Green Tariff Policy Of India
Source : Live Mint
GS III : Infrastructure
Content for Green Tariff Policy Of India Article
- Green Tariff Policy importance
- What is the aim ?
- Indian Ambition for Clean Energy
Why in News ?
Union government is working on a green tariff policy that will help electricity distribution companies (discoms) supply electricity generated from clean energy projects at a cheaper rate as compared to power from conventional fuel sources such as coal.
Key Facts
- It was announced by power and new and renewable energy minister.
- The government was in the process of formulating a set of rules and guidelines to enable such a mechanism.
- Presently, discoms purchase renewable energy as part the renewable purchase obligations (RPO).
- Once the mechanism is in place, discoms can exclusively buy green electricity and supply it at ‘green tariff’, which will be the weighted average tariff of green energy that the consumer will pay.
Green Tariff Policy importance
- Green tariff’ will be slightly lower than the tariff from conventional fuel sources.
- The new regulations will help ensure that if an industry wants only green power from a developer the open access applications will have to be approved within a fortnight.
- Open access allows large users of energy, typically those who consume over 1 megawatt of power, to buy it from the open market, instead of depending on a more expensive grid.
- Open access will also attract large green electricity consumers setting up their own captive green energy plants.
What is the aim ?
India’s solar and wind power tariffs hitting an all-time low. India is running the world’s largest clean energy programme to achieve 175 gigawatt (GW) of renewable capacity, including 100GW of solar power by 2022.
- This helps India’s role as global champion for the Energy Transition theme of the UN High Level Dialogue on Energy 2021.
- As part of its energy transition efforts, India is working towards electrification of economy by developing action plans for greening of electricity.
Indian Ambition for Clean Energy
- India working on various measures including ethanol blending with fossil fuels, green mobility, battery storage and green hydrogen to full fill commitments made at COP-21.
Photo by Andreas Gücklhorn on Unsplash - India is the only major economy with actions in line to keep global warming below 2°C of pre-industrial levels.
- Carbon space for India only have merely 67-75% by developing country.
- Also India aims to depend on half of the countries power requirement on green electricity by 2030.
- Hydro Power Storage Scheme is also under consideration of India.
- Challenges for Green Electricity
- SC mandate overhead that overhead lines to b brought underground to protect heavy birds which not financially viable.
- Also fund for implementing green energy.
- Infrastructure challenges with environmental concerns the one like to bypass the habitat of the endangered Great Indian Bustard.
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