The Power Ministry announced on Friday (23 June) that new electricity regulations will permit reductions in power tariffs of up to 20 per cent during the day and increases of up to 20 per cent during peak night hours.
The objective of this move is to encourage the use of renewable energy.
This system is anticipated to decrease demand on the grid during peak hours when many households increase their use of air-conditioning after work.
Commercial and industrial consumers will be subject to the new regulations from April 2024, while most other consumers, except those in the agriculture sector, will become part of this regime a year later.
Power Minister R K Singh stated, "Since solar power is cheaper, the tariff during the solar hours will be less, so the consumer benefits."
"During non-solar hours, thermal and hydropower, as well as gas-based capacity, is used — their costs are higher than that of solar power — this will be reflected in time-of-day tariff," he said.
India aims to achieve 65 per cent of its energy capacity from non-fossil fuels by 2030 and net zero emissions by 2070. This move is expected to help them work towards their target.
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