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 The Document

Feasibility of a Solar PV
Project for Third Party
Sale in Maharashtra
Open Access in Maharashtra
Enabling Policy in Maharashtra

Maharashtra Electricity Regulatory Commission

(Distribution Open Access) Regulations, 2014.

3.1 Subject to the provisions of these Regulations, a consumer having contract

demand of 1 MW and above and where the minimum power to be made
available for Open Access at any time is 1 MW and above, shall be eligible for
seeking Open Access to the distribution system of such Distribution Licensee for
obtaining supply of electricity from a Generating Company or Captive Power
Plant or from a Licensee other than such Distribution Licensee or through the
Power Exchange :

Provided that the necessary conditionality mentioned in Regulation 3.1 about

minimum power to be made available for Open Access at any time is 1 MW and
above, for being eligible for seeking Open Access shall not be applicable for
Open Access getting supply from a Renewable Energy generating plant
identified as ‘Non firm power’ under MERC (Terms and conditions for
determination of RE Tariff) Regulations, 2010, as amended from time to time
Consumer Categories and Tariffs

Tariff
Consumer Category (Rs./kWh Source
)

HT II - Commercial Express Feeder 11.40 ANNEXURE II

HT II - Commercial Non-express Feeder 11.40 Revenue from revised Tariffs effective from 1 April, 2017

HT I - (Industrial Express Feeder) 7.07 http://www.mercindia.org.in/pdf/Order%2058%2042/Order-

48%20of%202016-03112016.pdf
HT I - (Industrial Non-express Feeder) 7.07
Calculation of Open Access Charges: HT II - Commercial Non-Express
Feeder
Units Notations Charges/losses kWh
Price @ Generator Bus Rs/kWh A 5.00
Consumer category HT II - Commercial Non-Express Feeder

Select Voltage Level kV 33

Group Captive/third party Thiry party
Energy injected into transmission system kWh B 1,600,000
Transmission Charge Rs/kWh C 0.71
Transmission Losses % D 3.89% 62240
Energy injected into distribution system kWh E 1,537,760
Wheeling charges Rs/kWh F 0.09
Wheeling losses % G 6% 92266

Cross subsidy surcharge Rs/kWh CSS 0.68

Additional surcharge Rs/kWh AS 1.11

Units Injected at Buyer's Bus kWh H 1,445,494

Open access charges Rs / kWh 3.85

Calculation of Open Access Charges: HT II - Commercial Express
Feeder
Units Notations Charges/losses kWh
Price @ Generator Bus Rs/kWh A 5.00
Consumer category HT II - Commercial Express Feeder

Select Voltage Level kV 33

Group Captive/third party Thiry party
Energy injected into transmission system kWh B 1,600,000
Transmission Charge Rs/kWh C 0.71
Transmission Losses % D 3.89% 62240
Energy injected into distribution system kWh E 1,537,760
Wheeling charges Rs/kWh F 0.09
Wheeling losses % G 6% 92266

Cross subsidy surcharge Rs/kWh CSS 0.71

Additional surcharge Rs/kWh AS 1.11

Units Injected at Buyer's Bus kWh H 1,445,494

Open access charges Rs / kWh 3.88

Calculation of Open Access Charges: HT II - Industrial Non Express
Feeder
Units Notations Charges/losses kWh
Price @ Generator Bus Rs/kWh A 5.00
Consumer category HT II - Industrial Non Express Feeder

Select Voltage Level kV 33

Group Captive/third party Thiry party
Energy injected into transmission system kWh B 1,600,000
Transmission Charge Rs/kWh C 0.71
Transmission Losses % D 3.89% 62240
Energy injected into distribution system kWh E 1,537,760
Wheeling charges Rs/kWh F 0.09
Wheeling losses % G 6% 92266

Cross subsidy surcharge Rs/kWh CSS 0.44

Additional surcharge Rs/kWh AS 1.11

Units Injected at Buyer's Bus kWh H 1,445,494

Open access charges Rs / kWh 3.60

Calculation of Open Access Charges: HT II - Industrial Express Feeder

Units Notations Charges/losses kWh

Price @ Generator Bus Rs/kWh A 5.00
Consumer category HT II - Industrial Express Feeder

Select Voltage Level kV 33

Group Captive/third party Thiry party
Energy injected into transmission system kWh B 1,600,000
Transmission Charge Rs/kWh C 0.71
Transmission Losses % D 3.89% 62240
Energy injected into distribution system kWh E 1,537,760
Wheeling charges Rs/kWh F 0.09
Wheeling losses % G 6% 92266

Cross subsidy surcharge Rs/kWh CSS 0.48

Additional surcharge Rs/kWh AS 1.11

Units Injected at Buyer's Bus kWh H 1,445,494

Open access charges Rs / kWh 3.64

Financial Feasibility of Solar PV Projects
Project Economics of a 10 MW Project

DASHBOARD
AD Benefet Availed NO
Project Execution Mode PMC
Area required per MW (acres) 4.5
Land cost per acre 0.045
Land Cost (Rs in Cr) 2.025
Permitting and commissioning costs (Rs in Cr) 0.02
EPC Cost per MWp (Rs in Cr) 3.8
EPC Cost (Rs in Cr) 38.20

USD/INR 66
AC Capacity (MW) 10
DC Overloading 20.0%
DC Capacity (MW) 12.00
Generation (MWh) 21000
Total transmission losses 0.10%

Generation net of transmission losses (MWh) 20979

PLF 23.97%
Interest rate 11.25%
Refinancing after 1 year of COD No
Debt 70%
Equity 30%
Tariff 4.5000
Equity IRR 18.05%
PIRR 13.28%
 Possible Solar Tariffs for Consumer Categories

Open Access Ceiling of Possible

Grid Tariff Charges Solar Tariff
Consumer Category
(Rs./kWh) (Rs./kWh) (Rs./kWh)

HT II - Commercial Express Feeder 11.4 3.88 7.52

HT II - Commercial Non-express Feeder 11.4 3.85 7.55

HT I - (Industrial Express Feeder) 7.07 3.64 3.43

HT I - (Industrial Non-express Feeder) 7.07 3.60 3.47

 Savings for Consumer Categories at Rs 4.5/kWh of Solar Tariff

NPV of
Savings
Cumulative
Final Landed Open Access Solar Tariff @10%
Savings for
Consumer Category Tariff (Rs./kWh) Charges (Rs./kWh) discount
25 years
a = b + c (Rs./kWh) c rate
(Rs in Cr)
b (Rs in Cr)

HT II - Commercial Express
8.38 3.88 4.5 459.93 119.13
Feeder
HT II - Commercial Non-
8.35 3.85 4.5 462.08 119.83
express Feeder
HT I - (Industrial Express
8.14 3.64 4.5 N.A N.A
Feeder)
HT I - (Industrial Non-
8.10 3.60 4.5 N.A N.A
express Feeder)
Cross Subsidy Surcharges

EHV Consumers HT Consumers HT Consumers

(66kV & above) (33kV) (22/11 kV)
Industry
HT I - (Industrial
1.9 1.9 1.9
Express Feeder)
HT I - (Industrial
Non-express 1.77 1.77 1.77
Feeder)
Commercial
HT II - Commercial
2.85 2.85 2.85
Express Feeder
HT II - Commercial
Non-express 2.71 2.71 2.71
Feeder
Table 8-36: http://www.mercindia.org.in/pdf/Order%2058%2042/Order-48%20of%202016-03112016.pdf
Sources

Table 8-35:
Transmission Charge http://www.mercindia.org.in/pdf/Order%2058%2042/Order-
48%20of%202016-03112016.pdf
Table 3-10:
Transmission Losses http://www.mercindia.org.in/pdf/Order%2058%2042/Order-
48%20of%202016-03112016.pdf
Wheeling charges Table 8-27/8-14:
http://www.mercindia.org.in/pdf/Order%2058%2042/Order-
Wheeling losses 48%20of%202016-03112016.pdf
CSS -->Table 8-36:
http://www.mercindia.org.in/pdf/Order%2058%2042/Order-
48%20of%202016-03112016.pdf

Cross subsidy surcharge CSS for renewable energy is 25% of applicable to conventional
sources:
http://www.mercindia.org.in/pdf/Order%2058%2042/DOA%20Regul
ations%202015%20-16092015.pdf

Table 8-45:
Additional surcharge http://www.mercindia.org.in/pdf/Order%2058%2042/Order-
48%20of%202016-03112016.pdf