New Delhi: According to news agency Reuters, the government recently unveiled new electricity regulations that will permit increases in peak nighttime demand and decreases in power rates of up to 20% during the day. The technology is anticipated to lessen grid demand during peak hours and assist India in meeting its goal of obtaining 65% of its energy capacity from non-fossil sources by 2030. For commercial and industrial users, the new tariffs will take effect in April 2024. For the majority of other consumers, with the exception of those in the agricultural sector, it will take effect a year later.
Daytime Benefits and Nighttime Considerations
According to a statement from Power Minister R. K. Singh, “Solar power is more affordable, so 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.” Consumers who can shift their energy usage to the daytime should benefit from the change. For instance, homeowners that can run their dishwashers and washing machines during the day may be able to reduce their electricity costs. However, consumers may experience higher energy costs if they use more energy at night, for example, by running air conditioners.
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A Step Towards Grid Sustainability and Efficiency
Overall, the new rates represent a step towards improving the sustainability and efficiency of India’s energy grid. Additionally, they are a technique to persuade customers to use less energy during peak hours, which will assist in lowering grid demand. Due to rising temperatures and an increase in economic activity, power demand increased at its quickest rate in 33 years at the time when the new electricity tariff rules went into effect. India experienced its worst electrical shortfall in FY23 as a result. According to a proposed government plan from 2022, increasing power consumption during the summer and more industrial activity would cause India’s power demand to soar by twice as much through March 2027. It was noted that the average annual growth rate of power consumption may be 7.2% for the five years ending in March 2027, roughly double the growth rate of over 4% observed over the five years prior to March 2022.
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