Tariff reforms must to boost consumption of renewables

New Delhi: India needs to reform its tariff regime to reduce dependence on discoms and bring new electricity procurement models to boost consumption of renewables by commercial and industrial (C&I) consumers, according to an industry expert.

As per a report by WWF-India, C&I consumers account for 51 per cent of the total electricity consumption in India, which is equivalent to 1,130 TWh per annum. "Concerted government action is required to grow penetration of renewable power for these consumers.

There are two broad areas of action required. First, we need tariff reform to reduce financial dependence of discoms on C&I consumers. Second, new procurement models need to be enabled," said Bridge to India MD Vinay Rustagi at a CII event here. WWF-India report 'Global Corporate Renewable Power Procurement Models: Lessons for India' was also released at the event.

According to the report, C&I consumers' power demand is met principally by grid power (63 per cent) and onsite captive generation (27 per cent, mostly coal fired).