APERC proposes lower CUF norm for small hydro projects

The Andhra Pradesh Electricity Regulatory Commission has issued a draft amendment to its tariff regulations for renewable energy sources. The proposal lowers the minimum normative CUF for small hydro stations from 40 per cent to a project-specific level of not less than 30 per cent.

The Commission notified the principal tariff regulation for renewable energy sources on 12 September 2025. After this, it reviewed the operating performance of small hydro stations in the state. The review showed that the 40 per cent CUF set under Clause 27 did not match the actual performance of many stations under current flow conditions. The Commission noted a clear gap between the earlier norm and operational data.

The Commission also referred to the Central Electricity Regulatory Commission regulations for 2024, which prescribe a CUF of 30 per cent for small hydro projects in Andhra Pradesh. This served as a benchmark for comparison. In its statement of reasons, the Commission said the revision was needed to support realistic tariff determination and reflect achievable performance levels during the Control Period. It added that the change would support regulatory certainty for upcoming projects.

Using its powers under Sections 61, 62, 86(1)(b) and 181 of the Electricity Act, 2003, the Commission proposed to replace Clause 27 in full. The new clause states that CUF will be project-specific and not less than 30 per cent. The draft is designated as the First Amendment to Regulation No. 6 of 2025. The draft was issued on 18 November 2025.

The featured photograph (Source: NHPC) is for representation only.