Current Insights

Karnataka Regulator Jitters Renewable Developers for Imposition of Wheeling & Banking Charges

July 09, 2018 01:06 PM

Tagged Sector(s) : Renewable,Power

Karnataka Regulator vide its order has mandated Renewable Energy Developers to pay 25% of charges paid by conventional developers against Wheeling & Banking Charges for transmitting their power. This has been done in anticipation of grid parity of Solar & Wind achieved in recent auctions with conventional generation. In pursuance of order, solar developers are retrospectively required to pay from April 2017, wind developers from October 2013 and small hydro ones from January 2015. Earlier solar was exempted to pay for such charges and wind & Hydro were required to pay 5% of transmission charges which conventional producers paid.

In amidst of transmission woes such imposition of charges may moderate developers agility in participating in upcoming auctions. Government must keep a regulatory stability to spur private participation and to keep a steady pace in installation targets, else would deter government's ambitious targets of achieving 100 GW of Solar & Wind by 2022. Such unforeseen uncertainty and risk is usually not factored in while bidding for projects, eventually it is the developers who suffer.

Article By:
Amit Sharma

Share on:

Copyright 2012. All rights reserved.