By Business India Editorial

The Kerala State Electricity Board (KSEB) has proposed Rs2.54 a unit as green power tariff for consumers in the current financial year.

As per a proposal before the Kerala State Electricity Regulatory Commission, this premium charge will be ‘‘over and above” the retail supply tariffs applicable to the respective consumer categories.

A green power tariff for supply of power from renewable energy sources is a first for the KSEB. It has requested the commission to consider the proposal alongside the petitions on general tariff revisions for the 2023-24 to 2026-27 period which will be up for public hearings this month.

Growing consumer demand in Kerala has prompted it to place the proposals before the commission, the KSEB said. It would enable interested consumers to fulfil their green energy/zero carbon emission commitments, according to the power utility.

“A lot of consumers, especially in the commercial and industrial segments, are eager to switch over to renewable energy for a rapid transition to a zero-carbon economy. In Kerala also, consumers are expressing their interest to switch over to renewable energy and one among them is Tata Consultancy Services (TCS),” the KSEB said in its petition.

By definition, the proposed green tariff is a premium charge over the existing retail tariff. This charge reflects the extra expenditure incurred by the KSEB for procurement, banking/storage, and round-the-clock supply of green energy.

The Central government had notified the Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules in 2022 and an amendment in 2023. These rules were meant to promote the generation, purchase and consumption of green energy, including energy generated at waste-to-energy plants. They entitle consumers to demand the supply of green power from distribution companies.

The KSEB has also proposed a condition that the consumers should apply one year in advance for the green tariff. Further, the consumers opting for it should avail it for a minimum of one year.