Merc Tariff
Transcript of Merc Tariff
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Sr. no. Assumption head Sub head
financial
assumption
Fiscal Assumption
Assumption Sheet
Capacity
Power Generation
1
project cost
capital Cost /MW2
3
Debt:equity
Debt component
Equity componenet
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For fixed charge
O&M expense
maintance spare
Receivables
for variable charges
Interest on working capital
Escalatio
4 O&M
Incentives
Nor
Working capital5
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Tariff determionation for Solar PV
Sub head (2) Unit Parameter Values
installed power generation capacity MW 1
Capacity utilization factor % 19%
comercial operation date mm/yyyy 6/1/2012
useful life years 25
Normative capital cost Rs. lakh/Mw 1000
capital cost Rs. lakh 1000
capital subsidy, if any Rs. lakh 0%
Net capital cost Rs. lakh 1000
Tariff period years 25
Debt % 70%
Equity % 30%
Total Debt amount Rs. lakh 700
Total Equity amount Rs. lakh 300
Loan amount Rs. lakh 700
moratourim period years -
repayment period (incld moratourim) years 10
interest rate % 13.73%
equity amount Rs. lakh 300
ROE for fisrt 10 years % p.a. 19%
ROE form 11th years onwards % p.a. 24%
weighted average of ROE % p.a. 22%
Discount rate % 16.21% 0.189698
Income tax % 32.45%
MAT rate (for first 10 Year) % 20.01%
80 IA benefits YES
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Depriciation rate for first 10 year % p.a. 7%
depriciation rate form 11th year onwards % 1.33%
generation based incentives,if any Rs. Lakh/p.a.
period for GBI years
Rs. Lakh/mw 10.63
RS. Lakh
% 5.72%
months 1
% 15%
months 2
% p.a. 13.23%
n factor for O&M expense
ative O&M expenses
&M expense p.a
% of O&M expenses
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Market rate of interest is taken as base rate+300 bps ( http://www.cercind.gov.in/2012/escalationOTHER 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)=0.0637coe=0.3(0.8*(16.83-8.38)/100+(8.38/100)
= 0.0454
accelarated dep is removed
IREDA 13%
JNNSM=5%
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/Explanation_2_4_2012.pdfEXPLANATION FOR THE NOTIFICATION ON ESCALATION FACTORS AND
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Year 1 2
discount factor 1.000 0.861
unit generation unit Year 1 2
installed capacity MW 1 1
gross generation MU 1.66 1.66
Fixed cost unit year 1 2
O&M Expenses Rs.lakh 10.63 11.24
Depriciation Rs.lakh 70.00 70.00
Interest on term loan Rs.lakh 96.11 91.07
Interest on Working capital Rs.lakh 4.42 4.44
ROE Rs.lakh 57.00 57.00
Total fixed cost Rs.lakh 238.16 233.75
Levellised COG
Per Unit COG unit year 1 2
O&M expn Rs./KWH 0.64 0.68
depreciation Rs./KWH 4.21 4.21
Interest on term loan Rs./KWH 5.77 5.47
Interest on on Working capital Rs./KWH 0.27 0.27
ROE Rs./KWH 3.42 3.42
Total COG Rs./KWH 14.31 14.04
levellised tariff 14.31 12.09
levellised tariff Rs/kwh 11.80
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3 4 5 6 7 8 9 10 11
0.740 0.637 0.548 0.472 0.406 0.349 0.301 0.259 0.223
3 4 5 6 7 8 9 10 11
1 1 1 1 1 1 1 1 1
1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66
3 4 5 6 7 8 9 10 11
11.88 12.56 13.28 14.04 14.84 15.69 16.59 17.54 18.54
70.00 70.00 70.00 70.00 70.00 70.00 70.00 70.00 13.30
85.35 78.83 71.42 63.00 53.42 42.52 30.13 16.03 0.00
4.46 4.48 4.51 4.53 4.55 4.58 4.61 4.64 4.67
57.00 57.00 57.00 57.00 57.00 57.00 57.00 57.00 72.00
228.69 222.88 216.21 208.57 199.81 189.79 178.32 165.20 108.51
3 4 5 6 7 8 9 10 11
0.71 0.75 0.80 0.84 0.89 0.94 1.00 1.05 1.11
4.21 4.21 4.21 4.21 4.21 4.21 4.21 4.21 0.80
5.13 4.74 4.29 3.79 3.21 2.55 1.81 0.96 0.00
0.27 0.27 0.27 0.27 0.27 0.28 0.28 0.28 0.28
3.42 3.42 3.42 3.42 3.42 3.42 3.42 3.42 4.33
13.74 13.39 12.99 12.53 12.01 11.40 10.71 9.93 6.52
10.17 8.53 7.12 5.91 4.87 3.98 3.22 2.57 1.45
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12 13 14 15 16 17 18 19 20
0.192 0.165 0.142 0.122 0.105 0.090 0.078 0.067 0.058
12 13 14 15 16 17 18 19 20
1 1 1 1 1 1 1 1 1
1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66
12 13 14 15 16 17 18 19 20
19.60 20.72 21.91 23.16 24.48 25.88 27.37 28.93 30.59
13.30 13.30 13.30 13.30 13.30 13.30 13.30 13.30 13.30
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4.70 4.74 4.77 4.81 4.85 4.89 4.94 4.99 5.04
72.00 72.00 72.00 72.00 72.00 72.00 72.00 72.00 72.00
109.60 110.76 111.98 113.27 114.64 116.08 117.61 119.22 120.93
12 13 14 15 16 17 18 19 20
1.18 1.24 1.32 1.39 1.47 1.56 1.64 1.74 1.84
0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.28 0.28 0.29 0.29 0.29 0.29 0.30 0.30 0.30
4.33 4.33 4.33 4.33 4.33 4.33 4.33 4.33 4.33
6.59 6.65 6.73 6.81 6.89 6.97 7.07 7.16 7.27
1.26 1.10 0.95 0.83 0.72 0.63 0.55 0.48 0.42
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21 22 23 24 25
0.050 0.043 0.037 0.032 0.027
21 22 23 24 25
1 1 1 1 1
1.66 1.66 1.66 1.66 1.66
21 22 23 24 25
32.34 34.18 36.14 38.21 40.39
13.30 13.30 13.30 13.30 13.30
0.00 0.00 0.00 0.00 0.00
5.09 5.15 5.21 5.28 5.34
72.00 72.00 72.00 72.00 72.00
122.73 124.64 126.65 128.78 131.04
21 22 23 24 25
1.94 2.05 2.17 2.30 2.43
0.80 0.80 0.80 0.80 0.80
0.00 0.00 0.00 0.00 0.00
0.31 0.31 0.31 0.32 0.32
4.33 4.33 4.33 4.33 4.33
7.37 7.49 7.61 7.74 7.87
0.37 0.32 0.28 0.24 0.21
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enrgy charges Rs/unit 11.16
Working Capital unit year 1 2 3
O&M for 1 month Rs. Lakh 0.89 0.94 0.99
Receivables Rs. Lakh 30.96 30.96 30.96Maintanace & spares 1.59 1.69 1.78
Total WCapital 33.44 33.58 33.73
Interest on WC 4.42 4.44 4.46
I have taken receivable at 11.66 rs/unit
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4 5 6 7 8 9 10 11 12
1.05 1.11 1.17 1.24 1.31 1.38 1.46 1.54 1.63
30.96 30.96 30.96 30.96 30.96 30.96 30.96 30.96 30.961.88 1.99 2.11 2.23 2.35 2.49 2.63 2.78 2.94
33.89 34.06 34.23 34.42 34.62 34.83 35.05 35.28 35.53
4.48 4.51 4.53 4.55 4.58 4.61 4.64 4.67 4.70
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2.85 3.01 3.18 3.37
30.96 30.96 30.96 30.965.13 5.42 5.73 6.06
38.93 39.39 39.87 40.38
5.15 5.21 5.28 5.34
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total debt Rs.lakh 700 0.189698
annual premium Rs.lakh 132.7883
Interest on term loan Rs.lakh Year 1 2 3
interest Rs.lakh 96.11 91.07 85.35
principle paid Rs.lakh 36.68 41.71 47.44
principle left Rs.lakh 663.32 621.61 574.17
CRF(13.73%,10)
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4 5 6 7 8 9 10
78.83 71.42 63.00 53.42 42.52 30.13 16.03
53.96 61.36 69.79 79.37 90.27 102.66 116.76
520.21 458.85 389.06 309.69 219.42 116.76 0.00
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depreciation amount 90%
book depreciation rate 5.28%
tax depriciation rate 80%income tax (normal rates) 32.445%
capital cost 1000
unit year 1 2 3 4
Book depreciation %
Rs. Lakh
determination of accelarated depreciation benefits for solar PV power project
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