© Regn.No.

KERBIL/2012/45073
േകരള സർകാർ dated 05-09-2012 with RNI
Government of Kerala Reg No.KL/TV(N)/634/2021-2023
2022

േകരള ഗസറ്
KERALA GAZETTE
അസാധാരണം
EXTRAORDINARY
ആധികാരികമായി ്പസിദെപടുതുനത
PUBLISHED BY AUTHORITY
തിരുവനനപുരം, 2022 ജൂൈല 18
18th July 2022
വാല്ം 11 തിങള
നമർ
1197 കർകടകം 2 2381
Vol. XI No.
2nd Karkadakam 1197
Thiruvananthapuram,
Monday 1944 ആഷാഢം 27
27th Ashadha 1944

KERALA STATE ELECTRICITY REGULATORY COMMISSION

NOTIFICATION

No. 1204/D(T)/2019/KSERC. Dated, Thiruvananthapuram, 15th July, 2022.

In exercise of the powers conferred by sub-section (1) of Section 181 of the Electricity Act,
2003, Regulation 72 of the Kerala State Electricity Regulatory Commission (Conduct of Business)
Regulations, 2003 and all other powers enabling it in this behalf and after previous publication;
the Kerala State Electricity Regulatory Commission hereby makes the following Regulations to
amend the Kerala State Electricity Regulatory Commission (Renewable Energy and Net Metering)
Regulations, 2020 namely:—

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THE KERALA STATE ELECTRICITY REGULATORY COMMISSION (RENEWABLE

ENERGY AND NET METERING) (FIRST AMENDMENT) REGULATIONS, 2022

1. Short title and commencement.—

(1) These Regulations may be called the “Kerala State Electricity Regulatory Commission
(Renewable Energy and Net Metering) (First Amendment) Regulations, 2022”.
(2) These Regulations shall come into force from 1-8-2022.

2. Amendment to the existing Regulations.—In the Kerala State Electricity Regulatory

Commission (Renewable Energy & Net Metering) Regulations, 2020;

(1) Regulation 1(2) of the existing Regulations, shall be amended as follows;

Regulation 1 (2) These Regulations shall apply to all the new Grid Interactive Renewable
Energy Systems, consumers, prosumers, captive consumers, captive generating plants,
generating companies, distribution licensees and obligated entities, in the matter of
Determination of Tariff of Renewable Energy, Net Metering, Banking, Generation Based
Incentives and related matters.

Provided that, the captive generators/ consumers existing in the State prior to the enactment
of the Electricity Act-2003 and governed by the agreements entered into between the
licensee and generators as per the policies then existing, shall be allowed to continue till
the expiry of the term of the agreement as per the provisions of such agreements as long as
the provisions of such agreements are consistent with the Act;

Provided further that the bills issued during the period from 5th June, 2020 to the date of
effect of these Regulations need not be revised:

Provided also that the provision for ‘gross metering’ will be introduced in the State by the
Commission at an appropriate time only after full compliance of the RPO by the Licensees;
Explanatory Note: In the Kerala State Electricity Regulatory Commission (Renewable
Energy and Net Metering) Regulations 2020, Clause 1.(2) it was mentioned that ‘These
regulations shall apply to all existing and new Grid Interactive Renewable Energy Systems,
consumers, prosumers, captive consumers, captive generating plants, generating
companies, distribution licensees and obligated entities in the matter of Determination of
Tariff of Renewable Energy, Net Metering, Banking, Generation Based Incentives and
related matters’. This was an inadvertent error which had crept into the Regulation. It is
hereby clarified that all the existing entities including prosumers, obligated entities,
distribution licensees, captive consumers, open access consumers, entities eligible for
generation based incentives etc. and who were governed by the Kerala State Electricity

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Regulatory Commission (Renewable Energy) Regulations, 2015 and its Amendments and
Kerala State Electricity Regulatory Commission (Gird Interactive Distributed Solar Energy
Systems) Regulations, 2014 and its Amendments shall continue to be governed as per those
Regulations. However, the facilities including banking permitted in the RE Regulations,
2020 on payment of fees and charges for the usage of transmission and distribution system,
as the case may be, shall be applicable to them. The intent of this amendment is to clarify
and to rectify this error.

(2) Insert Regulation 2(1) (da), in between Regulations 2(1) (d) and Regulation 2(1) (e), as
follows:—

Regulation 2(1) (da).

“Average Power Purchase Cost” or “APPC” during a year means the weighted average
cost of the power purchased by KSEB Ltd including the cost of self-generation by KSEB
Ltd, for the previous financial year as approved by the Commission.

Note: This will be applicable for the whole State, as long as uniform retail tariff for
consumers exists in the State.

(3) Insert Regulation 2(1) (aca) in between Regulations 2(1) (ac) and Regulation 2(1) (ad), as
follows:

Regulation 2(1) (aca)

“Gross-Metering” means a mechanism whereby the total renewable energy generated

from Grid Interactive Renewable Energy Systems and fed into the grid by a consumer/
prosumer vis-à-vis the total energy consumed by such consumer/ prosumer is separately
accounted for at their applicable tariff as determined by the Commission.

(4) Insert Regulation 2(1) (aea), in between Regulations 2 (1) (ae) and Regulation 2(1) (af)

Regulation 2(1) (aea)

“Hydro Power Obligation” or “HPO” means the obligation of an entity to purchase

electricity generated from Large Hydropower Projects (LHPs) including pumped storage
projects having capacity of more than 25 MW which has come into commercial operation
on or after 08.03.2019 as renewable energy source.

(5) Insert Regulation 2(1) (ata) in between Regulations 2(1)

(at) and Regulation 2(1)(au), as follows:-

Regulation 2(1) (ata)

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“Ocean Energy” means the energy produced using various forms of ocean energy sources
such as tidal, wave, ocean thermal energy etc.

(6) Regulation 2(1) (bk) of the existing Regulations, shall be revised as;

Regulation 2(1)(bk)

‘Settlement Period” for the purposes of these Regulations ‘is the period from the first day
of April in a Gregorian calendar year to the thirty first day of March in the next calendar
year;

(7) In Regulation 3, the Renewable Power Obligation specified in Table-1 shall be revised as
follows; including the RPO target for the FYs 2022-23 and 2023-24 and HPO;

TABLE-1

Quantum of generation and/or purchase from Renewable Energy Sources as

Financial Year a (%) of total consumption (in terms of energy in kWh)

Non-Solar Solar HPO Total

2019-20 8.00 4.00 - 12.00

2020-21 9.00 5.25 - 14.25

2021-22 10.25 6.75 - 17.00

2022-23 10.25 10.50 - 20.75

2023-24 10.68 10.50 0.66 21.84

(8) Regulation13(2)(a), third proviso shall be substituted with the following:

Provided also that, prosumers including those prosumers having RE generation capacity/
intending to install RE generation capacity in excess of that mentioned in the two provisos
above, are also permitted to install Renewable Energy System in excess of their connected
load or contract demand as applicable. However, the benefit of net metering shall not be
allowed to such prosumers and shall be treated at par with the prosumers having RE
capacity more than 1 MW, as detailed in Chapter-IV of these Regulations.

(9) After second proviso to Regulation 13 (2) (a), insert the following;

“Explanation: The Distribution Licensee shall permit, ‘residential flats’ availing supply at
LT for the common services and categorized under the domestic tariff, to install Solar PV

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system under net metering as Prosumer, upto a maximum capacity of 100 kW, subject to
the conditions specified under Regulation 13(3) of these Regulations and other Rules and
Regulations in force.”

(10) Insert new Regulation 17 A after Regulation 17 as follows:

“17 A The distribution licensee shall facilitate the process for setting up of RE generation
system at the prosumers’ premises. In this regard, the licensee shall:—

(a) create an online portal for receiving applications from prosumers for installation,
interconnection and metering of distributed renewable energy systems or devices at
their premises, and update the same on a regular basis;

(b) prominently display on its website and in all its offices, the following; namely:—

(i) detailed standardized procedure for installation and commissioning of roof top
solar system;

(ii) a single point of contact to facilitate the consumers in installation of roof top
solar system from submission of application form to commissioning;

(iii) address and telephone numbers of offices where filled-up application forms
can be submitted;

(iv) complete list of documents required to be furnished along with such

applications;

(v) applicable charges to be deposited by the applicant;

(vi) empaneled list of service providers for the benefit of consumers who want to
install roof top solar PV system through service providers; and

(vii) financial incentives to the prosumers, as applicable under various schemes

and programmes of the Central and State Governments;”

(11) Insert the following provisos after Regulation 18(1)

Provided that the application forms shall be accepted online or through hard copy or
through web portal;

Provided further that in case the application form submitted is in hard copy form, the same
shall be scanned and uploaded on the website within 3 working days of its receipt and
acknowledgement with the registration number for that application shall be generated and
intimated to the applicant within this period;

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(12) After Regulation 18(2), insert the following proviso;

Provided that in case the application form is received online through web portal of the
distribution licensee, the acknowledgement with the registration number shall be generated
immediately on submission of application;

Provided further that the application shall be deemed to be received on the date of
generation of acknowledgement with registration number;

(13) After Regulation 18(5), insert sub-Regulation 18(6) as follows:

18(6) The application tracking mechanism based on the unique registration number shall be
provided by the distribution licensee through web-based application or any other
mode to monitor the status of processing of the application like receipt of application,
site inspection, meter installation and commissioning, etc.

(14) After Regulation 18, insert Regulation 18 A as follows:

18 A Upgradation of the distribution system for connectivity:

During the time period from the feasibility study till the completion of installation, in
case, there is any requirement for upgradation of the distribution infrastructure like
augmentation of service line, distribution transformer capacity etc., for installation of
the required capacity of the solar PV system, the same shall be carried out by the
distribution licensee, subject to the provisions in the Kerala Electricity Supply Code,
amended from time to time.

(15) After Regulation 20, insert Regulation 20 A as follows:

Regulation 20 A:

The distribution licensee shall pass on the financial incentives wherever applicable to the
prosumers, as may be provided under the various schemes and programmes of the Central
and State Governments.

(16) In Regulation 31, the term ‘commissioned’ shall be replaced with the word ‘declared date
of commercial operation (COD)’ to give more clarity.

31. Scope and extent of application.—

The provisions under these Regulations shall be applicable for determining the project
specific tariff/generic tariff as determined by the Commission for the electricity
generated from Renewable Sources of Energy plants which have declared their date of
commercial operation during the control period specified in these Regulations, under
Section 62 read with Section 86 of the Electricity Act, 2003.

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(17) The following proviso shall be added to Regulation 31.

Provided that, if the tariff has been determined based on the norms and parameters specified
in any of the previous Regulations or the generic tariff approved in any of the previous
Regulations, it shall not be redetermined for the electricity generated from the RE projects
which have already declared commercial date of operation during the period prior to the
control period specified in these Regulations till the completion of the period for which the
tariff has been determined.

(18) Regulation 35(1) and 35(2) shall be revised as follows: —

35. Generic Tariff for the Electricity Generated from Renewable Sources of Energy.—

(1) The Commission shall determine project specific tariff for all the renewable energy
systems beyond 1 MW capacity. However, in exceptional circumstances to be recorded
in writing, the Commission may, if considered necessary, determine the generic tariff
for each financial year of the control period, for the electricity generated from the
following categories of renewable sources of energy in accordance with the principles,
norms and parameters specified or adopted by the Commission in these Regulations
and considering the normative values of capital cost, rate of interest and other
parameters notified under these Regulations, by an order published in the official
Gazette;

(i) Solar Photo Voltaic (PV) of capacity of and below 1 MW at a location;

(ii) Wind Energy of capacity of and below 5 MW at a location;

(iii) Small Hydro Electric plants having capacity of and below 2 MW;

Provided that, the generic tariff so determined shall be the upper ceiling limit and shall
not prevent the generator and distribution licensee from agreeing to a lower tariff than
the generic tariff determined by the Commission;

Provided further that, the generic tariff so determined by the Commission as mentioned
above shall not prevent the right of the generator to get a project specific tariff
determined, if they so desire, by the Commission as per the provisions of these
Regulations. However, the distribution licensee/ purchaser of electricity from RE
sources under these Regulations shall pay only the lower of the ‘generic tariff of the
year of COD or the project specific tariff’ as determined by the Commission;

Provided also that, the generic tariff determined by the Commission shall also not
prevent the right of the distribution licensee to procure power from the renewable

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energy sources through competitive bidding route as per Section 63 of the Electricity
Act, 2003;

35(2) The generic tariff, if determined by the Commission under these Regulation, shall be
applicable to the renewable energy projects which declares their date of commercial
operation (COD) during the control period specified under these Regulations or till
a project specific tariff is determined by the Commission, whichever is earlier:

Provided that the generic tariff determined by the Commission for the control period
shall be applicable provisionally to the renewable energy projects which have
declared date of commercial operation after the close of that control period, till such
time, the tariff is revised by the Commission:

Provided further that, as soon as the generic tariff is revised by the Commission for
the next control period in which the renewable energy project has declared date of
commercial operation, the revised generic tariff shall be assigned to such renewable
energy projects, for which provisional tariff is assigned as per the above proviso from
the date of declaration of its date of Commercial Operation:

(19) After Regulation 35(4), insert the following Regulation 35 (4A);

35(4 A) Notwithstanding anything to the contrary contained in these Regulations, the

normative parameters and the generic tariff applicable to Small Hydro projects
having capacity of and below 2 MW, Wind Energy having capacity of and below 5
MW and Solar PV plants having capacity of and below 1 MW, for the remaining
period of the control period of these Regulations is specified in Annexure IV, V
and VI (1 to 3) attached.

Provided that the generic tariff applicable for projects, whose declared date of
Commercial Operation is between 1-4-2020 to 31-7-2022 and prior to coming into
effect of these regulations, shall be that specified for the FY 2019-20;

(20) The Regulation 38(1) and 38(2), shall be replaced with the following:

38(1) All the renewable energy power plants having valid Power Purchase Agreement
(PPA) approved by the Commission, unless and otherwise exempted by the
Commission for reasons to be recorded in writing, shall be treated as ‘MUST RUN’
power plants and shall not be subjected to ‘Merit Order Dispatch’ principles.

38(2) Scheduling of Renewable Energy plants shall be governed by the Regulations issued
by the Commission from time to time.

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(21) Insert a fourth proviso to Regulation 52(3) and shall be modified as indicated below:

52(3) Operation and Maintenance (O&M) Expenses,—

The Commission shall determine the O&M Expenses based on the prevailing market
information, and allowing an escalation rate of 5.72% over the previous year.

Normative O & M rates for the financial year 2019-20 is taken as Rs 8.00 lakh per
MW, based on the prevailing market information.

The generic tariff applicable for the Wind projects of capacity of and below 5 MW for
the period from the date of effect of these Regulations up to FY 2023-24 is given in
Annexure-V.

(22) The Regulation 53(4)(iii) shall be revised as;

53(4)(iii) The generic tariff applicable for SHEP < 2 MW capacity for the period from date
of effect of these Regulations up to FY 2023-24 is given in Annexure-IV.

(23) In Regulation 54(2), insert the following proviso;

54 (2) Capital Cost, —The Commission shall determine the capital cost and the tariff, based
on prevailing market trends for Solar PV projects of capacity of and below 1 MW at
a location. The normative capital cost for Solar PV project commissioned during the
control period shall be as indicated below:

Provided that the above rate is applicable up to the date effect of these Regulations;

Provided further that the normative capital cost/ Benchmark capital cost, for different
Solar PV plants to be installed in the remaining period of the control period under
these Regulations shall be as follows;

Sl. No. Capacity range Capital cost (Rs/kW)

1 Upto 10 kW 51200
2 11 kW to 100 kW 45500
3 101 kW to 500 kW 41700

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(24) At the end of Regulation 54(3) add “up to 31-7-2022”

54(3) Capacity Utilization Factor,—The Capacity Utilization Factor for Solar PV project
shall be 19% up to 31-7-2022.

(25) Insert Regulation 54(3A) after 54(3).

54(3 A) The Capacity Utilization Factor for Solar PV project shall be 21% from 1-8-2022
till the remaining period of the control period, unless otherwise revised by the
Commission.

(26) Insert Regulation 54(6A) as follows.

54(6 A). The generic tariff for solar projects having capacity of and below 1 MW for the
period from 1-8-2022 till the end of FY 2022-23 shall be as given below:

Generic tariff (Rs/ kWh)

(Without availing the (If availing the
Sl. No. Capacity range
benefit of accele- benefit of accele-
rated depreciation) rated depreciation)

1 Upto 10 kW 3.91 3.57

2 11 kW to 100 kW 3.54 3.26

3 101 kW to 500 kW 3.23 2.98

The detailed computation for the generic tariff of Solar PV plants are provided under
Annexure VI (1) to Annexure VI (3) of these Regulations.

(27) Insert Regulation 56(A) after Regulation 56 as follows;

56 (A) The Commission may permit gross-metering for Prosumers who would like to sell
all the generated solar energy to any person including the distribution licensee,
instead of availing the net-metering, net-billing or net feed-in facility. If the sale is to
the distribution licensee, the Commission shall decide for this purpose the tariff for
gross-metering as per the tariff regulations in force.

(28) In Regulation 58, the words, “30-9-2021” shall be substituted with “the control period of
these Regulations”

58. Generation based incentives for off-grid solar schemes.—Generation based incentives
as per the order of the Commission dated 11-11-2019 is available to the off-grid captive

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solar plants upto the end of the control period of these Regulations.

(29) In Regulation 62(1), the words ‘Rs 1000 per day’ shall be replaced with the word ‘Rs 500
per day’.

62. Penalty or compensation for non compliance by the distribution licensee.—

(1) In case of failure to meet timelines prescribed under these Regulations, penalty of
Rs. 500 per day for each day of delay shall be levied on the distribution licensee.

(30) Regulation 68, List of Annexure and Forms shall be replaced as below:

Annexure Details
Application for connectivity of Renewable Energy System
A

Application for the registration of the scheme for Renewable

B Energy System

Generic Tariff for SHEP having station capacity of and below 5

I MW- for the FY 2019-20

Generic Tariff for Wind Energy Projects having capacity of and

II below 25 MW with CUF 24%- for the FY 2019-20

Generic Tariff Solar PV Projects having capacity of and below 5

III
MW –for FY 2019-20.

Generic Tariff for Small Hydro Electric Projects having installed

IV
capacity of and below 2 MW (1-8-2022 to 31-3-2024)

Generic Tariff for Wind Energy Generation Projects having

V installed capacity of and below 5 MW (1-8-2022 to 31-3-2024)

Generic Tariff for Solar PV projects (upto 10 kW) (1-8-2022 to

VI (1) 31-3-2024)

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Generic Tariff for Solar PV projects (11 kW to 100 kW) (1-8-2022

VI (2) to 31-3-2024)

Generic Tariff for Solar PV projects (101 kW to 500 kW) (1-8-2022

VI (3)
to 31-3-2024)

By Order of the Commission

C. R. SATHEESH CHANDRAN,
Secretary.

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Annexure-IV
Small Hydro Electric Projects having installed capacity of and below 2 MW
(1-8-2022 to 31-3-2024)
Small Hydro Electric Projects having installed capacity below 2 MW
Sl. No. Head Sub Head Detailed Head Unit Norm
(i) Installed Power
1 Generation MW 1
Power Generation Capacity Capacity
(ii) Capacity % 30
Utilisation factor
(iii) Auxiliary % 1
consumption
(iv) Useful life years 35
Capital cost
2 Rs .Cr 7.79
Project cost /MW Power plant cost
3 Source of Fund Tariff period Years 35
Debt- equity Debt % 70
Equity % 30
Debt
Rs. Cr 5.45
component Loan amount/MW
Moratorium Years 0
Repayment period
(include Years 13
moratorium)
Interest rate (MCLR+2)% 8.65
Equity Equity amount/
Rs. Cr 2.34
component MW
Normative RoE % 14.00
4 Financial Assumptions

5.28
Depreciation for first 13 years
Remaining years 0.97
5 Working capital requirement O&M charges Months 1
% of O&M
15
Maintenance spare expenses
Receivable for Months 2
debtors
Interest on working (MCLR+3)% 9.65
capital
O&M Cost Base
6 Rs. Lakh/MW 32.41
Operation and Maintenance year
O&M expense % 5.72
escalation
Generic Tariff—for 35 years without the benefit of 5.72 Rs/unit
accelerated depreciation
Accelerated
0.33 Rs/unit
depreciation
Generic Tariff for 35 years with the benefit of accelerated
5.39 Rs/unit
depreciation

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Annexure-V
Wind Energy Generation Projects having installed capacity of and below 5MW
(1-8-2022 to 31-3-2024)
Wind Energy Generation Projects located in wind zone-1 (CUF 24%)
Sl.
Head Sub Head Detailed Head Unit Norm
No.

1 (i) Installed Power MW 1

Power Generation capacity Generation Capacity
(ii) Capacity Utilisation % 24
factor
(iii) Auxiliary % 0
consumption
(iv) Useful life years 25

2 Rs. Cr. 5.75

Project cost Capital cost /MW Power plant cost
3 Source of Fund Tariff period Years 25
Debt- equity Debt % 70
Equity % 30
Debt component Loan amount/MW Rs. Cr. 4.03
Moratorium Years 0
Repayment period Years 13
(include moratorium)
Interest rate (MCLR+ 2) % 8.65

Equity component Equity amount/ MW Rs. Cr. 1.73

Normative RoE % 14.00
4 Financial Assumptions
Depreciation rate for first
5.28
Depreciation 13 years
1.78
5 Working capital requirement O&M charges Months 1
% of O&M
15
Maintenance spare expenses
Months 2
Receivable for debtors
Interest on working (MCLR+3)% 9.65
capital
6 Operation and Maintenance Base year Rs. Lakh/MW 8.00
O&M expense escalation % 5.72
O&M expense for 2021- Rs. Lakh/MW 8.94
22

Generic Tariff—for 25 years without the benefit of 3.94 Rs/unit

accelerated depreciation
Accelerated depreciation 0.31 Rs/unit

Generic Tariff—for 25 years with the benefit of 3.64 Rs/unit

accelerated depreciation

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Annexure-VI (1)

Solar PV projects (upto 10kW) (1-8-2022 to 31-3-2024)

Sl.
Head Sub Head Detailed Head Unit Norm
No.
(i) Installed Power
1 kW 10
Power Generation Capacity Generation Capacity
(ii) Capacity Utilisation
% 21
factor
(iii) Auxiliary
% 0.25
consumption
(iv) Useful life years 25
2 Project cost Capital cost Power plant cost Rs. Cr./MW 5.12
3 Source of Fund Tariff period Years 25
Debt- equity Debt % 70
Equity % 30
Debt component Loan amount/MW Rs. Cr. 3.58
Moratorium Years 0
Repayment period
Years 13
(include moratorium)
Interest rate (MCLR+2)% 8.65
Equity component Equity amount/ MW Rs. Cr. 1.54
Normative RoE % 14.00
4 Financial Assumptions
Depreciation rate for
5.28
Depreciation first 13 years
1.78
5 Working capital requirement O&M charges Months 1
% of O&M
15
Maintenance spare expenses
Months 2
Receivable for debtors
Interest on working
(MCLR+3)% 9.65
capital
6 Operation and Maintenance Base year Rs. Lakh/MW 6.00
O&M expense
% 5.72
escalation
O&M expense for
Rs. Lakh/MW 6.71
2021-22
Generic Tariff—for 35 years without the benefit of
3.91 Rs/unit
accelerated depreciation

Accelarated depreciation 0.32 Rs/unit

Generic Tariff—for 35 years with the benefit of

3.59 Rs/unit
accelerated depreciation

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Annexure-VI (2)

Solar PV projects (11kW to 100kW) (1-8-2022 to 31-3-2024)

Sl.
Head Sub Head Detailed Head Unit Norm
No
(i) Installed Power
1 kW 1
Power Generation Capacity Generation Capacity
(ii) Capacity Utilisation
% 21
factor
(iii) Auxiliary
% 0.25
consumption
(iv) Useful life years 25
Capital cost
2 Rs. Cr./MW 4.55
Project cost (GST@12%) Power plant cost
3 Source of Fund Tariff period Years 25
Debt- equity Debt % 70
Equity % 30
Debt component Loan amount/MW Rs. Cr. 3.19
Moratorium Years 0
Repayment period
Years 13
(include moratorium)
Interest rate (MCLR+2)% 8.65
Equity component Equity amount/ MW Rs. Cr 1.37
Normative RoE % 14.00
4 Financial Assumptions
Depreciation rate for
5.28
Depreciation first 13 years
1.78
5 Working capital O&M charges Months 1
% of O&M
15
Maintenance spare expenses
Months 2
Receivable for debtors
Interest on working
(MCLR+3)% 9.65
capital
6 Operation and Maintenance Base year Rs. Lakh/MW 6.00
O&M expense
% 5.72
escalation
O&M cost 2021-22 Rs. Lakh/MW 6.71
Generic Tariff—for 35 years without the benefit of
3.54 Rs/unit
accelerated depreciation

Accelerated depreciation 0.28 Rs/unit

Generic Tariff—for 35 years with the benefit of

3.26 Rs/unit
accelerated depreciation

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Annexure -VI (3)

Solar PV projects 101kW to 500kW (1-8-2022 to 31-3-2024)

Sl
Head Sub Head Detailed Head Unit Norm
No
Power (i) Installed Power
kW 1
1 Generation Capacity Generation Capacity
(ii) Capacity
% 21
Utilisation factor
(iii) Auxiliary
% 0.25
consumption
(iv) Useful life years 25

2 Project cost Capital cost Power plant cost Rs .Cr/MW 4.17

3 Source of Fund Tariff period Years 25
Debt- equity Debt % 70
Equity % 30
Debt component Loan amount/MW Rs. Cr 2.92
Moratorium Years 0
Repayment period
Years 13
(include moratorium)
Interest rate (MCLR+2)% 8.65
Equity component Equity amount/ MW Rs. Cr 1.25
Normative RoE % 14.00
4 Financial Assumptions
Depreciation rate for
5.28
Depreciation first 13 years
1.78
5 Working capital requirement O&M charges Months 1
% of O&M
15
Maintenance spare expenses
Receivable for
Months 2
debtors
Interest on working
(MCLR+3)% 9.65
capital
6 Operation and Maintenance Base year Rs. Lakh/MW 6.00
O&M expense
% 5.72
escalation
O&M expense for
Rs. Lakh/MW 6.00
2021-22
Generic Tariff—for 35 years without the benefit
3.23 Rs/unit
of accelerated depreciation

Accelerated depreciation 0.26 Rs/unit

Generic Tariff—for 35 years with the benefit of

2.98 Rs/unit
accelerated depreciation

This is a digitally signed Gazette.

Authenticity may be verified through https://compose.kerala.gov.in/
 18

Explanatory Note on these Amendment Regulations

(This does not form part of the notification, but is intended to achieve its general purport.)

Section 86(1) (e) of the Electricity Act, 2003 authorizes the State Electricity Regulatory Commission
to promote co-generation and generation of electricity from Renewable Source of Energy by
providing suitable measures for connectivity with the grid and sales of electricity to any person and
specify for the purchase of electricity from such sources a percentage of the total consumption of
electricity within the area of the distribution licensee. Accordingly, Kerala State Electricity
Regulatory Commission (KSERC) has published on 7-2-2020, the KSERC (Renewable Energy and
Net Metering) Regulations, 2020.

During the last 2 years of operation of this Regulation, Stakeholders have raised certain ambiguities
and clarifications on many clauses of the Regulations. Thereafter, Government of India has notified
the Electricity (Rights of Consumers) Rules, 2020, in which more consumer friendly Rules were
introduced. Further the existing Regulation 2020 is valid for the control period upto 31-3-2024. But
the RPO rates of the obligated entities for the FYs 2022-24 was not notified. Also, the Generic Tariff
for the various RE generators were published for the period upto FY 2020-21 only.

Considering these aspects, the Commission by invoking the powers conferred on it under Section
181(1) of the Electricity Act 2003, and Regulation 72 of the Kerala State Electricity Regulatory
Commission (Conduct of Business) Regulations, 2003 formulated the draft Kerala State Electricity
Regulatory Commission (Renewable Energy and Net Metering) (First Amendment) Regulations,
2022 and pre published in the website of the Commission on 30-6-2022 for eliciting the opinion and
suggestions of general public. Further the Commission had conducted the public hearing on the draft
Regulation at Ernakulam on 11-7-2022. After considering all the suggestions and comments
received directly and in the public hearing, the Commission approved the final of the Kerala State
Electricity Regulatory Commission (Renewable Energy and Net Metering) (First Amendment)
Regulations, 2022 and decided to publish the same in the official gazette.

This Notification is intended to achieve the above purpose.

____________________________________________________________________________________________________________________________
PUBLISHED BY THE SUPERINTENDENT OF GOVERNMENT PRESSES
AT THE GOVERNMENT CENTRAL PRESS, THIRUVANANTHAPURAM, 2022
This is a digitally signed Gazette.
Authenticity may be verified through https://compose.kerala.gov.in/