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Central Electricity Regulatory Commission Approves Tariff for DVC’s 8 MW Solar Project at Rs3.62/kWh

The Central Electricity Regulatory Commission (CERC) has approved an interim tariff of Rs3.62/kWh for Damodar Valley Corporation’s (DVC) 8 MW solar project at Panchet, West Bengal. This is lower than the Rs3.92/kWh initially requested by DVC.

Background & DVC’s Justifications

• DVC sought approval for a 25-year tariff to supply power to West Bengal and Jharkhand while meeting its Renewable Purchase Obligations (RPOs).
• It argued that buying power from the market to meet RPOs would be costlier than generating its own solar power.
• The Rs60 crore capital cost included higher panel costs, transmission charges, and lower solar intensity in the eastern region.
• DVC also noted that it received no government subsidies, increasing project costs.

CERC’s Analysis & Decision

• The Commission acknowledged DVC’s transparent bidding process and its need to meet RPO mandates.
• However, it reduced the capital cost, excluding 33 kV line diversion expenses, and advised exploring competitive bidding in future projects.
• CERC allowed DVC to revisit the petition with a detailed cost breakdown for potential tariff adjustments.

This ruling reflects CERC’s cautious approach in balancing cost efficiency and renewable energy expansion while encouraging competitive tariffs for solar projects.