Delhi: No extra cost for buying power from WTE plants

NEW DELHI: To promote clean sources of energy, the Delhi Electricity Regulatory Commission has decided to exempt all waste-to-energy projects from transmission and other related costs under open-access regulations. Now, any open-access consumer wanting to buy from WTE plants will only have to pay for the cost of the power. All other infrastructure-related costs will be borne by discoms.
The move is expected to greatly benefit industrial and commercial consumers who can opt for power from these WTE plants as open-access consumers at a cost lower than commercial/industrial tariffs levied by DERC.Currently, there are three WTE plants in the city — Okhla, Ghazipur and Bawana — while another in Okhla area is expected to become operational soon. Many other projects have been announced by the civic bodies. The tariff from the Bawana plant is the steepest at Rs 7/unit. Okhla and Ghazipur charge Rs 2-3/unit. All the waste-to-energy plants have entered into PPAs with the three private discoms and NDMC.
Discom officials said bigger consumers, such as hotels, malls, restaurants, hospitals, corporate houses and factories will gain the most from this step. Agencies like DIAL and Delhi Metro can also avail of the exemptions. “The wheeling and transmission charges will be borne by discoms, but ultimately passed on. While the exemption will promote WTE plants, only the larger consumers who are looking at ways to reduce their power-purchase cost will get benefits. Ultimately, the rest of Delhi will be compensating for the exemption,’’ claimed a discom official.
The order also aims to ensure that no entity can take advantage of the exemptions and terminate existing PPAs with the WTE plants. The commission said the move to give exemptions to promote WTE plants followed meetings held with the ministry of power and Delhi government.