India's Karnataka changes power rates for new solar parks

Oct 14, 2013 - The electricity regulator in the Indian state of Karnataka on Friday said that from April next year the power purchase tariff for new solar photovoltaic (PV) plants will range between INR 7.20 (USD 0.12/EUR 0.09) and INR 9.56, depending on their size.

The revised rates aim to help the state reach its 2,000-MW solar capacity targets by the end of the decade. Certain projects will also enjoy exemption from wheeling and banking charges.

The Karnataka Electricity Regulatory Commission (KERC) has set a tariff of INR 8.40 per kWh for big PV plants that enter power purchase agreements (PPAs) with local electricity supply companies (ESCOMs) after April 1, 2014. These rates will be in place till March 2018. For rooftop and small PV systems the PPA rate will be INR 9.56/kWh, while rooftop and small PV installations that have taken advantage of the 30% government subsidy for capital costs will get a lower tariff for selling power to the grid -- INR 7.20.

Apart from PV, Karnataka also wants to install more concentrated solar power (CSP) plants so it has fixed the power sale rate for these at INR 10.92 per kWh.

(INR 100 = USD 1.632/EUR 1.204)

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