Karnataka Solar – KERC orders exemption of Wheeling, Banking and Cross-subsidy charges for 10 Years

In a major boost for Solar Power Generators, the Karnataka Electricity Regulatory Commission(KERC) has released an order on exemption of Wheeling Charges, Banking Charges and cross subsidy surcharge for a period of ten years from the date of commissioning a plant. This is applicable for all solar power generators in the State achieving commercial operation date (CoD) between 1st April 2013 and 31st March 2018 and selling power to consumers within the State on open access or wheeling . This order follows stakeholder meetings last month. The order is very significant because it removes uncertainty regarding upward year-on-year changes in Open Access charges, which has prevented many bankers consider private Power Purchase Agreements(PPA) or captive solar projects.
Vish Iyer, DGM – Solar Business, Sterling And Wilson Ltd said that this is a landmark order. ” As one of the  key stakeholders who sprearheaded discussions around this subject with KERC, we believe that this is a landmark notification from what we think is one of India’s most progressive SERCs and will go a significant way in encouraging bankers to fund solar projects set up on 3rd party OA  basis in Karnataka“, he said.
It is quire heartening to see that some State Electricity Regulatory Commissions(SERCs) really care about promoting solar, and are willing up to come up with common-sense regulations. Let us hope that other SERCs follow in the footsteps of KERC to promote solar in a bigger way.
The KERC order can be downloaded here.


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1 thought on “Karnataka Solar – KERC orders exemption of Wheeling, Banking and Cross-subsidy charges for 10 Years”

  1. Cross subsidy should be completely eliminated in case of RE power being sold thru OA since this being used as discom to hinder OA even for RE power which is environmental friendly and lacks scheduling.

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