LA TEOLOGIA DEL SACRAMENTO DEL MATRIMONIO, SU CORRELACION CON EL CATECISMO DE LA IGLESIA CATOLICA, Y LAS IMPLICACIONES PARA

principle for tariff determination by the SERCs. In line with the requirements of Electricity Act-2003, CERC came out with generic tariff norms for the wind energy sector in September 2009 and subsequently, SERCs in all the key states (with wind energy potential) have issued preferential tariff regulations. CERC in the past has issued the tariff regulations for renewable energy projects in September 2009 as well as tariff orders for the initial control period of three years (FY2010 - FY2012), thereafter the second control period has been set for five years by CERC starting from FY2013. The latest order for generic tariff norms was issued in April 2016 for projects to be commissioned in FY2017. The key features of generic tariff norms by CERC include [a] single part tariff levellised over the useful period of project, which is 25 years for wind power projects; however, the PPA period for wind power projects is 13 years [b] Capital cost during the control period of five years (starting from FY201 3) is determined based on indexation of normative capital cost with wholesale price index of steel and wholesale price index of electrical machinery [c] the tariff estimation for wind project is specific to the wind power density (WPD) in the location in accordance with the assessment study of C-WET and normative operating cost parameters. Nonetheless, option is open for project-specific tariff for new RE technologies [d] Remunerative 20% pre-tax return on equity (RoE) for the first 10 years and 24% pre-tax RoE for the remaining 15 years and [e] The tax benefit of higher level of depreciation / accelerated depreciation, if availed by the developer would be considered for tariff estimation (so that the tariff in such cases is net of higher depreciation benefit) so as to keep the overall pre-tax return on equity at the same level.

Mixed trend in revision in preferential feed-in tariff by SERCs for wind projects during FY2017; also the norms remain inconsistent across states: SERCs in most of the states have issued preferential tariff regulations for wind energy projects. Average preferential tariffs approved by SERCs are usually of ‘single part’ nature based on the normative principles and vary between ₹ 4.2/kwh to ₹ 5.7/kwh across states, depending upon the assumptions w.r.t. PLF as well as cost parameters (capital & operating related).

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Trends in feed-in tariffs across the key states having wind potential

#Tariff without AD beneift, *Tariff for wind zone-1 without AD benefit, ^Tariff in Jaisalmer, Jodhpur and Barmer districts without AD benefit, **Proposed; Source: ICRA research, Tariff orders by SERCs

SERCs in the states of Andhra Pradesh, Madhya Pradesh, Maharashtra and Tamil Nadu have revised the preferential feed-in tariff by 0.2%, -19.3%, -2.6% and 18.5% respectively for the new wind projects in their respective states to be commissioned w.e.f April 1, 2016. In case of the Madhya Pradesh, the steep downward revision in wind tariff is owing to revision in normative PLF assumption from 20% to 23% coupled with the downward revision in normative capital cost assumption. The downward tariff revision in Maharashtra for wind power projects commissioned during FY2017 is owing to revision in normative assumptions related to escalation rate for O&M costs and interest costs. The upward tariff revision in Tamil Nadu is led by revision normative assumption related to capital cost, O&M cost and higher interest costs coupled with the adoption of levellised tariff as against the SERCs in the states of Andhra Pradesh, Madhya Pradesh, Maharashtra and Tamil Nadu have revised the preferential feed-in tariff by 0.2%, -19.3%, -2.6% and 18.5% respectively for the new wind projects in their respective states to be commissioned w.e.f April 1, 2016. In case of the Madhya Pradesh, the steep downward revision in wind tariff is owing to revision in normative PLF assumption from 20% to 23% coupled with the downward revision in normative capital cost assumption.The downward tariff revision in Maharashtra for wind power projects commissioned during FY2017 is owing to revision in normative assumptions related to escalation rate for O&M costs and interest costs. The upward tariff revision in Tamil Nadu is led by revision normative assumption related to capital cost, O&M cost and higher interest costs coupled with the adoption of levellised tariff as against the earlier norm of using average tariff over the life of the project. The SERC in Andhra Pradesh has approved the tariff for FY2017 at ₹ 4.84 per unit, which is similar to the tariff approved for FY2016 at ₹ 4.83 per unit. The SERC in Gujarat has floated a discussion for determining tariff for wind power projects commissioning in the next control period (previous tariff was valid till March 31, 2016) and has proposed to revise the tariff to ₹ 4.19 per unit as against the earlier tariff of ₹ 4.15 per unit. SERC in Rajasthan is yet to issue the tariff orders for wind power projects to be commissioned in FY2017. In case of Karnataka, the tariff is valid till October 2018.

Renewable Purchase Obligation Norms in place by SERCs: Both the Electricity Act, 2003 & National Tariff Policy, 2006 have stipulated provision of RPO i.e. a certain fixed proportion out of the overall energy requirements in the distribution licensee area is to be sourced from renewable energy sources. Subsequently, the NAPCC released in June 2008 by the Government of India suggested a minimum renewable purchase target of 5% of the total energy procurement in FY2010, to be increased by 1% every year for a period of 10 years to reach 15% by FY2020. Over the last three-five year period, SERCs in many of the states have put in place regulations for compliance of RPO norms which are required to be met by the obligated entities. As per the RPO regulations, the obligated entities are distribution licensees, group captives and customers availing open access. The RPO norms can be met by the obligated entities either by entering into PPAs with renewable energy assets and/or by purchasing RECs. RPO regulations laid out by SERCs also specify the provision of RPO regulatory charges to be paid by the obligated entity, in case it fails to comply with the RPO target and as per the same, SERC may direct the obligated entity to deposit a certain amount as SERC may determine on the basis of the shortfall in units of RPO, and the forbearance price of REC as decided by the CERC; separately in respect of solar and non-solar RPO. However, RPO levels vary widely across the states, given that overall RPO levels vary from 2.00% to 12.50% in FY2017 across the states.

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SERCs: CERC introduced the REC mechanism in January 2010 to promote the development of renewable energy and to facilitate obligated entities to meet the RPO targets set by the respective SERCs. Under this mechanism, obligated entities which are unable to meet the RPO targets can meet the shortfall by purchasing RECs from renewable energy generators in other states. For eligibility under the REC framework, renewable projects: (a) would require accreditation from the state agency as notified by the SERC concerned; (b) will not have any PPA with distribution utility at a preferential tariff determined by the SERC; and (c) will sell the electricity generated either to the distribution licensee of the area in which the eligible entity is located, at a price not exceeding the average pooled purchase cost (APPC) of such distribution licensee, or to any other licensee or to an open access consumer at a mutually agreed price, or through power exchange at the market-determined price. RECs are of two types – a) solar RECs for solar power generators and b) non-solar RECs for other renewable power generators. CERC has set the price range for the RECs, called the cap price and floor price, which is determined separately for solar and non-solar RECs. One REC is equivalent to 1000 kWh. The RECs are traded on the power exchanges for market-based price discovery based on the actual demand and supply situation, although subject to the price range i.e. floor & cap levels as set by CERC. Currently, the floor and cap price for non-solar REC is at ₹ 1.5/unit and ₹ 3.3/unit respectively, while for solar REC the floor and cap price is ₹ 3.5/unit and ₹ 5.8 per unit respectively. These are valid till March 31, 2017.

B. Policy Framework: As mentioned earlier, GoI has recently scaled up the target for capacity addition in renewable energy