‘Greening the time’ can help India achieve its climate goals

livemint.com:

₹2.75 per kWh higher than the daytime price – a difference of over 62%. Therefore, tariffs need to reflect the cost of generating and transmitting electricity at different times. Some states have introduced green tariffs as voluntary offerings and limited time-of-day tariffs for a few customer categories.

While we applaud the effort, systematic introduction of time-of-day tariff for all categories, based on cost differential, is relevant and required from a climate and economic standpoint. At the macroeconomic level, the role of interest rates as a tool to optimise consumption across time periods cannot be overemphasized. While India needs to grow rapidly to generate new livelihoods and enhance income, we need to grow sustainably to ensure that natural resources are used optimally.

In this context, it is critical that consumption across the medium to long term is optimised through monetary and fiscal policy. India’s energy transition has positioned solar as the top priority. While this makes economic sense, given that India has abundant sunshine for 300 days a year, its disadvantage is that it is available only during the daytime.

Differential time zones will enable us to plan work activities when energy is abundant and cheap. Such an approach will truly complement the goal of PM’s Mission LiFE: energy efficiency from all angles. Dr.