Section 25 in The Central Electricity Regulatory Commission (Terms And Conditions For Tariff Determination From Renewable Energy Sources) Regulations, 2009
25. Capital Cost Indexation Mechanism
.-The following indexation mechanism shall be applicable in case of wind energy projects for adjustments in capital cost over the Control Period with the changes in Wholesale Price Index for Steel and Electrical Machinery:CC(n) = P&M(n) * (1+F1+F2+F3)P&M(n) = P&M(0) * (1+d(n))d(n) = [a*{(SI(n-1)/SI(0)-1}+{(EI(n-1)/EI(0))-1}]/(a+b)Where,-CC(n) = Capital Cost for nth yearP&M(n) = Plant and Machinery Cost for nthyearP&M(0) = Plant and Machinery Cost for thebase yearNote.- P&M(0) is to computed bydividing the base capital cost (for the first year of the Control Period) by(1+F1+F2+F3),i.e., Rs. 515 Lakh per MW/1.25 = Rs. 412 Lakh per MW.d(n) = Capital Cost escalation factor for year(n)of Control period.SI(n-1) = Average WPI Steel Index prevalent forcalendar year (n-1) of the Control Period.SI(0) - Average WPI Steel Index prevalent forcalendar year (0) at the beginning of the Control Period, i.e., January
