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Tariff for Small Hydro Electric Projects

Based upon CSERC formate

Particulars Derivation Years 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

Project Capacity A MW 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750 3.750
Rs.crores/
Cost per MW B MW 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795 11.795
Rs.In
Project Cost C Crores 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230 44.230

Depreciation Rate D % 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80%
17 Lac /
O&M Expenses E MW 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170 0.170

O&M Escalation p.a F % 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72% 5.72%

Working Capital Schedule

O&M Expenditure Y month 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Receivables Z month 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

Debt % 70.00%

Equity % 30.00%

Debt:Equity 2.333

Debt Amount G Rs.crores 30.961 27.865 24.769 21.673 18.577 15.480 12.384 9.288 6.192 3.096 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

Debt Repayment Years Years 10.000

Equity Amount H Rs.crores 13.269

Rate of Int. on Working Capital WC % 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80%

Rate of Int. on Term Loan L % 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80% 12.80%

Return on Equity P % 16% 16% 16% 16% 16% 16% 16% 16% 16% 16% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24%

Interest on Working Capital

O&M WC1=O*Y/12 Rs.crores 0.053 0.056 0.059 0.063 0.066 0.070 0.074 0.078 0.083 0.088 0.093 0.098 0.104 0.109 0.116 0.122 0.129 0.137 0.145 0.153 0.162 0.171 0.181 0.191 0.202 0.213 0.226 0.239 0.252 0.267 0.282 0.298 0.315 0.333 0.352

Receivables WC2 Rs.crores 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601 1.601
GWC=WC1+W
Gross Working capital Requirement C2 Rs.Crores 1.655 1.658 1.661 1.664 1.668 1.672 1.676 1.680 1.684 1.689 1.694 1.699 1.705 1.711 1.717 1.724 1.731 1.738 1.746 1.754 1.763 1.772 1.782 1.792 1.803 1.815 1.827 1.840 1.854 1.868 1.883 1.899 1.916 1.934 1.954

MBPF@75% 1.000 Rs.Crores 1.655 1.658 1.661 1.664 1.668 1.672 1.676 1.680 1.684 1.689 1.694 1.699 1.705 1.711 1.717 1.724 1.731 1.738 1.746 1.754 1.763 1.772 1.782 1.792 1.803 1.815 1.827 1.840 1.854 1.868 1.883 1.899 1.916 1.934 1.954

Interest on Working Capital W=M*WC Rs.Crores 0.212 0.212 0.213 0.213 0.213 0.214 0.214 0.215 0.216 0.216 0.217 0.218 0.218 0.219 0.220 0.221 0.222 0.222 0.223 0.225 0.226 0.227 0.228 0.229 0.231 0.232 0.234 0.236 0.237 0.239 0.241 0.243 0.245 0.248 0.250

O&M Exp. At 5% escalation p.a. O=C*E Rs.Crores 0.638 0.674 0.713 0.753 0.796 0.842 0.890 0.941 0.995 1.052 1.112 1.175 1.243 1.314 1.389 1.468 1.552 1.641 1.735 1.834 1.939 2.050 2.167 2.291 2.422 2.561 2.707 2.862 3.026 3.199 3.382 3.576 3.780 3.996 4.225

Depreciation S=C*D Rs.Crores 3.096 3.096 3.096 3.096 3.096 3.096 3.096 3.096 3.096 3.096 0.354 0.354 0.354 0.354 0.354 0.354 0.354 0.354 0.354 0.354 0.354 0.354 0.354 0.354 0.354 0.354 0.354 0.354 0.354 0.354 0.354 0.354 0.354 0.354 0.354

Interest On Loan Capital I=G*L Rs.Crores 3.963 3.567 3.170 2.774 2.378 1.981 1.585 1.189 0.793 0.396 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

Return On Equity R=H*P Rs.Crores 2.123 2.123 2.123 2.123 2.123 2.123 2.123 2.123 2.123 2.123 3.185 3.185 3.185 3.185 3.185 3.185 3.185 3.185 3.185 3.185 3.185 3.185 3.185 3.185 3.185 3.185 3.185 3.185 3.185 3.185 3.185 3.185 3.185 3.185 3.185

Water Cess – 5 Paisa / Unit 0.050 Rs.Crores 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107 0.107
FC=W+O+S+I+
Total Fixed Cost R+X Rs.Crores 10.138 9.779 9.421 9.066 8.714 8.363 8.016 7.671 7.329 6.990 4.974 5.038 5.106 5.178 5.254 5.334 5.419 5.509 5.604 5.704 5.810 5.922 6.041 6.166 6.298 6.438 6.587 6.743 6.908 7.083 7.268 7.464 7.671 7.889 8.120

Annual PLF PLF % 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650 0.650
GG=A*PLF*876
Gross Generation 0/100000 MU 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353 21.353

Aux.Cons AC % 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000
Q=(GG*AC)/10
Aux.Cons 0 MU 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281 1.281

Free Power to state Government 0.120 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562 2.562

Net Generation in Year N=GG-Q MU 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509 17.509

PW Factor 0.094 0.914 0.836 0.765 0.699 0.640 0.585 0.535 0.489 0.447 0.409 0.374 0.342 0.313 0.286 0.262 0.239 0.219 0.200 0.183 0.167 0.153 0.140 0.128 0.117 0.107 0.098 0.090 0.082 0.075 0.068 0.063 0.057 0.052 0.048 0.044

FC/Unit=
Fixed cost per Unit FC/10/N Rs./KWH 5.790 5.585 5.381 5.178 4.977 4.777 4.578 4.381 4.186 3.992 2.841 2.877 2.916 2.957 3.001 3.047 3.095 3.146 3.200 3.258 3.318 3.382 3.450 3.522 3.597 3.677 3.762 3.851 3.946 4.046 4.151 4.263 4.381 4.506 4.638

Discounted cost per unit 5.292 4.669 4.116 3.619 3.185 2.795 2.449 2.142 1.871 1.633 1.063 0.984 0.913 0.846 0.786 0.728 0.678 0.629 0.586 0.544 0.508 0.473 0.442 0.412 0.385 0.360 0.339 0.316 0.296 0.275 0.262 0.243 0.228 0.216 0.204

Average Tariff 4.350

10.226 4.350
44.487
Tariff for Small Hydro Electric Projects
Based upon CSERC formate
Particulars Derivation Unit 1 2 3 4 5 6 7 8 9 10
Project Capacity A MW 1 1 1 1 1 1 1 1 1 1
Cost per MW B Rs.crores/MW 5.5 5.5 5.5 5.5 5.5 5.5 5.5 5.5 5.5 5.5
Project Cost C Rs.In Crores 5.5 5.5 5.5 5.5 5.5 5.5 5.5 5.5 5.5 5.5
Depreciation Rate D % 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
O&M Expenses E % 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
O&M Escalation p.a F % 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
Working Capital Schedule
O&M Expenditure Y month 1 1 1 1 1 1 1 1 1 1
Receivables Z month 2 2 2 2 2 2 2 2 2 2
Debt % 70%
Equity % 30%
Debt:Equity 2.33
Debt Amount G Rs.crores 3.850 3.465 3.080 2.695 2.310 1.925 1.540 1.155 0.770 0.385
Debt Repayment Years Years 10
Equity Amount H Rs.crores 1.65 1.65 1.65 1.65 1.65 1.65 1.65 1.65 1.65 1.65
Rate of Int. on Working Capital WC % 13.79% 13.79% 13.79% 13.79% 13.79% 13.79% 13.79% 13.79% 13.79% 13.79%
Rate of Int. on Term Loan L % 14.29% 14.29% 14.29% 14.29% 14.29% 14.29% 14.29% 14.29% 14.29% 14.29%
Return on Equity P % 19.00% 19.00% 19.00% 19.00% 19.00% 19.00% 19.00% 19.00% 19.00% 19.00%
Interest on Working Capital
O&M WC1=O*Y/12 Rs.crores 0.0138 0.0138 0.0138 0.0138 0.0138 0.0138 0.0138 0.0138 0.0138 0.0138
Receivables WC2 Rs.crores 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15
Gross Working capital Requirement GWC=WC1+WC2 Rs.Crores 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16
MBPF@75% M=GWC*75% Rs.Crores 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12
Interest on Working Capital W=M*GWC Rs.Crores 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02
O&M Exp. At 5% escalation p.a. O=C*E Rs.Crores 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17
Depreciation S=C*D Rs.Crores 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.35
Interest On Loan Capital I=G*L Rs.Crores 0.550 0.495 0.440 0.385 0.330 0.275 0.220 0.165 0.110 0.055
Return On Equity R=H*P Rs.Crores 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31
Water Charges X Rs.Crores 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02
Total Fixed Cost FC=W+O+S+I+R+X Rs.Crores 1.454 1.399 1.344 1.289 1.234 1.179 1.124 1.069 1.014 0.924
Annual PLF PLF % 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00%
Gross Generation GG=A*PLF*8760/100000 MU 0.035 0.035 0.035 0.035 0.035 0.035 0.035 0.035 0.035 0.035
Aux.Cons AC % 2 2 2 2 2 2 2 2 2 2
Aux.Cons Q=(GG*AC)/100 MU 0 0 0 0 0 0 0 0 0 0
Net Generation in Year N=GG-Q MU 0.035 0.035 0.035 0.035 0.035 0.035 0.035 0.035 0.035 0.035
Fixed cost per Unit FC/Unit= FC/10/N Rs./KWH 4.15 3.99 3.83 3.68 3.52 3.36 3.21 3.05 2.89 2.64
Levellised Tariff 3.43