Tariff norms for N-power plants notified for five years

NEW DELHI: The Department of Atomic Energy Tuesday notified the tariff norms for nuclear power plants for a five-year period starting FY23, keeping the return on equity unchanged at 15.5% of the project cost.

Return on equity is a key value in determining the tariff of a power unit.

Tariff guidelines for nuclear plants are given by the Department of Atomic Energy, unlike all other state-owned plants, the tariff for which is regulated by the Central Electricity Regulatory Commission.

However, the rate of return on equity for nuclear plants is the same as for thermal power plants in the ongoing five-year tariff period of FY24-FY28.

The exercise is done periodically for every five-year period.

India has around 8.8 GW of nuclear power plants.

The current nuclear capacity contributes about 3% of the country's electricity generation. Eight reactors with 6,600 MW capacity are under construction and another 10 reactors with 7,000 MW capacity are in pre-project stages.

The government targets 100 GW of nuclear power capacity by 2047 to strengthen long-term energy security.