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Karnataka Electricity Regulatory Commission agreed to review Power Purchase Agreement for low tariff for renewable energy sources

According to reports, Karnataka Electricity Regulatory Commission (KERC) agreed to review the Power Purchase Agreement (PPA) having very low tariff of solar, wind and biomass sources of energy, fixed some years ago. V Hiremath, member, KERC said that if the private developers approach the commission with adequate supporting material, the commission will re-open the PPA to compensate developers. He was speaking at the conference organized by the ASSOCHAM Karnataka on Making Green Energy Viable with special focus on solar, wind and biomass.

He further said that unlike several parts of the country, utilities of Karnataka have been allowed to charge good tariff so as to maintain their financial health. State Government has paid adequate subsidy to utilities 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 come out with regulations for issuance of Renewable Energy Credits to supplement the income streams of renewable energy developers,” he said.

Private renewable energy developers emphasised that renewable energy is the answer to growing energy needs of the country and share of renewable energy in India’s total installed generation capacity at the end of year 201-12 was only 12% while the National Action Plan for Climate Change (NAPCC) has set a target of increasing this to 20% by the year 2019-20. This translates into additional generating capacity close to 87 GW in next 8 years, which seems quite unachievable.

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