The Government of India is working on developing a mechanism of Green Tariff policy. With this policy, the discoms will be able to sell the power generated from the clean energy to the consumers at cheaper rates.
The Power Minister of India Mr. R K Singh announced this news by saying that India is working on developing the rules and guidelines for the green tariff.

Large corporates have realized that very soon the cost of the service or the product will also depend on the energy consumption and carbon emission. Furthermore, carbon taxes are also there to influence the entire business operation. In such a scenario, the corporates are looking to procure only and only green energy.

There are 2 ways the corporates can get green energy.

• Direct Contact with the solar power developers
• Buying the power from DISCOMs

As of now, the Discom purchase green energy from the renewable power developers as renewable purchase obligations (RPO). But once the mechanism is completed, the distribution companies (Discom) can purchase green energy from all renewable power developers at “green-tariff” & supply it to the consumer at a cheaper rate. The rate of green energy will be centralized for the DISCOM.

This mechanism is being developed at a time when Indian solar & wind power at their lowest tariff rate, ₹1.99 per unit and ₹2.43 per unit respectively. At the same time, India is running the world’s largest clean energy program to achieve 175 GW of renewable energy by 2022, in which 100 GW will be from solar power.

Continuing the conversation, Mr. Singh said that the green tariff will slightly more economical in comparison to the conventional fuel sources. These new regulations also ensure that, if any industry wants only green energy from the power developer instead of DISCOM, the open-access applications will have to be approved within fourteen days.

The open-access allows the consumers with more than 1 MW of power consumption to buy power directly from the power developers.
But local DISCOMs do not allow the power developers to use their power transmission and distribution network. Open access will also encourage the large green electricity consumer to set up their own captive green energy plants.

During a press conference, Mr. RK Singh said that the rules of the green tariff are coming out soon.

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

“India’s per capita emission is well below the world average, with 67-75% of carbon space occupied by developed nations,” said Mr. Singh.

To counter climate change, every developing nation needs $100 billion annually by 2020, but the response of the Green Climate Fund (GCF) has seen lukewarm towards this.

The Government of India gave the statement, “The Minister called on all other countries, especially those in positions of privilege to work ambitiously to support a global energy transition that is just, inclusive, and equitable.”

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

Mr. Singh also stated that the Ministry Of Power will develop the policy to promote hydro pump storage schemes with around 96 GW potential capacity soon.

According to the plan, during off-peak hours, water will be raised to a height using cheap green electricity and then it will be released into reservoirs built below, which will generate the electricity. The pump storage will help the national power grid withstand fluctuations caused by intermittent supplies from solar and wind.

Also, in such a scenario, storage holds the key to providing on-demand electricity from wind and solar projects, with India increasingly looking at hydro pump storage schemes for utility-scale projects to solve its energy storage problems.

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