It is indeed common sense that the demand for electricity is increasing and is not possible to reduce consumption. This however cannot continue as there have been serious warnings not only from ‘Nature’ but even to switch to sensible options – called Green Energy. It is presumed that sources like, sun, wind and water never exhaust.
If one opts for Green Energy, understandably it would not only change the supply pattern but even tariff as well. Could this happen the way power generators wish or is it a complicated exercise is what needs to be addressed. What are green tariffs that industries and other sectors use and how affordable are they? They are provided by Pollution Under Control (PUC) authorities which indirectly would allow your participation in arresting environmental pollution not only at the local but even at the national and global levels.
Utilities who, provide green energy need to check whether they are eligible in the first place. If so, the next important issue is the suitable option – wholesale rate, connection to programs directly connected to process of generation or power purchase agreement for a fixed period. This means either you get power directly or buy and then receive. The second type of suppliers buy Renewable Energy Guarantee of Origin (REGO) certification from the market which, is issued based on MW produced per hour. They work together with other companies helping in the process of renewable energy generation.
Understandably no supplier produces 100% renewable as yet and they provide details based on the percentage of renewable energy that they produce. Depending upon this we find three types of tariffs – Greenest Tariff, Moderately Green Tariff and Greenwash. The first one holds 100% renewable and possesses REGO certification – they are bound to supply same amount of renewable as they were getting earlier. The second one banks on collaboration with other suppliers and do not promise 100%. The last category belongs to some companies or suppliers who buy these certification and provide renewable energy to customers.
As can be seen from above, it is not a simple and straight forward calculation for the customers / industries to pay for green energy. This depends not only on the type of suppliers but also the quantity supplied by them. Again, this varies from sector to sector in the sense, domestic or industrial which again has to be different.
Most importantly it is after all, the amount of GHG reduction through such practice which is different for different countries depending upon a. their commitment b. mix of renewable and the sector (domestic/Industrial) they supply energy. It has been stated that the solar and wind tariffs hit all-time low of Rs. 1.99 and Rs. 2.43 per unit in India respectively. India is also slated to achieve 175 GW of renewable capacity including 100 GW of solar under the clean energy program by 2022. India has committed to net zero carbon emission by 2070.
It would therefore be different slabs for different sector – even domestic – could be small or big establishment (consumption depends on that); Industrial – small or big. Ultimately, it is the supplier who works out these parameters to determine the extra amount that one has to pay by virtue of Green Power Generation as it is not only the responsibility of suppliers but all the players involved in the game of power (electricity) utilizers.
In my opinion, I am sure that no one would hesitate paying a little more than the current tariff when it serves the global cause of reducing GHG emissions.
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