 5.13 5.12 5.12 5.13 5.36 5.38 4.57 4.75 4.95 5.15 5.37 5.59 5.84 6.09 6.36 6.65 6.95 7.27 7.60 7.96 8.33 8.73 9.15 9.60 10.07 10.57 11.09 11.65 12.23Return on Equity Rs Lakh 43.11 43.11 43.11 43.11 43.11 43.11 43.11 43.11 43.11 43.11 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70 52.70Total Fixed Cost Rs Lakh 194.45 190.01 185.68 181.46 177.35 173.35 169.49 165.76 162.18 158.74 165.27 162.16 121.79 125.27 128.94 132.83 136.94 141.28 145.87 150.72 155.86 161.28 167.02 173.08 179.49 186.27 193.43 201.00 209.01 217.48 226.43 235.89 245.89 256.47 267.65
Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit Levellised 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35O&M expn Rs/kWh 1.00 0.76 0.80 0.85 0.89 0.95 1.00 1.06 1.12 1.18 1.25 1.32 1.40 1.48 1.56 1.65 1.74 1.84 1.95 2.06 2.18 2.30 2.43 2.57 2.72 2.88 3.04 3.21 3.40 3.59 3.80 4.02 4.25 4.49 4.75 5.02Depreciation Rs/kWh 1.02 1.19 1.19 1.19 1.19 1.19 1.19 1.19 1.19 1.19 1.19 1.19 1.19 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18Int. on term loan Rs/kWh 0.94 1.79 1.64 1.48 1.32 1.17 1.01 0.86 0.70 0.55 0.39 0.23 0.08 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.13 0.14 0.14 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.13 0.14 0.14 0.12 0.12 0.13 0.13 0.14 0.14 0.15 0.16 0.16 0.17 0.18 0.19 0.19 0.20 0.21 0.22 0.23 0.25 0.26 0.27 0.28 0.30 0.31RoE Rs/kWh 1.18 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35Total COG per unit Rs/kWh 4.27 4.98 4.87 4.76 4.65 4.54 4.44 4.34 4.25 4.16 4.07 4.23 4.16 3.12 3.21 3.30 3.40 3.51 3.62 3.74 3.86 3.99 4.13 4.28 4.44 4.60 4.77 4.96 5.15 5.36 5.57 5.80 6.04 6.30 6.57 6.86
LevellisedDiscount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143 0.129 0.117 0.105 0.095 0.086 0.077 0.070 0.063 0.057 0.051 0.046 0.042 0.038 0.034 0.031Levellised Tariff 4.40 Rs/Unit
JKSERC Page 63
Accelerated DepreciationDepreciation amount 90%Book Depreciation rate 5.28%Tax Depreciation rate 80%Additional Depreciation 20.00%Income Tax (Normal Rates) 33.99%Capital Cost 797.962
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%Book Depreciation Rs Lakh 21.08 42.16 42.16 42.16 42.16 42.16 42.16 42.16 42.16 42.16 42.16 42.16 42.16 42.16 42.16 42.16 42.16 22.99 0.00 0.00
Accelerated DepreciationOpening % 100% 50% 5% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Accelrated Deprn. Rs Lakh 399.21 359.29 31.94 6.39 1.28 0.26 0.05 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Depreciation Benefit Rs Lakh 378.13 317.13 -10.22 -35.77 -40.88 -41.90 -42.11 -42.15 -42.15 -42.16 -42.16 -42.16 -42.16 -42.16 -42.16 -42.16 -42.16 -22.99 0.00 0.00Tax Benefit Rs Lakh 130.83 109.73 -3.54 -12.38 -14.14 -14.50 -14.57 -14.58 -14.59 -14.59 -14.59 -14.59 -14.59 -14.59 -14.59 -14.59 -14.59 -7.96 0.00 0.00Energy generation MU 1.95 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90Per unit benefit Rs/Unit 6.70 2.81 -0.09 -0.32 -0.36 -0.37 -0.37 -0.37 -0.37 -0.37 -0.37 -0.37 -0.37 -0.37 -0.37 -0.37 -0.37 -0.20 0.00 0.00Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.41 0.37 0.34 0.30 0.27 0.25 0.22 0.20 0.18 0.16 0.15Tax Benefit Levellised 14.30 Rs LakhElectricity Generation (Levellised) 3.71 MULevellised benefit 0.39 Rs/Unit
JKSERC Page 64
Annexure 2 (b)
Small Hydro Power Projects (capacity 5 MW and upto 25 MW)
Assumptions
S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount
1 Power GenerationCapacity
Installed Power Generation Capacity MW 6
Capacity Utilization Factor % 45%Auxiliary Consumption % 1.00%Useful Life Years 35
2 Project Cost Base Year (FY 2013-14) Rs Lacs 4200
Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 4355
MNRE subsidy (if any) Rs Lacs 0
Net capital cost Rs Lacs 4355
3 Sources of FundTariff Period Years 13
Debt: Equity
Debt % 70%
Equity % 30%
Total Debt Amount Rs Lacs 3,048.480
Total Equity Amout Rs Lacs 1,306.492
Debt Component
Net Loan Amount ( after accounting for MNRE subsidy)Rs Lacs 3,048
Moratorium Period years 0
Repayment Period (incld Moratorium) years 12
Interest Rate % 13.05%
Equity Component
Equity amount Rs Lacs 1306
Return on Equity for first 10 years % p.a 18.0%
RoE Period Year 10
Return on Equity 11th year onwards % p.a 22.0%
Weighted average of ROE % 20.9%
Discount Rate (WACC) % 10.77%
4 Financial AssumptionsFiscal Assumptions
Income Tax % 34.600%
MAT Rate (for first 10 years) % 21.34%
80 IA benefits Yes/No Yes
Depreciation
Depreciation Rate for first 12 years % 5.83%
Depreciation Rate 13th year onwards % 0.87%
Years for 5.83% rate Years 12
Salvage value % 10%
5 Working CapitalFor Fixed Charges
O&M Charges Months 1
Maintenance Spare (% of O&M exepenses) % 15%
Receivables for Debtors Months 2
on energy charges
Interest On Working Capital % 13.55%
6 Operation & MaintenanceBase Year - FY 2013-14 Rs Lakh 108.00
FY 2016-17 127.61
Total O & M Expenses Escalation % 5.72%
7 Incentives (if any)GBI Rs Lakh p.a. 0.00
Period for GBI Years 0.00
JKSERC Page 65
Determination of Tariff Component
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35Installed Capacity MW 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6Net Generation MU 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42
Tariff Components(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35O&M Expenses Rs Lakh 127.61 134.91 142.63 150.79 159.41 168.53 178.17 188.36 199.14 210.53 222.57 235.30 248.76 262.99 278.03 293.94 310.75 328.52 347.32 367.18 388.18 410.39 433.86 458.68 484.92 512.65 541.98 572.98 605.75 640.40 677.03 715.76 756.70 799.98 845.74Depreciation Rs Lakh 254.04 254.04 254.04 254.04 254.04 254.04 254.04 254.04 254.04 254.04 254.04 254.04 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87 37.87Interest on term loan Rs Lakh 381.25 348.10 314.95 281.79 248.64 215.49 182.34 149.19 116.03 82.88 49.73 16.58 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 27.19 26.83 26.49 26.18 25.89 25.63 25.40 25.20 25.03 24.89 26.00 25.94 21.31 22.10 22.93 23.82 24.75 25.73 26.78 27.88 29.04 30.27 31.57 32.95 34.41 35.94 37.57 39.29 41.11 43.03 45.06 47.21 49.48 51.88 54.41Return on Equity Rs Lakh 235.17 235.17 235.17 235.17 235.17 235.17 235.17 235.17 235.17 235.17 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43 287.43Total Fixed Cost Rs Lakh 1025.26 999.05 973.27 947.97 923.15 898.86 875.11 851.95 829.41 807.51 839.77 819.29 595.37 610.39 626.26 643.05 660.79 679.55 699.39 720.36 742.52 765.96 790.74 816.93 844.62 873.90 904.84 937.57 972.16 1008.73 1047.39 1088.26 1131.48 1177.16 1225.46
Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit Levellised 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35O&M expn Rs/kWh 0.72 0.54 0.58 0.61 0.64 0.68 0.72 0.76 0.80 0.85 0.90 0.95 1.00 1.06 1.12 1.19 1.26 1.33 1.40 1.48 1.57 1.66 1.75 1.85 1.96 2.07 2.19 2.31 2.45 2.59 2.73 2.89 3.06 3.23 3.42 3.61Depreciation Rs/kWh 0.92 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16Int. on term loan Rs/kWh 0.85 1.63 1.49 1.35 1.20 1.06 0.92 0.78 0.64 0.50 0.35 0.21 0.07 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.11 0.12 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.09 0.09 0.10 0.10 0.11 0.11 0.11 0.12 0.12 0.13 0.13 0.14 0.15 0.15 0.16 0.17 0.18 0.18 0.19 0.20 0.21 0.22 0.23RoE Rs/kWh 1.08 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23Total COG per unit Rs/kWh 3.69 4.38 4.27 4.16 4.05 3.94 3.84 3.74 3.64 3.54 3.45 3.59 3.50 2.54 2.61 2.67 2.75 2.82 2.90 2.99 3.08 3.17 3.27 3.38 3.49 3.61 3.73 3.86 4.00 4.15 4.31 4.47 4.65 4.83 5.03 5.23
LevellisedDiscount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143 0.129 0.117 0.105 0.095 0.086 0.077 0.070 0.063 0.057 0.051 0.046 0.042 0.038 0.034 0.031Levellised Tariff 3.73 Rs/Unit
JKSERC Page 66
Accelerated DepreciationDepreciation amount 90%Book Depreciation rate 5.28%Tax Depreciation rate 80%Additional Depreciation 20.00%Income Tax (Normal Rates) 33.99%Capital Cost 4352.521
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%Book Depreciation Rs Lakh 114.97 229.94 229.94 229.94 229.94 229.94 229.94 229.94 229.94 229.94 229.94 229.94 229.94 229.94 229.94 229.94 229.94 125.42 0.00 0.00
Accelerated DepreciationOpening % 100% 50% 5% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Accelrated Deprn. Rs Lakh 2177.49 1959.74 174.20 34.84 6.97 1.39 0.28 0.06 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Depreciation Benefit Rs Lakh 2062.51 1729.79 -55.74 -195.10 -222.97 -228.55 -229.66 -229.89 -229.93 -229.94 -229.94 -229.94 -229.94 -229.94 -229.94 -229.94 -229.94 -125.42 0.00 0.00Tax Benefit Rs Lakh 713.63 598.51 -19.29 -67.51 -77.15 -79.08 -79.46 -79.54 -79.56 -79.56 -79.56 -79.56 -79.56 -79.56 -79.56 -79.56 -79.56 -43.40 0.00 0.00Energy generation MU 11.71 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42 23.42Per unit benefit Rs/Unit 6.10 2.56 -0.08 -0.29 -0.33 -0.34 -0.34 -0.34 -0.34 -0.34 -0.34 -0.34 -0.34 -0.34 -0.34 -0.34 -0.34 -0.19 0.00 0.00Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.41 0.37 0.34 0.30 0.27 0.25 0.22 0.20 0.18 0.16 0.15Tax Benefit Levellised 77.99 Rs LakhElectricity Generation (Levellised) 22.25 MULevellised benefit 0.35 Rs/Unit
JKSERC Page 67
Annexure 2.(c)
Levellised Tariff w/o
Acc Dep benefitAcc Dep benefit
Levellised Tariff with
Acc Dep benefit
Rs/kWh Rs/kWh Rs/kWh
1 4.173 0.386 3.788
2 4.173 0.386 3.788
3 4.173 0.386 3.788
4 4.211 0.386 3.825
5 3.582 0.351 3.231
6 3.606 0.351 3.256
7 3.624 0.351 3.274
8 3.637 0.351 3.287
9 3.648 0.351 3.297
10 3.656 0.351 3.306
11 3.663 0.351 3.312
12 3.669 0.351 3.318
13 3.673 0.351 3.323
14 3.677 0.351 3.327
15 3.681 0.351 3.330
16 3.684 0.351 3.334
17 3.687 0.351 3.336
18 3.689 0.351 3.339
19 3.691 0.351 3.341
20 3.691 0.351 3.341
21 3.695 0.351 3.345
22 3.697 0.351 3.346
23 3.698 0.351 3.348
24 3.700 0.351 3.349
25 3.701 0.351 3.350
Capacity (in
MW)
Levellised Tariff for Small Hydro Projects after considering MNRE subsidy
( for private/co-operative/joint sector)
JKSERC Page 68
Annexure 2 (d)
Levellised Tariff w/o
Acc Dep benefitAcc Dep benefit
Levellised Tariff with
Acc Dep benefit
Rs/kWh Rs/kWh Rs/kWh
1 3.564 0.386 3.178
2 3.564 0.386 3.178
3 3.564 0.386 3.178
4 3.652 0.386 3.266
5 3.134 0.351 2.784
6 3.234 0.351 2.883
7 3.305 0.351 2.954
8 3.358 0.351 3.007
9 3.399 0.351 3.049
10 3.432 0.351 3.082
11 3.460 0.351 3.109
12 3.482 0.351 3.132
13 3.501 0.351 3.151
14 3.518 0.351 3.167
15 3.532 0.351 3.181
16 3.544 0.351 3.194
17 3.555 0.351 3.205
18 3.565 0.351 3.214
19 3.574 0.351 3.223
20 3.580 0.351 3.229
21 3.589 0.351 3.238
22 3.595 0.351 3.245
23 3.601 0.351 3.250
24 3.606 0.351 3.256
25 3.611 0.351 3.261
Levellised Tariff for Small Hydro Projects after considering MNRE subsidy
( for Government/ State sector)
Capacity (in
MW)
JKSERC Page 69
Annexure 3ARice straw and Juliflora (plantation) based project with water cooled condenser and using Travelling Grate boiler
Assumptions
S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount
1 Power GenerationCapacity
Installed Power Generation Capacity MW 1Plant Load Factor % 80%Auxiliary consumption (1st Year) % 11.00%Auxiliary consumption (2nd Year onwards) % 10.00%Commercial operation date mm/yyyy Apr-14
Useful Life Years 20
2 Project Cost Base Year (FY 2013-14) Rs Lacs 590Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 610.82
Capital subsidy (if any) Rs Lacs 0
Net capital cost Rs Lacs 610.82
3 Sources of FundTariff Period Years 13
Debt: EquityDebt % 70%Equity % 30%Total Debt Amount Rs Lacs 427.572Total Equity Amout Rs Lacs 183.245
Debt ComponentLoan Amount Rs Lacs 428Moratorium Period years 0Repayment Period(incld Moratorium) years 12Interest Rate % 13.05%
Equity ComponentEquity amount Rs Lacs 183Return on Equity for first 10 years % p.a 18.0%RoE Period Year 10Return on Equity 11th year onwards % p.a 22.0%Weighted average of ROE % 20.0%
Discount Rate (WACC) % 10.77%
4 Financial AssumptionsFiscal Assumptions
Income Tax % 34.60%MAT Rate (for first 10 years) % 21.34%80 IA benefits Yes/No Yes
DepreciationDepreciation Rate for first 12 years % 5.83%Depreciation Rate 13th year onwards % 2.50%Years for 5.83% rate Years 12
Salvage value % 10%
5 Working CapitalFor Fixed ChargesO&M Charges Months 1Maintenance Spare (% of O&M exepenses) % 15%Receivables for Debtors Months 2Fuel cost Months 4Interest On Working Capital % 13.55%
6 Operation & MaintenanceBase Year - FY 2013-14 Rs Lakh 40.00FY 2016-17 47.26Total O & M Expenses Escalation % 5.72%
7 Fuel related component
Heat Rate After Stabilisation period Kcal/kwh 4126During Stablization Period Kcal/kwh 4126
Biomass Base Price(FY 2013-14) Rs/T 2500FY 2014-15 Rs/T 2773FY 2015-16 Rs/T 2986FY 2016-17 Rs/T 2833GCV - Biomass Kcal/kg 3174Biomass Price Escalation Factor 5%
8 Incentives (if any)GBI Rs Lakh p.a. 0.00
Period for GBI Years 0.00
JKSERC Page 70
Determination of Tariff Component1 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Net Generation MU 5.07 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31
Vaiable Cost Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Biomass Cost Rs Lakh 209.70 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09
Tariff Components(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20O&M Expenses Rs Lakh 47.26 49.97 52.83 55.85 59.04 62.42 65.99 69.76 73.75 77.97 82.43 87.15 92.13 97.40 102.97 108.87 115.09 121.68 128.64 135.99Depreciation Rs Lakh 35.63 35.63 35.63 35.63 35.63 35.63 35.63 35.63 35.63 35.63 35.63 35.63 15.27 15.27 15.27 15.27 15.27 15.27 15.27 15.27Interest on term loan Rs Lakh 53.47 48.82 44.17 39.52 34.87 30.22 25.57 20.92 16.27 11.62 6.97 2.32 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 19.98 23.37 23.42 23.48 23.55 23.63 23.72 23.83 23.94 24.07 24.38 24.53 24.28 24.57 24.88 25.21 25.56 25.92 26.31 26.71Return on Equity Rs Lakh 32.98 32.98 32.98 32.98 32.98 32.98 32.98 32.98 32.98 32.98 40.31 40.31 40.31 40.31 40.31 40.31 40.31 40.31 40.31 40.31Total Fixed Cost Rs Lakh 189.33 190.78 189.04 187.47 186.09 184.89 183.90 183.13 182.58 182.28 189.73 189.95 172.00 177.56 183.44 189.66 196.23 203.18 210.53 218.29
Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Variable cost Rs/kWh 4.14 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09O&M expn Rs/kWh 0.93 0.79 0.84 0.89 0.94 0.99 1.05 1.11 1.17 1.24 1.31 1.38 1.46 1.54 1.63 1.73 1.82 1.93 2.04 2.16Depreciation Rs/kWh 0.70 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24Int. on term loan Rs/kWh 1.06 0.77 0.70 0.63 0.55 0.48 0.41 0.33 0.26 0.18 0.11 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.39 0.37 0.37 0.37 0.37 0.37 0.38 0.38 0.38 0.38 0.39 0.39 0.38 0.39 0.39 0.40 0.41 0.41 0.42 0.42RoE Rs/kWh 0.65 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.64 0.64 0.64 0.64 0.64 0.64 0.64 0.64 0.64 0.64Total COG per unit Rs/kWh 7.87 7.12 7.09 7.06 7.04 7.02 7.01 7.00 6.99 6.98 7.10 7.10 6.82 6.91 7.00 7.10 7.20 7.31 7.43 7.55
Discount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143Variable cost 4.10 Rs/UnitLevellised Tariff (Fixed) 3.06 Rs/UnitLevellised Tariff (for TariffPeriod) 7.16 Rs/Unit
JKSERCPage 71
Accelerated DepreciationDepreciation amount 90%Book Depreciation rate 5.28%Tax Depreciation rate 80%Additional Depreciation 20.00%Income Tax (Normal Rates) 34.60%Capital Cost 610.82
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%Book Depreciation Rs Lakh 16.13 32.25 32.25 32.25 32.25 32.25 32.25 32.25 32.25 32.25 32.25 32.25 32.25 32.25 32.25 32.25 32.25 17.59 0.00 0.00
Accelerated DepreciationOpening % 100% 50% 5% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Accelrated Deprn. Rs Lakh 305.41 274.87 24.43 4.89 0.98 0.20 0.04 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Depreciation Benefit Rs Lakh 289.28 242.62 -7.82 -27.36 -31.27 -32.06 -32.21 -32.24 -32.25 -32.25 -32.25 -32.25 -32.25 -32.25 -32.25 -32.25 -32.25 -17.59 0.00 0.00Tax Benefit Rs Lakh 100.09 83.95 -2.71 -9.47 -10.82 -11.09 -11.15 -11.16 -11.16 -11.16 -11.16 -11.16 -11.16 -11.16 -11.16 -11.16 -11.16 -6.09 0.00 0.00Energy generation MU 2.53 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.42 0.38 0.34 0.31 0.28 0.25 0.23 0.20 0.18 0.17 0.15Tax Benefit Levellised 12.27 Rs LakhElectricity Generation (Levellised) 5.89 MULevellised benefit 0.21 Rs/Unit
JKSERC
Page 72
Annexure 3B
Rice straw and Juliflora (plantation) based project with air cooled condenser and using Travelling Grate boiler
Assumptions
S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount
1 Power GenerationCapacity
Installed Power Generation Capacity MW 1Plant Load Factor % 80%Auxiliary consumption (1st Year) % 13.00%Auxiliary consumption (2nd Year onwards) % 12.00%
Useful Life Years 20
2 Project Cost Base Year (FY 2013-14) Rs Lacs 630Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 652.23
Capital subsidy (if any) Rs Lacs 0
Net capital cost Rs Lacs 652.23
3 Sources of FundTariff Period Years 13
Debt: EquityDebt % 70%Equity % 30%Total Debt Amount Rs Lacs 456.560Total Equity Amout Rs Lacs 195.669
Debt ComponentLoan Amount Rs Lacs 457Moratorium Period years 0Repayment Period(incld Moratorium) years 12Interest Rate % 13.05%
Equity ComponentEquity amount Rs Lacs 196Return on Equity for first 10 years % p.a 18.0%RoE Period Year 10Return on Equity 11th year onwards % p.a 22.0%Weighted average of ROE % 20.0%
Discount Rate (WACC) % 10.77%
4 Financial AssumptionsFiscal Assumptions
Income Tax % 34.60%MAT Rate (for first 10 years) % 21.34%80 IA benefits Yes/No Yes
DepreciationDepreciation Rate for first 12 years % 5.83%Depreciation Rate 13th year onwards % 2.50%Years for 5.83% rate Years 12
Salvage value % 10%
5 Working CapitalFor Fixed ChargesO&M Charges Months 1Maintenance Spare (% of O&M exepenses) % 15%Receivables for Debtors Months 2Fuel cost Months 4Interest On Working Capital % 13.55%
6 Operation & MaintenanceBase Year - FY 2013-14 Rs Lakh 40.00FY 2016-17 47.26Total O & M Expenses Escalation % 5.72%
7 Fuel related componentHeat Rate After Stabilisation period Kcal/kwh 4126
During Stablization Period Kcal/kwh 4126
Biomass Base Price(FY 2013-14) Rs/T 2500FY 2014-15 Rs/T 2773FY 2015-16 Rs/T 2986FY 2016-17 Rs/T 2833GCV - Biomass Kcal/kg 3174Biomass Price Escalation Factor 5%
8 Incentives (if any)GBI Rs Lakh p.a. 0.00
Period for GBI Years 0.00
JKSERCPage 73
Determination of Tariff Component1 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Net Generation MU 4.95 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17
Vaiable Cost Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Biomass Cost Rs Lakh 209.70 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09
Tariff Components(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20O&M Expenses Rs Lakh 47.26 49.97 52.83 55.85 59.04 62.42 65.99 69.76 73.75 77.97 82.43 87.15 92.13 97.40 102.97 108.87 115.09 121.68 128.64 135.99Depreciation Rs Lakh 38.05 38.05 38.05 38.05 38.05 38.05 38.05 38.05 38.05 38.05 38.05 38.05 16.31 16.31 16.31 16.31 16.31 16.31 16.31 16.31Interest on term loan Rs Lakh 57.10 52.13 47.17 42.20 37.24 32.27 27.31 22.34 17.38 12.41 7.45 2.48 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 20.17 23.56 23.60 23.65 23.72 23.79 23.87 23.97 24.07 24.19 24.51 24.65 24.37 24.66 24.97 25.30 25.64 26.01 26.39 26.80Return on Equity Rs Lakh 35.22 35.22 35.22 35.22 35.22 35.22 35.22 35.22 35.22 35.22 43.05 43.05 43.05 43.05 43.05 43.05 43.05 43.05 43.05 43.05Total Fixed Cost Rs Lakh 197.80 198.93 196.86 194.97 193.26 191.75 190.44 189.34 188.47 187.85 195.48 195.38 175.86 181.42 187.30 193.52 200.09 207.04 214.38 222.15
Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Variable cost Rs/kWh 4.23 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18O&M expn Rs/kWh 0.95 0.81 0.86 0.91 0.96 1.01 1.07 1.13 1.20 1.26 1.34 1.41 1.49 1.58 1.67 1.77 1.87 1.97 2.09 2.21Depreciation Rs/kWh 0.77 0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26Int. on term loan Rs/kWh 1.15 0.85 0.76 0.68 0.60 0.52 0.44 0.36 0.28 0.20 0.12 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.41 0.38 0.38 0.38 0.38 0.39 0.39 0.39 0.39 0.39 0.40 0.40 0.40 0.40 0.40 0.41 0.42 0.42 0.43 0.43RoE Rs/kWh 0.71 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.70 0.70 0.70 0.70 0.70 0.70 0.70 0.70 0.70 0.70Total COG per unit Rs/kWh 8.23 7.41 7.38 7.35 7.32 7.29 7.27 7.26 7.24 7.23 7.35 7.35 7.04 7.13 7.22 7.32 7.43 7.54 7.66 7.79
Discount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143Variable cost 4.19 Rs/UnitLevellised Tariff (Fixed) 3.24 Rs/UnitLevellised Tariff (for TariffPeriod) 7.43 Rs/Unit
JKSERCPage 74
Accelerated DepreciationDepreciation amount 90%Book Depreciation rate 5.28%Tax Depreciation rate 80%Additional Depreciation 20.00%Income Tax (Normal Rates) 34.60%Capital Cost 652.23
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%Book Depreciation Rs Lakh 17.22 34.44 34.44 34.44 34.44 34.44 34.44 34.44 34.44 34.44 34.44 34.44 34.44 34.44 34.44 34.44 34.44 18.78 0.00 0.00
Accelerated DepreciationOpening % 100% 50% 5% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Accelrated Deprn. Rs Lakh 326.11 293.50 26.09 5.22 1.04 0.21 0.04 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Depreciation Benefit Rs Lakh 308.90 259.07 -8.35 -29.22 -33.39 -34.23 -34.40 -34.43 -34.44 -34.44 -34.44 -34.44 -34.44 -34.44 -34.44 -34.44 -34.44 -18.78 0.00 0.00Tax Benefit Rs Lakh 106.88 89.64 -2.89 -10.11 -11.55 -11.84 -11.90 -11.91 -11.91 -11.92 -11.92 -11.92 -11.92 -11.92 -11.92 -11.92 -11.92 -6.50 0.00 0.00Energy generation MU 2.48 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.42 0.38 0.34 0.31 0.28 0.25 0.23 0.20 0.18 0.17 0.15Tax Benefit Levellised 13.10 Rs LakhElectricity Generation (Levellised) 5.75 MULevellised benefit 0.23 Rs/Unit
JKSERC Page 75
Annexure 3C
Rice straw and Juliflora (plantation) based project with water cooled condenser and using AFBC boiler
Assumptions
S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount
1 Power GenerationCapacity
Installed Power Generation Capacity MW 1Plant Load Factor % 80%Auxiliary consumption (1st Year) % 11.00%Auxiliary consumption (2nd Year onwards) % 10.00%Commercial operation date mm/yyyy Apr-14
Useful Life Years 20
2 Project Cost Base Year (FY 2013-14) Rs Lacs 590Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 610.82
Capital subsidy (if any) Rs Lacs 0
Net capital cost Rs Lacs 610.82
3 Sources of FundTariff Period Years 13
Debt: EquityDebt % 70%Equity % 30%Total Debt Amount Rs Lacs 427.572Total Equity Amout Rs Lacs 183.245
Debt ComponentLoan Amount Rs Lacs 428Moratorium Period years 0Repayment Period(incld Moratorium) years 12Interest Rate % 13.05%
Equity ComponentEquity amount Rs Lacs 183Return on Equity for first 10 years % p.a 18.0%RoE Period Year 10Return on Equity 11th year onwards % p.a 22.0%Weighted average of ROE % 20.0%
Discount Rate (WACC) % 10.77%
4 Financial AssumptionsFiscal Assumptions
Income Tax % 34.60%MAT Rate (for first 10 years) % 21.34%80 IA benefits Yes/No Yes
DepreciationDepreciation Rate for first 12 years % 5.83%Depreciation Rate 13th year onwards % 2.50%Years for 5.83% rate Years 12
Salvage value % 10%
5 Working CapitalFor Fixed ChargesO&M Charges Months 1Maintenance Spare (% of O&M exepenses) % 15%Receivables for Debtors Months 2Fuel cost Months 4Interest On Working Capital % 13.55%
6 Operation & MaintenanceBase Year - FY 2013-14 Rs Lakh 40.00FY 2016-17 47.26Total O & M Expenses Escalation % 5.72%
7 Fuel related componentHeat Rate After Stabilisation period Kcal/kwh 4063
During Stablization Period Kcal/kwh 4063
Biomass Base Price(FY 2013-14) Rs/T 2500FY 2014-15 Rs/T 2773FY 2015-16 Rs/T 2986
12 Rs/T 2833GCV - Biomass Kcal/kg 3174Biomass Price Escalation Factor 5%
8 Incentives (if any)GBI Rs Lakh p.a. 0.00
Period for GBI Years 0.00
JKSERCPage 76
Determination of Tariff Component1 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Net Generation MU 5.07 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31
Vaiable Cost Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Biomass Cost Rs Lakh 206.49 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15
Tariff Components(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20O&M Expenses Rs Lakh 47.26 49.97 52.83 55.85 59.04 62.42 65.99 69.76 73.75 77.97 82.43 87.15 92.13 97.40 102.97 108.87 115.09 121.68 128.64 135.99Depreciation Rs Lakh 35.63 35.63 35.63 35.63 35.63 35.63 35.63 35.63 35.63 35.63 35.63 35.63 15.27 15.27 15.27 15.27 15.27 15.27 15.27 15.27Interest on term loan Rs Lakh 53.47 48.82 44.17 39.52 34.87 30.22 25.57 20.92 16.27 11.62 6.97 2.32 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 19.75 23.10 23.15 23.21 23.28 23.36 23.45 23.55 23.67 23.79 24.10 24.26 24.01 24.30 24.61 24.94 25.28 25.65 26.03 26.44Return on Equity Rs Lakh 32.98 32.98 32.98 32.98 32.98 32.98 32.98 32.98 32.98 32.98 40.31 40.31 40.31 40.31 40.31 40.31 40.31 40.31 40.31 40.31Total Fixed Cost Rs Lakh 189.11 190.51 188.77 187.20 185.81 184.62 183.63 182.86 182.31 182.01 189.46 189.68 171.73 177.29 183.17 189.39 195.96 202.91 210.25 218.02
Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Variable cost Rs/kWh 4.07 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03O&M expn Rs/kWh 0.93 0.79 0.84 0.89 0.94 0.99 1.05 1.11 1.17 1.24 1.31 1.38 1.46 1.54 1.63 1.73 1.82 1.93 2.04 2.16Depreciation Rs/kWh 0.70 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24Int. on term loan Rs/kWh 1.06 0.77 0.70 0.63 0.55 0.48 0.41 0.33 0.26 0.18 0.11 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.39 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.38 0.38 0.38 0.38 0.38 0.39 0.39 0.40 0.40 0.41 0.41 0.42RoE Rs/kWh 0.65 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.64 0.64 0.64 0.64 0.64 0.64 0.64 0.64 0.64 0.64Total COG per unit Rs/kWh 7.81 7.05 7.02 7.00 6.98 6.96 6.94 6.93 6.92 6.92 7.03 7.04 6.75 6.84 6.93 7.03 7.14 7.25 7.36 7.49
Discount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143Variable cost 4.03 Rs/UnitLevellised Tariff (Fixed) 3.05 Rs/UnitLevellised Tariff (for TariffPeriod) 7.08 Rs/Unit
JKSERCPage 77
Accelerated DepreciationDepreciation amount 90%Book Depreciation rate 5.28%Tax Depreciation rate 80%Additional Depreciation 20.00%Income Tax (Normal Rates) 34.60%Capital Cost 610.82
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%Book Depreciation Rs Lakh 16.13 32.25 32.25 32.25 32.25 32.25 32.25 32.25 32.25 32.25 32.25 32.25 32.25 32.25 32.25 32.25 32.25 17.59 0.00 0.00
Accelerated DepreciationOpening % 100% 50% 5% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Accelrated Deprn. Rs Lakh 305.41 274.87 24.43 4.89 0.98 0.20 0.04 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Depreciation Benefit Rs Lakh 289.28 242.62 -7.82 -27.36 -31.27 -32.06 -32.21 -32.24 -32.25 -32.25 -32.25 -32.25 -32.25 -32.25 -32.25 -32.25 -32.25 -17.59 0.00 0.00Tax Benefit Rs Lakh 100.09 83.95 -2.71 -9.47 -10.82 -11.09 -11.15 -11.16 -11.16 -11.16 -11.16 -11.16 -11.16 -11.16 -11.16 -11.16 -11.16 -6.09 0.00 0.00Energy generation MU 2.53 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.42 0.38 0.34 0.31 0.28 0.25 0.23 0.20 0.18 0.17 0.15Tax Benefit Levellised 12.27 Rs LakhElectricity Generation (Levellised) 5.89 MULevellised benefit 0.21 Rs/Unit
JKSERCPage 78
Annexure 3D
Rice straw and Juliflora (plantation) based project with air cooled condenser and using AFBC boiler
Assumptions
S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount
1 Power GenerationCapacity
Installed Power Generation Capacity MW 1Plant Load Factor % 80%Auxiliary consumption (1st Year) % 13.00%Auxiliary consumption (2nd Year onwards) % 12.00%
Useful Life Years 20
2 Project Cost Base Year (FY 2013-14) Rs Lacs 630Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 652.23
Capital subsidy (if any) Rs Lacs 0
Net capital cost Rs Lacs 652.23
3 Sources of FundTariff Period Years 13
Debt: EquityDebt % 70%Equity % 30%Total Debt Amount Rs Lacs 456.560Total Equity Amout Rs Lacs 195.669
Debt ComponentLoan Amount Rs Lacs 457Moratorium Period years 0Repayment Period(incld Moratorium) years 12Interest Rate % 13.05%
Equity ComponentEquity amount Rs Lacs 196Return on Equity for first 10 years % p.a 18.0%RoE Period Year 10Return on Equity 11th year onwards % p.a 22.0%Weighted average of ROE % 20.0%
Discount Rate (WACC) % 10.77%
4 Financial AssumptionsFiscal Assumptions
Income Tax % 34.60%MAT Rate (for first 10 years) % 21.34%80 IA benefits Yes/No Yes
DepreciationDepreciation Rate for first 12 years % 5.83%Depreciation Rate 13th year onwards % 2.50%Years for 5.83% rate Years 12
Salvage value % 10%
5 Working CapitalFor Fixed ChargesO&M Charges Months 1Maintenance Spare (% of O&M exepenses) % 15%Receivables for Debtors Months 2Fuel cost Months 4Interest On Working Capital % 13.55%
6 Operation & MaintenanceBase Year - FY 2013-14 Rs Lakh 40.00FY 2016-17 47.26Total O & M Expenses Escalation % 5.72%
7 Fuel related componentHeat Rate After Stabilisation period Kcal/kwh 4063
During Stablization Period Kcal/kwh 4063
Biomass Base Price(FY 2013-14) Rs/T 2500FY 2014-15 Rs/T 2773FY 2015-16 Rs/T 2986FY 2016-17 Rs/T 2833GCV - Biomass Kcal/kg 3174Biomass Price Escalation Factor 5%
8 Incentives (if any)GBI Rs Lakh p.a. 0.00
Period for GBI Years 0.00
JKSERC Page 79
Determination of Tariff Component1 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Net Generation MU 4.95 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17
Vaiable Cost Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Biomass Cost Rs Lakh 206.49 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15
Tariff Components(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20O&M Expenses Rs Lakh 47.26 49.97 52.83 55.85 59.04 62.42 65.99 69.76 73.75 77.97 82.43 87.15 92.13 97.40 102.97 108.87 115.09 121.68 128.64 135.99Depreciation Rs Lakh 38.05 38.05 38.05 38.05 38.05 38.05 38.05 38.05 38.05 38.05 38.05 38.05 16.31 16.31 16.31 16.31 16.31 16.31 16.31 16.31Interest on term loan Rs Lakh 57.10 52.13 47.17 42.20 37.24 32.27 27.31 22.34 17.38 12.41 7.45 2.48 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 19.95 23.28 23.33 23.38 23.44 23.52 23.60 23.69 23.80 23.92 24.23 24.38 24.10 24.39 24.70 25.02 25.37 25.73 26.12 26.53Return on Equity Rs Lakh 35.22 35.22 35.22 35.22 35.22 35.22 35.22 35.22 35.22 35.22 43.05 43.05 43.05 43.05 43.05 43.05 43.05 43.05 43.05 43.05Total Fixed Cost Rs Lakh 197.58 198.65 196.59 194.70 192.99 191.48 190.16 189.07 188.20 187.57 195.21 195.10 175.58 181.15 187.03 193.24 199.81 206.76 214.11 221.87
Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Variable cost Rs/kWh 4.17 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12O&M expn Rs/kWh 0.95 0.81 0.86 0.91 0.96 1.01 1.07 1.13 1.20 1.26 1.34 1.41 1.49 1.58 1.67 1.77 1.87 1.97 2.09 2.21Depreciation Rs/kWh 0.77 0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26Int. on term loan Rs/kWh 1.15 0.85 0.76 0.68 0.60 0.52 0.44 0.36 0.28 0.20 0.12 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.40 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.39 0.39 0.39 0.40 0.39 0.40 0.40 0.41 0.41 0.42 0.42 0.43RoE Rs/kWh 0.71 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.70 0.70 0.70 0.70 0.70 0.70 0.70 0.70 0.70 0.70Total COG per unit Rs/kWh 8.16 7.34 7.31 7.28 7.25 7.23 7.20 7.19 7.17 7.16 7.29 7.28 6.97 7.06 7.15 7.25 7.36 7.47 7.59 7.72
Discount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143Variable cost 4.13 Rs/UnitLevellised Tariff (Fixed) 3.23 Rs/UnitLevellised Tariff (for TariffPeriod) 7.36 Rs/Unit
JKSERC Page 80
Accelerated DepreciationDepreciation amount 90%Book Depreciation rate 5.28%Tax Depreciation rate 80%Additional Depreciation 20.00%Income Tax (Normal Rates) 34.60%Capital Cost 652.23
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%Book Depreciation Rs Lakh 17.22 34.44 34.44 34.44 34.44 34.44 34.44 34.44 34.44 34.44 34.44 34.44 34.44 34.44 34.44 34.44 34.44 18.78 0.00 0.00
Accelerated DepreciationOpening % 100% 50% 5% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Accelrated Deprn. Rs Lakh 326.11 293.50 26.09 5.22 1.04 0.21 0.04 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Depreciation Benefit Rs Lakh 308.90 259.07 -8.35 -29.22 -33.39 -34.23 -34.40 -34.43 -34.44 -34.44 -34.44 -34.44 -34.44 -34.44 -34.44 -34.44 -34.44 -18.78 0.00 0.00Tax Benefit Rs Lakh 106.88 89.64 -2.89 -10.11 -11.55 -11.84 -11.90 -11.91 -11.91 -11.92 -11.92 -11.92 -11.92 -11.92 -11.92 -11.92 -11.92 -6.50 0.00 0.00Energy generation MU 2.48 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.42 0.38 0.34 0.31 0.28 0.25 0.23 0.20 0.18 0.17 0.15Tax Benefit Levellised 13.10 Rs LakhElectricity Generation (Levellised) 5.75 MULevellised benefit 0.23 Rs/Unit
JKSERC Page 81
Annexure 3E
Assumptions
S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount
1 Power GenerationCapacity
Installed Power Generation Capacity MW 1Plant Load Factor % 80%Auxiliary consumption (1st Year) % 11.00%Auxiliary consumption (2nd Year onwards) % 10.00%Commercial operation date mm/yyyy Apr-14
Useful Life Years 20
2 Project Cost Base Year (FY 2013-14) Rs Lacs 540Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 559.05
Capital subsidy (if any) Rs Lacs 0
Net capital cost Rs Lacs 559.05
3 Sources of FundTariff Period Years 13
Debt: EquityDebt % 70%Equity % 30%Total Debt Amount Rs Lacs 391.337Total Equity Amout Rs Lacs 167.716
Debt ComponentLoan Amount Rs Lacs 391Moratorium Period years 0Repayment Period(incld Moratorium) years 12Interest Rate % 13.05%
Equity ComponentEquity amount Rs Lacs 168Return on Equity for first 10 years % p.a 18.0%RoE Period Year 10Return on Equity 11th year onwards % p.a 22.0%Weighted average of ROE % 20.0%
Discount Rate (WACC) % 10.77%
4 Financial AssumptionsFiscal Assumptions
Income Tax % 34.60%MAT Rate (for first 10 years) % 21.34%80 IA benefits Yes/No Yes
DepreciationDepreciation Rate for first 12 years % 5.83%Depreciation Rate 13th year onwards % 2.50%Years for 5.83% rate Years 12
Salvage value % 10%
5 Working CapitalFor Fixed ChargesO&M Charges Months 1Maintenance Spare (% of O&M exepenses) % 15%Receivables for Debtors Months 2Fuel cost Months 4Interest On Working Capital % 13.55%
6 Operation & MaintenanceBase Year - FY 2013-14 Rs Lakh 40.00FY 2016-17 47.26Total O & M Expenses Escalation % 5.72%
7 Fuel related componentHeat Rate After Stabilisation period Kcal/kwh 4126
During Stablization Period Kcal/kwh 4126
Biomass Base Price(FY 2013-14) Rs/T 2500FY 2014-15 Rs/T 2773FY 2015-16 Rs/T 2986FY 2016-17 Rs/T 2833GCV - Biomass Kcal/kg 3174Biomass Price Escalation Factor 5%
8 Incentives (if any)GBI Rs Lakh p.a. 0.00
Period for GBI Years 0.00
Other than Rice straw and Juliflora (plantation) based project with water cooled condenser and using Travelling Grate boiler
JKSERCPage 81
Determination of Tariff Component1 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Net Generation MU 5.07 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31
Vaiable Cost Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Biomass Cost Rs Lakh 209.70 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09
Tariff Components(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20O&M Expenses Rs Lakh 47.26 49.97 52.83 55.85 59.04 62.42 65.99 69.76 73.75 77.97 82.43 87.15 92.13 97.40 102.97 108.87 115.09 121.68 128.64 135.99Depreciation Rs Lakh 32.61 32.61 32.61 32.61 32.61 32.61 32.61 32.61 32.61 32.61 32.61 32.61 13.98 13.98 13.98 13.98 13.98 13.98 13.98 13.98Interest on term loan Rs Lakh 48.94 44.69 40.43 36.17 31.92 27.66 23.41 19.15 14.90 10.64 6.38 2.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 19.74 23.14 23.20 23.27 23.35 23.44 23.54 23.65 23.77 23.91 24.21 24.38 24.17 24.47 24.78 25.10 25.45 25.81 26.20 26.61Return on Equity Rs Lakh 30.19 30.19 30.19 30.19 30.19 30.19 30.19 30.19 30.19 30.19 36.90 36.90 36.90 36.90 36.90 36.90 36.90 36.90 36.90 36.90Total Fixed Cost Rs Lakh 178.74 180.60 179.26 178.10 177.11 176.32 175.74 175.37 175.22 175.32 182.54 183.16 167.18 172.74 178.62 184.84 191.41 198.36 205.71 213.47
Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Variable cost Rs/kWh 4.14 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09 4.09O&M expn Rs/kWh 0.93 0.79 0.84 0.89 0.94 0.99 1.05 1.11 1.17 1.24 1.31 1.38 1.46 1.54 1.63 1.73 1.82 1.93 2.04 2.16Depreciation Rs/kWh 0.64 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22Int. on term loan Rs/kWh 0.97 0.71 0.64 0.57 0.51 0.44 0.37 0.30 0.24 0.17 0.10 0.03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.39 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.38 0.38 0.38 0.39 0.38 0.39 0.39 0.40 0.40 0.41 0.42 0.42RoE Rs/kWh 0.60 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59Total COG per unit Rs/kWh 7.67 6.96 6.93 6.92 6.90 6.89 6.88 6.87 6.87 6.87 6.99 7.00 6.74 6.83 6.92 7.02 7.13 7.24 7.35 7.48
Discount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143Variable cost 4.10 Rs/UnitLevellised Tariff (Fixed) 2.92 Rs/UnitLevellised Tariff (for TariffPeriod) 7.02 Rs/Unit
JKSERC Page 82
Accelerated DepreciationDepreciation amount 90%Book Depreciation rate 5.28%Tax Depreciation rate 80%Additional Depreciation 20.00%Income Tax (Normal Rates) 34.60%Capital Cost 559.05
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%Book Depreciation Rs Lakh 14.76 29.52 29.52 29.52 29.52 29.52 29.52 29.52 29.52 29.52 29.52 29.52 29.52 29.52 29.52 29.52 29.52 16.10 0.00 0.00
Accelerated DepreciationOpening % 100% 50% 5% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Accelrated Deprn. Rs Lakh 279.53 251.57 22.36 4.47 0.89 0.18 0.04 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Depreciation Benefit Rs Lakh 264.77 222.06 -7.16 -25.05 -28.62 -29.34 -29.48 -29.51 -29.52 -29.52 -29.52 -29.52 -29.52 -29.52 -29.52 -29.52 -29.52 -16.10 0.00 0.00Tax Benefit Rs Lakh 91.61 76.83 -2.48 -8.67 -9.90 -10.15 -10.20 -10.21 -10.21 -10.21 -10.21 -10.21 -10.21 -10.21 -10.21 -10.21 -10.21 -5.57 0.00 0.00Energy generation MU 2.53 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.42 0.38 0.34 0.31 0.28 0.25 0.23 0.20 0.18 0.17 0.15Tax Benefit Levellised 11.23 Rs LakhElectricity Generation (Levellised) 5.89 MULevellised benefit 0.19 Rs/Unit
JKSERC Page 83
Annexure 3F
Assumptions
S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount
1 Power GenerationCapacity
Installed Power Generation Capacity MW 1Plant Load Factor % 80%Auxiliary consumption (1st Year) % 13.00%Auxiliary consumption (2nd Year onwards) % 12.00%
Useful Life Years 20
2 Project Cost Base Year (FY 2013-14) Rs Lacs 580Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 600.46
Capital subsidy (if any) Rs Lacs 0
Net capital cost Rs Lacs 600.46
3 Sources of FundTariff Period Years 13
Debt: EquityDebt % 70%Equity % 30%Total Debt Amount Rs Lacs 420.325Total Equity Amout Rs Lacs 180.139
Debt ComponentLoan Amount Rs Lacs 420Moratorium Period years 0Repayment Period(incld Moratorium) years 12Interest Rate % 13.05%
Equity ComponentEquity amount Rs Lacs 180Return on Equity for first 10 years % p.a 18.0%RoE Period Year 10Return on Equity 11th year onwards % p.a 22.0%Weighted average of ROE % 20.0%
Discount Rate (WACC) % 10.77%
4 Financial AssumptionsFiscal Assumptions
Income Tax % 34.60%MAT Rate (for first 10 years) % 21.34%80 IA benefits Yes/No Yes
DepreciationDepreciation Rate for first 12 years % 5.83%Depreciation Rate 13th year onwards % 2.50%Years for 5.83% rate Years 12
Salvage value % 10%
5 Working CapitalFor Fixed ChargesO&M Charges Months 1Maintenance Spare (% of O&M exepenses) % 15%Receivables for Debtors Months 2Fuel cost Months 4Interest On Working Capital % 13.55%
6 Operation & MaintenanceBase Year - FY 2013-14 Rs Lakh 40.00FY 2016-17 47.26Total O & M Expenses Escalation % 5.72%
7 Fuel related componentHeat Rate After Stabilisation period Kcal/kwh 4126
During Stablization Period Kcal/kwh 4126
Biomass Base Price(FY 2013-14) Rs/T 2500FY 2014-15 Rs/T 2773FY 2015-16 Rs/T 2986FY 2016-17 Rs/T 2833GCV - Biomass Kcal/kg 3174Biomass Price Escalation Factor 5%
8 Incentives (if any)GBI Rs Lakh p.a. 0.00
Period for GBI Years 0.00
Other than Rice straw and Juliflora (plantation) based project with air cooled condenser and using Travelling Grate boiler
JKSERCPage 84
Determination of Tariff Component1 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Net Generation MU 4.95 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17
Vaiable Cost Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Biomass Cost Rs Lakh 209.70 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09 258.09Per unit Var Cost Rs/kWh 4.23 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18
Tariff Components(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20O&M Expenses Rs Lakh 47.26 49.97 52.83 55.85 59.04 62.42 65.99 69.76 73.75 77.97 82.43 87.15 92.13 97.40 102.97 108.87 115.09 121.68 128.64 135.99Depreciation Rs Lakh 35.03 35.03 35.03 35.03 35.03 35.03 35.03 35.03 35.03 35.03 35.03 35.03 15.01 15.01 15.01 15.01 15.01 15.01 15.01 15.01Interest on term loan Rs Lakh 52.57 48.00 43.42 38.85 34.28 29.71 25.14 20.57 16.00 11.43 6.86 2.29 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 19.93 23.33 23.38 23.44 23.51 23.60 23.69 23.79 23.91 24.04 24.34 24.50 24.26 24.55 24.86 25.19 25.53 25.90 26.29 26.69Return on Equity Rs Lakh 32.43 32.43 32.43 32.43 32.43 32.43 32.43 32.43 32.43 32.43 39.63 39.63 39.63 39.63 39.63 39.63 39.63 39.63 39.63 39.63Total Fixed Cost Rs Lakh 187.21 188.74 187.08 185.60 184.29 183.18 182.27 181.58 181.11 180.89 188.29 188.59 171.04 176.60 182.48 188.70 195.27 202.22 209.56 217.33
Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Variable cost Rs/kWh 4.23 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18 4.18O&M expn Rs/kWh 0.95 0.81 0.86 0.91 0.96 1.01 1.07 1.13 1.20 1.26 1.34 1.41 1.49 1.58 1.67 1.77 1.87 1.97 2.09 2.21Depreciation Rs/kWh 0.71 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24Int. on term loan Rs/kWh 1.06 0.78 0.70 0.63 0.56 0.48 0.41 0.33 0.26 0.19 0.11 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.40 0.38 0.38 0.38 0.38 0.38 0.38 0.39 0.39 0.39 0.39 0.40 0.39 0.40 0.40 0.41 0.41 0.42 0.43 0.43RoE Rs/kWh 0.65 0.53 0.53 0.53 0.53 0.53 0.53 0.53 0.53 0.53 0.64 0.64 0.64 0.64 0.64 0.64 0.64 0.64 0.64 0.64Total COG per unit Rs/kWh 8.01 7.25 7.22 7.19 7.17 7.16 7.14 7.13 7.12 7.12 7.24 7.24 6.96 7.05 7.14 7.24 7.35 7.46 7.58 7.71
Discount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143Variable cost 4.19 Rs/UnitLevellised Tariff (Fixed) 3.10 Rs/UnitLevellised Tariff (for TariffPeriod) 7.29 Rs/Unit
JKSERC Page 85
Accelerated DepreciationDepreciation amount 90%Book Depreciation rate 5.28%Tax Depreciation rate 80%Additional Depreciation 20.00%Income Tax (Normal Rates) 34.60%Capital Cost 600.46
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%Book Depreciation Rs Lakh 15.85 31.70 31.70 31.70 31.70 31.70 31.70 31.70 31.70 31.70 31.70 31.70 31.70 31.70 31.70 31.70 31.70 17.29 0.00 0.00
Accelerated DepreciationOpening % 100% 50% 5% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Accelrated Deprn. Rs Lakh 300.23 270.21 24.02 4.80 0.96 0.19 0.04 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Depreciation Benefit Rs Lakh 284.38 238.50 -7.69 -26.90 -30.74 -31.51 -31.67 -31.70 -31.70 -31.70 -31.70 -31.70 -31.70 -31.70 -31.70 -31.70 -31.70 -17.29 0.00 0.00Tax Benefit Rs Lakh 98.40 82.52 -2.66 -9.31 -10.64 -10.90 -10.96 -10.97 -10.97 -10.97 -10.97 -10.97 -10.97 -10.97 -10.97 -10.97 -10.97 -5.98 0.00 0.00Energy generation MU 2.48 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.42 0.38 0.34 0.31 0.28 0.25 0.23 0.20 0.18 0.17 0.15Tax Benefit Levellised 12.06 Rs LakhElectricity Generation (Levellised) 5.75 MULevellised benefit 0.21 Rs/Unit
JKSERC Page 86
Annexure 3G
Other than Rice straw and Juliflora (plantation) based project with water cooled condenser and using AFBC boiler
Assumptions
S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount
1 Power GenerationCapacity
Installed Power Generation Capacity MW 1Plant Load Factor % 80%Auxiliary consumption (1st Year) % 11.00%Auxiliary consumption (2nd Year onwards) % 10.00%Commercial operation date mm/yyyy Apr-14
Useful Life Years 20
2 Project Cost Base Year (FY 2013-14) Rs Lacs 540Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 559.05
Capital subsidy (if any) Rs Lacs 0
Net capital cost Rs Lacs 559.05
3 Sources of FundTariff Period Years 13
Debt: EquityDebt % 70%Equity % 30%Total Debt Amount Rs Lacs 391.337Total Equity Amout Rs Lacs 167.716
Debt ComponentLoan Amount Rs Lacs 391Moratorium Period years 0Repayment Period(incld Moratorium) years 12Interest Rate % 13.05%
Equity ComponentEquity amount Rs Lacs 168Return on Equity for first 10 years % p.a 18.0%RoE Period Year 10Return on Equity 11th year onwards % p.a 22.0%Weighted average of ROE % 20.0%
Discount Rate (WACC) % 10.77%
4 Financial AssumptionsFiscal Assumptions
Income Tax % 34.60%MAT Rate (for first 10 years) % 21.34%80 IA benefits Yes/No Yes
DepreciationDepreciation Rate for first 12 years % 5.83%Depreciation Rate 13th year onwards % 2.50%Years for 5.83% rate Years 12
Salvage value % 10%
5 Working CapitalFor Fixed ChargesO&M Charges Months 1Maintenance Spare (% of O&M exepenses) % 15%Receivables for Debtors Months 2Fuel cost Months 4Interest On Working Capital % 13.55%
6 Operation & MaintenanceBase Year - FY 2013-14 Rs Lakh 40.00FY 2016-17 47.26Total O & M Expenses Escalation % 5.72%
7 Fuel related componentHeat Rate After Stabilisation period Kcal/kwh 4063
During Stablization Period Kcal/kwh 4063
Biomass Base Price(FY 2013-14) Rs/T 2500FY 2014-15 Rs/T 2773FY 2015-16 Rs/T 2986FY 2016-17 Rs/T 2833GCV - Biomass Kcal/kg 3174Biomass Price Escalation Factor 5%
8 Incentives (if any)GBI Rs Lakh p.a. 0.00
Period for GBI Years 0.00
JKSERC Page 87
Determination of Tariff Component1 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Net Generation MU 5.07 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31
Vaiable Cost Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Biomass Cost Rs Lakh 206.49 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15
Tariff Components(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20O&M Expenses Rs Lakh 47.26 49.97 52.83 55.85 59.04 62.42 65.99 69.76 73.75 77.97 82.43 87.15 92.13 97.40 102.97 108.87 115.09 121.68 128.64 135.99Depreciation Rs Lakh 32.61 32.61 32.61 32.61 32.61 32.61 32.61 32.61 32.61 32.61 32.61 32.61 13.98 13.98 13.98 13.98 13.98 13.98 13.98 13.98Interest on term loan Rs Lakh 48.94 44.69 40.43 36.17 31.92 27.66 23.41 19.15 14.90 10.64 6.38 2.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 19.52 22.87 22.93 23.00 23.08 23.17 23.27 23.38 23.50 23.64 23.94 24.10 23.90 24.19 24.50 24.83 25.17 25.54 25.92 26.33Return on Equity Rs Lakh 30.19 30.19 30.19 30.19 30.19 30.19 30.19 30.19 30.19 30.19 36.90 36.90 36.90 36.90 36.90 36.90 36.90 36.90 36.90 36.90Total Fixed Cost Rs Lakh 178.52 180.32 178.99 177.82 176.84 176.05 175.46 175.09 174.95 175.05 182.27 182.89 166.91 172.47 178.35 184.57 191.14 198.09 205.43 213.20
Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Variable cost Rs/kWh 4.07 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03 4.03O&M expn Rs/kWh 0.93 0.79 0.84 0.89 0.94 0.99 1.05 1.11 1.17 1.24 1.31 1.38 1.46 1.54 1.63 1.73 1.82 1.93 2.04 2.16Depreciation Rs/kWh 0.64 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22Int. on term loan Rs/kWh 0.97 0.71 0.64 0.57 0.51 0.44 0.37 0.30 0.24 0.17 0.10 0.03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.39 0.36 0.36 0.36 0.37 0.37 0.37 0.37 0.37 0.37 0.38 0.38 0.38 0.38 0.39 0.39 0.40 0.40 0.41 0.42RoE Rs/kWh 0.60 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59Total COG per unit Rs/kWh 7.60 6.89 6.87 6.85 6.83 6.82 6.81 6.81 6.80 6.80 6.92 6.93 6.68 6.76 6.86 6.96 7.06 7.17 7.29 7.41
Discount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143Variable cost 4.03 Rs/UnitLevellised Tariff (Fixed) 2.92 Rs/UnitLevellised Tariff (for TariffPeriod) 6.95 Rs/Unit
JKSERC Page 88
Accelerated DepreciationDepreciation amount 90%Book Depreciation rate 5.28%Tax Depreciation rate 80%Additional Depreciation 20.00%Income Tax (Normal Rates) 34.60%Capital Cost 559.05
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%Book Depreciation Rs Lakh 14.76 29.52 29.52 29.52 29.52 29.52 29.52 29.52 29.52 29.52 29.52 29.52 29.52 29.52 29.52 29.52 29.52 16.10 0.00 0.00
Accelerated DepreciationOpening % 100% 50% 5% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Accelrated Deprn. Rs Lakh 279.53 251.57 22.36 4.47 0.89 0.18 0.04 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Depreciation Benefit Rs Lakh 264.77 222.06 -7.16 -25.05 -28.62 -29.34 -29.48 -29.51 -29.52 -29.52 -29.52 -29.52 -29.52 -29.52 -29.52 -29.52 -29.52 -16.10 0.00 0.00Tax Benefit Rs Lakh 91.61 76.83 -2.48 -8.67 -9.90 -10.15 -10.20 -10.21 -10.21 -10.21 -10.21 -10.21 -10.21 -10.21 -10.21 -10.21 -10.21 -5.57 0.00 0.00Energy generation MU 2.53 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31 6.31Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.42 0.38 0.34 0.31 0.28 0.25 0.23 0.20 0.18 0.17 0.15Tax Benefit Levellised 11.23 Rs LakhElectricity Generation (Levellised) 5.89 MULevellised benefit 0.19 Rs/Unit
JKSERCPage 89
Annexure 3HOther than Rice straw and Juliflora (plantation) based project with air cooled condenser and using AFBC boiler
Assumptions
S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount
1 Power GenerationCapacity
Installed Power Generation Capacity MW 1Plant Load Factor % 80%Auxiliary consumption (1st Year) % 13.00%Auxiliary consumption (2nd Year onwards) % 12.00%
Useful Life Years 20
2 Project Cost Base Year (FY 2013-14) Rs Lacs 580Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 600.46
Capital subsidy (if any) Rs Lacs 0
Net capital cost Rs Lacs 600.46
3 Sources of FundTariff Period Years 13
Debt: EquityDebt % 70%Equity % 30%Total Debt Amount Rs Lacs 420.325Total Equity Amout Rs Lacs 180.139
Debt ComponentLoan Amount Rs Lacs 420Moratorium Period years 0Repayment Period(incld Moratorium) years 12Interest Rate % 13.05%
Equity ComponentEquity amount Rs Lacs 180Return on Equity for first 10 years % p.a 18.0%RoE Period Year 10Return on Equity 11th year onwards % p.a 22.0%Weighted average of ROE % 20.0%
Discount Rate (WACC) % 10.77%
4 Financial AssumptionsFiscal Assumptions
Income Tax % 34.60%MAT Rate (for first 10 years) % 21.34%80 IA benefits Yes/No Yes
DepreciationDepreciation Rate for first 12 years % 5.83%Depreciation Rate 13th year onwards % 2.50%Years for 5.83% rate Years 12
Salvage value % 10%
5 Working CapitalFor Fixed ChargesO&M Charges Months 1Maintenance Spare (% of O&M exepenses) % 15%Receivables for Debtors Months 2Fuel cost Months 4Interest On Working Capital % 13.55%
6 Operation & MaintenanceBase Year - FY 2013-14 Rs Lakh 40.00FY 2016-17 47.26Total O & M Expenses Escalation % 5.72%
7 Fuel related componentHeat Rate After Stabilisation period Kcal/kwh 4063
During Stablization Period Kcal/kwh 4063
Biomass Base Price(FY 2013-14) Rs/T 2500FY 2014-15 Rs/T 2773FY 2015-16 Rs/T 2986FY 2016-17 Rs/T 2833GCV - Biomass Kcal/kg 3174Biomass Price Escalation Factor 5%
8 Incentives (if any)GBI Rs Lakh p.a. 0.00
Period for GBI Years 0.00
JKSERCPage 90
Determination of Tariff Component1 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Net Generation MU 4.95 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17
Vaiable Cost Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Biomass Cost Rs Lakh 206.49 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15 254.15
Tariff Components(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20O&M Expenses Rs Lakh 47.26 49.97 52.83 55.85 59.04 62.42 65.99 69.76 73.75 77.97 82.43 87.15 92.13 97.40 102.97 108.87 115.09 121.68 128.64 135.99Depreciation Rs Lakh 35.03 35.03 35.03 35.03 35.03 35.03 35.03 35.03 35.03 35.03 35.03 35.03 15.01 15.01 15.01 15.01 15.01 15.01 15.01 15.01Interest on term loan Rs Lakh 52.57 48.00 43.42 38.85 34.28 29.71 25.14 20.57 16.00 11.43 6.86 2.29 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 19.71 23.05 23.11 23.17 23.24 23.32 23.41 23.52 23.63 23.76 24.07 24.23 23.99 24.28 24.59 24.92 25.26 25.63 26.01 26.42Return on Equity Rs Lakh 32.43 32.43 32.43 32.43 32.43 32.43 32.43 32.43 32.43 32.43 39.63 39.63 39.63 39.63 39.63 39.63 39.63 39.63 39.63 39.63Total Fixed Cost Rs Lakh 186.99 188.47 186.81 185.32 184.02 182.91 182.00 181.30 180.84 180.62 188.02 188.32 170.76 176.33 182.21 188.42 195.00 201.94 209.29 217.06
Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Variable cost Rs/kWh 4.17 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12 4.12O&M expn Rs/kWh 0.95 0.81 0.86 0.91 0.96 1.01 1.07 1.13 1.20 1.26 1.34 1.41 1.49 1.58 1.67 1.77 1.87 1.97 2.09 2.21Depreciation Rs/kWh 0.71 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24Int. on term loan Rs/kWh 1.06 0.78 0.70 0.63 0.56 0.48 0.41 0.33 0.26 0.19 0.11 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.40 0.37 0.37 0.38 0.38 0.38 0.38 0.38 0.38 0.39 0.39 0.39 0.39 0.39 0.40 0.40 0.41 0.42 0.42 0.43RoE Rs/kWh 0.65 0.53 0.53 0.53 0.53 0.53 0.53 0.53 0.53 0.53 0.64 0.64 0.64 0.64 0.64 0.64 0.64 0.64 0.64 0.64Total COG per unit Rs/kWh 7.94 7.18 7.15 7.13 7.10 7.09 7.07 7.06 7.05 7.05 7.17 7.17 6.89 6.98 7.08 7.18 7.28 7.40 7.51 7.64
Discount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143Variable cost 4.13 Rs/UnitLevellised Tariff (Fixed) 3.10 Rs/UnitLevellised Tariff (for TariffPeriod) 7.23 Rs/Unit
JKSERC Page 91
Accelerated DepreciationDepreciation amount 90%Book Depreciation rate 5.28%Tax Depreciation rate 80%Additional Depreciation 20.00%Income Tax (Normal Rates) 34.60%Capital Cost 600.46
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%Book Depreciation Rs Lakh 15.85 31.70 31.70 31.70 31.70 31.70 31.70 31.70 31.70 31.70 31.70 31.70 31.70 31.70 31.70 31.70 31.70 17.29 0.00 0.00
Accelerated DepreciationOpening % 100% 50% 5% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Accelrated Deprn. Rs Lakh 300.23 270.21 24.02 4.80 0.96 0.19 0.04 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Depreciation Benefit Rs Lakh 284.38 238.50 -7.69 -26.90 -30.74 -31.51 -31.67 -31.70 -31.70 -31.70 -31.70 -31.70 -31.70 -31.70 -31.70 -31.70 -31.70 -17.29 0.00 0.00Tax Benefit Rs Lakh 98.40 82.52 -2.66 -9.31 -10.64 -10.90 -10.96 -10.97 -10.97 -10.97 -10.97 -10.97 -10.97 -10.97 -10.97 -10.97 -10.97 -5.98 0.00 0.00Energy generation MU 2.48 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.42 0.38 0.34 0.31 0.28 0.25 0.23 0.20 0.18 0.17 0.15Tax Benefit Levellised 12.06 Rs LakhElectricity Generation (Levellised) 5.75 MULevellised benefit 0.21 Rs/Unit
JKSERC Page 92
Annexure 4
Non-fossil Fuel Based Cogeneration Power Projects
Assumptions
S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount
1 Power GenerationCapacity
Installed Power Generation Capacity MW 1
Plant Load Factor % 53%
Auxiliary consumption % 8.50%
Useful Life Years 20
2 Project Cost Base Year (FY 2013-14) Rs Lacs 420
Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 434.82
Capital subsidy (if any) Rs Lacs 0
Net capital cost Rs Lacs 435
3 Sources of FundTariff Period Years 13
Debt: Equity
Debt % 70%
Equity % 30%
Total Debt Amount Rs Lacs 304.373
Total Equity Amout Rs Lacs 130.446
Debt Component
Loan Amount Rs Lacs 304
Moratorium Period years 0
Repayment Period(incld Moratorium) years 12
Interest Rate % 13.05%
Equity Component
Equity amount Rs Lacs 130
Return on Equity for first 10 years % p.a 18.0%
RoE Period Year 10
Return on Equity 11th year onwards % p.a 22.0%
Weighted average of ROE % 20.0%
Discount Rate (WACC) % 10.77%
4 Financial AssumptionsFiscal Assumptions
Income Tax % 34.60%
MAT Rate (for first 10 years) % 21.34%
80 IA benefits Yes/No Yes
Depreciation
Depreciation Rate for first 12 years % 5.83%
Depreciation Rate 13th year onwards % 2.50%
Years for 5.83% rate Years 12
Salvage value % 10%
5 Working CapitalFor Fixed Charges
O&M Charges Months 1
Maintenance Spare (% of O&M exepenses) % 15%
Receivables for Debtors Months 2
Fuel cost Months 4
Interest On Working Capital % 13.55%
6 Operation & MaintenanceBase Year - FY 2013-14 Rs Lakh 16.00
FY 2016-17 18.91
Total O & M Expenses Escalation % 5.72%
7 Fuel related componentHeat Rate After Stabilisation period Kcal/kwh 3600
During Stablization Period Kcal/kwh 3600
Non fossil cogen Base Price(FY 2013-14) Rs/T 1600
FY 2014-15 Rs/T 1775
FY 2015-16 Rs/T 1911
FY 2016-17 Rs/T 1813
GCV Kcal/kg 2250Biomass Price Escalation Factor 5%
8 Incentives (if any)GBI Rs Lakh p.a. 0.00
Period for GBI Years 0.00
JKSERC Page 93
Determination of Tariff Component1 0.902 0.813 0.733 0.661 0.596 0.537 0.484 0.436 0.393 0.355 0.320 0.288 0.260 0.234 0.211 0.190 0.172 0.155 0.140
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Net Generation MU 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25
Vaiable Cost Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Biomass Cost Rs Lakh 134.69 134.69 134.69 134.69 134.69 134.69 134.69 134.69 134.69 134.69 134.69 134.69 134.69 134.69 134.69 134.69 134.69 134.69 134.69 134.69Per unit Var Cost Rs/kWh 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17
Tariff Components
(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20O&M Expenses Rs Lakh 18.91 19.99 21.13 22.34 23.62 24.97 26.40 27.91 29.50 31.19 32.97 34.86 36.85 38.96 41.19 43.55 46.04 48.67 51.45 54.40Depreciation Rs Lakh 25.36 25.36 25.36 25.36 25.36 25.36 25.36 25.36 25.36 25.36 25.36 25.36 10.87 10.87 10.87 10.87 10.87 10.87 10.87 10.87Interest on term loan Rs Lakh 38.07 34.76 31.45 28.14 24.83 21.52 18.21 14.90 11.59 8.28 4.97 1.66 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 12.39 12.38 12.36 12.35 12.35 12.35 12.35 12.36 12.37 12.39 12.53 12.56 12.29 12.41 12.53 12.66 12.80 12.95 13.10 13.27Return on Equity Rs Lakh 23.48 23.48 23.48 23.48 23.48 23.48 23.48 23.48 23.48 23.48 28.70 28.70 28.70 28.70 28.70 28.70 28.70 28.70 28.70 28.70Total Fixed Cost Rs Lakh 118.21 115.96 113.78 111.67 109.63 107.67 105.79 104.00 102.30 100.69 104.53 103.13 88.72 90.94 93.29 95.78 98.41 101.19 104.13 107.23Per unit Fixed Cost Rs/kWh 2.78 2.73 2.68 2.63 2.58 2.53 2.49 2.45 2.41 2.37 2.46 2.43 2.09 2.14 2.20 2.25 2.32 2.38 2.45 2.52
Total cost of generation Rs Lakh 252.90 250.65 248.47 246.36 244.32 242.36 240.48 238.69 236.99 235.38 239.22 237.82 223.40 225.63 227.98 230.47 233.10 235.88 238.81 241.92
Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit Levellised 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Variable cost Rs/kWh 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17 3.17O&M expn Rs/kWh 0.59 0.45 0.47 0.50 0.53 0.56 0.59 0.62 0.66 0.69 0.73 0.78 0.82 0.87 0.92 0.97 1.03 1.08 1.15 1.21 1.28Depreciation Rs/kWh 0.54 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26Int. on term loan Rs/kWh 0.47 0.90 0.82 0.74 0.66 0.58 0.51 0.43 0.35 0.27 0.19 0.12 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.30 0.29 0.29 0.30 0.30 0.30 0.30 0.31 0.31RoE Rs/kWh 0.59 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.68 0.68 0.68 0.68 0.68 0.68 0.68 0.68 0.68 0.68Total COG per unit Rs/kWh 5.59 5.95 5.90 5.85 5.80 5.75 5.71 5.66 5.62 5.58 5.54 5.63 5.60 5.26 5.31 5.37 5.43 5.49 5.55 5.62 5.69
LevellisedDiscount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143Variable cost 3.17 Rs/UnitLevellised Tariff (Fixed) 2.53 Rs/Unit
Levellised Tariff 5.70 Rs/Unit
JKSERCPage 94
Accelerated DepreciationDepreciation amount 90%Book Depreciation rate 5.28%Tax Depreciation rate 80%Additional Depreciation 20.00%Income Tax (Normal Rates) 33.99%Capital Cost 423.26
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%Book Depreciation Rs Lakh 11.48 22.96 22.96 22.96 22.96 22.96 22.96 22.96 22.96 22.96 22.96 22.96 22.96 22.96 22.96 22.96 22.96 12.52 0.00 0.00
Accelerated DepreciationOpening % 100% 50% 5% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Accelrated Deprn. Rs Lakh 217.41 195.67 17.39 3.48 0.70 0.14 0.03 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Depreciation Benefit Rs Lakh 205.93 172.71 -5.57 -19.48 -22.26 -22.82 -22.93 -22.95 -22.96 -22.96 -22.96 -22.96 -22.96 -22.96 -22.96 -22.96 -22.96 -12.52 0.00 0.00Tax Benefit Rs Lakh 71.25 59.76 -1.93 -6.74 -7.70 -7.90 -7.93 -7.94 -7.94 -7.94 -7.94 -7.94 -7.94 -7.94 -7.94 -7.94 -7.94 -4.33 0.00 0.00Energy generation MU 2.12 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.41 0.37 0.34 0.30 0.27 0.25 0.22 0.20 0.18 0.16 0.15Tax Benefit Levellised 8.74 Rs LakhElectricity Generation (Levellised) 4.01 MULevellised benefit 0.22 Rs/Unit
JKSERC
Page 95
Annexure 5Solar PV Power Projects
Assumptions
S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount
1 Power GenerationCapacity
Installed Power Generation Capacity MW 1Capacity Utilization Factor % 19%Auxiliary consumption % 0%
Useful Life Years 25
2 Project Cost Base Year (FY 2013-14) Rs Lacs 530Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 530
Capital subsidy (if any) Rs Lacs 0
Net capital cost Rs Lacs 530
3 Sources of FundTariff Period Years 25
Debt: EquityDebt % 70%Equity % 30%Total Debt Amount Rs Lacs 371.01Total Equity Amout Rs Lacs 159.01
Debt ComponentLoan Amount Rs Lacs 371Moratorium Period years 0Repayment Period(incld Moratorium) years 12Interest Rate % 13.05%
Equity ComponentEquity amount Rs Lacs 159Return on Equity for first 10 years % p.a 18.0%RoE Period Year 10Return on Equity 11th year onwards % p.a 22.0%Weighted average of ROE % 20.4%
Discount Rate (WACC) % 10.77%
4 Financial AssumptionsFiscal Assumptions
Income Tax % 34.60%MAT Rate (for first 10 years) % 21.34%80 IA benefits Yes/ No Yes
DepreciationDepreciation Rate for first 12 years % 5.83%Depreciation Rate 13th year onwards % 1.54%Years for 5.83% rate Years 12
Salvage value % 10%
5 Working CapitalFor Fixed ChargesO&M Charges Months 1Maintenance Spare (% of O&M exepenses) % 15%Receivables for Debtors Months 2on energy chargesInterest On Working Capital % 13.55%
6 Operation & MaintenanceBase Year - FY 2013-14 Rs Lakh 11.00FY 2016-17 7.95Total O & M Expenses Escalation % 5.72%
7 Incentives (if any)GBI Rs Lakh p.a. 0.00
Period for GBI Years 0.00
JKSERC Page 96
Determination of Tariff Component1 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143 0.129 0.117 0.105 0.095 0.086
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Gross/Net Generation MU 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66
Tariff Components(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25O&M Expenses Rs Lakh 7.95 8.41 8.89 9.39 9.93 10.50 11.10 11.74 12.41 13.12 13.87 14.66 15.50 16.38 17.32 18.31 19.36 20.47 21.64 22.88 24.18 25.57 27.03 28.58 30.21Depreciation Rs Lakh 30.92 30.92 30.92 30.92 30.92 30.92 30.92 30.92 30.92 30.92 30.92 30.92 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15Interest on term loan Rs Lakh 46.40 42.37 38.33 34.30 30.26 26.23 22.19 18.16 14.12 10.09 6.05 2.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 2.89 2.82 2.75 2.69 2.63 2.56 2.50 2.45 2.39 2.34 2.43 2.38 1.86 1.91 1.96 2.01 2.07 2.13 2.20 2.27 2.34 2.41 2.50 2.58 2.67Return on Equity Rs Lakh 28.62 28.62 28.62 28.62 28.62 28.62 28.62 28.62 28.62 28.62 34.98 34.98 34.98 34.98 34.98 34.98 34.98 34.98 34.98 34.98 34.98 34.98 34.98 34.98 34.98Total Fixed Cost Rs Lakh 116.78 113.13 109.51 105.92 102.36 98.83 95.33 91.88 88.46 85.08 88.25 84.96 60.49 61.42 62.41 63.46 64.57 65.73 66.97 68.28 69.66 71.12 72.66 74.29 76.02
Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit Levellised 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25O&M expn Rs/kWh 0.76 0.48 0.50 0.53 0.56 0.60 0.63 0.67 0.71 0.75 0.79 0.83 0.88 0.93 0.98 1.04 1.10 1.16 1.23 1.30 1.37 1.45 1.54 1.62 1.72 1.82Depreciation Rs/kWh 1.54 1.86 1.86 1.86 1.86 1.86 1.86 1.86 1.86 1.86 1.86 1.86 1.86 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49 0.49Int. on term loan Rs/kWh 1.34 2.79 2.55 2.30 2.06 1.82 1.58 1.33 1.09 0.85 0.61 0.36 0.12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.15 0.17 0.17 0.17 0.16 0.16 0.15 0.15 0.15 0.14 0.14 0.15 0.14 0.11 0.11 0.12 0.12 0.12 0.13 0.13 0.14 0.14 0.15 0.15 0.16 0.16RoE Rs/kWh 1.84 1.72 1.72 1.72 1.72 1.72 1.72 1.72 1.72 1.72 1.72 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10Total COG per unit Rs/kWh 5.62 7.02 6.80 6.58 6.36 6.15 5.94 5.73 5.52 5.31 5.11 5.30 5.10 3.63 3.69 3.75 3.81 3.88 3.95 4.02 4.10 4.19 4.27 4.37 4.46 4.57
LevellisedDiscount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143 0.129 0.117 0.105 0.095 0.086Levellised Tariff 5.62 Rs/Unit
JKSERC Page 97
Accelerated Depreciation
Depreciation amount 90%
Book Depreciation rate 5.28%
Tax Depreciation rate 80%
Additional Depreciation 20.00%
Income Tax (Normal Rates) 34.60%
Capital Cost 530
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Book Depreciation Rs Lakh 13.99 27.99 27.99 27.99 27.99 27.99 27.99 27.99 27.99 27.99 27.99 27.99 27.99 27.99 27.99 27.99 27.99 15.26 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Accelerated Depreciation
Opening % 100% 50% 5% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Accelrated Deprn. Rs Lakh 265.01 238.51 21.20 4.24 0.85 0.17 0.03 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Depreciation Benefit Rs Lakh 251.02 210.52 -6.78 -23.74 -27.14 -27.82 -27.95 -27.98 -27.98 -27.98 -27.99 -27.99 -27.99 -27.99 -27.99 -27.99 -27.99 -15.26 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Tax Benefit Rs Lakh 86.85 72.84 -2.35 -8.22 -9.39 -9.62 -9.67 -9.68 -9.68 -9.68 -9.68 -9.68 -9.68 -9.68 -9.68 -9.68 -9.68 -5.28 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Energy generation MU 0.83 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66
Per unit benefit Rs/Unit 10.44 4.38 -0.14 -0.49 -0.56 -0.58 -0.58 -0.58 -0.58 -0.58 -0.58 -0.58 -0.58 -0.58 -0.58 -0.58 -0.58 -0.32 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143 0.129 0.117 0.105 0.095 0.086
0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.42 0.38 0.34 0.31 0.28 0.25 0.23 0.20 0.18 0.17 0.15
Tax Benefit Levellised 10.05 Rs Lakh
Electricity Generation (Levellised) 1.58 MU
Levellised benefit 0.64 Rs/Unit
JKSERC Page 98
Annexure 6Solar Thermal Power Projects
Assumptions
S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount
1 Power GenerationCapacity
Installed Power Generation Capacity MW 1Capacity Utilization Factor % 23%Auxiliary consumption % 10.00%
Useful Life Years 25
2 Project Cost Base Year (FY 2013-14) Rs Lacs 1200Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 1200
Capital subsidy (if any) Rs Lacs 0
Net capital cost Rs Lacs 1200
3 Sources of FundTariff Period Years 25
Debt: EquityDebt % 70%Equity % 30%Total Debt Amount Rs Lacs 840.000Total Equity Amout Rs Lacs 360.000
Debt ComponentLoan Amount Rs Lacs 840Moratorium Period years 0Repayment Period(incld Moratorium) years 12Interest Rate % 13.05%
Equity ComponentEquity amount Rs Lacs 360Return on Equity for first 10 years % p.a 18.0%RoE Period Year 10Return on Equity 11th year onwards % p.a 22.0%Weighted average of ROE % 20.4%
Discount Rate (WACC) % 10.77%
4 Financial AssumptionsFiscal Assumptions
Income Tax % 34.60%MAT Rate (for first 10 years) % 21.34%80 IA benefits Yes/ No Yes
DepreciationDepreciation Rate for first 12 years % 5.83%Depreciation Rate 13th year onwards % 1.54%Years for 5.83% rate Years 12
Salvage value % 10%
5 Working CapitalFor Fixed ChargesO&M Charges Months 1Maintenance Spare (% of O&M exepenses) % 15%Receivables for Debtors Months 2on energy chargesInterest On Working Capital % 13.55%
6 Operation & MaintenanceBase Year - FY 2013-14 Rs Lakh 15.00FY 2016-17 17.72Total O & M Expenses Escalation % 5.72%
7 Incentives (if any)GBI Rs Lakh p.a. 0.00
Period for GBI Years 0.00
JKSERCPage 99
Determination of Tariff Component
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Gross/Net Generation MU 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81
Tariff Components
(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
O&M Expenses Rs Lakh 17.72 18.74 19.81 20.94 22.14 23.41 24.75 26.16 27.66 29.24 30.91 32.68 34.55 36.53 38.62 40.82 43.16 45.63 48.24 51.00 53.91 57.00 60.26 63.71 67.35Depreciation Rs Lakh 70.00 70.00 70.00 70.00 70.00 70.00 70.00 70.00 70.00 70.00 70.00 70.00 18.46 18.46 18.46 18.46 18.46 18.46 18.46 18.46 18.46 18.46 18.46 18.46 18.46Interest on term loan Rs Lakh 105.05 95.92 86.78 77.65 68.51 59.38 50.24 41.11 31.97 22.84 13.70 4.57 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 6.52 6.37 6.22 6.07 5.93 5.78 5.65 5.52 5.39 5.26 5.48 5.37 4.17 4.28 4.40 4.52 4.65 4.79 4.93 5.08 5.25 5.42 5.60 5.79 5.99Return on Equity Rs Lakh 64.80 64.80 64.80 64.80 64.80 64.80 64.80 64.80 64.80 64.80 79.20 79.20 79.20 79.20 79.20 79.20 79.20 79.20 79.20 79.20 79.20 79.20 79.20 79.20 79.20Total Fixed Cost Rs Lakh 264.10 255.83 247.61 239.46 231.38 223.37 215.44 207.58 199.82 192.14 199.29 191.81 136.38 138.47 140.67 143.01 145.47 148.08 150.83 153.74 156.82 160.08 163.52 167.16 171.00
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation Unit Levellised 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
O&M expn Rs/kWh 1.39 0.98 1.03 1.09 1.15 1.22 1.29 1.36 1.44 1.53 1.61 1.70 1.80 1.91 2.01 2.13 2.25 2.38 2.52 2.66 2.81 2.97 3.14 3.32 3.51 3.71Depreciation Rs/kWh 3.20 3.86 3.86 3.86 3.86 3.86 3.86 3.86 3.86 3.86 3.86 3.86 3.86 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02 1.02Int. on term loan Rs/kWh 2.84 5.79 5.29 4.79 4.28 3.78 3.27 2.77 2.27 1.76 1.26 0.76 0.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.31 0.36 0.35 0.34 0.33 0.33 0.32 0.31 0.30 0.30 0.29 0.30 0.30 0.23 0.24 0.24 0.25 0.26 0.26 0.27 0.28 0.29 0.30 0.31 0.32 0.33RoE Rs/kWh 3.81 3.57 3.57 3.57 3.57 3.57 3.57 3.57 3.57 3.57 3.57 4.37 4.37 4.37 4.37 4.37 4.37 4.37 4.37 4.37 4.37 4.37 4.37 4.37 4.37 4.37Total COG per unit Rs/kWh 11.55 14.56 14.11 13.66 13.21 12.76 12.32 11.88 11.45 11.02 10.60 10.99 10.58 7.52 7.64 7.76 7.89 8.02 8.17 8.32 8.48 8.65 8.83 9.02 9.22 9.43
Levellised
Discount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143 0.129 0.117 0.105 0.095 0.086
Levellised Tariff 11.66 Rs/Unit
JKSERC Page 100
Accelerated Depreciation
Depreciation amount 90%
Book Depreciation rate 5.28%
Tax Depreciation rate 80%
Additional Depreciation 20.00%
Income Tax (Normal Rates) 33.99%
Capital Cost 1200
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Book Depreciation Rs Lakh 31.68 63.36 63.36 63.36 63.36 63.36 63.36 63.36 63.36 63.36 63.36 63.36 63.36 63.36 63.36 63.36 63.36 34.56 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Accelerated Depreciation
Opening % 100% 50% 5% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Accelrated Deprn. Rs Lakh 600.00 540.00 48.00 9.60 1.92 0.38 0.08 0.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Depreciation Benefit Rs Lakh 568.32 476.64 -15.36 -53.76 -61.44 -62.98 -63.28 -63.34 -63.36 -63.36 -63.36 -63.36 -63.36 -63.36 -63.36 -63.36 -63.36 -34.56 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Tax Benefit Rs Lakh 196.64 164.92 -5.31 -18.60 -21.26 -21.79 -21.90 -21.92 -21.92 -21.92 -21.92 -21.92 -21.92 -21.92 -21.92 -21.92 -21.92 -11.96 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Energy generation MU 0.91 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81
Per unit benefit Rs/Unit 21.69 9.09 -0.29 -1.03 -1.17 -1.20 -1.21 -1.21 -1.21 -1.21 -1.21 -1.21 -1.21 -1.21 -1.21 -1.21 -1.21 -0.66 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143 0.129 0.117 0.105 0.095 0.086
0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.41 0.37 0.34 0.30 0.27 0.25 0.22 0.20 0.18 0.16 0.15
Tax Benefit Levellised 22.75 Rs Lakh
Electricity Generation (Levellised) 1.72 MU
Levellised benefit 1.32 Rs/Unit
JKSERC Page 101
Annexure 7Biomass Gasifier Power Projects
Assumptions
S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount
1 Power GenerationCapacity
Installed Power Generation Capacity MW 1Plant Load Factor % 85%Auxiliary consumption % 10.00%
Useful Life Years 20
2 Project Cost Base Year (FY 2013-14) Rs Lacs 400.00Capital Cost/MW Power Plant Cost - FY 2016-17 Rs Lacs 569.41
Capital subsidy (if any) Rs Lacs 150.00
Net capital cost Rs Lacs 419.41
3 Sources of FundTariff Period Years 20
Debt: EquityDebt % 70%Equity % 30%Total Debt Amount Rs Lacs 293.584Total Equity Amout Rs Lacs 125.822
Debt ComponentLoan Amount Rs Lacs 294Moratorium Period years 0Repayment Period(incld Moratorium) years 12Interest Rate % 13.05%
Equity ComponentEquity amount Rs Lacs 126Return on Equity for first 10 years % p.a 18.0%RoE Period Year 10Return on Equity 11th year onwards % p.a 22.0%Weighted average of ROE % 20.0%
Discount Rate (WACC) % 10.77%
4 Financial AssumptionsFiscal Assumptions
Income Tax % 34.60%MAT Rate (for first 10 years) % 21.34%80 IA benefits Yes/No Yes
DepreciationDepreciation Rate for first 12 years % 5.83%Depreciation Rate 13th year onwards % 2.50%Years for 5.83% rate Years 12
Salvage value % 10%
5 Working CapitalFor Fixed ChargesO&M Charges Months 1Maintenance Spare (% of O&M exepenses) % 15%Receivables for Debtors Months 2Fuel cost Months 4Interest On Working Capital % 13.55%
6 Operation & MaintenanceBase Year - FY 2013-14 Rs Lakh 40.00FY 2016-17 47.26Total O & M Expenses Escalation % 5.72%
7 Fuel related component Sp. Fuel consumption kg/kWh 1.25Heat Rate After Stabilisation period Kcal/kwh 3600
During Stablization Period Kcal/kwh 3600Non fossil cogen Base Price(FY 2013-14) Rs/T 2500
FY 2014-15 Rs/T 2773FY 2015-16 Rs/T 2986FY 2016-17 Rs/T 2833GCV Kcal/kg 2250Biomass Price Escalation Factor 5%
8 Incentives (if any)GBI Rs Lakh p.a. 0.00
Period for GBI Years 0.00
JKSERCPage 102
Determination of Tariff Component
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Net Generation MU 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70
Vaiable Cost Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Biomass Cost Rs Lakh 337.51 337.51 337.51 337.51 337.51 337.51 337.51 337.51 337.51 337.51 337.51 337.51 337.51 337.51 337.51 337.51 337.51 337.51 337.51 337.51Per unit Var Cost Rs/kWh 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04
Tariff Components
(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20O&M Expenses Rs Lakh 47.26 49.97 52.83 55.85 59.04 62.42 65.99 69.76 73.75 77.97 82.43 87.15 92.13 97.40 102.97 108.87 115.09 121.68 128.64 135.99Depreciation Rs Lakh 24.47 24.47 24.47 24.47 24.47 24.47 24.47 24.47 24.47 24.47 24.47 24.47 10.49 10.49 10.49 10.49 10.49 10.49 10.49 10.49Interest on term loan Rs Lakh 36.72 33.52 30.33 27.14 23.95 20.75 17.56 14.37 11.17 7.98 4.79 1.60 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 27.95 28.03 28.11 28.21 28.31 28.42 28.55 28.68 28.83 28.99 29.28 29.47 29.39 29.68 29.99 30.31 30.66 31.02 31.41 31.82Return on Equity Rs Lakh 22.65 22.65 22.65 22.65 22.65 22.65 22.65 22.65 22.65 22.65 27.68 27.68 27.68 27.68 27.68 27.68 27.68 27.68 27.68 27.68Total Fixed Cost Rs Lakh 159.05 158.63 158.38 158.31 158.41 158.71 159.21 159.93 160.87 162.06 168.65 170.36 159.69 165.25 171.13 177.34 183.92 190.87 198.21 205.98Per unit Fixed Cost Rs/kWh 2.37 2.37 2.36 2.36 2.36 2.37 2.38 2.39 2.40 2.42 2.52 2.54 2.38 2.47 2.55 2.65 2.74 2.85 2.96 3.07
Total cost of generation Rs Lakh 496.56 496.15 495.90 495.82 495.93 496.22 496.73 497.44 498.39 499.57 506.16 507.87 497.20 502.76 508.64 514.86 521.43 528.38 535.73 543.49
Per Unit Cost of Generation Unit Levellised 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Variable cost Rs/kWh 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04O&M expn Rs/kWh 0.94 0.71 0.75 0.79 0.83 0.88 0.93 0.98 1.04 1.10 1.16 1.23 1.30 1.37 1.45 1.54 1.62 1.72 1.82 1.92 2.03Depreciation Rs/kWh 0.33 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.37 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16Int. on term loan Rs/kWh 0.29 0.55 0.50 0.45 0.40 0.36 0.31 0.26 0.21 0.17 0.12 0.07 0.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.43 0.43 0.43 0.43 0.44 0.44 0.44 0.44 0.45 0.45 0.46 0.46 0.47 0.47RoE Rs/kWh 0.36 0.34 0.34 0.34 0.34 0.34 0.34 0.34 0.34 0.34 0.34 0.41 0.41 0.41 0.41 0.41 0.41 0.41 0.41 0.41 0.41Total COG per unit Rs/kWh 7.27 7.41 7.40 7.40 7.40 7.40 7.40 7.41 7.42 7.44 7.45 7.55 7.58 7.42 7.50 7.59 7.68 7.78 7.88 7.99 8.11
LevellisedDiscount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143Variable cost 5.04 Rs/UnitLevellised Tariff (Fixed) 2.44 Rs/UnitLevellised Tariff (for Tariff
Period) 7.48 Rs/Unit
JKSERC Page 103
Accelerated DepreciationDepreciation amount 90%Book Depreciation rate 5.28%Tax Depreciation rate 80%Additional Depreciation 20.00%Income Tax (Normal Rates) 33.99%Capital Cost 404
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%Book Depreciation Rs Lakh 11.07 22.14 22.14 22.14 22.14 22.14 22.14 22.14 22.14 22.14 22.14 22.14 22.14 22.14 22.14 22.14 22.14 12.08 0.00 0.00
Accelerated DepreciationOpening % 100% 50% 5% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Accelrated Deprn. Rs Lakh 209.70 188.73 16.78 3.36 0.67 0.13 0.03 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Depreciation Benefit Rs Lakh 198.63 166.59 -5.37 -18.79 -21.47 -22.01 -22.12 -22.14 -22.14 -22.14 -22.14 -22.14 -22.14 -22.14 -22.14 -22.14 -22.14 -12.08 0.00 0.00Tax Benefit Rs Lakh 68.73 57.64 -1.86 -6.50 -7.43 -7.62 -7.65 -7.66 -7.66 -7.66 -7.66 -7.66 -7.66 -7.66 -7.66 -7.66 -7.66 -4.18 0.00 0.00Energy generation MU 3.35 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70 6.70Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.41 0.37 0.34 0.30 0.27 0.25 0.22 0.20 0.18 0.16 0.15Tax Benefit Levellised 8.43 Rs LakhElectricity Generation
(Levellised)6.33 MU
Levellised benefit 0.13 Rs/Unit
JKSERCPage 104
Annexure 8
Biogas Power Projects
Assumptions
S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount
1 Power GenerationCapacity
Installed Power Generation Capacity MW 1Plant Load Factor % 90%Auxiliary consumption % 12.00%
Useful Life Years 20
2 Project Cost Base Year (FY 2013-14) Rs Lacs 800.00Capital Cost/MW Power Plant Cost - FY 2015-16 Rs Lacs 1138.81
Capital subsidy (if any) Rs Lacs 300
Net capital cost Rs Lacs 838.812
3 Sources of FundTariff Period Years 20
Debt: EquityDebt % 70%Equity % 30%Total Debt Amount Rs Lacs 587.169Total Equity Amout Rs Lacs 251.644
Debt ComponentLoan Amount Rs Lacs 587Moratorium Period years 0Repayment Period(incld Moratorium) years 12Interest Rate % 13.05%
Equity ComponentEquity amount Rs Lacs 252Return on Equity for first 10 years % p.a 18.0%RoE Period Year 10Return on Equity 11th year onwards % p.a 22.0%Weighted average of ROE % 20.0%
Discount Rate (WACC) % 10.77%
4 Financial AssumptionsFiscal Assumptions
Income Tax % 34.60%MAT Rate (for first 10 years) % 21.34%80 IA benefits Yes/No Yes
DepreciationDepreciation Rate for first 12 years % 5.83%Depreciation Rate 13th year onwards % 2.50%Years for 5.83% rate Years 12
Salvage value % 10%
5 Working CapitalFor Fixed ChargesO&M Charges Months 1Maintenance Spare (% of O&M exepenses) % 15%Receivables for Debtors Months 2Fuel cost Months 4Interest On Working Capital % 13.55%
6 Operation & MaintenanceBase Year - FY 2013-14 Rs Lakh 40.00FY 2016-17 47.26Total O & M Expenses Escalation % 5.72%
7 Fuel related component Sp. Fuel consumption kg/kWh 3.00Heat Rate After Stabilisation period Kcal/kwh 3600
During Stablization Period Kcal/kwh 3600Non fossil cogen Base Price(FY 2013-14) Rs/T 990
FY 2014-15 Rs/T 1098FY 2015-16 Rs/T 1182FY 2016-17 Rs/T 1122GCV Kcal/kg 2250Biomass Price Escalation Factor 5%
8 Incentives (if any)GBI Rs Lakh p.a. 0.00
Period for GBI Years 0.00
JKSERC Page 105
Determination of Tariff Component
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Net Generation MU 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94
Vaiable Cost Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Biogas Cost Rs Lakh 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52 141.52Per unit Var Cost Rs/kWh 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04
Tariff Components
(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20O&M Expenses Rs Lakh 47.26 49.97 52.83 55.85 59.04 62.42 65.99 69.76 73.75 77.97 82.43 87.15 92.13 97.40 102.97 108.87 115.09 121.68 128.64 135.99Depreciation Rs Lakh 48.93 48.93 48.93 48.93 48.93 48.93 48.93 48.93 48.93 48.93 48.93 48.93 20.97 20.97 20.97 20.97 20.97 20.97 20.97 20.97Interest on term loan Rs Lakh 73.43 67.05 60.66 54.28 47.89 41.51 35.12 28.73 22.35 15.96 9.58 3.19 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 16.30 16.31 16.32 16.34 16.37 16.41 16.46 16.52 16.59 16.68 17.01 17.13 16.68 16.97 17.28 17.61 17.96 18.32 18.71 19.11Return on Equity Rs Lakh 45.30 45.30 45.30 45.30 45.30 45.30 45.30 45.30 45.30 45.30 55.36 55.36 55.36 55.36 55.36 55.36 55.36 55.36 55.36 55.36Total Fixed Cost Rs Lakh 231.23 227.55 224.03 220.69 217.53 214.56 211.79 209.24 206.92 204.84 213.32 211.76 185.15 190.71 196.59 202.81 209.38 216.33 223.67 231.44Per unit Fixed Cost Rs/kWh 3.33 3.28 3.23 3.18 3.14 3.09 3.05 3.02 2.98 2.95 3.07 3.05 2.67 2.75 2.83 2.92 3.02 3.12 3.22 3.34
Total cost of generation Rs Lakh 372.75 369.07 365.55 362.21 359.04 356.08 353.31 350.76 348.44 346.36 354.83 353.28 326.67 332.23 338.11 344.32 350.90 357.85 365.19 372.96
Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit Levellised 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Variable cost Rs/kWh 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04 2.04O&M expn Rs/kWh 0.90 0.68 0.72 0.76 0.80 0.85 0.90 0.95 1.01 1.06 1.12 1.19 1.26 1.33 1.40 1.48 1.57 1.66 1.75 1.85 1.96Depreciation Rs/kWh 0.64 0.71 0.71 0.71 0.71 0.71 0.71 0.71 0.71 0.71 0.71 0.71 0.71 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30Int. on term loan Rs/kWh 0.56 1.06 0.97 0.87 0.78 0.69 0.60 0.51 0.41 0.32 0.23 0.14 0.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.24 0.23 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.24 0.25 0.25 0.24 0.24 0.25 0.25 0.26 0.26 0.27 0.28RoE Rs/kWh 0.70 0.65 0.65 0.65 0.65 0.65 0.65 0.65 0.65 0.65 0.65 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80Total COG per unit Rs/kWh 5.04 5.37 5.32 5.27 5.22 5.18 5.13 5.09 5.06 5.02 4.99 5.11 5.09 4.71 4.79 4.87 4.96 5.06 5.16 5.26 5.38
LevellisedDiscount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143Variable cost 2.04 Rs/UnitLevellised Tariff (Fixed) 3.11 Rs/UnitLevellised Tariff 5.15 Rs/Unit
JKSERC Page 106
Accelerated DepreciationDepreciation amount 90%Book Depreciation rate 5.28%Tax Depreciation rate 80%Additional Depreciation 20.00%Income Tax (Normal Rates) 33.99%Capital Cost 1108.53
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%Book Depreciation Rs Lakh 30.06 60.13 60.13 60.13 60.13 60.13 60.13 60.13 60.13 60.13 60.13 60.13 60.13 60.13 60.13 60.13 60.13 32.80 0.00 0.00
Accelerated DepreciationOpening % 100% 50% 5% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Accelrated Deprn. Rs Lakh 569.41 512.47 45.55 9.11 1.82 0.36 0.07 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Depreciation Benefit Rs Lakh 539.34 452.34 -14.58 -51.02 -58.31 -59.76 -60.06 -60.11 -60.13 -60.13 -60.13 -60.13 -60.13 -60.13 -60.13 -60.13 -60.13 -32.80 0.00 0.00Tax Benefit Rs Lakh 186.61 156.51 -5.04 -17.65 -20.17 -20.68 -20.78 -20.80 -20.80 -20.80 -20.80 -20.80 -20.80 -20.80 -20.80 -20.80 -20.80 -11.35 0.00 0.00Energy generation MU 3.47 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94 6.94Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.41 0.37 0.34 0.30 0.27 0.25 0.22 0.20 0.18 0.16 0.15Tax Benefit Levellised 22.88 Rs LakhElectricity Generation (Levellised) 6.55 MULevellised benefit 0.35 Rs/Unit
JKSERC Page 107
Annexure 9
Municipal Solid Waste
Assumptions
S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount
1 Power GenerationCapacity
Installed Power Generation Capacity MW 1
Auxiliary Consumption during Stabilisation % 15%
Auxiliary Consumption after Stabilisation % 15%
PLF (Stabilisation for 6 months) % 65%
PLF (During first year after stabilisation) % 65%
PLF (Second Year Onwards) % 75%
Useful Life Years 20
2 Project Cost Capital Cost/MW Power Plant Cost - FY 2015-16 Rs Lacs 1500
Capital subsidy (if any) Rs Lacs 0
Net capital cost Rs Lacs 1500
3 Sources of FundDebt: Equity
Debt % 70%
Equity % 30%
Total Debt Amount Rs Lacs 1,050
Total Equity Amout Rs Lacs 450
Debt Component
Loan Amount Rs Lacs 1,050
Moratorium Period years 0
Repayment Period(incld Moratorium) years 12
Interest Rate % 13.05%
Equity Component
Equity amount Rs Lacs 450
Return on Equity for first 10 years % p.a 18.0%
RoE Period Year 10
Return on Equity 11th year onwards % p.a 22.0%
Weighted average of ROE % 20.0%
Discount Rate (WACC) % 10.77%
4 Financial AssumptionsFiscal Assumptions
Income Tax % 34.60%
MAT Rate (for first 10 years) % 21.34%
80 IA benefits Yes/No Yes
Depreciation
Depreciation Rate for first 12 years % 5.83%
Depreciation Rate 13th year onwards % 2.51%
Years for 5.83% rate Years 12
Salvage value % 10%
5 Working CapitalFor Fixed Charges
O&M Charges Months 1
Maintenance Spare (% of O&M exepenses) % 15%
Receivables for Debtors Months 2
on energy charges
Interest On Working Capital % 13.55%
6 Operation & MaintenanceNorm ( % of capital cost) % 6%
FY 2015-16 90.00
Total O & M Expenses Escalation % 5.72%
7 Incentives (if any)GBI Rs Lakh p.a. 0.00
Period for GBI Years 0.00
JKSERC Page 108
Determination of Tariff Component
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Gross/Net Generation MU 4.84 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58
Tariff Components(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20O&M Expenses Rs Lakh 90.00 95.15 100.59 106.34 112.43 118.86 125.66 132.84 140.44 148.48 156.97 165.95 175.44 185.48 196.08 207.30 219.16 231.69 244.95 258.96Depreciation Rs Lakh 87.45 87.45 87.45 87.45 87.45 87.45 87.45 87.45 87.45 87.45 87.45 87.45 37.58 37.58 37.58 37.58 37.58 37.58 37.58 37.58Interest on term loan Rs Lakh 131.32 119.90 108.48 97.06 85.64 74.22 62.80 51.38 39.97 28.55 17.13 5.71 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 11.92 11.94 11.98 12.03 12.11 12.20 12.31 12.45 12.60 12.78 13.41 13.64 12.88 13.44 14.03 14.65 15.31 16.00 16.74 17.52Return on Equity Rs Lakh 81.00 81.00 81.00 81.00 81.00 81.00 81.00 81.00 81.00 81.00 99.00 99.00 99.00 99.00 99.00 99.00 99.00 99.00 99.00 99.00Total Fixed Cost Rs Lakh 401.68 395.43 389.50 383.89 378.62 373.73 369.22 365.12 361.46 358.26 373.96 371.75 324.90 335.49 346.69 358.53 371.04 384.27 398.26 413.05
Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit Levellised 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20O&M expn Rs/kWh 2.42 1.86 1.70 1.80 1.90 2.01 2.13 2.25 2.38 2.51 2.66 2.81 2.97 3.14 3.32 3.51 3.71 3.92 4.15 4.39 4.64Depreciation Rs/kWh 1.42 1.81 1.57 1.57 1.57 1.57 1.57 1.57 1.57 1.57 1.57 1.57 1.57 0.67 0.67 0.67 0.67 0.67 0.67 0.67 0.67Int. on term loan Rs/kWh 1.23 2.71 2.15 1.94 1.74 1.53 1.33 1.12 0.92 0.72 0.51 0.31 0.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.23 0.25 0.21 0.21 0.22 0.22 0.22 0.22 0.22 0.23 0.23 0.24 0.24 0.23 0.24 0.25 0.26 0.27 0.29 0.30 0.31RoE Rs/kWh 1.56 1.67 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.77 1.77 1.77 1.77 1.77 1.77 1.77 1.77 1.77 1.77Total COG per unit Rs/kWh 6.87 8.30 7.08 6.97 6.87 6.78 6.69 6.61 6.54 6.47 6.42 6.70 6.66 5.82 6.01 6.21 6.42 6.64 6.88 7.13 7.40
LevellisedDiscount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143Levellised Tariff 376.97 Rs LakhsLevellised Tariff 6.87 Rs/Unit
JKSERC Page 109
Accelerated DepreciationDepreciation amount 90%Book Depreciation rate 5.28%Tax Depreciation rate 80%Additional Depreciation 20.00%Income Tax (Normal Rates) 34.600%Capital Cost 1500.000
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%Book Depreciation Rs Lakh 39.60 79.20 79.20 79.20 79.20 79.20 79.20 79.20 79.20 79.20 79.20 79.20 79.20 79.20 79.20 79.20 79.20 43.20 0.00 0.00
Accelerated DepreciationOpening % 100.00% 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Accelerated Deprn. Rs Lakh 750.00 675.00 60.00 12.00 2.40 0.48 0.10 0.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Depreciation Benefit Rs Lakh 710.40 595.80 -19.20 -67.20 -76.80 -78.72 -79.10 -79.18 -79.20 -79.20 -79.20 -79.20 -79.20 -79.20 -79.20 -79.20 -79.20 -43.20 0.00 0.00Tax Benefit Rs Lakh 245.80 206.15 -6.64 -23.25 -26.57 -27.24 -27.37 -27.40 -27.40 -27.40 -27.40 -27.40 -27.40 -27.40 -27.40 -27.40 -27.40 -14.95 0.00 0.00Energy generation MU 2.42 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58Per unit benefit Rs/Unit 10.16 3.69 -0.12 -0.42 -0.48 -0.49 -0.49 -0.49 -0.49 -0.49 -0.49 -0.49 -0.49 -0.49 -0.49 -0.49 -0.49 -0.27 0.00 0.00Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.42 0.38 0.34 0.31 0.28 0.25 0.23 0.20 0.18 0.17 0.15Tax Benefit Levellised 30.13 Rs LakhElectricity Generation (Levellised) 5.23 MULevellised benefit 0.58 Rs/Unit
JKSERC Page 110
Annexure 10
Refuse Derived Fuel
Assumptions
S. No. Assumption Head Sub-Head Sub-Head (2) Unit Amount
1 Power GenerationCapacity
Installed Power Generation Capacity MW 1
Auxiliary Consumption during Stabilisation % 15%
Auxiliary Consumption after Stabilisation % 15%
PLF (Stabilisation for 6 months) % 65%
PLF (During first year after stabilisation) % 65%
PLF (Second Year Onwards) % 80%
Useful Life Years 20
2 Project Cost Capital Cost/MW Power Plant Cost - FY 2015-16 Rs Lacs 900
Capital subsidy (if any) Rs Lacs 0
Net capital cost Rs Lacs 900
3 Sources of FundTariff Period Years 13
Debt: Equity
Debt % 70%
Equity % 30%
Total Debt Amount Rs Lacs 630.000
Total Equity Amout Rs Lacs 270.000
Debt Component
Loan Amount Rs Lacs 630
Moratorium Period years 0
Repayment Period(incld Moratorium) years 12
Interest Rate % 13.05%
Equity Component
Equity amount Rs Lacs 270
Return on Equity for first 10 years % p.a 18.0%
RoE Period Year 10
Return on Equity 11th year onwards % p.a 22.0%
Weighted average of ROE % 20.0%
Discount Rate (WACC) % 10.77%
4 Financial AssumptionsFiscal Assumptions
Income Tax % 34.60%
MAT Rate (for first 10 years) % 21.34%
80 IA benefits Yes/No Yes
Depreciation
Depreciation Rate for first 12 years % 5.83%
Depreciation Rate 13th year onwards % 2.51%
Years for 5.83% rate Years 12
Salvage value % 10%
5 Working CapitalFor Fixed Charges
O&M Charges Months 1
Maintenance Spare (% of O&M exepenses) % 15%
Receivables for Debtors Months 2
Fuel cost Months 4
Interest On Working Capital % 13.55%
6 Operation & MaintenanceNorm ( % of capital cost) % 6%
FY 2016-17 54.00
Total O & M Expenses Escalation % 5.72%
7 Fuel related componentHeat Rate After Stabilisation period Kcal/kwh 4200
During Stablization Period Kcal/kwh 4200
RDF FY 2016-17 Rs/T 1800
GCV Kcal/kg 2500RDF Price Escalation Factor 5%
8 Incentives (if any)GBI Rs Lakh p.a. 0.00
Period for GBI Years 0.00
JKSERCPage 111
Determination of Tariff Component1 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Net Generation MU 4.84 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96
Vaiable Cost Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20RDF Cost Rs Lakh 180.80 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52 222.52Per unit Var Cost Rs/kWh 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74
Tariff Components(Fixed Charge) Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20O&M Expenses Rs Lakh 54.00 57.09 60.35 63.81 67.46 71.31 75.39 79.71 84.27 89.09 94.18 99.57 105.26 111.29 117.65 124.38 131.49 139.02 146.97 155.37Depreciation Rs Lakh 52.47 52.47 52.47 52.47 52.47 52.47 52.47 52.47 52.47 52.47 52.47 52.47 22.55 22.55 22.55 22.55 22.55 22.55 22.55 22.55Interest on term loan Rs Lakh 78.79 71.94 65.09 58.24 51.38 44.53 37.68 30.83 23.98 17.13 10.28 3.43 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest on working Capital Rs Lakh 19.68 22.59 22.61 22.64 22.69 22.74 22.81 22.89 22.99 23.09 23.47 23.61 23.15 23.49 23.84 24.21 24.61 25.03 25.47 25.93Return on Equity Rs Lakh 48.60 48.60 48.60 48.60 48.60 48.60 48.60 48.60 48.60 48.60 59.40 59.40 59.40 59.40 59.40 59.40 59.40 59.40 59.40 59.40Total Fixed Cost Rs Lakh 253.54 252.68 249.12 245.76 242.60 239.66 236.96 234.50 232.30 230.38 239.80 238.47 210.36 216.72 223.44 230.54 238.05 245.99 254.38 263.25Per unit Fixed Cost Rs/kWh 5.24 4.24 4.18 4.13 4.07 4.02 3.98 3.94 3.90 3.87 4.03 4.00 3.53 3.64 3.75 3.87 4.00 4.13 4.27 4.42
Total cost of generation Rs Lakh 434.34 475.20 471.64 468.27 465.12 462.18 459.47 457.02 454.82 452.90 462.32 460.99 432.88 439.24 445.95 453.06 460.57 468.51 476.90 485.778.97 7.98 7.92 7.86 7.81 7.76 7.71 7.67 7.64 7.60 7.76 7.74 7.27 7.37 7.49 7.61 7.73 7.87 8.01 8.15
Levallised tariff corresponding to Useful lifePer Unit Cost of Generation Unit Levellised 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Variable cost Rs/kWh 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74 3.74O&M expn Rs/kWh 1.37 1.12 0.96 1.01 1.07 1.13 1.20 1.27 1.34 1.41 1.50 1.58 1.67 1.77 1.87 1.98 2.09 2.21 2.33 2.47 2.61Depreciation Rs/kWh 0.81 1.08 0.88 0.88 0.88 0.88 0.88 0.88 0.88 0.88 0.88 0.88 0.88 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38Int. on term loan Rs/kWh 0.71 1.63 1.21 1.09 0.98 0.86 0.75 0.63 0.52 0.40 0.29 0.17 0.06 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Int. on working capital Rs/kWh 0.39 0.41 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.39 0.39 0.39 0.40 0.39 0.39 0.40 0.41 0.41 0.42 0.43 0.44RoE Rs/kWh 0.88 1.00 0.82 0.82 0.82 0.82 0.82 0.82 0.82 0.82 0.82 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00Total COG per unit Rs/kWh 7.90 8.97 7.98 7.92 7.86 7.81 7.76 7.71 7.67 7.64 7.60 7.76 7.74 7.27 7.37 7.49 7.61 7.73 7.87 8.01 8.15
LevellisedDiscount Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143Variable cost 3.74 Rs/UnitLevellised Tariff (Fixed) 4.16 Rs/UnitLevellised Tariff 7.90 Rs/Unit
JKSERC Page 112
Accelerated DepreciationDepreciation amount 90%Book Depreciation rate 5.28%Tax Depreciation rate 80%Additional Depreciation 20.00%Income Tax (Normal Rates) 34.60%Capital Cost 900.00
Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Book Depreciation % 2.64% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%Book Depreciation Rs Lakh 23.76 47.52 47.52 47.52 47.52 47.52 47.52 47.52 47.52 47.52 47.52 47.52 47.52 47.52 47.52 47.52 47.52 25.92 0.00 0.00
Accelerated DepreciationOpening % 100% 50% 5% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Accelrated Deprn. Rs Lakh 450.00 405.00 36.00 7.20 1.44 0.29 0.06 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Depreciation Benefit Rs Lakh 426.24 357.48 -11.52 -40.32 -46.08 -47.23 -47.46 -47.51 -47.52 -47.52 -47.52 -47.52 -47.52 -47.52 -47.52 -47.52 -47.52 -25.92 0.00 0.00Tax Benefit Rs Lakh 147.48 123.69 -3.99 -13.95 -15.94 -16.34 -16.42 -16.44 -16.44 -16.44 -16.44 -16.44 -16.44 -16.44 -16.44 -16.44 -16.44 -8.97 0.00 0.00Energy generation MU 2.42 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96 5.96Discounting Factor 1.000 0.903 0.815 0.736 0.664 0.600 0.541 0.489 0.441 0.398 0.359 0.324 0.293 0.264 0.239 0.215 0.195 0.176 0.159 0.143
0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.42 0.38 0.34 0.31 0.28 0.25 0.23 0.20 0.18 0.17 0.15Tax Benefit Levellised 18.08 Rs LakhElectricity Generation (Levellised) 5.56 MULevellised benefit 0.33 Rs/Unit
JKSERC Page 113
S.No. Name Department/Organisation
1 Sh. Basharat Ahmad Dhar Chairman, JKSERC
2 Sh. R.K.Seli Technical Consultant, JKSERC
3 Sh. Anil Kumar Gupta Secretary, JKSERC
4 Sh. Romesh Kumar Sharma Supdtt. Engineer, JKSERC
5 Sh. Ram Krishan Sharma Accounts Officer, JKSERC
6 Sh. Abdul Hamid Baba Pvt. Secretary, JKSERC
7 Sh. Abdul Gani Kotay Senior Assistant, JKSERC
8 Sh. Babu Ram Sharma Computer Operator , JKSERC
9 Sh. Ankit Choudhary Consultant (PwC), JKSERC
10 Sh. K.H. Rizvi (IAS) Managing Director, JKSPDC
11 Sh. Ajay Gupta Executive Director (Electrical),JKSPDC, Jammu
12 Sh. Upinder Jit Singh Director Finance, JKSPDC
13 Sh. Muzaffar Mattu Chief Engineer, Generation, Kashmir
14 Sh. Fida Mohammad Farooqi Chief Engineer, NGHEP, CID Kashmir
15 Sh. Ab. Rashid Ganai Executive Engineer, JKSPDC, CMD, SVP Kangan
16 Sh. Asif Maqbool Dandru AGM (Finance), JKSPDC
17 Sh. T.Rasool Finance Assistant, JKSPDC, Srinagar
18 Sh. Fazal Mehmood Qari JKSPDC, Srinagar
19 Sh. T. Ahmed JKSPDC, Srinagar
20 Sh. Mohamad Ahsan-ul-Haq JKSPDC, Srinagar
21 Sh. Bashir Ahmed JKSPDC, Srinagar
22 Sh. Gul Ayaz Development Commissioner (Power),JKPDD
23 Smt. Shahnaz Goni Chief Engineer, C&S, JKPDD
24 Sh. B.A. Khan Chief Engineer, EM&RE
25 Sh. Ravi Chanyal Chief Engineer, S&O, Jammu
26 Sh. Hashmat Qazi Supdtt. Engineer, JKPDD, Srinagar
27 Sh. Naseer Ahmad Khan Supdtt. Engineer, S&O Circle-II, Sgr.
28 Sh. Syed Fayaz Andrabi Supdtt. Engineer, S&O Circle-I, Sgr.
29 Sh. Showkat Banday Supdtt. Engineer, M&RE, Circle-I, Srinagar
30 Sh. Gourav Lohani Consultant , JKPDD, Srinagar
31 Sh. Gulam Mohammad KhanConsumer, Bemina, Srinagar/ Ex Member Finance
JKSERC
32 Sh. Gh. Nabi Wani Consumer, Raj Bagh, Srinagar
33 Sh. Gh. Rasool Consumer ,Alich Bagh, Srinagar
34 Sh. Khurshid Ahmad Consumer, Srinagar
STAKEHOLDERS
Annexure A: List of participants in Public HearingParticipants at Public Hearing held in Srinagar on 12th March 2016
J&K STATE ELECTRICITY REGULATORY COMMISSION
J&K STATE POWER DEVELOPMENT CORPORATION LIMITED
J&K POWER DEVELOPMENT DEPARTMENT
JKSERCPage 114
S.No. Name Department/Organisation
35 Sh. Shakeel Qalander Civil Society Member, KCSOS
36 Sh. Mohammad Ashraf Mir President, FCIK
37 Sh. Afaq Qadri Sr. Vice President ,FCIK
38 Dr. Mubeen Shah Kashmir Chamber of Commerce & Industry
39 Sh. Nasir Hamid Khan Kashmir Chamber of Commerce & Industry
40 Sh. Abid Ali Bazaz President, FCIK
41 Sh. Ghulam Nabi Khan President , Kashmir Printer Association
42 Sh. Mukhmoor Gowhar Secretary, FCIK
43 Sh. G.M.Dug Past President ,Kashmir Chamber of Commerce
44 Sh. Shakeel Ahmed Khan Kashmir Printer Association
45 Sh. Ab. Rashid Consumer,Srinagar
46 Sh. Farooq Ahmad Bhat Consumer, Srinagar
47 Sh. Mohammad Yousaf Tichoo Consumer, Srinagar
STAKEHOLDERS
JKSERC Page 115
S.No. Name Department/Organisation
1 Sh. Basharat Ahmad Dhar Chairman, JKSERC
2 Sh. R.K. Seli Technical Consultant, JKSERC
3 Sh. Anil Kumar Gupta Secretary, JKSERC
4 Smt. Villy Kaul Dy. Secretary (Law), JKSERC
5 Sh. Ram Krishan Sharma Accounts Officer, JKSERC
6 Sh. Abdul Hamid Baba Pvt. Secretary, JKSERC
7 Sh. Sunil Bakshi Estate Officer/Draftsman, JKSERC
8 Sh. Abdul Gani Kotay Senior Assistant, JKSERC
9 Sh. Babu Ram Sharma Computer Operator, JKSERC
10 Sh. Ankit Choudhary Consultant, PwC
11 Sh. Ajay Gupta Executive Director (Elect), JKSPDC
12 Sh. A.Muzaffar Lankar Executive Director (Civil), JKSPDC
13 Sh. Mumtaz Ahmed SGM (Elect), JKSPDC
14 Sh. S.K. Zutshi Supdtt. Engineer, Gen. Circle Jammu
15 Sh. K.K. Thappa GM (Elect), JKSPDC
16 Sh. N.A. Kakroo GM (Tech), JKSPDC
17 Sh. Bashir Ahmad Dar DGM (Elect),JKSPDC
18 Smt. Iram Qayam Reshi AGM,JKSPDC
19 Sh. Afshan Wani AGM ,JKSPDC
20 Sh. S.S. Kambo DGM (Civil), JKSPDC
21 Sh. Asif Maqbool Dandru AGM (Finance), JKSPDC
22 Sh. Byomkesh Mallick Consultant , JKSPDC
23 Sh. Ravi Chanyal Chief Engineer, System & Operation Wing, Jammu
24 Sh. Manhar Gupta Supdtt. Engineer, S&O Circle-I, Jammu
25 Sh. S. K. Koul Supdtt. Engineer, Commercial & Survey Wing, PDD
26 Sh. Sudhir K. Gupta Executive Engineer, ED-II, Jammu
27 Sh. M.Y.Baba Executive Engineer, Technical Officer to DC(P)
28 Sh. Siddharth Mehta Consultant, JKPDD
29 Sh. Gourav Lohani Consultant, JKPDD
30 Sh. Annil Suri Former President, BBIA Jammu
31 Sh. Chander Vadan Company Secretary, Subash Nagar Jammu
32 Sh. Vikrant Kuthiala Chairman PHD, Canal Road Jammu
33 Sh. D.S. Pawar Consumer /Ex-Member (Tech.) JKSERC, Jammu
34 Sh. Dev Raj Sharma Consumer, Bari Brahmana
35 Sh. Harbans Choudhary Consumer, Jammu
36 Sh. Ashok Gupta Consumer, Sarwal, Jammu
37 Sh. Vinay K. Gupta Consumer , Channi Himmat
STAKEHOLDERS
Participants at Public Hearing held in Jammu on 15th March 2016
JKSERC
JKSPDC
JKPDD
JKSERC Page 116
S.No. Name of the Member/Officers Department/Organization
1 Sh. Basharat Ahmad Dhar Chairman, JKSERC
2 Dr. S.S.Jamwal Director, Agriculture Department, Jammu
3 Dr. Aijaz Ahmad Prof. & HOD, EE Dept. NIT Srinagar
4 Maj. Gen. Goverdhan Singh Jamwal President, J&K Ex-Services League & J&K Paryavaran Sanstha
5 Sh. Rakesh Gupta President, Chamber of Commerce & Industries (CCI)
6 Sh. Mohd. Ashraf Mir, President, Federation Chamber of Industries, Kashmir (FCIK).
7 Sh. Lalit Mahajan President, Bari Brahmana Industries Association, Jammu.
8 Sh. Mushtaq Ahmed Wani, President, Kashmir Chamber of Commerce and Industry, Srinagar.
9 Sh. Vikram Gour President, Consumer Welfare Association, Jammu
10 Sh. Ramesh ChanderAddl. Secretary, Consumer Affairs and Public Distribution Department
& TA (Representing Adm. Secretary CAPD)
11 Sh. Ajay Singh JawalJoint Commissioner, Transport Commissioner, Govt. of J&K, Jammu.
(Representing Transport Commissioner J&K)
12 Sh. D.S. Pawar Ex. Member (T), JKSERC
13 Sh. Shafat Sultan CEO, JAKEDA, Jammu
14 Sh. R.K.Seli Technical Consultant, JKSERC
15 Sh. Anil Kumar Gupta Secretary, JKSERC
16 Sh. R.K. Sharma Supdtt. Engineer, JKSERC
17 Smt. Villy Kaul Dy. Secretary Law, JKSERC
18 Sh. Paavan Bargava Senior Consultant, PWC
19 Sh. Kifayat Hussain Rizvi (IAS) MD, JKSPDC
20 Sh. Ajay Gupta ED, (Electric) JKSPDC
21 Sh. A.Muzaffar Lanker ED (Civil) JKSPDC
22 Sh. Upnder Jit Singh Director Finance (JKSPDC)
23 Sh. Abdul Wahid Chief Engineer (CID)
24 Sh. N.A. Kakroo GM-Technical (JKSPDC)
25 Sh. Asif Maqbool Dedru AGM (A&F)
26 Sh. Byomkesh Mallick Consultant (JKSPDC)
27 Sh. Sheikh Gul Ayaz DCP, JKPDD
28 Smt. Shahnaz Goni Chief Engineer, Commercial & Survey Wing, PDD, J&K
29 Sh. B. A. Khan Chief Engineer, EM & RE Wing, Kashmir
30 Sh. Ravi Chanyal Chief Engineer, System & Operation Wing, PDD
31 Sh. Ashwani Kumar Gupta Chief Engineer, EM & RE, Jammu
OFFICERS OF JKSERC
OFFICERS/REPRESENTATIVES OF JKSPDC
OFFICERS/REPRESENTATIVES OF JKPDD
Annexure B: List of participants in the State Advisory Committee meeting
List of participants in the State Advisory Committee meeting held on 17th March, 2016 in the meeting hall of
JKSERC at Jammu under the chairmanship of Sh. Basharat Ahmad Dhar, Chairman JKSERC
MEMBERS OF THE STATE ADVISORY COMMITTEE (SAC), JKSERC
REPRESENTATIVES
SPECIAL INVITEES
JKSERC Page 117
S.No. Name of the Member/Officers Department/Organization
32 Sh. S.K. Kaul SE, Commercial and Survey, PDD.
33 Sh. Azhar Vakil AEE, DCP Office , PDD
34 Sh. Rohit Bhagotra AEE, SLDC
35 Sh. Siddharth Mehta Consultant, JKPDD
36 Sh. Gaurav Lohani Consultant, JKPDD
37 Sh. C.M.Sharma Dy. Director Agriculture, Jammu
38 Sh. Abdul Hammid Baba Pvt. Secretary, JKSERC
OFFICERS/REPRESENTATIVES OF JKPDD
OTHER PARTICIPANTS
JKSERC Page 118
Particulars FY 2014-15 FY 2015-16 FY 2016-17
Wind Zone -1 (CUF 20%) 6.16 6.15 6.17
Wind Zone -2 (CUF 22%) 5.60 5.59 5.61
Wind Zone -3 (CUF 25%) 4.93 4.92 4.94
Wind Zone -4 (CUF 30%) 4.11 4.10 4.11
Wind Zone -5 (CUF 32%) 3.85 3.84 3.86
Capacity below 5 MW 4.30 4.34 4.40
Capacity 5 MW upto 25 MW 3.67 3.69 3.73
Solar PV 7.50 6.79 5.62
Solar Thermal 11.55 11.63 11.66
Rice straw and Juliflora (plantation) based
project with water cooled condenser and using
Travelling Grate boiler
- - 7.16
Rice straw and Juliflora (plantation) based
project with air cooled condenser and using
Travelling Grate boiler
- - 7.43
Rice straw and Juliflora (plantation) based
project with water cooled condenser and using
AFBC boiler
- - 7.08
Rice straw and Juliflora (plantation) based
project with air cooled condenser and using
AFBC boiler
- - 7.36
Other than Rice straw and Juliflora
(plantation) based project with water cooled
condenser and using Travelling Grate boiler
- - 7.02
Other than Rice straw and Juliflora
(plantation) based project with air cooled
condenser and using Travelling Grate boiler
- - 7.29
Other than Rice straw and Juliflora
(plantation) based project with water cooled
condenser and using AFBC boiler
- - 6.95
Other than Rice straw and Juliflora
(plantation) based project with air cooled
condenser and using AFBC boiler
- - 7.23
NON FOSSIL FUEL
BASED COGENERATION
BIOMASS GASIFIER 7.27 7.68 7.48
BIOGAS 5.04 5.15 5.15
MUNICIPAL SOLID WASTE - - 6.87
REFUSE DERIVED FUEL - - 7.90
Annexure C: Comparison of Generic Tariff of the RE Projects for FY 2014-15, FY
2015-16 and FY 2016-17
Note: *In case of Biomass/ non-fossil fuel/ Biomass gasifier/ biogas and Refuse Derived Fuel based
projects, the generic levellised tariff represents sum of both fixed cost and variable cost.
WIND ENERGY
SMALL HYDRO
SOLAR PV/ SOLAR THERMAL
BIOMASS 5.84 6.17
Generic Levellised tariff for RE technologies without benefits of Accelerated Depreciation
approved for FY 2014-15, FY 2015-16 and FY 2016-17 (Rs/ kWh)
5.58 5.81 5.70
JKSERC Page 119
Particulars FY 2014-15 FY 2015-16 FY 2016-17
Wind Zone -1 (CUF 20%) 5.80 5.79 5.81
Wind Zone -2 (CUF 22%) 5.27 5.27 5.28
Wind Zone -3 (CUF 25%) 4.64 4.63 4.65
Wind Zone -4 (CUF 30%) 3.87 3.86 3.87
Wind Zone -5 (CUF 32%) 3.62 3.62 3.64
Capacity below 5 MW 3.91 3.96 4.01
Capacity 5 MW upto 25 MW 3.32 3.34 3.38
Solar PV 6.67 6.06 4.98
Solar Thermal 10.23 10.31 10.34
BIOMASS 5.68 6.01
Rice straw and Juliflora (plantation) based
project with water cooled condenser and using
Travelling Grate boiler
- - 6.95
Rice straw and Juliflora (plantation) based
project with air cooled condenser and using
Travelling Grate boiler
- - 7.20
Rice straw and Juliflora (plantation) based
project with water cooled condenser and using
AFBC boiler
- - 6.89
Rice straw and Juliflora (plantation) based
project with air cooled condenser and using
AFBC boiler
- - 7.13
Other than Rice straw and Juliflora
(plantation) based project with water cooled
condenser and using Travelling Grate boiler
- - 6.83
Other than Rice straw and Juliflora
(plantation) based project with air cooled
condenser and using Travelling Grate boiler
- - 7.08
Other than Rice straw and Juliflora
(plantation) based project with water cooled
condenser and using AFBC boiler
- - 6.76
Other than Rice straw and Juliflora
(plantation) based project with air cooled
condenser and using AFBC boiler
- - 7.02
NON FOSSIL FUEL
BASED COGENERATION
BIOMASS GASIFIER 7.13 7.55 7.35
BIOGAS 4.69 4.81 4.80
MUNICIPAL SOLID WASTE - - 6.29
REFUSE DERIVED FUEL - - 7.57
Note: *In case of Biomass/ non-fossil fuel/ Biomass gasifier/ biogas and Refuse Derived Fuel
based projects, the net generic levellised tariff represents sum of both fixed cost and variable cost
after adjusting for benefits of Accelerated Depreciation
Net Generic Levellised tariff for RE technologies with benefits of Accelerated
Depreciation approved for FY 2014-15, FY 2015-16 and FY 2016-17 (Rs/ kWh)
WIND ENERGY
SMALL HYDRO
SOLAR PV/ SOLAR THERMAL
5.36 5.60 5.48
JKSERC Page 120