According to reports, the Karnataka Electricity Regulatory Commission (KERC) on Thursday fixed the rate of wind power generation at `4.20 per unit in a tariff order. The order was issued after a public hearing was held on the same matter by the Commission recently.
The current cost of wind power is `3.70/unit and many petitioners had argued that the rate was insufficient to meet the increasing costs of setting up a new wind project. As a result, KERC revised the tariff.
“The new tariff will be applicable to Power Purchase Agreements (PPA) signed in the next five years and will also be binding for the entire duration of the PPA,” said KERC Chairman M R Sreenivasa Murthy. He added that the Commission reached the decision after due consideration of all the objections raised. Rates for solar power are expected to be announced by the KERC on Friday.
Meanwhile, the wind power rate was not welcomed by industries who were expecting a higher rate.
“The Indian Wind Power Association wants to convey that wind generators in Karnataka are disappointed with the order as it will affect viability of the projects and will discourage investments in the wind energy sector,” a statement said.