Question: Consider the following statements;
I) India is planning a new green tariff policy for electricity discoms.
ii) It 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.
Which of the above statements are correct?
a) only i
b) only ii
c) both i and ii
d) none of the above
Ans: c
Context
- Union Government is planning to introduce new green tariff policy for greener power sector.
- It will improve India’s green credential at global stage.
Facts
- This future new policy 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.
- Large corporate who are looking to procure only green power, they can contract such power from a clean energy developer as it is done in commercial and industrial (C&I) segment.
- 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’.
- Green Tariff will be the weighted average tariff of green energy that consumer will have to pay and this tariff will be slightly lower than tariff from conventional fuel sources.
- If an industry wants only green power from a developer, the open access applications will have to be approved within a fortnight.
Open Access Application
- Open access allows large users of energy, consuming over 1 megawatt of power, to buy energy from open market, instead of depending on expensive grid.
By kameshwar shukla
Reference: https://www.livemint.com/industry/energy/india-working-on-a-green-tariff-policy-11624353691425.html