What are Green Power Tariffs?
What are Green Tariffs?
- Programs in regulated electricity markets offered by utilities allow large commercial & industrial customers to buy bundled renewable electricity from a specific project through a special utility tariff rate.
- It provides these larger energy customers an option to meet their varying sustainability & renewable energy goals, reduce long-term energy risks.
How Green Tariff works?
- Some programs allow you to choose a "market-based rate"- i.e., the wholesale electricity market price.
- With other programs, your company engages directly with the renewable generation project.
- The utility facilitates your green power purchase through a power purchase agreement.
Price for Green Tariffs?
The price difference between green & non-green tariffs is quite small. Investment in infrastructure along with rising demand has helped lower the cost of green tariffs.
As per the Maharashtra State Electricity Authority (MERC) for the distribution licensee in Maharashtra, the rate for green tariffs is for the consumers who opt for 100% renewable energy is Rs. 0.66/kWh.
Benefits of Green Tariffs
- A new way for large Electricity customers in regulated markets to meet their sustainability & renewable energy goals.
- Price predictability & Potential cost savings on Electricity.
- Organizations with the ability to point to specific, often local, renewable energy projects as the source of their electricity.
Distribution companies that allow the consumer of Maharashtra for Green Tariffs :
1. Adani Electricity Mumbai Limited.
2. Tata Power Renewable Energy Limited.