CSERC notifies FY27 generic tariffs for renewable energy projects
The Chhattisgarh State Electricity Regulatory Commission (CSERC) has issued an order determining generic tariffs for renewable energy projects scheduled to achieve commercial operation during FY 2026-27 under the Chhattisgarh State Electricity Regulatory Commission (Terms and Conditions for Determination of RE Tariff) Regulations, 2025.
Issued on July 3, 2026, the order covers small hydro projects, non-fossil fuel-based co-generation plants, solar photovoltaic (PV) projects in the 0.5 MW to 2 MW category, and biogas-based power projects. The tariffs will be applicable to projects entering into long-term Power Purchase Agreements (PPAs) and will remain in force for the useful life of the respective projects.
Tariff determination
CSERC has approved a tariff of Rs 7.68/kWh for small hydro projects with capacities below 5 MW. Small hydro projects in the 5 MW to 10 MW category will receive Rs 7.87/kWh, while projects between 10 MW and 25 MW have been assigned a tariff of Rs 7.47/kWh.
For mini and micro hydro projects with capacities up to 2 MW, the Commission has determined a tariff of Rs 8.18/kWh.
Solar PV projects in the 0.5 MW to 2 MW segment have been assigned a generic tariff of Rs 3.40/kWh.
In the case of non-fossil fuel-based co-generation projects, CSERC has approved a two-part tariff comprising a fixed cost of Rs 4.55/kWh and a variable cost of Rs 5.10/kWh. Biogas-based power projects will receive a fixed tariff component of Rs 4.90/kWh and a variable component of Rs 6.21/kWh.
Normative parameters
The tariffs have been determined based on the normative parameters specified in the RE Tariff Regulations, 2025.
The Commission has adopted a debt-equity ratio of 70:30 for tariff calculations. Return on Equity (RoE) has been specified at 14% for most renewable energy technologies and 15% for small hydro projects, with both values grossed up by the applicable Minimum Alternate Tax (MAT) rate.
Interest on loans has been considered at 10.72%, based on the State Bank of India (SBI) Marginal Cost of Funds-based Lending Rate (MCLR) plus 200 basis points, while interest on working capital has been determined at 11.97%, equivalent to SBI MCLR plus 325 basis points.
The useful life of hydro projects has been fixed at 40 years, whereas all other renewable technologies covered under the order have been assigned a useful life of 25 years.
Capital costs
For tariff determination purposes, CSERC has adopted a normative capital cost of Rs 8.90 crore/MW for small hydro projects up to 5 MW and Rs 10.27 crore/MW for projects in the 5 MW to 25 MW category.
The Commission has considered a capital cost of Rs 3.50 crore/MW for solar PV projects, Rs 5.62 crore/MW for non-fossil fuel-based co-generation projects, and Rs 13.54 crore/MW for biogas-based power projects.
Stakeholder submissions
During the consultation process, hydro project developers sought revisions to the normative capital costs, a higher RoE of at least 16%, and uniform operation and maintenance (O&M) expenses across project categories.
Chhattisgarh State Power Distribution Company Limited (CSPDCL) submitted comments relating to subsidy adjustments in capital costs, typographical corrections and the Plant Load Factor assumptions adopted for co-generation projects.
The Commission observed that issues relating to capital costs, O&M expenses and RoE had already been addressed during the formulation of the RE Tariff Regulations, 2025, following stakeholder consultations. It stated that revisiting those parameters was beyond the scope of the current tariff determination exercise.
Applicability
CSERC clarified that the generic tariffs will apply to eligible renewable energy projects achieving commercial operation during FY 2026-27 and operating under long-term PPAs. The tariff period for each project will correspond to its notified useful life, commencing from the date of commercial operation.
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