Benchmark Price for Grid Connected Solar Project 2016-17 : CERC

Finally CERC ( Central Electricity Regulatory Authority) has published   Benchmark Capital cost for Solar PV and Thermal Project for Year 2016- 17.  Interesting to see that Solar  thermal project cost has been kept at INR 12 Crore / MW , but for Project using PV Technology   has been notified at lower end of  INR 5.30 Crore / MW with a significant percentage drop observed across component including Civil Works , Module Mounting Structure & PCU . Even with Scaling up  of project size ,  Evacuation cost per MW is estimated to decrease significantly .

In 1 year , Capital Cost has been reduced by  12% from last year INR 605.85 Lakh/ MW  .

When draft was uploaded on CERC website to invite comments from industry players . Most of  EPC/IPP and even state nodal agencies have raised observations  on   :

  • Forex Exchange rate
  • Modules Rate
  • Separate capital cost for Domestic  and Imported Modules
  • Inverter Replacement cost .
  • Transmission Line cost
  • Land Cost ( vary from 2 Lakh/acre to 25 lakh/acre based on Project Site )

But CERC have used data from MERCOM Capital Report and recently concluded  Central /State Govt Bidding result to arrive on the Benchmark Price  .

From a Layman prospective , this seems good and fair as it shows optimism  for future price reduction and increasing feasibility of project .

As  the saying goes , ” Lets put the sunny side up and with sun god on our side , hope to achieve 100 GW by 2022   ” .

SO17.pdf.png

The copy of order uploaded on CERC website can be found at below mentioned link :

http://www.cercind.gov.in/2016/orders/SO17.pdf

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