The Chhattisgarh State Electricity Regulatory Commission has released draft generic levelised tariffs for renewable energy projects commissioned in FY 2026-27.
Solar photovoltaic projects in the 0.5 MW to 2 MW range have been pegged at Rs. 3.40 per kWh.
Mini and micro hydro projects up to 2 MW have been pegged at Rs. 8.18 per kWh.
Small hydro projects in the 5 MW to 10 MW range have been pegged at Rs. 7.87 per kWh.
Stakeholders may submit comments till June 5, 2026.
Solar tariff
The Rs. 3.40 per kWh tariff applies to small solar PV projects.
This tariff is higher than the rates discovered in large utility-scale solar auctions.
The premium reflects the higher per-unit cost of smaller project sizes.
It also reflects distribution-level grid integration expenses, smaller developer financing costs, and project development overheads.
Small hydro tariff
Mini and micro hydro projects up to 2 MW have been assigned the highest tariff among the listed categories.
The tariff is Rs. 8.18 per kWh.
Small hydro projects between 5 MW and 10 MW have a slightly lower tariff of Rs. 7.87 per kWh.
The difference reflects scale benefits in larger hydro projects.
Other renewable categories
Non-fossil fuel co-generation has been assigned fixed charges of Rs. 4.55 per kWh.
Biogas-based projects carry fixed charges of Rs. 4.90 per kWh.
These tariffs provide price visibility for smaller renewable developers.
They also help DISCOMs plan procurement under Renewable Purchase Obligation requirements.
Capital cost benchmarks
CSERC has also indicated capital cost benchmarks.
Solar PV projects have been benchmarked at Rs. 3.5 crore per MW.
Biogas-based projects have a much higher capital cost benchmark of Rs. 13.54 crore per MW.
The difference reflects technology intensity, equipment cost, civil works, and operating complexity.
Regulatory significance
Generic tariff orders are important for decentralised renewable energy projects.
Many small projects are below the scale where competitive bidding is practical.
A generic tariff gives developers and lenders a clear price signal.
It also allows state utilities to procure renewable power without running separate tenders for every small project.
Chhattisgarh context
Chhattisgarh has renewable potential across solar, small hydro, biomass, and co-generation.
Small hydro is especially relevant in forested and riverine regions.
Solar projects can support local supply near distribution networks.
Biogas and co-generation can use local agricultural and industrial residues.
DISCOM impact
The tariff order will affect Chhattisgarh State Power Distribution Company’s renewable procurement planning.
The DISCOM will need to balance Renewable Purchase Obligation compliance with consumer tariff impact.
Higher-cost small hydro and biogas projects may support local energy security.
However, they will also need to be assessed against affordability and system benefits.
Developer impact
For small renewable developers, the draft tariff provides a basis for project financing.
Banks and lenders can use the tariff to assess debt serviceability.
Developers may still seek changes during the comment process.
Likely areas of representation include capital cost assumptions, discount rates, operating expenses, and grid-related charges.
Next steps
Stakeholders have until June 5, 2026 to submit comments.
CSERC will review submissions from DISCOMs, developers, industry associations, equipment suppliers, and consumer groups.
The final tariff order is expected after the consultation process.
It will govern eligible renewable projects commissioned during FY 2026-27.
Strategic message
CSERC’s draft RE tariff order creates a structured pricing framework for Chhattisgarh’s small renewable energy market.
Solar at Rs. 3.40 per kWh provides a workable tariff for distributed PV projects.
Small hydro at up to Rs. 8.18 per kWh recognises the higher cost of site-specific hydro development.
The final order will be important for decentralised renewable procurement, RPO compliance, and investor confidence in the state’s clean energy market.
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