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					</table>The Rajasthan Electricity Regulatory Commission (<a href="https://rerc.rajasthan.gov.in/" target="_blank" rel="noopener">RERC</a>) has proposed levelized fixed costs for Rankine cycle-based biomass power projects commissioned during the financial year (FY) 2025 and levelized generic tariffs ranging from ₹7.75 (~$0.081)/kWh to ₹8.57 (~$0.089)/kWh for projects commissioned or to be commissioned during FY 2026 and FY 2027.
The Commission has invited stakeholder feedback by September 11, 2026.
The useful life for biomass power projects with Rankine Cycle technology has been considered as 25 years.
Proposed Parameters
The State Level Committee recommended a biomass base fuel price of ₹3,445.84 (~$35.99)/MT for FY 2026, together with ₹34.46 (~$0.359)/MT for moisture and ground-handling losses and ₹196 (~$2.047)/MT for stacking, covering, and feeding costs. It recommended annual escalation of 5.92% for FY 2027.
For Prosopis juliflora, the committee recommended a base price of ₹3,597.52 (~$37.576)/MT for FY 2026, provided it constitutes more than 50% of the biomass blend, along with ₹17.99 (~$0.188)/MT for moisture and ground-handling losses and ₹196 (~$2.047)/MT for stacking and feeding.
In calculating the tariffs, RERC considered a useful life of 25 years for Rankine cycle biomass projects and adopted a normative debt-equity ratio of 70:30. It retained normative capital costs of ₹52.78 million (~$551,287)/MW for plants using water-cooled condensers and ₹56.19 million (~$586,905)/MW for those using air-cooled condensers.
The Commission used discount rates of 9.03% for FY 2025, 9.21% for FY 2025-26 and 9.08% for FY 2027, while the return on equity was determined at 16.96% after considering a MAT rate of 17.47%.
RERC considered loan interest rates of 10.62% for FY 2024-25, 10.99% for FY 2025-26 and 10.72% for FY 2026-27. Interest on working capital was taken at 11.62%, 11.99% and 11.72%, respectively.
The Commission adopted an annual plant load factor of 80%, auxiliary consumption of 10% for water-cooled plants and 12% for air-cooled plants, and station heat rates of 4,200 kcal/kWh for traveling grate boilers and 4,125 kcal/kWh for AFBC boilers.
On fuel costs, the Commission accepted the committee’s recommendations and set the biomass fuel price at ₹3,676.30 (~$38.399)/MT for FY 2026 and ₹3,880.29 (~$40.529)/MT for FY 2027.
For plants blending more than 50% Prosopis juliflora, the respective prices were set at ₹3,811.52 (~$39.811)/MT and ₹4,024.49 (~$42.035)/MT.
For biomass projects commissioned during FY 2009-15 and FY 2015-20 using conventional biomass, RERC determined variable charges of ₹5.05 (~$0.0528)/kWh for water-cooled and ₹5.46 (~$0.0571)/kWh for air-cooled plants for FY 2025-26. For FY 2026-27, these increase to ₹5.33 (~$0.0557)/kWh and ₹5.76 (~$0.0602)/kWh, respectively. For plants from these earlier control periods using more than 50% Prosopis juliflora, the variable charges are ₹5.23 (~$0.0546)/kWh and ₹5.66 (~$0.0591)/kWh for water- and air-cooled plants in FY 2026 and ₹5.52 (~$0.0577)/kWh and ₹5.97 (~$0.0624)/kWh, respectively, in FY 2027.
For projects of the current control period, the FY 2025-26 variable charges range from ₹4.96 (~$0.0512)/kWh for water-cooled AFBC projects to ₹5.16 (~$0.0539)/kWh for air-cooled traveling grate projects using regular biomass.
The Commission directed that differences between variable charges already paid and the revised charges for the applicable projects should be settled through the next three-monthly bills.
For plants using more than 50% Prosopis juliflora, generators must submit bills for the differential amount along with a Chartered Accountant certificate at the end of the financial year, and distribution companies must pay within 45 days of submission.
RERC also provided that the variable charges determined for FY 2026-27 would continue beyond March 31, 2027, until a new order is issued.
Levelized Costs for FY 2025
For projects commissioned during FY 2024-25, the Commission proposed levelized fixed costs of ₹2.74/kWh for water-cooled condenser projects using traveling grate boilers, ₹2.96 (~$0.0309)/kWh for air-cooled projects using traveling grate boilers, ₹2.73 (~$0.0285)/kWh for water-cooled projects using AFBC boilers, and ₹2.95 (~$0.0308)/kWh for air-cooled projects using AFBC boilers. After adjustment for accelerated depreciation benefits, where availed, the corresponding net fixed costs are ₹2.61 (~$0.0273)/kWh, ₹2.82 (~$0.0295)/kWh, ₹2.60 (~$0.0272)/kWh, and ₹2.81 (~$0.0294)/kWh, respectively.
Levelized Generic Tariff for FY 2026 and FY 2027
For FY 2025-26, RERC proposed generic tariffs of ₹7.88 (~$0.0823)/kWh for water-cooled traveling grate projects, ₹8.22 (~$0.0859)/kWh for air-cooled traveling grate projects, ₹7.79 (~$0.0814)/kWh for water-cooled AFBC projects, and ₹8.13 (~$0.0849)/kWh for air-cooled AFBC projects. After accounting for accelerated depreciation benefits, the net tariffs would be ₹7.75 (~$0.0809)/kWh, ₹8.08 (~$0.0844)/kWh, ₹7.66 (~$0.0811)/kWh, and ₹7.99 (~$0.0835)/kWh, respectively.
For FY 2026-27, the proposed tariffs rise to ₹8.22 (~$0.0859)/kWh, ₹8.57 (~$0.0895)/kWh, ₹8.11 (~$0.0847)/kWh, and ₹8.46 (~$0.0884)/kWh for the four configurations, with net tariffs after accelerated depreciation of ₹8.09 (~$0.0845)/kWh, ₹8.43 (~$0.0881)/kWh, ₹7.98 (~$0.0834)/kWh, and ₹8.32 (~$0.0869)/kWh, respectively.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/RERC-Generoc-Tarifff-for-Biomass-Projects-for-FY-2026-and-FY-2027.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-103404 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/RERC-Generoc-Tarifff-for-Biomass-Projects-for-FY-2026-and-FY-2027.png" alt="RERC Generic Tariff for Biomass Projects for FY 2026 and FY 2027" width="793" height="301" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/RERC-Generoc-Tarifff-for-Biomass-Projects-for-FY-2026-and-FY-2027.png 793w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/RERC-Generoc-Tarifff-for-Biomass-Projects-for-FY-2026-and-FY-2027-300x114.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/RERC-Generoc-Tarifff-for-Biomass-Projects-for-FY-2026-and-FY-2027-768x292.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/RERC-Generoc-Tarifff-for-Biomass-Projects-for-FY-2026-and-FY-2027-650x247.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/RERC-Generoc-Tarifff-for-Biomass-Projects-for-FY-2026-and-FY-2027-624x237.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/08/RERC-Generoc-Tarifff-for-Biomass-Projects-for-FY-2026-and-FY-2027-600x228.png 600w" sizes="auto, (max-width: 793px) 100vw, 793px" /></a>
The Commission also determined biomass fuel prices of ₹3,676.30 (~$38.399)/MT for FY 2025-26 and ₹3,880.29 (~$40.529)/MT for FY 2026-27. For plants blending more than 50% Prosopis juliflora, the fuel prices were set at ₹3,811.52 (~$39.811)/MT and ₹4,024.49 (~$42.036)/MT, respectively. These fuel prices form the basis for revised variable charges applicable to biomass plants in earlier and current control periods.
Last July, the Ministry of New and Renewable Energy <a href="https://www.mercomindia.com/mnre-introduces-iot-based-monitoring-of-data-under-biomass-energy-program" target="_blank" rel="noopener">revised</a> the guidelines for the National Biomass Program for FY 2022 to 2027 (Phase-I). These amendments aim to promote cleaner energy solutions, ease of doing business, and accelerate the adoption of biomass technologies across India.
Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.

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