How Electricity Distribution Companies In India Can Work With Commercial And Industrial Consumers For Renewable Energy Procurement

The document examines the potential for Indian electricity distribution companies (discoms) to implement green tariffs to attract and retain commercial and industrial (C&I) consumers. It notes that current attempts in Andhra Pradesh and Karnataka have been ad hoc and unsuccessful, contrasting this with the success of tailor-made, consultative green tariff models in the United States. The author argues that for green tariffs to succeed in India, they must involve long-term contracts, regulatory certainty, and a design that accounts for the Indian context of cross-subsidization of residential and agricultural consumers.

• Current green tariff experiments in Andhra Pradesh and Karnataka have been largely unsuccessful and ad hoc, with only one subscribed consumer in each state. These models rely on simple premium pricing based on surplus renewable energy available after meeting Renewable Purchase Obligations (RPOs), lacking the long-term contracting structures seen in the United States.
• Indian discoms are losing electricity sales to C&I consumers who are opting for on-site solutions like rooftop solar or open access (OA) contracts with generators. Customized green tariffs are proposed as a mechanism for discoms to retain these consumers.
• Successful green tariff models, particularly in the United States, are characterized by a consultative approach and tailor-made options within the market ecosystem.
• The successful formulation of green tariffs in India requires following specific best practices: consultative deliberations to protect other consumer groups, regulations that provide predictability for long-term contracts, coordination between discoms and regulators, and the creation of products for different C&I subcategories.

APA

World Resources Institute (n.d.). How Electricity Distribution Companies In India Can Work With Commercial And Industrial Consumers For Renewable Energy Procurement. https://www.wri.org/research/how-electricity-distribution-companies-india-can-work-commercial-and-industrial-consumers

Chicago

World Resources Institute. How Electricity Distribution Companies In India Can Work With Commercial And Industrial Consumers For Renewable Energy Procurement. n.d. https://www.wri.org/research/how-electricity-distribution-companies-india-can-work-commercial-and-industrial-consumers.

Wikipedia

{{cite report |author=World Resources Institute |title=How Electricity Distribution Companies In India Can Work With Commercial And Industrial Consumers For Renewable Energy Procurement |url=https://www.wri.org/research/how-electricity-distribution-companies-india-can-work-commercial-and-industrial-consumers |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendhow, author = {{World Resources Institute}}, title = {{How Electricity Distribution Companies In India Can Work With Commercial And Industrial Consumers For Renewable Energy Procurement}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/how-electricity-distribution-companies-india-can-work-commercial-and-industrial-consumers}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }