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Assam Electricity Regulatory Commission Rejects Rs3.92/kWh Tariff Request, Tells APDCL to Source Cheaper Solar Power

The Assam Electricity Regulatory Commission (AERC) has denied a request from the Assam Power Distribution Company (APDCL) to raise the tariff for its 15 MW solar power tender to Rs3.92/kWh. APDCL had issued the tender for ground-mounted solar projects on a build-own-operate model, initially with a tariff cap of Rs3.33/kWh. After getting no bids, they increased it to Rs3.6/kWh but still failed to attract developers.

Developers pointed out various issues: low solar irradiance in the Northeast, small project size, tough terrain, and water-logged land. Because of these challenges, APDCL sought approval to raise the tariff further to Rs3.92/kWh—citing earlier approved projects in Assam with similar rates.

However, the Commission found that those earlier projects (50 MW and 70 MW) included land costs, unlike the current one. It ruled that offering Rs3.92/kWh without land cost would make the new project too expensive for consumers. The Commission also highlighted that other Indian states were managing to produce solar power at lower costs.

Therefore, AERC directed APDCL to source solar energy from more cost-effective projects and stick to lower tariffs to protect consumers' interests.