October 1, 2022
  • October 1, 2022

India is working on a “green tariff” policy

By on June 22, 2021 0

This was announced on Tuesday by Energy and New and Renewable Energy Minister Raj Kumar Singh, who said the government was formulating a set of rules and guidelines to enable such a mechanism.

In the case of a large company looking to source only green electricity, the option available is to outsource this electricity to a clean energy developer, as has been the case in the commercial and industrial segment. (C&I), distributed renewable energy production attracting strong investors. interest. Currently, discoms buy renewable energy under the Renewable Energy Purchase Obligations (RPO).

Once the mechanism is in place, nightclubs can buy green electricity exclusively and deliver it at the “green tariff,” which will be the weighted average green power tariff that the consumer will pay, Singh said.

This comes against the backdrop of India’s solar and wind power tariffs hitting an all-time low of ₹1.99 per unit and ₹2.43 per unit respectively. India is running the world’s largest clean energy program to reach 175 gigawatts (GW) of renewable capacity, including 100 GW of solar power by 2022.

Singh said this “green tariff” will be slightly lower than the tariff for conventional fuel sources and added that the new regulations will help ensure that if an industry only wants green power from a developer, demands for open access will need to be approved within fifteen days.

Open access allows large energy users, typically those who consume more than one megawatt of electricity, to buy it on the open market, instead of depending on a more expensive grid. However, state discoms do not allow clean energy developers to use their electricity transmission and distribution networks to deliver electricity to third party and captive consumers.

Ensuring open access will also attract large consumers of green electricity to set up their own captive green energy plants.

“The rules are coming out,” Singh said at a curtain-raising press conference on “India’s role as the global champion of the energy transition theme of the United Nations High-level Dialogue on energy 2021 “.

The Union government is also working on a range of measures, including blending ethanol with fossil fuels, green mobility, battery storage and green hydrogen, to help reduce pollution and facilitate commitments. during COP-21, the United Nations conference on climate change held in France in 2015.

According to the government, “India is the only major economy with online actions to keep global warming below 2 ° C above pre-industrial levels.”

Singh said India’s per capita emissions are well below the global average, with 67-75% of the carbon space occupied by developed countries.

However, the Green Climate Fund (GCF) set up to provide developing countries with $ 100 billion a year by 2020 to tackle climate change has seen a mixed response.

“The minister called on all other countries, especially those in a position of privilege, to work ambitiously to support a just, inclusive and equitable global energy transition,” the government said in a statement.

As part of its energy transition efforts, India is working to electrify the economy by developing action plans for greening electricity. According to the Central Electricity Authority, by 2030, the country’s electricity needs would be 817 GW, more than half of which would be clean energy.

Singh also said that the Union Energy Department will soon present a policy to promote hydraulic pump storage systems with around 96 GW identified as potential capacity for the same.

The idea is to use cheap green power during off-peak hours to raise the water to a height, then discharge it to a lower reservoir to generate electricity. Pump storage helps the national electricity grid withstand fluctuations caused by intermittent solar and wind supplies.

Moreover, in such a scenario, storage is the key to providing on-demand electricity from wind and solar projects, with India increasingly considering hydraulic pump storage systems for large scale projects. scale in order to solve its energy storage problems.

India’s green energy projects have faced a myriad of challenges. The latest example is concern over the impact of power lines being laid for green energy projects, which bypass the habitat of the endangered Indian Great Bustard. Supreme Court demanding that overhead power transmission links be buried to prevent the heavy bird, which lacks frontal vision, from colliding with cables, developers in Rajasthan and Gujarat have raised concerns as to the impact on the financial viability of their projects.

Singh said the government was considering the Supreme Court’s order, which is not a “peremptory order,” with the court saying it must be reviewed if a particular transmission line poses a danger.

Singh added that it has already been made clear that very high voltage power lines cannot be brought underground and only 33 kV and less can be brought underground.

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