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Nepra determines wind power upfront tariff at Rs13.19 per kWh

The National Electric Power Regulatory Authority (Nepra) has determined the wind power upfront tariff for 2013 at a levelised rate of Rs13.1998 per kWh (unit) as the tariff determined in October 2011 expired on December 31, 2012.

According to the determination issued on Friday, per unit tariff has been calculated at Rs15.5602 per unit for the first ten years of operation, which will be reduced to Rs7.0775 per unit from the 11th to 20th year of operation.

The tariff will be limited to the extent of net annual energy generation supplied to the power purchaser up to 31 percent net annual plant capacity factor.

Net annual energy generation supplied to the power purchaser in a year, in excess of 31 percent net annual plant capacity factor, will be charged at a modified tariff.

For net annual plant capacity factor ranging between 31-32 percent, 75 percent of the prevalent tariff will be applicable.

For net annual plant capacity factor ranging between 32-33 percent, 50 percent of the prevalent tariff will be applicable. For 33- 34 percent capacity factor, 25 percent of the prevalent tariff, for 34-35 percent, 20 percent of the tariff and for net annual plant capacity factor above 35 percent the tariff will be 10 percent of the prevalent tariff.

The determination adds that the power purchaser will not take the wind risk as relevant wind power generation companies will be required to account for it.

The companies eligible for the tariff will be the ones recommended by the Alternative Energy Development Board (AEDB).

In addition, those whose proposed plants and machinery are confirmed to be new and of acceptable quality by the AEDB and with an installed capacity within the range of five MW to 250 MW.

Further, companies having the power purchaser’s consent for electricity procurement, along with a certificate from the purchaser that it will have the necessary infrastructure to evacuate all the power supplied by the applicant will be eligible for the tariff.

The authority has advised that the choice to opt for the tariff will only be available up to 365 days from the date of its determination by the authority. Further, the tariff will only be valid for approvals given for the first 500 MW of companies.

The companies opting for the tariff will have to achieve financial close by September 30, 2014. The upfront tariff granted to any company will no longer remain applicable, if financial close is not achieved by the relevant company by September 30, 2014, or a generation licence is declined to that company.

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