rajasthan electricity regulatory commission draft wind tariff order... · rajasthan electricity...

$: Rajasthan Electricity Regulatory Commission Draft Wind Tariff Order... · Rajasthan Electricity Regulatory Commission ... Wind and Solar Energy) ... \Shiv Documents\Shiv Docs\Wind$
Rajasthan Electricity Regulatory Commission Vidyut Viniyamak Bhawan, Near State Motor Garage,Sahakar Marg, Jaipur-302001

Phone: 0141-2740067, 2741016 Fax:0141-2741018, E-mail: [email protected]

website: www.rerc.rajasthan.gov.in

PUBLIC NOTICE

Notice is hereby issued under Section 64 (2) read with 61(h), 62(1)(a) and 86 (1) (e)

of the Electricity Act, 2003 for determination of levelised generic tariff for sale of

electricity by Wind power plants to distribution companies of the State based on the

parameters specified in RERC(Terms & Conditions for Determination of Tariff for

Renewable Energy Sources – Wind and Solar Energy) Regulations, 2014 and its

amendments. The levellised generic Tariff proposed for FY 2015-16 is as under:

S.

No. Particulars

Tariff

(`/kWh) if

higher

depreciation

benefit is not

availed

Tariff (`/kWh)

if higher

depreciation

benefit is

availed

1 2 3 4

1 Wind Power Plants located in Jaisalmer,

Jodhpur & Barmer districts

5.74 5.44

2 Wind Power Plants located in districts other

than Jaisalmer, Jodhpur & Barmer districts.

6.03 5.72

The above tariff is levellised for 25 years.

Any persons desirous of offering suggestions/comments on the aforesaid tariff

proposal may do so in five copies, so as to reach this office by 20th April, 2015 with

copies of supporting details. The suggestions/comments can also be sent to the

Commission through e-mail at [email protected] . The copy of the draft order is

also available with the Receiving Officer of the Commission and can be obtained

on payment of Rs 100/-. The draft order is also available on Commission’s website

www.rerc.rajasthan.gov.in.

G.K.Sharma

(Secretary )

(Not to be published)

G.K.Sharma

(Secretary)

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Page | 1

RAJASTHAN ELECTRICITY REGULATORY COMMISSION, JAIPUR

In the matter of determination of generic tariff for sale of electricity from wind

power plants in the state to Distribution Licensee getting commissioned

during FY 2015-16.

Coram:

1. Shri Vishvanath Hiremath, Chairman

2. Shri Vinod Pandya, Member

3. Shri Raghuvendra Singh Rathore, Member

Date of Order: 20.03.2015

Draft Order

1. The Commission has notified RERC (Terms and Conditions for

Determination of Tariff for Renewable Energy Sources - Wind and Solar

energy) Regulations, 2014 on 24.02.2014 (hereinafter called as RERC RE

Tariff Regulations 2014). As per regulation 7(1) of the RERC RE Tariff

Regulations 2014, Commission may determine generic tariff on

Suo-Motu basis at the beginning of each year of the control period for

wind power plants for which principles and norms have been specified

under these Regulations.

2. Commission, through this order, contemplates to determine tariff for

wind power plants on Suo-Motu basis. Commission, therefore, based on

the benchmark capital cost for wind power plants for FY 2014-15, and

performance parameters contained in the RERC RE Tariff Regulations

2014 proposes to determine the generic tariff for the wind power plants

Page | 2

getting commissioned during FY 2015-16, as briefly discussed and given

in Appendix and Annexures to the Appendix.

3. Comments/suggestions of the stakeholders on the above proposal are

invited by 20th April, 2015.

Jaipur, dated 20th March, 2015.

(Vinod Pandya)

Member

(Raghuvendra Singh Rathore)

Member

(Vishvanath Hiremath)

Chairman

Page | 3

The levellised generic tariff for wind power plants getting commissioned

during FY 2015-16.

1. The levellised generic tariff for wind power plants, getting

commissioned during FY 2015-16, has been discussed below:

Useful Life

2. The regulation 2(22) of RERC RE Tariff Regulations 2014 provide for a

useful life of 25 years for wind power plants and accordingly, for

computation of generic tariff, a useful life of 25 years has been

considered.

Tariff Period

3. The RERC RE Tariff Regulations 2014 at regulation 5 specify that the tariff

determined for the wind power plants getting commissioned during the

control period, shall continue to be applicable for entire duration of the

tariff period as stipulated in Regulation 6 of the Regulations, which is 25

years for wind power plants.

Tariff Structure, Tariff Design and Levellised Tariff

4. As per regulation 8 of RERC RE Tariff Regulations 2014, the tariff for wind

power plants shall be a single part tariff consisting of following fixed

cost components:

(a) Operation and Maintenance (O&M) Expenses;

(b) Depreciation;

(c) Interest on long-term loans;

(d) Interest on Working Capital; and

Appendix

Page | 4

(e) Return on Equity.

5. As per regulation 9 of RERC RE Tariff Regulations 2014, the generic tariff

for wind power plants shall be determined on levellised basis for the

tariff period and that for the purpose of levellised tariff determination,

the discount factor have been considered as per RERC (Terms and

Conditions for Determination of Tariff for Renewable Energy Sources-

Wind and Solar Energy) (First Amendment) Regulations, 2015. The

calculations for discount factor are available at Annexure-I,

accordingly the discount factor considered is10.89%.

Capital Cost

6. Commission at regulation 22(2) of RERC RE Tariff Regulations 2014 has

specified a normative Capital cost of ` 565 Lakh/MW inclusive of ` 25

Lakh/MW towards the cost of transmission system including pooling

station upto the interconnection point, and this ` 25 Lakh/MW also

includes ` 2 Lakh/MW for grid connectivity charges payable to

Transmission licensee for the FY 2014-15. The Capital cost of FY 2014-15

has been escalated for FY 2015-16, at the rate of 2.586%, as per

Indexation Mechanism outlined under regulation 23 of the RERC RE

Tariff Regulations, 2014, and accordingly Capital Cost for FY 2015-16

has been derived as 579.6 Lakh/MW inclusive of the cost of transmission

system including pooling station upto the interconnection point, which

also includes ` 2.05 Lakh/MW for grid connectivity charges payable to

Page | 5

Transmission licensee for the FY 2015-16. The detailed calculations for

escalation for FY 2015-16, are available at Annexure-II.

Debt-Equity Ratio

7. The Debt-Equity ratio of 70:30 as envisaged at regulation 15 of RERC RE

Tariff Regulations 2014 has been taken for working out the debt and

equity components of normative capital cost for determination of

levellised generic tariff.

Capacity Utilisation Factor (CUF) & de-ration in CUF

8. Regulation 24(1) of RERC RE Tariff Regulations 2014 provides for CUF of

21% for Jaisalmer, Jodhpur and Barmer districts and 20% for other

districts. Further, regulation 24(2) of the said Regulations also stipulates

a de-ration of 1.25% from 6th, 10th, 14th & 18th year in the above CUFs.

Accordingly, CUFs along with de-ration have been taken.

Operation & Maintenance (O&M) Expenses

9. Normative O&M expenses have been taken as ` 7.87 Lakh/MW for

wind power plants for FY 2014-15 in accordance with regulation 25(1)

of RERC RE Tariff regulations 2014 and same have been escalated at

the rate of 5.85% for FY 2015-16 and calculated as ` 8.33 Lakh/MW. The

O&M Expenses have been escalated @ 5.85% over the tariff period for

computation of the levellised tariff, for the plants to be commissioned

in FY 2015-16, as per the regulation 25(2) of the RERC RE Tariff

Regulations 2014.

Page | 6

Depreciation

10. In accordance with regulation 14 of the RERC RE Tariff Regulations

2014, the rate of the depreciation for the first 12 years has been

considered as 5.83% of the capital cost per annum and from 13th year

onwards, the remaining depreciable value has been spread over the

balance useful life of the wind power plant and transmission system.

Interest rate on long term loan

11. In accordance with sub-regulation (1) of regulation 13 of the RERC RE

Tariff Regulations 2014, the loan tenure of 12 years has been

considered for the purpose of determination of generic tariff for wind

power plants. Sub-regulation (2) of regulation 13 of the said Regulations

further provides for the interest rate on long term loans as 300 basis

points higher than the average State Bank of India (SBI) base rate

prevalent during first six months of the year previous to the relevant

year.

12. Accordingly, the average SBI base rate obtained from official website

of SBI, prevalent during first six months of the year FY 2014-15 has been

considered for computation of applicable interest rate, as shown in the

table below:

Table-1: Average SBI base rate during first six months of FY 2014-15

Period from Period to Base rate No. of days

1.04.2014 30.09.2014 10% 183

Average SBI Base rate for FY 2014-15 10% 183

Page | 7

13. In terms of the above, the interest rate of 13.00% (=10.00%+3.00%) has

been used for computation of interest on long term loan in generic

tariff computations, treating loan as 70% of the capital cost.

Interest on working capital requirement

14. For the purpose of working capital requirement, the composition of

working capital has been taken as per regulation 16(1) of the RERC RE

Tariff Regulations 2014.

15. In accordance with regulation 16(2) of RERC RE Tariff Regulations 2014,

the interest rate on working capital for wind power plants has been

taken as 250 basis points higher than the average of SBI Base rate

prevalent during first six months of FY 14-15, which works out to be

12.50% (=10.00%+2.50%). Accordingly, a rate of 12.50% has been taken

as interest rate on working capital requirements.

Return on Equity

16. Regulation 15(2) of the RERC RE Tariff Regulations 2014 provides for 16%

Return on Equity on equity base of 30% determined in accordance with

regulation 12 of the said Regulations. As per regulation 15(3) of the

RERC RE Tariff regulations 2014, Return on Equity has been computed

by grossing up the base rate of 16% with tax rate equivalent to

Minimum alternate Tax (MAT) for first 10 years from COD and normal tax

rate for remaining years of the project life. In line with the practice

followed during the previous control period, the MAT rate of 20.39% (=

18.5% MAT rate + 7% surcharge + 3% education cess) has been

Page | 8

considered for first year and a MAT rate of 19.06% ( = 18.5% MAT rate +

3% education cess) has been considered for remaining 9 years of the

first 10 years. For remaining 15 years of plant life (also equal to useful

life), the normal tax rate of 30.90% (= 30% tax rate + 3% education cess)

has been applied for grossing up of the base rate of Return on Equity.

Subsidy or incentive by the Central Government, including Higher

Depreciation

17. As per the regulation 21 of the RERC RE Tariff regulations 2014, the

Commission shall take into consideration any incentive or subsidy or

benefit available from Central or State Government, including

accelerated or higher depreciation benefit, if availed by the

generating company, for the renewable energy power plants while

determining the tariff under these Regulations. Further, the Generation

Based Incentive/Tariff Subsidy, if allowed by the Central/ State Govt.

would be governed by the terms and conditions of such scheme.

18. As regards impact of higher depreciation admissible to wind energy

projects, vide GoI Notification No. 15/2012 (F. No. 149/21/2010-SO (TPL)]

S.O.694 (E) dated 30.03.2012, depreciation has been restricted to 15%

for wind power plants installed after 31.03.2012. However, in addition to

this, an additional depreciation of 20% has been allowed to the wind

power projects during the first year in an amendment in the Finance

Act, 2012. Both these rates have been considered in computing

income tax benefit as given at Annexures - III & IV. In this computation,

Page | 9

the capitalization has been considered during the second half of the

fiscal year, as provided at regulation 21 of RERC RE Tariff Regulations

2014. The energy available in the second half of the year has been

taken as 30% of annual generation as has been considered in the

earlier Tariff orders of the Control period 2009-2014 as well as in FY 2014-

15 as the energy availability from wind power plant in the second half

of the year is much lower than the first half i.e. during April to

September 70% and 30% in the second half of the year. The levellised

generic tariff has been worked out considering both the situations viz. if

higher depreciation benefit is availed and if not availed.

Levellised Tariff

19. The levellised tariff has been determined for the useful life of the wind

power plants i.e. for 25 years. Therefore, PPA should be for 25 years.

20. In light of the above position, the levellised generic tariff for wind power

plants getting commissioned for FY 2015-16 has been determined as

under:

Table-2: Tariff for wind power plants getting commissioned during FY 15-16

S.

No

.

Particulars

Tariff (`/kWh) if

higher

depreciation

benefit is not

availed

Tariff (`/kWh) if

higher

depreciation

benefit is

availed

1 2 3 4

1 Wind Power Plants located in

Jaisalmer, Jodhpur & Barmer

districts

5.74 5.44

2 Wind Power Plants located in

districts other than Jaisalmer,

Jodhpur & Barmer districts.

6.03 5.72

Page | 10

21. For wind power plant claiming the higher tariff worked out as above for

projects not availing higher depreciation benefit, Commission considers

it appropriate to lay down modalities as under:

(1) The PPA should include an undertaking of the wind power

generator that higher depreciation benefit would not be availed

for the generating plant/unit.

(2) The first bill raised by the wind power generator shall be

accompanied by an undertaking that higher depreciation benefit

shall not be claimed. Based on this, the applicable tariff would be

allowed.

(3) The claims of energy charges as per applicable tariff may be

entertained based on the said undertaking upto the due date of

filing of Income Tax Return of the relevant financial year. This

would mean 30th September, 2015 for payment for the financial

year 14-15 and for the first six months (upto 30th September) of

financial year 15-16 and so on.

(4) After filing of Income Tax Return a certificate from a Chartered

Accountant (CA) that higher depreciation has not been claimed

would have to be submitted or in the alternative a copy of

Income Tax Return filed with Income Tax Department wherein

higher depreciation has not been claimed along with verification

of Tax Consultant may be furnished.

Page | 11

(5) As Income Tax Return is required to be filed in the next year, the

payment of amount corresponding to non-availment of higher

depreciation in respect of energy supplied in the month of

October onwards of the financial year following the financial year

of commissioning of the plant would be made only after the said

certificate/copy of Income Tax Return is furnished.

(6) For the energy supplied in the months of October onwards, the

methodology as given in sub-paras (4) & (5) above be followed.

22. Commission also considers it appropriate that undertaking of the wind

power generator in PPA saying that benefit of higher depreciation

would not be claimed should also include an undertaking that in case

it is found that benefit of higher depreciation has been claimed, as per

third proviso to regulation 21 of the RERC RE Tariff Regulations 2014, the

distribution licensee shall be entitled to recover the amount wrongly

claimed by power generator along with penal charges @ 1.50% per

month calculated on daily basis.

23. Similarly, annual undertaking would need to be furnished if CDM

benefit is not availed. However, if CDM benefit is availed, it would have

to be shared between the distribution licensee and generating

company as envisaged in regulation 20 of the RE RERC Tariff

Regulations 2014.

Page | 12

24. The detailed calculations for determination of tariff are annexed as

under:

1. Calculation for Discount Factor considered for FY 2015-16 Annexure-I

2. Calculation for escalation rate for arriving at Capital Cost

for FY 2015-16

Annexure-II

3. Tariff determination of Wind Energy Power Plant -

located in Jaisalmer, Jodhpur & Barmer districts

Annexure-III

4. Tariff determination of Wind Energy Power Plant - located

in districts other than Jaisalmer, Jodhpur & Barmer districts

Annexure-IV

****************

Annexure-I

Calculation of Discount Factor for FY 2015-16 as per RERC (Terms and

Conditions for Determination of Tariff for Renewable Energy Sources - Wind

and Solar Energy) (First Amendment) Regulations, 2015:

DF = ((IR * DC * (1-IT)) + (ROE * EC)

= ((13.00 * 0.70 * (1- 33.06%)) + (16 * 0.30)

= 10.89%

Where,

DF = Discount Factor,

IR = Interest rate in percentage,

DC = Debt Component,

IT = Income tax rate,

ROE = Return of Equity in percentage,

EC = Equity Component

Annexure-II

Capital Cost Indexation for Wind Power Projects (FY 2015-16)

Indexation Formulation

CC(n) = P&M(n)*[1+F1+F2+F3] = 579.6

d(n) = (a*(SI(n-1)/ SI(0))-1)+b*( EI(n-1)/ EI(0))-1))/(a+b)

= (0.60*(129.91/126.2)-1)+0.40*(138.408/135.617)-1))/(0.6+0.4)

= 0.02587= 2.587%

P&M(n) = P&M(0)*(1+d(n))

= 452 * (1+0.02587) = 463.69

Variable Description Value

a Weightage for Steel Index 0.60

b Weightage for Electrical Machinery Index 0.40

F1 Factor for land and civil work 0.08

F2 Factor for Erection and Commissioning 0.07

F3 Factor for IDC and Financing 0.10

Month/Year Electrical Machinery Steel

2014 2013 2014 2013

January 137.4 133.9 126.2 126.2

February 137.8 133.8 126.2 126.2

March 138.4 134.1 126.2 126.2

April 138.4 134.5 135.1 126.2

May 138.6 135.5 129.6 126.2

June 138.6 135.6 130.6 126.2

July 138.8 135.6 130.5 126.2

August 138.4 135.7 130.9 126.2

September 138.6 136.3 130.9 126.2

October 138.7 137.1 130.9 126.2

November 138.7 137.5 130.9 126.2

December 138.5 137.8 130.9 126.2

Average 138.408 135.617 129.908 126.2

Parameters Description Value

CC(0) (` L/MW) Capital Cost for the base year 565

P&M(0) (` L/MW) Plant and Machinery cost for the base year 452

d(n) Capital Cost escalation factor 2.587%

P&M(n) (` L/MW) Plant and Machinery cost for the nth year

(FY 2015-16)

463.69

CC(n) (` L/MW) Capital Cost for the nth year (FY 2015-16) 579.6

Source of WPI (Steel and Electrical Machinery): Office of Economic Advisor,

Ministry of Commerce and Industry (www.eaindustry.nic.in)

TARIFF FOR WIND POWER PLANTS LOCATED IN JAISALMER,BARMER & JODHPUR DISTRICTS

Annexure-III

5.7399

5.74

0.2951

5.4448

5.44

Case Select Option 1

S. No.Assumption

HeadSub-Head Sub-Head (2) Unit Base Case

1 Power Generation

Capacity

Installed Power Generation Capacity MW 1

CUF % 21%

Deration factor % 1.25

Life of Transmission system Years 35

Life of Power Plant Years 25

2 Project CostCapital Cost/MW inc Land,Trans &Connectivity charges (Rs 2 Lacs) Rs Lakh/MW 579.6Project Cost Power Plant Cost including connectivity charges Rs Lakh/MW 554

Tranmssion line Cost Rs Lakh/MW 25.64

Connectivity Charges Rs Lacs/MW 2.0512

3 Sources of Funds

Debt: Equity

Debt % 70%

Equity % 30%

Total Debt Amount Rs Lakh 405.72

Total Equity Amout Rs Lakh 174

Funding Options-1 (Domestic Loan Source-1)

Loan Amount Rs Lakh 405.72

Moratorium Period years 0

Intrest Rate % 13.00%

Loan repayment per annum Rs Lakh 33.81

Funding Options-2 ( Equity Finance )

Equity amount Rs Lakh 174

Return on Equity % p.a 16.00%

Discount Rate (As per CERC Notification 7.10.2013) 10.89%

4 Financial Assumptions

Fiscal Assumptions

Income Tax (for yr-11 to yr-25) % 30.90%

MAT Rate (for yr-1) % 20.39%

MAT Rate (for yr-2 to yr-10) % 19.06%

80 IA benefits Yes/No Yes

Higher Depreciation benefit Rs/kWh 0.30

Depreciation

Depreciation Rate(power plant) % 5.83%

Depreciation Rate(Transmission) % 5.83%

Years for 5.83% rate 12

5 Working Capital Requirement

O&M Charges Months 1

Maintenance Spare (% of O&M expenses) % 15%

Receivables for Debtors Months 1.5

Intrest On Working Capital % 12.50%

6 Operation & Maintenance Expenses (2014-15)

power plant Rs Lakh/MW Rs Lakh/MW 7.50

Transmission lines Rs Lakh/MW Rs Lakh/MW 0.83

Total O&M Expenses Rs Lakh/MW Rs Lakh/MW 8.33

Total O & M Expenses Escalation % 5.85%

Months of Operations MU 12

Working Hours/Day Hrs 24

No. of Days Days 365

Total No. of Hours Hrs 8760

Levelised Tariff (Rs/kWh) without HD

Levelised Tariff (Rs/kWh) without HD (Rounding off)

Higher Depreciation benefit (Rs/kWh)

Levelised Tariff (Rs/kWh) with HD

Levelised Tariff (Rs/kWh) with HD (Rounding off)

TARIFF FOR WIND POWER PLANTS LOCATED IN JAISALMER,BARMER & JODHPUR DISTRICTS Annexure-III contd…

1 0.902 0.813 0.733 0.661 0.596 0.538 0.485 0.437 0.394 0.356 0.321 0.289 0.261 0.235 0.212 0.191 0.173 0.156 0.140 0.127 0.114 0.103 0.093 0.084

Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Deration in capacity % 0% 0% 0% 0% 0% 1.25% 1.25% 1.25% 1.25% 2.50% 2.50% 2.50% 2.50% 3.75% 3.75% 3.75% 3.75% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Generation MU 1.84 1.84 1.84 1.84 1.84 1.82 1.82 1.82 1.82 1.79 1.79 1.79 1.79 1.77 1.77 1.77 1.77 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75

Cost of generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25O&M Expenses Rs Lakh 8.33 8.82 9.33 9.88 10.46 11.07 11.72 12.40 13.13 13.90 14.71 15.57 16.48 17.44 18.46 19.54 20.69 21.90 23.18 24.53 25.97 27.49 29.10 30.80 32.60

Depreciation Rs Lakh 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93

Interest on term loan Rs Lakh 50.55 46.15 41.76 37.36 32.96 28.57 24.17 19.78 15.38 10.99 6.59 2.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Interest on working Capital Rs Lakh 2.27 2.22 2.17 2.12 2.08 2.04 2.00 1.96 1.92 1.89 1.95 1.92 1.53 1.57 1.62 1.67 1.72 1.78 1.84 1.90 1.96 2.03 2.10 2.18 2.26

Return on Equity Rs Lakh 34.95 34.37 34.37 34.37 34.37 34.37 34.37 34.37 34.37 34.37 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26

Total Cost of generation Rs Lakh 129.89 125.34 121.42 117.52 113.66 109.84 106.05 102.30 98.59 94.93 97.30 93.74 67.21 68.21 69.28 70.41 71.61 72.87 74.21 75.63 77.13 78.72 80.40 82.18 84.06

Per unit Cost of generation Rs/kWh 7.06 6.81 6.60 6.39 6.18 6.05 5.84 5.63 5.43 5.29 5.42 5.23 3.75 3.85 3.91 3.98 4.04 4.17 4.25 4.33 4.41 4.50 4.60 4.70 4.81

Levellised Tariff (Rs/kWh) 5.74 25 years

Note(s):

1.Levelised tariff has been worked out by carrying out levelisation over 25 years and with normative debt equity ratio (70:30).

2. Figures may not tally exactly on account of rounding of .


Operation and Maintenance Expenses

Particular Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

O&M expense for power plant Rs Lakh 7.50 7.94 8.40 8.89 9.42 9.97 10.55 11.17 11.82 12.51 13.24 14.02 14.84 15.71 16.62 17.60 18.63 19.72 20.87 22.09 23.38 24.75 26.20 27.73 29.35

O&M expense for transmission linesRs Lakh 0.83 0.88 0.93 0.98 1.04 1.10 1.17 1.24 1.31 1.38 1.47 1.55 1.64 1.74 1.84 1.95 2.06 2.18 2.31 2.44 2.59 2.74 2.90 3.07 3.25

Total O&M expense Rs Lakh 8.33 8.82 9.33 9.88 10.46 11.07 11.72 12.40 13.13 13.90 14.71 15.57 16.48 17.44 18.46 19.54 20.69 21.90 23.18 24.53 25.97 27.49 29.10 30.80 32.60


Depreciation

Particular Unit Description

Power Plant Cost Rs Lakh 579.6

Transmission cost Rs Lakh 25.64

Life of Plant Years 25

Life of transmission system Years 35

Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

Depreciation for power plant Rs Lakh 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Depreciation Rs Lakh 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Long-Term Debt Schedule

Particular Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Opening Balance Rs Lakh 405.72 371.91 338.10 304.29 270.48 236.67 202.86 169.05 135.24 101.43 67.62 33.81 0.00 0.00 0.00 0.00 0.00

Repayment Rs Lakh 33.81 33.81 33.81 33.81 33.81 33.81 33.81 33.81 33.81 33.81 33.81 33.81 0.00 0.00 0.00 0.00 0.00

Closing Balance Rs Lakh 371.91 338.10 304.29 270.48 236.67 202.86 169.05 135.24 101.43 67.62 33.81 0.00 0.00 0.00 0.00 0.00 0.00

Interest Rs Lakh 50.55 46.15 41.76 37.36 32.96 28.57 24.17 19.78 15.38 10.99 6.59 2.20 0.00 0.00 0.00 0.00 0.00


Working Captial Requirement




Receivables Rs Lakh 16.24 15.67 15.18 14.69 14.21 13.73 13.26 12.79 12.32 11.87 12.16 11.72 8.40 8.53 8.66 8.80 8.95 9.11 9.28 9.45 9.64 9.84 10.05 10.27 10.51

Mintenance Spare Rs Lakh 1.25 1.32 1.40 1.48 1.57 1.66 1.76 1.86 1.97 2.08 2.21 2.34 2.47 2.62 2.77 2.93 3.10 3.28 3.48 3.68 3.90 4.12 4.36 4.62 4.89

Total Working Capital Rs Lakh 18.18 17.73 17.36 17.00 16.65 16.31 15.99 15.68 15.39 15.11 15.59 15.35 12.25 12.60 12.97 13.36 13.78 14.22 14.68 15.18 15.70 16.25 16.84 17.46 18.11

Interest Rate % 12.50%

Interest on Working Capital Rs Lakh 2.27 2.22 2.17 2.12 2.08 2.04 2.00 1.96 1.92 1.89 1.95 1.92 1.53 1.57 1.62 1.67 1.72 1.78 1.84 1.90 1.96 2.03 2.10 2.18 2.26


Return on Equity

Praticular Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Pre-tax ROE Rs Lakh 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82

Income tax component for Gross up Rs Lakh 7.13 6.55 6.55 6.55 6.55 6.55 6.55 6.55 6.55 6.55 12.44 12.44 12.44 12.44 12.44 12.44 12.44 12.44 12.44 12.44 12.44 12.44 12.44 12.44 12.44

ROE (Grossed up for I.Tax) Rs Lakh 34.95 34.37 34.37 34.37 34.37 34.37 34.37 34.37 34.37 34.37 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26

Determination of Higher Depreciation Benefit for Wind Power Projects

Depreciation amount 90% Annexure-III contd...

Book Depreciation rate 5.83%

Tax Depreciation rate 15%

Additional depreciation rate

applicable during first year

20%

Income Tax 33.06% 30.90% (yr-2 onwards)

Capital Cost 579.60 Rs Lakh/MW

Year(s)--> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Depreciation % 2.92% 5.83% 5.83% 5.83% 5.83% 5.83% 5.83% 5.83% 5.83% 5.83% 5.83% 5.83% 1.54% 1.54% 1.54% 1.54% 1.54% 1.54% 1.54% 1.54% 1.54% 1.54% 1.54% 1.54% 1.54%

Depreciation Rs Lacs 16.90 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93

Higher Depreciation Benefit

Opening balance % 100.00% 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91% 3.32% 2.82% 2.40% 2.04% 1.73%

Allowed during the year % 17.50% 20.63% 9.28% 7.89% 6.71% 5.70% 4.84% 4.12% 3.50% 2.98% 2.53% 2.15% 1.83% 1.55% 1.32% 1.12% 0.95% 0.81% 0.69% 0.59% 0.50% 0.42% 0.36% 0.31% 0.26%

Closing % 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91% 3.32% 2.82% 2.40% 2.04% 1.73% 1.47%

Higher depreciation Rs Lacs 101.43 119.54 53.79 45.73 38.87 33.04 28.08 23.87 20.29 17.25 14.66 12.46 10.59 9.00 7.65 6.50 5.53 4.70 3.99 3.40 2.89 2.45 2.09 1.77 1.51

Net depreciation benefit Rs Lacs 84.53 85.75 20.00 11.93 5.08 (0.75) (5.71) (9.92) (13.50) (16.55) (19.13) (21.33) 1.66 0.07 (1.28) (2.43) (3.41) (4.24) (4.94) (5.54) (6.05) (6.48) (6.85) (7.16) (7.43)

Tax Benefit Rs Lacs 27.95 26.50 6.18 3.69 1.57 (0.23) (1.76) (3.07) (4.17) (5.11) (5.91) (6.59) 0.51 0.02 (0.40) (0.75) (1.05) (1.31) (1.53) (1.71) (1.87) (2.00) (2.12) (2.21) (2.30)

Discounted Tax Benefit Rs Lacs 27.95 25.20 5.30 2.85 1.09 (0.15) (1.00) (1.57) (1.92) (2.13) (2.22) (2.23) 0.16 0.01 (0.10) (0.17) (0.21) (0.24) (0.25) (0.25) (0.25) (0.24) (0.23) (0.22) (0.20)

Levelised tax benefit Rs Lacs 4.96

Energy Generation MU 0.55 1.84 1.84 1.84 1.84 1.82 1.82 1.82 1.82 1.79 1.79 1.79 1.79 1.77 1.77 1.77 1.77 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75

Discounted Generation MU 0.55 1.75 1.58 1.42 1.28 1.14 1.03 0.93 0.84 0.75 0.67 0.61 0.55 0.49 0.44 0.40 0.36 0.32 0.29 0.26 0.23 0.21 0.19 0.17 0.15

Levelised generation MU 1.68

Per Unit Benefit Rs/kWh 5.06 1.44 0.34 0.20 0.09 (0.01) (0.10) (0.17) (0.23) (0.29) (0.33) (0.37) 0.03 0.00 (0.02) (0.04) (0.06) (0.07) (0.09) (0.10) (0.11) (0.11) (0.12) (0.13) (0.13)

Discount Factor 1.00 0.90 0.81 0.73 0.66 0.60 0.54 0.49 0.44 0.39 0.36 0.32 0.29 0.26 0.24 0.21 0.19 0.17 0.16 0.14 0.13 0.11 0.10 0.09 0.08

Applicable Discount Factor 1.00 0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.42 0.38 0.34 0.31 0.28 0.25 0.22 0.20 0.18 0.16 0.15 0.13 0.12 0.11 0.10 0.09

Levelised ITAX benefit Rs/kWh 0.2951

Note(s):


1.In the above calculations, depreciation for the first year has been considered as 17.50%(= 50% of (15%+20%)) as per CERC methodology

2. Generation for the first year has been considered as 30% of the normative generation for the second half of the financial year.

3. For working out Tax benefit, income tax rate for the first year has been considered as 32.45% and 30.90% has been considered for remaining useful life.


TARIFF FOR WIND POWER PLANTS LOCATED IN DISTRICTS OTHER THAN JAISALMER,BARMER & JODHPUR

Annexure-IV

6.0269

6.03

0.3099

5.7170

5.72

Case Select Option 2

S. No.Assumption

HeadSub-Head Sub-Head (2) Unit Base Case

1 Power Generation

Capacity

Installed Power Generation Capacity MW 1

CUF % 20%

Deration factor % 1.25

Life of Transmission system Years 35

Life of Power Plant Years 25

2 Project CostCapital Cost/MW inc Land,Trans &Connectivity charges (Rs 2 Lacs) Rs Lakh/MW 579.6Project Cost Power Plant Cost including connectivity charges Rs Lakh/MW 554

Tranmssion line Cost Rs Lakh/MW 25.64

Connectivity Charges Rs Lacs/MW 2.0512

3 Sources of Funds

Debt: Equity

Debt % 70%

Equity % 30%

Total Debt Amount Rs Lakh 405.72

Total Equity Amout Rs Lakh 174

Funding Options-1 (Domestic Loan Source-1)

Loan Amount Rs Lakh 405.72

Moratorium Period years 0

Intrest Rate % 13.00%

Loan repayment per annum Rs Lakh 33.81

Funding Options-2 ( Equity Finance )

Equity amount Rs Lakh 174

Return on Equity % p.a 16.00%

Discount Rate (As per CERC Notification 7.10.2013) 10.89%

4 Financial Assumptions

Fiscal Assumptions

Income Tax (for yr-11 to yr-25) % 30.90%

MAT Rate (for yr-1) % 20.39%

MAT Rate (for yr-2 to yr-10) % 19.06%

80 IA benefits Yes/No Yes

Higher Depreciation benefit Rs/kWh 0.31

Depreciation

Depreciation Rate(power plant) % 5.83%

Depreciation Rate(Transmission) % 5.83%

Years for 5.83% rate 12

5 Working Capital Requirement

O&M Charges Months 1

Maintenance Spare (% of O&M expenses) % 15%

Receivables for Debtors Months 1.5

Intrest On Working Capital % 12.50%

6 Operation & Maintenance Expenses (2014-15)

power plant Rs Lakh/MW Rs Lakh/MW 7.50

Transmission lines Rs Lakh/MW Rs Lakh/MW 0.83

Total O&M Expenses Rs Lakh/MW Rs Lakh/MW 8.33

Total O & M Expenses Escalation % 5.85%

Months of Operations MU 12

Working Hours/Day Hrs 24

No. of Days Days 365

Total No. of Hours Hrs 8760

Levelised Tariff (Rs/kWh) without HD

Levelised Tariff (Rs/kWh) without HD (Rounding off)

Higher Depreciation benefit (Rs/kWh)

Levelised Tariff (Rs/kWh) with HD

Levelised Tariff (Rs/kWh) with HD (Rounding off)

TARIFF FOR WIND POWER PLANTS LOCATED IN DISTRICTS OTHER THAN JAISALMER,BARMER & JODHPUR Annexure-IV contd…

1 0.902 0.813 0.733 0.661 0.596 0.538 0.485 0.437 0.394 0.356 0.321 0.289 0.261 0.235 0.212 0.191 0.173 0.156 0.140 0.127 0.114 0.103 0.093 0.084

Units Generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Deration in capacity % 0% 0% 0% 0% 0% 1.25% 1.25% 1.25% 1.25% 2.50% 2.50% 2.50% 2.50% 3.75% 3.75% 3.75% 3.75% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%Installed Capacity MW 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Generation MU 1.75 1.75 1.75 1.75 1.75 1.73 1.73 1.73 1.73 1.71 1.71 1.71 1.71 1.69 1.69 1.69 1.69 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66

Cost of generation Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25O&M Expenses Rs Lakh 8.33 8.82 9.33 9.88 10.46 11.07 11.72 12.40 13.13 13.90 14.71 15.57 16.48 17.44 18.46 19.54 20.69 21.90 23.18 24.53 25.97 27.49 29.10 30.80 32.60

Depreciation Rs Lakh 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93

Interest on term loan Rs Lakh 50.55 46.15 41.76 37.36 32.96 28.57 24.17 19.78 15.38 10.99 6.59 2.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Interest on working Capital Rs Lakh 2.27 2.22 2.17 2.12 2.08 2.04 2.00 1.96 1.92 1.89 1.95 1.92 1.53 1.57 1.62 1.67 1.72 1.78 1.84 1.90 1.96 2.03 2.10 2.18 2.26

Return on Equity Rs Lakh 34.95 34.37 34.37 34.37 34.37 34.37 34.37 34.37 34.37 34.37 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26

Total Cost of generation Rs Lakh 129.89 125.34 121.42 117.52 113.66 109.84 106.05 102.30 98.59 94.93 97.30 93.74 67.21 68.21 69.28 70.41 71.61 72.87 74.21 75.63 77.13 78.72 80.40 82.18 84.06

Per unit Cost of generation Rs/kWh 7.41 7.15 6.93 6.71 6.49 6.35 6.13 5.91 5.70 5.56 5.70 5.49 3.93 4.05 4.11 4.18 4.25 4.38 4.46 4.54 4.63 4.73 4.83 4.94 5.05

Levellised Tariff (Rs/kWh) 6.03 25 years

Note(s):

1.Levelised tariff has been worked out by carrying out levelisation over 25 years and with normative debt equity ratio (70:30).



Operation and Maintenance Expenses




Total O&M expense Rs Lakh 8.33 8.82 9.33 9.88 10.46 11.07 11.72 12.40 13.13 13.90 14.71 15.57 16.48 17.44 18.46 19.54 20.69 21.90 23.18 24.53 25.97 27.49 29.10 30.80 32.60


Depreciation

Particular Unit Description

Power Plant Cost Rs Lakh 579.6

Transmission cost Rs Lakh 25.64

Life of Plant Years 25

Life of transmission system Years 35

Years -----------------> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

Depreciation for power plant Rs Lakh 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Depreciation Rs Lakh 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Long-Term Debt Schedule

Particular Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Opening Balance Rs Lakh 405.72 371.91 338.10 304.29 270.48 236.67 202.86 169.05 135.24 101.43 67.62 33.81 0.00 0.00 0.00 0.00 0.00

Repayment Rs Lakh 33.81 33.81 33.81 33.81 33.81 33.81 33.81 33.81 33.81 33.81 33.81 33.81 0.00 0.00 0.00 0.00 0.00

Closing Balance Rs Lakh 371.91 338.10 304.29 270.48 236.67 202.86 169.05 135.24 101.43 67.62 33.81 0.00 0.00 0.00 0.00 0.00 0.00

Interest Rs Lakh 50.55 46.15 41.76 37.36 32.96 28.57 24.17 19.78 15.38 10.99 6.59 2.20 0.00 0.00 0.00 0.00 0.00


Working Captial Requirement




Receivables Rs Lakh 16.24 15.67 15.18 14.69 14.21 13.73 13.26 12.79 12.32 11.87 12.16 11.72 8.40 8.53 8.66 8.80 8.95 9.11 9.28 9.45 9.64 9.84 10.05 10.27 10.51

Mintenance Spare Rs Lakh 1.25 1.32 1.40 1.48 1.57 1.66 1.76 1.86 1.97 2.08 2.21 2.34 2.47 2.62 2.77 2.93 3.10 3.28 3.48 3.68 3.90 4.12 4.36 4.62 4.89

Total Working Capital Rs Lakh 18.18 17.73 17.36 17.00 16.65 16.31 15.99 15.68 15.39 15.11 15.59 15.35 12.25 12.60 12.97 13.36 13.78 14.22 14.68 15.18 15.70 16.25 16.84 17.46 18.11

Interest Rate % 12.50%

Interest on Working Capital Rs Lakh 2.27 2.22 2.17 2.12 2.08 2.04 2.00 1.96 1.92 1.89 1.95 1.92 1.53 1.57 1.62 1.67 1.72 1.78 1.84 1.90 1.96 2.03 2.10 2.18 2.26


Return on Equity

Praticular Unit Year---> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Pre-tax ROE Rs Lakh 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82 27.82

Income tax component for Gross up Rs Lakh 7.13 6.55 6.55 6.55 6.55 6.55 6.55 6.55 6.55 6.55 12.44 12.44 12.44 12.44 12.44 12.44 12.44 12.44 12.44 12.44 12.44 12.44 12.44 12.44 12.44

ROE (Grossed up for I.Tax) Rs Lakh 34.95 34.37 34.37 34.37 34.37 34.37 34.37 34.37 34.37 34.37 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26 40.26

Determination of Higher Depreciation Benefit for Wind Power Projects

Depreciation amount 90% Annexure-IV contd...

Book Depreciation rate 5.83%

Tax Depreciation rate 15%

Additional depreciation rate

applicable during first year

20%

Income Tax 33.06% 30.90% (yr-2 onwards)

Capital Cost 579.60 Rs Lakh/MW

Year(s)--> Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Depreciation % 2.92% 5.83% 5.83% 5.83% 5.83% 5.83% 5.83% 5.83% 5.83% 5.83% 5.83% 5.83% 1.54% 1.54% 1.54% 1.54% 1.54% 1.54% 1.54% 1.54% 1.54% 1.54% 1.54% 1.54% 1.54%

Depreciation Rs Lacs 16.90 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 33.79 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93

Higher Depreciation Benefit

Opening balance % 100.00% 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91% 3.32% 2.82% 2.40% 2.04% 1.73%

Allowed during the year % 17.50% 20.63% 9.28% 7.89% 6.71% 5.70% 4.84% 4.12% 3.50% 2.98% 2.53% 2.15% 1.83% 1.55% 1.32% 1.12% 0.95% 0.81% 0.69% 0.59% 0.50% 0.42% 0.36% 0.31% 0.26%

Closing % 82.50% 61.88% 52.59% 44.70% 38.00% 32.30% 27.45% 23.34% 19.84% 16.86% 14.33% 12.18% 10.35% 8.80% 7.48% 6.36% 5.41% 4.59% 3.91% 3.32% 2.82% 2.40% 2.04% 1.73% 1.47%

Higher depreciation Rs Lacs 101.43 119.54 53.79 45.73 38.87 33.04 28.08 23.87 20.29 17.25 14.66 12.46 10.59 9.00 7.65 6.50 5.53 4.70 3.99 3.40 2.89 2.45 2.09 1.77 1.51

Net depreciation benefit Rs Lacs 84.53 85.75 20.00 11.93 5.08 (0.75) (5.71) (9.92) (13.50) (16.55) (19.13) (21.33) 1.66 0.07 (1.28) (2.43) (3.41) (4.24) (4.94) (5.54) (6.05) (6.48) (6.85) (7.16) (7.43)

Tax Benefit Rs Lacs 27.95 26.50 6.18 3.69 1.57 (0.23) (1.76) (3.07) (4.17) (5.11) (5.91) (6.59) 0.51 0.02 (0.40) (0.75) (1.05) (1.31) (1.53) (1.71) (1.87) (2.00) (2.12) (2.21) (2.30)

Discounted Tax Benefit Rs Lacs 27.95 25.20 5.30 2.85 1.09 (0.15) (1.00) (1.57) (1.92) (2.13) (2.22) (2.23) 0.16 0.01 (0.10) (0.17) (0.21) (0.24) (0.25) (0.25) (0.25) (0.24) (0.23) (0.22) (0.20)

Levelised tax benefit Rs Lacs 4.96

Energy Generation MU 0.53 1.75 1.75 1.75 1.75 1.73 1.73 1.73 1.73 1.71 1.71 1.71 1.71 1.69 1.69 1.69 1.69 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66

Discounted Generation MU 0.53 1.67 1.50 1.35 1.22 1.09 0.98 0.88 0.80 0.71 0.64 0.58 0.52 0.46 0.42 0.38 0.34 0.30 0.27 0.25 0.22 0.20 0.18 0.16 0.15

Levelised generation MU 1.60

Per Unit Benefit Rs/kWh 5.32 1.51 0.35 0.21 0.09 (0.01) (0.10) (0.18) (0.24) (0.30) (0.35) (0.39) 0.03 0.00 (0.02) (0.04) (0.06) (0.08) (0.09) (0.10) (0.11) (0.12) (0.13) (0.13) (0.14)

Discount Factor 1.00 0.90 0.81 0.73 0.66 0.60 0.54 0.49 0.44 0.39 0.36 0.32 0.29 0.26 0.24 0.21 0.19 0.17 0.16 0.14 0.13 0.11 0.10 0.09 0.08

Applicable Discount Factor 1.00 0.95 0.86 0.77 0.70 0.63 0.57 0.51 0.46 0.42 0.38 0.34 0.31 0.28 0.25 0.22 0.20 0.18 0.16 0.15 0.13 0.12 0.11 0.10 0.09

Levelised ITAX benefit Rs/kWh 0.3099

Note(s):


1.In the above calculations, depreciation for the first year has been considered as 17.50%(= 50% of (15%+20%)) as per CERC methodology

2. Generation for the first year has been considered as 30% of the normative generation for the second half of the financial year.

3. For working out Tax benefit, income tax rate for the first year has been considered as 32.45% and 30.90% has been considered for remaining useful life.
