Tata Power proposes switch to renewable energy at 84 paise a unit extra

While the consumers have the choice to use renewable energy, they will have to commit to purchase the electricity for a minimum of three months.

Published: 15th February 2022 06:39 AM  |   Last Updated: 15th February 2022 06:39 AM   |  A+A-

Employees of Tata Power arrived at Parbati Das's  shop to disconnect her power supply.

Image used for representational purpose only.

Express News Service

BHUBANESWAR: The Tata Power managed distribution companies (discoms) have proposed to supply green energy to consumers keen to switch to renewable energy with an additional cost of 84 paise per unit. Submitting the proposal to the Odisha Electricity Regulatory Commission (OERC) in its tariff application for 2022-23, the Tata Power Central Odisha Distribution Limited (TPCODL) said that for the initial period of one year, green tariff may be applicable to those consumers who will choose to purchase renewable energy to the extent of 100 per cent of their requirement.

While the consumers have the choice to use renewable energy, they will have to commit to purchase the electricity for a minimum of three months. This will help in better power purchase planning by Gridco in the short term market if required, the distribution utility said.

“Consumers opting for renewable energy will receive a green power certificate on a monthly basis indicating green power tariff on it,” sources in the company said and added that extra charges for procurement of renewable energy being charged from the specific consumers would not increase the power cost of other consumers.

The proposed move will enable the captive power plants in the State generating power through fossil fuel to meet their renewable (power) purchase obligation (RPO) by purchasing green energy.While proposing an additional tariff of Rs 0.84 per KW/H as green tariff for all category consumers, the licensee has requested the commission to issue green certificates to consumers who opt to purchase renewable energy. TPCODL said it has not taken the hydro power cost into consideration as the same is not contributing towards the carbon emission. At the same time, hydro power in the power purchase of Gridco is from large hydro power stations which does not qualify as renewable power.

In case a domestic consumer opts for purchase of renewable energy from the discom, the tariff applicable would be Rs 3.84 for the first 50 units, Rs 5.64 for next 150 units and Rs 6.64 for next 200 units as against the existing tariff of Rs 3, Rs 4.80 and Rs 5.80 per unit respectively. The extra charges for procurement of renewable power being charged from the specific consumers would not increase the cost to be borne by other consumers.

Two states - Karnataka and Maharashtra - are already supplying renewable energy. The regulatory commission of Karnataka and Maharashtra have determined the green tariff at 50 paise per unit and 66 paise per unit in their tariff orders passed on June 9, 2021 and March 22, 2021 respectively. 



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