Section 17 in The Central Electricity Regulatory Commission (Terms And Conditions For Tariff Determination From Renewable Energy Sources) Regulations, 2009
17. Interest on Working Capital
.-(1) The working capital requirement in respect of wind energy projects, small hydro power, solar PV and Solar thermal power projects shall be computed in accordance with the following:-Wind Energy/Small Hydro Power/Solar PV/Solar thermal(a)Operation & Maintenance expenses for one month;(b)Receivables equivalent to 2 (Two) months of energy charges for sale of electricity calculated on the normative CUF;(c)Maintenance spare @ 15% of operation and maintenance expenses(2)The Working Capital requirement in respect of biomass power projects and non-fossil fuel based co-generation projects shall be computed in accordance with the following clause:Biomass Power and Non-fossil fuel Co-generation(a)Fuel costs for four months equivalent to normative PLF;(b)Operation and Maintenance expense for one month;(c)Receivables equivalent to 2 (Two) months of fixed and variable charges for sale of electricity calculated on the target PLF;(d)Maintenance spare @ 15% of operation and maintenance expenses(3)Interest on Working Capital shall be at interest rate equivalent to average State Bank of India short term PLR during the previous year plus 100 basis points.
