Gujarats green energy sector is all set to get a major boost if the draft notification relating to the CERC (Central Electricity Regulatory Commission) Regulations 2009 (Terms and Conditions for Tariff determination from Renewable Energy Sources) is approved. The draft offers substantial incentives for future renewable energy projects in the country. Among other things,it even provides for pre-tax return on equity of 17 per cent per annum for the first 10 years after project completion,and 23 per cent per annum from the 11th year. Sobhana Desai,Deputy Secretary,Energy and Petrochemicals Department,said,It certainly is a desirable step by the CERC. We are looking into the draft and will send our observations before the deadline ends on the June 15. GEDA officials also mentioned that Gujarat,which already has its own Solar and Wind Power Policy in place,is set to gain further as the CERC draft also includes the clause enlisting sharing of Clean Development Mechanism (CDM) benefits between the project developer and concerned off-taker. It states that 100 per cent of the benefits will be retained by the developer in the first year,and thereafter,it will be shared by the beneficiaries,increasing by 10 per cent every year till it reaches 50 per cent. The tariff regulations apply to wind power projects having minimum annual mean Wind Power Density of 200 watt/sq m; small hydel projects of lower than or equal to 25 MW; biomass power projects; and non-fossil fuel based co-generation projects. The tariff determination period under these regulations will be 13 years,and single part tariff will include five fixed components of return on equity,interest on loan capital,depreciation,interest on working capital,and operation and maintenance expenses. Meanwhile,the existing solar power policy of the state provides for a fixed tariff of Rs 13 per unit for the first 12 years for the sale of energy by those photovoltaic solar projects commissioned before December 31,2010,and Rs 3 per unit for the remaining 13 years. The tariff fixed for other solar projects commissioned before March 31,2014 is Rs 12 per unit for the first 12 years,and Rs 3 per unit for the remaining 13 years. With regards to wind power generators,the purchase rate has been increased from Rs 3.37 per unit to Rs 3.50 per unit to attract more investment.
