Accelerating Use of Renewable Energy by Green Time of Day Tariff

under the Scaling Up Renewable Energy (SURE) project. The project aims to accelerate the use of renewable energy in India by implementing a green time of day tariff. The green time of day tariff is a pricing mechanism that incentivizes consumers to shift their electricity usage to off-peak hours when renewable energy sources are available. This approach is based on international experience, where countries such as Germany and Denmark have successfully implemented time-of-use tariffs to promote renewable energy adoption. In India, the green time of day tariff has been applied in several states, including Andhra Pradesh, Karnataka, Madhya Pradesh, and Maharashtra. The tariff structure varies across states, with some offering a fixed discount on electricity bills during off-peak hours, while others provide a dynamic pricing mechanism that adjusts the tariff in real-time based on the availability of renewable energy. Estimating the shift in demand due to the green time of day tariff is crucial to understanding its impact on the power scenario. Studies have shown that a significant portion of electricity demand can be shifted to off-peak hours, particularly for agricultural loads, industrial loads, and residential loads. The demand shift is estimated to be around 10-20% of the total demand, with the majority of the shift occurring during peak hours. The green time of day tariff also generates additional demand for renewable energy. A reduction in electricity tariffs during off-peak hours encourages consumers to use more electricity, leading to an increase in demand. This additional demand is estimated to be around 5-10% of the total demand, with the majority of the increase occurring during off-peak hours. Case studies of states such as Assam, Jharkhand, and Maharashtra have shown that the green time of day tariff can lead to significant gains in terms of revenue and net gains for distribution companies. The tariff incentive scheme has been found to be effective in promoting renewable energy adoption, particularly for agricultural loads and industrial loads. The design and implementation of the green time of day tariff require careful consideration of several factors, including the pricing mechanism, the duration of the tariff, and the communication strategy. A well-designed tariff structure can incentivize consumers to shift their electricity usage to off-peak hours, leading to a significant increase in renewable energy adoption and a reduction in greenhouse gas emissions.