The end of Open Access in Karnataka?

While only last year the solar power developers in Karnataka were rejoicing over the KERC regulation that exempted Wheeling, Banking and Cross subsidy charges for solar power projects for a period of 10 years from the date of commissioning. BESCOM (Bengaluru Electricity Supply Company) have now requested the Karnataka Electricity Regulatory Commission (KERC) to introduce a new tariff slab applicable to HT consumers who opt for captive/third party energy sources. If KERC heeds to the request in the upcoming tariff revision, renewable energy supply via open access will cease to end. It would spell disaster for renewable energy developers specially solar power developers who are pinning on the new tariff hike which could see solar power reach grid parity compared to the Industrial tariff or even be cheaper than the BESCOM tariff.

BESCOMBESCOM claim to suffer a loss of INR 184 Crore because of HT consumers opting for alternate sources which has so far been wind and a little of hydro and solar in Bengaluru. Sensing that a new tariff revision would increase their revenue and at the same time pave way for HT consumers to opt for Renewable Energy, BESCOM have now sought a new tariff slab.

Solar power developers can just hope KERC which has a track record of enabling renewable energy penetration doesn’t introduce a new slab and stick to its annual tariff revision.

(For more info check this page)

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