The Department of Atomic Energy (DAE) has notified revised tariff norms allowing nuclear power projects commissioned after 01 April, 2022, to choose between a constant return on equity (RoE) of 15.5 percent over the plant's operating life or a variable RoE model across the power purchase agreement (PPA) period.
The variable model may begin with a lower RoE, gradually increase, and then decline, ensuring its present value matches that of the constant RoE. Projects commissioned before 01 April, 2022, will continue with a fixed RoE of 15.5 percent. The notification states, "Central government, in consultation with the Central Electricity Authority (CEA), determines the norms with which the tariff for sale of electricity by the atomic power stations to the State electricity boards (SEBs) and to other persons shall be determined."
For new pressurised heavy water reactors (PHWRs), a 70:30 debt-equity ratio has been mandated. For other future technologies, ratios will be fixed case-by-case. Excess equity beyond 30 percent will be treated as notional loan. The plant load factor (PLF) for 12 existing nuclear stations ranges between 68.5 percent and 80 percent. There will be no stabilisation period, and fuel charges for PHWRs will align with a 12 percent discount rate over 15 years.