The Uttar Pradesh Electricity Regulatory Commission (UPERC) may implement a green power tariff this year, first for industrial and commercial users, allowing them to receive up to 100 per cent of their electricity from renewable sources.

The green power, however, is likely to cost more.

The UPERC disclosed about the move in the state advisory committee (SAC) meeting. The idea to implement a green electricity pricing was thoroughly reviewed in a meeting presided over by UPERC Chairman RP Singh and attended by top officials and representatives from various industries.

The UP Power Corporation Limited (UPPCL) has received requests from numerous users for the implementation of a green energy tariff to satisfy their whole or partial energy demand. The UPPCL proposed the establishment of a green energy pricing system by analysing the technique used by Maharashtra and calculating the green tariff applicability in Uttar Pradesh.

In its suggestion, the UPPCL stated that the existing rate differential between renewable and non-renewable energy was Rs 1.77/kWh.

“As a result, consumers electing to satisfy their 100 per cent electricity consumption from renewable sources, will bear 50 per cent of the fee, which is 0.89/kWh as green power pricing,” the plan stated.

Green electricity tariffs will be added to the regular tariffs after UPERC’s approval. Renewable energy includes all electricity generated from hydro, solar, non-solar, and cogeneration sources.

The SAC members agreed that implementing a green power tariff was a smart way to promote renewable energy and raise public awareness in the state. However, opinions varied on whether the green electricity pricing should be implemented this year or next.

According to those familiar with the matter, the UPERC may implement the green power pricing as early as this year, but only for industrial and commercial users, who would be able to pick between the two tariffs – green tariff and normal tax.

“Many enterprises and commercial facilities may want to go for the green tariff, even if it is slightly costlier, because it would help them do stamping on their products, flaunting that they exclusively use sustainable energy,” they stated.

“However, because both flow in the same system, green and non-green power cannot be separated,” they noted.