The Commission has considered the views of the stakeholders and alsoperused the orders of the other SERCs on wind energy tariff. The salientfeatures of tariff as determined by the Commission are discussed below.
Tariff- Project Specific or generalized
The Commission’s Regulations on procurement of power fromrenewable sources provide that, the PPAs entered into by GEB,prior to the notification of these regulations shall continue to be inforce for such period as mentioned in those PPAs. The saidRegulations also indicate that while determining the tariff, theCommission will adopt normative parameters for financing cost,O&M and other expenses.As regards normative parameters, the Indian Wind EnergyAssociation (InWEA) submitted that for wind energy projectsnormative/generalized tariff, rather than project specific tariff, isthe preferable approach as this will incentivise efficiency inselection of site, technology, financing package, etc. Howeverproject specific tariff design may be considered, in case a windenergy developer approaches the Commission, with a specificpetition providing rationale and justification for such project-specific tariff. The Commission considers that a general tariff for wind energyprojects is desirable since it will provide an incentive to theinvestors for selecting the most efficient machines and the mostsuitable project locations (besides being non-discriminatory).
Single Part vs. Two Part Tariff
As wind power is infirm, it is not amenable to grid dispatchinstructions. Most of the costs of wind energy generation are fixed