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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    22 23 24 25

    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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