Besides reducing consumption of conventional power, it will also encourage generation of power from renewable sources such as wind, solar or biogas.
In the Electricity Act of 2003, state electricity regulatory commissions have been asked to promote use of renewable energy, while distributing power to utilities. But minimum percentage of green power is not prescribed. Maharashtra Electricity Regulatory Commission has made it mandatory for all distribution companies to supply minimum 5% of green energy.
CERC is also working on a standard tariff guideline for renewable energy which will enable states to fix a uniform tariff in favor of the renewable power generating companies without having an impact on the consumer tariff. The guidelines are likely to be finalized by July 2009.
