Sign In
Learn bits
Polity & Governance
Mahesh

30/06/23 23:10 PM IST

Time of Day Tariff

In News
  • Union government introduced an amendment to the Electricity (Rights of Consumers) Rules, 2020, recently.
Time Based Tariff
  • The time-based power tariff structures mentioned in the announcement can be categorized into two types: static and dynamic.
  • Static tariffs are predetermined tariffs based on specific time blocks, while dynamic tariffs are determined in real-time according to the actual demand conditions.
  • The focus of the proposed changes is on static tariffs, which will be decided in advance for different blocks of the day.
Discounted Tariffs
  • Under the Time-of-Day (ToD) tariff system, the power tariff during “solar hours” will be at least 20% lower than the normal tariff.
  • The duration of solar hours will be specified by the respective State Electricity Regulatory Commission (SERC).
  • This initiative aims to encourage consumers to consume electricity during daylight hours when solar power generation is at its peak.
  • By providing discounted tariffs during solar hours, consumers are incentivized to shift their energy consumption to these periods.
  • For commercial and industrial consumers, the tariff during peak hours will experience a minimum increase of 20% compared to the regular tariff.
  • This surge pricing during peak consumption aims to discourage excessive load on the grid during high-demand periods.
  • The ToD tariff system will be applicable for commercial and industrial consumers with a maximum demand of 10 KW and above from 1st April 2024.
  • For all other consumers, except agricultural consumers, it will be effective from 1st April 2025.
Significance
  • Time-based power tariff structures have been implemented in approximately 20 countries, encompassing some 17 European nations as well as the United States.
  • The objective is to balance electricity demand and supply efficiently while promoting the integration of renewable energy sources.
  • One of the major challenges in integrating renewable energy generation is the variability in generation trends.
  • Solar and wind power are dependent on weather conditions and may not align with the demand cycle.
  • To address this issue, alternative technologies such as hydrogen and hybrid generation models blended with off-stream pumped storage are being considered for energy storage.
Source- outlook

More Related Current Affairs View All

05 Mar

First-ever comprehensive survey of India’s river dolphins

'Prime Minister Narendra Modi released the results of the first-ever comprehensive population estimation of riverine dolphins – Gangetic and Indus dolphins – done in In

Read More

05 Mar

Arresting women at night

'The Madurai Bench of the Madras High Court in Deepa versus S. Vijayalakshmi and Others ruled that the legal provision in the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, which

Read More

05 Mar

Digital Personal Data Protection Act, 2023

'The Ministry of Electronics and Information Technology (MeitY) looking to wrap up public consultations on the draft Rules for the Digital Personal Data Protection Act, 2023 by Mar

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps