CEB offers two types of Feed –in Tariff to the Small Hydro Power Projects namely;
The avoided cost tariff exists for the power plants who have signed the Standard Power Purchase Agreement prior to year 2008 and published every calendar year. The avoided cost tariff mechanism, as the name implies considers the total cost of electricity generation avoided due to the existence of the small hydro power projects in terms of foreign exchange rate outflow, which would have been incurred for the expensive oil based thermal power plants.
- Cost Based Three tier Tariff
The new Cost Based Three tier Tariff considers the total cost of electricity generation including the initial capital expenditure, operation & maintenance, finance cost and the return to the entrepreneur. The tariff structure is divided into three period, with the period from year 1 to 8 have the highest tariff to accommodate principal and finance cost payment of the project loan.
Present Cost Based NCRE Tariff offered by CEB