India: CERC proposes generic tariffs for 2026–27 — biogas 11.17 Rs/kWh, bagasse up to about 9.40 Rs/kWh

India's Central Electricity Regulatory Commission (CERC) proposed generic tariffs for the 2026–27 financial year in August 2026. According to a report by the portal Powerline, the rate for energy from biogas is to be 11.17 Rs/kWh, for biomass in the Rankine cycle from about 9.60 to over 11.60 Rs/kWh, and for bagasse cogeneration from about 7.50 to about 9.40 Rs/kWh. The values are given before accelerated depreciation is taken into account.

Comparison with 2025–26

The year 2026–27 is the third year of the regulatory period. For comparison, below we give the rates in force from 1 July 2025 to 31 March 2026 (see the article on the 2025–26 tariffs) and the proposal for 2026–27:

The ranges are not fully comparable, because the 2025 summary covers selected states, while the 2026 report gives aggregate ranges. The direction is nevertheless clear: for biogas the increase is 0.29 Rs/kWh (about 2.7 per cent), and the extreme values for bagasse in Tamil Nadu and Haryana rise by about 0.17–0.22 Rs/kWh (from 7.33 to about 7.50 and from 9.18 to about 9.40). The upper end of the range for biomass rises from 10.63 to over 11.60 Rs/kWh, that is, by almost 1 Rs/kWh, and the lower end from 9.43 to about 9.60.

What "before accelerated depreciation" means

Accelerated depreciation is a tax relief for investors in renewable sources. CERC gives rates in the version without this relief, and its effect has to be taken into account separately. In a profitability analysis it is therefore worth checking whether the project benefits from it.

Next steps

The proposal is not yet final. CERC will issue an order after considering stakeholder comments. Only then will the rates become the reference for projects settled under generic tariffs.

Biogas in a broader context

Electricity rates are in India only one channel of support. In parallel there is the compressed biogas (CBG) market, regulated, among other things, by the procurement price and the obligation to blend with natural gas; we write about its schedule in separate articles (CBG blending obligation, CBG procurement price from June 2025).