Karnataka DISCOMs propose grid support charges

Power distribution companies (DISCOMs) in Karnataka have proposed revised tariffs for low-tension (LT) and high-tension (HT) consumers, introducing grid support charges for captive open-access power projects. This proposal is pending approval by the Karnataka Electricity Regulatory Commission (KERC).

If approved, captive power projects (CPPs) may face additional grid support fees ranging from ₹1.57 ($0.019)/kWh to ₹2.85 ($0.035)/kWh. Currently, solar open access charges for captive/group captive projects result in a landed cost of about ₹5.15 ($0.06)/kWh. These charges have led to savings of ₹2.25 ($0.02)/kWh for industrial consumers and approximately ₹4.1 (~$0.04)/kWh for commercial consumers.

Karnataka has been a leading state for solar open access, accounting for over 34% of cumulative capacity as of June 2023, according to a report. However, if the proposed grid support charge of ₹2.74 ($0.03)/kWh by BESCOM is implemented, the net cost for captive solar open access would increase to ₹7.89 ($0.096)/kWh.