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KERC to review PPA for renewables

Taking note of the low tariff for solar, wind and biomass energy in the state, the Karnataka Electricity Regulatory Commission (KERC) has agreed to review the Power Purchase Agreement (PPA).

“If the private developers approach the commission with adequate supporting material, the commission will re-open the PPA to compensate developers,” V Hiremath, a member of KERC said while speaking at a conference organized by the ASSOCHAM Karnataka.

Unlike several parts of India, utilities in Karnataka have been allowed to charge good tariff so as to maintain their financial health, he added. The state government has paid adequate subsidy to the utilities so as to compensate for low tariff charged from consumers.

“KERC was keen to give boost to renewable sources of energy and had come out with remunerative tariff for various renewable sources. It also came out with regulations for issuance of Renewable Energy Credits to supplement the income streams of renewable energy developers,” Hiremath said.

Many private renewable energy developers have emphasised that renewable energy is the answer to growing energy needs. Renewable energy is only 12 per cent of India’s total installed generation capacity at the end of year 2011-12 while the National Action Plan for Climate Change (NAPCC) targets increasing it to 20 per cent by end of this decade. This effectively means an additional generating capacity close to 87 GW in next 8 years, a target seems difficult to achieve.


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