Merc Tariff

Assumption Sheet
Sr. no.
Assumption head
Power Generation
Sub head
Capacity
project cost
2
capital Cost /MW
financial
assumption
Debt:equity
Debt component
3
Equity componenet
Fiscal Assumption
Depreciation
Depreciation
Incentives
Normative O&M expenses

O&M expense p.a
Escalation factor for O&M expense
O&M
For fixed charge
Working capital
O&M expense
maintance spare
Receivables
for variable charges
Interest on working capital
Tariff determionation for Solar PV
Sub head (2)
Unit
Parameter Values
installed power generation capacity

Capacity utilization factor
comercial operation date
useful life
MW
%
mm/yyyy
years
1
19%
6/1/2012
25
Normative capital cost

capital cost
capital subsidy, if any
Net capital cost
Rs. lakh/Mw
Rs. lakh
Rs. lakh
Rs. lakh
1000
1000
0%
1000
Tariff period
years
25
Debt
Equity
Total Debt amount
Total Equity amount
%
%
Rs. lakh
Rs. lakh
70%
30%
700
300
Loan amount
moratourim period
repayment period (incld moratourim)
interest rate
Rs. lakh
years
years
%
700
10
13.73%
equity amount
ROE for fisrt 10 years
ROE form 11th years onwards
weighted average of ROE
Discount rate
Rs. lakh
% p.a.
% p.a.
% p.a.
%
300
19%
24%
22%
16.21%
Income tax
MAT rate (for first 10 Year)
80 IA benefits
%
%
32.45%
20.01%
YES
0.189698
Depriciation rate for first 10 year

depriciation rate form 11th year onwards
% p.a.
%
generation based incentives,if any

period for GBI
Rs. Lakh/p.a.
years
Normative O&M expenses

O&M expense p.a
Escalation factor for O&M expense
% of O&M expenses
7%
1.33%
Rs. Lakh/mw
RS. Lakh
%
10.63
5.72%
months
%
months
1
15%
2
% p.a.
13.23%
Market rate of interest is taken as base rate+300 bps ( http://www.cercind.gov.in/2012/escalation/Explanation_2_4_20

OTHER PARAMETERS FOR TARIFF BASED COMPETITIVE BIDDING FOR TRANSMISSION SERVICE, DATED 02.04.2012
Corporate tax rate=30% http://finmin.nic.in/kelkar/chp5dt.pdf

dicount factor =Cod+Coe=10.91
cod=0.7(0.13*0.7)=0.0637
coe=0.3(0.8*(16.83-8.38)/100+(8.38/100)
= 0.0454
accelarated dep is removed

IREDA 13%
JNNSM=5%
2/escalation/Explanation_2_4_2012.pdf
EXPLANATION FOR THE NOTIFICATION ON ESCALATION FACTORS AND
Year
discount factor
1
1.000
2
0.861
unit generation
installed capacity
gross generation
unit
MW
MU
Year
1
1
1.66
2
1
1.66
Fixed cost
O&M Expenses
Depriciation
Interest on term loan
Interest on Working capital
ROE
Total fixed cost
unit
Rs.lakh
Rs.lakh
Rs.lakh
Rs.lakh
Rs.lakh
Rs.lakh
year
1
10.63
70.00
96.11
4.42
57.00
238.16
2
11.24
70.00
91.07
4.44
57.00
233.75
Levellised COG
Per Unit COG
O&M expn
depreciation
Interest on on Working capital
ROE
Total COG
unit
Rs./KWH
Rs./KWH
Rs./KWH
Rs./KWH
Rs./KWH
Rs./KWH
year
1
0.64
4.21
5.77
0.27
3.42
14.31
2
0.68
4.21
5.47
0.27
3.42
14.04
14.31
12.09
levellised tariff
levellised tariff
Rs/kwh
11.80
3
0.740
4
0.637
5
0.548
6
0.472
7
0.406
8
0.349
9
0.301
10
0.259
11
0.223
3
1
1.66
4
1
1.66
5
1
1.66
6
1
1.66
7
1
1.66
8
1
1.66
9
1
1.66
10
1
1.66
11
1
1.66
3
11.88
70.00
85.35
4.46
57.00
228.69
4
12.56
70.00
78.83
4.48
57.00
222.88
5
13.28
70.00
71.42
4.51
57.00
216.21
6
14.04
70.00
63.00
4.53
57.00
208.57
7
14.84
70.00
53.42
4.55
57.00
199.81
8
15.69
70.00
42.52
4.58
57.00
189.79
9
16.59
70.00
30.13
4.61
57.00
178.32
10
17.54
70.00
16.03
4.64
57.00
165.20
11
18.54
13.30
0.00
4.67
72.00
108.51
3
0.71
4.21
5.13
0.27
3.42
13.74
4
0.75
4.21
4.74
0.27
3.42
13.39
5
0.80
4.21
4.29
0.27
3.42
12.99
6
0.84
4.21
3.79
0.27
3.42
12.53
7
0.89
4.21
3.21
0.27
3.42
12.01
8
0.94
4.21
2.55
0.28
3.42
11.40
9
1.00
4.21
1.81
0.28
3.42
10.71
10
1.05
4.21
0.96
0.28
3.42
9.93
11
1.11
0.80
0.00
0.28
4.33
6.52
10.17
8.53
7.12
5.91
4.87
3.98
3.22
2.57
1.45
12
0.192
13
0.165
14
0.142
15
0.122
16
0.105
17
0.090
18
0.078
19
0.067
20
0.058
12
1
1.66
13
1
1.66
14
1
1.66
15
1
1.66
16
1
1.66
17
1
1.66
18
1
1.66
19
1
1.66
20
1
1.66
12
19.60
13.30
0.00
4.70
72.00
109.60
13
20.72
13.30
0.00
4.74
72.00
110.76
14
21.91
13.30
0.00
4.77
72.00
111.98
15
23.16
13.30
0.00
4.81
72.00
113.27
16
24.48
13.30
0.00
4.85
72.00
114.64
17
25.88
13.30
0.00
4.89
72.00
116.08
18
27.37
13.30
0.00
4.94
72.00
117.61
19
28.93
13.30
0.00
4.99
72.00
119.22
20
30.59
13.30
0.00
5.04
72.00
120.93
12
1.18
0.80
0.00
0.28
4.33
6.59
13
1.24
0.80
0.00
0.28
4.33
6.65
14
1.32
0.80
0.00
0.29
4.33
6.73
15
1.39
0.80
0.00
0.29
4.33
6.81
16
1.47
0.80
0.00
0.29
4.33
6.89
17
1.56
0.80
0.00
0.29
4.33
6.97
18
1.64
0.80
0.00
0.30
4.33
7.07
19
1.74
0.80
0.00
0.30
4.33
7.16
20
1.84
0.80
0.00
0.30
4.33
7.27
1.26
1.10
0.95
0.83
0.72
0.63
0.55
0.48
0.42
21
0.050
22
0.043
23
0.037
24
0.032
25
0.027
21
1
1.66
22
1
1.66
23
1
1.66
24
1
1.66
25
1
1.66
21
32.34
13.30
0.00
5.09
72.00
122.73
22
34.18
13.30
0.00
5.15
72.00
124.64
23
36.14
13.30
0.00
5.21
72.00
126.65
24
38.21
13.30
0.00
5.28
72.00
128.78
25
40.39
13.30
0.00
5.34
72.00
131.04
21
1.94
0.80
0.00
0.31
4.33
7.37
22
2.05
0.80
0.00
0.31
4.33
7.49
23
2.17
0.80
0.00
0.31
4.33
7.61
24
2.30
0.80
0.00
0.32
4.33
7.74
25
2.43
0.80
0.00
0.32
4.33
7.87
0.37
0.32
0.28
0.24
0.21
enrgy charges
Working Capital
O&M for 1 month
Receivables
Maintanace & spares
Total WCapital
Interest on WC
I have taken receivable at 11.66 rs/unit

Rs/unit
11.16
unit
Rs. Lakh
Rs. Lakh
year
1
0.89
30.96
1.59
33.44
4.42
2
0.94
30.96
1.69
33.58
4.44
3
0.99
30.96
1.78
33.73
4.46
4
1.05
30.96
1.88
33.89
4.48
5
1.11
30.96
1.99
34.06
4.51
6
1.17
30.96
2.11
34.23
4.53
7
1.24
30.96
2.23
34.42
4.55
8
1.31
30.96
2.35
34.62
4.58
9
1.38
30.96
2.49
34.83
4.61
10
1.46
30.96
2.63
35.05
4.64
11
1.54
30.96
2.78
35.28
4.67
12
1.63
30.96
2.94
35.53
4.70
13
1.73
30.96
3.11
35.79
4.74
14
1.83
30.96
3.29
36.07
4.77
15
1.93
30.96
3.47
36.36
4.81
16
2.04
30.96
3.67
36.67
4.85
17
2.16
30.96
3.88
37.00
4.89
18
2.28
30.96
4.10
37.34
4.94
19
2.41
30.96
4.34
37.71
4.99
20
2.55
30.96
4.59
38.09
5.04
21
2.69
30.96
4.85
38.50
5.09
22
2.85
30.96
5.13
38.93
5.15
23
3.01
30.96
5.42
39.39
5.21
24
3.18
30.96
5.73
39.87
5.28
25
3.37
30.96
6.06
40.38
5.34
total debt
annual premium
Rs.lakh
Rs.lakh
700
132.7883

interest
principle paid
principle left
Rs.lakh
Rs.lakh
Rs.lakh
Rs.lakh
Year
CRF(13.73%,10)
1
96.11
36.68
663.32
2
91.07
41.71
621.61
0.189698
3
85.35
47.44
574.17
4
78.83
53.96
520.21
5
71.42
61.36
458.85
6
63.00
69.79
389.06
7
53.42
79.37
309.69
8
42.52
90.27
219.42
9
30.13
102.66
116.76
10
16.03
116.76
0.00
determination of accelarated depreciation benefits for solar PV power project
depreciation amount
book depreciation rate
tax depriciation rate
income tax (normal rates)
capital cost
Book depreciation
90%
5.28%
80%
32.445%
1000
unit
%
Rs. Lakh
year
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

Merc Tariff

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Assumption Sheet

capital Cost /MW

Normative O&M expenses

Tariff determionation for Solar PV

Sub head (2)

installed power generation capacity

Normative capital cost

Depriciation rate for first 10 year

generation based incentives,if any

Normative O&M expenses

Market rate of interest is taken as base rate+300 bps ( http://www.cercind.gov.in/2012/escalation/Explanation_2_4_20

Corporate tax rate=30% http://finmin.nic.in/kelkar/chp5dt.pdf

accelarated dep is removed

EXPLANATION FOR THE NOTIFICATION ON ESCALATION FACTORS AND

I have taken receivable at 11.66 rs/unit

Interest on term loan

determination of accelarated depreciation benefits for solar PV power project

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