UPERC Mulls Introduction Of Green Tariff In Uttar Pradesh

Land availability in Uttar Pradesh for solar projects

The Uttar Pradesh Electricity Regulatory Commission (UPERC) informed the State Advisory Committee (SAC) members during a meeting that a green tariff may soon be implemented for the industrial and the commercial users to receive up to 100% of their electricity from renewable sources despite higher price. In a news item published on June 29, the commission chairman RP Singh has been quoted as having thoroughly reviewed the green electricity price with the top officials and representatives from the industries.

Responding to several requests from the users for implementation of a green energy tariff, the UP Power Corporation Ltd (UPPCL) proposed the establishment of a green energy prices similar, if not same, to the model followed by Maharashtra after making the suitable changes appropriate to Uttar Pradesh. The news mentioned that the UPPCL had pointed out the existing rate differential between renewable and non-renewable energy as Rs. 1.77/kwh. “As a result, consumers electing to satisfy their 100% electricity consumption from renewable sources, will bear 50% of the fee, which is 0.89/kwh as green power pricing,” the plan stated.

The only issue now is when the rules will be implemented. According to those familiar with the matter, the commission may not keep it on hold till next year and could implement the green power pricing as early as this year, but only for industrial and commercial users, for whom the option would be open to choose any one from either of the tariffs – green tariff and normal .

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“Many enterprises and commercial facilities may want to go for the green tariff, even if it is slightly costlier, because it would help do stamping on their products, flaunting that they exclusively use sustainable energy” For firms exporting to European markets in particular, green power might become an asset to flaunt sooner than later, as Europe arrives at regimes like the CBAM, (Carbon Border Adjustment Mechanism), that could effectively become a non-tariff barrier for firms in other countries that are powered by say, fossil fired energy.