Energy Recap: LPG price rises | Green Tariff Policy | Tata Power to go carbon neutral by 2050…and more

By Team Analysis

We bring to you the fifth edition of Energy Recap, an editorial newsletter by TA to track and report on major policy developments in India’s energy sector. Here are some of the key energy highlights from the week (28 June to 4 July).

Fifth hike in the prices of LPG cylinder, to cost Rs. 25 more

The prices of LPG for household users and commercial users have been increased by Rs. 25 and Rs. 76 respectively. Except for a tiny cut of Rs. 10 in March, prices for LPG have continuously risen since December 2020. Currently, with no subsidy being provided, the high court of LPG along with high petrol and diesel prices, the common man’s misery continues to grow. 

With the recent increase, the cylinder will now cost Rs. 834.50 for household users in Delhi and Mumbai. It will cost Rs. 850 in Chennai and Rs. 835.50 in Kolkata. 

Source: The Times of India 

Union Government: Green Tariff Policy to be ready soon

Central government has started working on the Green Tariff Policy. The objective of the policy is to help electricity distribution companies (discoms) supply electricity generated from clean energy projects at a cheaper rate as compared to power from conventional fuel sources such as coal. The Renewable Energy Minister has informed that the Renewable Energy Ministry is already engaged in preparing the rules and guidelines for implementing the green tariff policy. The Minister further said that once the mechanism is in place, discoms can exclusively buy green electricity and supply it at ‘green tariff’. The green tariff will be the weighted average tariff of green energy that the consumer will pay. 

India has decided to be a global leader in the clean energy programme by pledging to achieve 175 GW of renewable capacity, including 100 GW of solar power by 2022.

Source: Livemint 

Tata Power eyes to exit coal by 2050

Tata Power has announced its ambitious plan to achieve carbon neutral status by 2050. The company’s top leadership has decided to transform its power generation portfolio towards more green and clean energy sources. At present, almost 69% of power generation (8859 MW) comes from thermal, whereas  1,762 MW is solar generated,  932 MW is wind, 880 MW is hydro and 375 MW is from waste to energy.

The company has also planned to not to develop any new coal based capacity or acquire any coal based stressed asset. Also, the existing thermal plants will be retiring upon the end of life or the expiry of power purchase agreements (PPAs). The company has targeted to have 80% of generation assets into the green and clean category by this decade, up from 30% at the end of March 2021.

Source: PV Magazine 

At present, almost 69% of power generation (8859 MW) comes from thermal for Tata Power. Pic: PTI

GAIL to make Rs. 5000 cr worth of investment in clean energy solutions

State run GAIL is ready to invest Rs. 5000 cr in clean energy solutions, apart from its existing business portfolio in natural gas. Out of this Rs. 5000 cr., company plans to invest Rs. 1000 cr. on setting up two plants each for generating ethanol and compressed biogas (CBG) from municipal waste. The first CBG plant will be built in Ranchi at a cost of Rs. 200 to Rs. 300 crore. The plant aims to generate five tonne of gas per day and 25 tonne manure from the municipal waste. 

While the remaining Rs. 4000 cr. will be used for bolstering the renewable generation capacity of the company from 120 MW to 1 GW in the next three to four years. The company is also getting ready to bid for a 400 MW solar power plant in Rewa, Madhya Pradesh. 

The company’s clean energy plan has been prepared under the leadership of Manoj Jha, Chairman. 

Source: The Times of India 

New power demand for India at 191 GW

As heat intensified across the country,  a new peak of 191 GW was recorded for the daily power demand, leaving the previous record of 189.6 GW in January 2021 behind.  “ A fresh record has been created in power demand”, tweeted the Power Minister. Record was also created in terms of energy supplied as the country’s power system registered 4,303 million units (MU) of supply as compared to the previous high of 4161 MU on 8th April 2021.

Earlier, due to lockdown and closure of commercial/industrial units, demand for power slipped down. The figures plummeted into negative figures during the lockdown period in 2020. However, the trends suggest that power demand has been improving since September last year. Unlock has played a key role in restoring the power demand levels to pre covid era. 

Source: The Times of India 

The Analysis (TA) is a research and communication group | Analyzing India’s legal, policy and political affairs. Write to us at

To join our WhatsApp group for regular updates click here.

Leave a Reply