Tariff of refuse-based power plants fixed at Rs 7.84/unit

With a view to encouraging generation of power from solid waste in cities in the State, particularly in Hyderabad, Telangana State Electricity Regulatory Commission (TSERC) has determined the generic tariff for electricity generated by Refuse Derived Fuel (RDF)-based power projects at ₹7.84 per unit.

However, the levelised tariff for the RDF-based waste-to-energy (WtE) projects is applicable to plants which would become commercially operational during in the 2020-21-2023-24 period. In its recent order, the regulatory commission has fixed the traiff that comprises fixed cost of ₹3.42 per unit and variable cost of ₹4.42 per unit, for the sale of energy to the two distribution companies in the State for 20 years from the date of commercial operation.

On some stakeholders’ view that the capital cost proposed for the RDF-based WtE projects at ₹9 crore per MW was very low since it was in the range of ₹15 crore per MW to ₹22 crore per MW for existing projects in different parts of the country, including ₹20 crore per MW for the project coming up in Hyderabad, the commission noted that the tariff fixed would help recover the capital cost of more than ₹20 crore per MW even at the levelised tariff of ₹7.39 per unit, reports The Hindu.