Power generation tariffs in India comprise two parts. the primary part may be a fixed component – the value that a generator incurs. this can be not linked to the quantity of power generated. If we talk about the second part, the second part varies with the quantum of generation. The two-part tariff has been modish since 1992. It applies to thermal and hydro generation. It doesn't apply to renewable generation — solar, wind, and also nuclear. Under the two-part formula, the variable cost is calculated on the idea prescribed by the regulatory commissions. this is often supported by the value of fuel — coal or gas or lignite — because the case is also. The fixed charge is additionally determined by regulatory commissions and it's a graded payment system counting on the extent to which the...
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