Revised Tariff Boosts Malwa Power Plant's Renewable Energy Future

DEE Development Engineers Ltd secures a 49% revised tariff increase from PSERC for its Malwa Power Plant, ensuring continued operations and revenue stability for 10 more years. The plant, using biomass fuels, contributes to India's renewable energy initiative, with projected revenues of Rs 24.31 crore in 2026-27.

DEE Development Engineers Ltd has announced a revised tariff rate of Rs 5.224 per unit for its Malwa Power Plant, as approved by the Punjab State Electricity Regulatory Commission (PSERC). This new rate will keep the biomass-based plant in operation for an additional 10 years following the end of its initial 20-year deal with Punjab State Power Corporation Limited in April 2025.

The tariff revision represents a significant 49% increase from the interim rate of Rs 3.50 per unit, with the rate change projected to enhance the company's profit before tax by Rs 5.80 crore in the 2025-26 fiscal year. The Malwa Power Plant, operational since 2005, harnesses rice husk and agricultural residue to produce renewable energy, thereby aligning with India's broader clean energy goals.

Operational forecasts based on an 85% Plant Load Factor predict an annual revenue of Rs 24.31 crore by 2026-27, offering financial stability and enhanced operational visibility for the company's biomass sector. The tariff also includes a five per cent annual escalation on the variable component, ensuring revenue growth over the next decade.