MERC Allows Consumers To Source Electricity Through 100% RE Power

MERC has now allowed its consumers to source their electricity requirement through 100% RE Power. The discoms can charge a premium of 0.66 Rs/kWh in order to enable this transition.

Tata Power Company Limited (Distribution) (TPC-D) had filed the case seeking approval for levying “Green Power Tariff” to supply Renewable Energy to consumers opting for 100% green energy for meeting their entire demand.

Tata Power’s main prayers were:

a) Approve the procurement of additional Renewable Energy to meet the 100% Green Energy requirement of consumers,
b) To approve issuance of a monthly certificate to the consumers certifying 100% green energy sale
c) Approve the “Green Energy Tariff” as proposed above or as deem fit by the Hon’ble Commission towards processing the 100% Green Energy Requirement
d) Allow treatment of this RE power under RPO of Tata Power-D in case the consumers do not wish to use the green attributes for meeting its RPO obligations.

MERC in it order allowed option of procuring 100% of power requirement through RE sources would be available to all consumers (EHT, HT and LT) on payment of Green Power tariff approved above. Commission may take review the same at the time of Mid Term Review (MTR) Petition.

MERC Order Says:

• Green Power Tariff of Rs 0.66/ kWh, which is over and above the normal tariff of the respective category as per Tariff Orders, be levied to the consumers opting for meeting their demand by 100% green energy.
• Revenue earned through Green Power Tariff shall be treated as non-tariff income of Supply Business and thereby be fully accounted for reduction in ARR of supply business.
• All consumers (Extra High Voltage, High Voltage and Low Voltage) shall be eligible for opting 100% RE power on payment of Green Power Tariff.
• The Commission may take overview of the scheme at the time of MTR Proceedings

This is the much welcome step as it will enable consumers to easily source RE power and provide additional revenue source to discoms and reduction in their ARR’s.
ESG is now an inevitable theme and the corporate are being driven by the desire to have net zero carbon emissions for their energy requirements. However there are certain regulatory challenges such as availing open access and commitment to upfront capex commitments, said the industry expert.