In an effort to encourage renewable energy producers, the Centre is contemplating introduction of preferential tariff for green power.
The ministry of new and renewable energy is currently holding consultations with various state governments, with a view to  arrive at a decision on a preferential tariff structure in favour of renewable energy producers. Advisor to Ministry of New and Renewable Energy N P Singh disclosed this to newsmen here.
Mr Singh told Deccan Herald that the ministry had circulated a set of draft guidelines to various states, seeking their views. Besides, the ministry is also engaged in talks with various power distribution companies to elicit their views on a proposal for purchasing green energy at a higher price.
The ministry has taken up the issue with the Central Electricity Regulatory Commission and has asked states to approach respective state electricity regulatory bodies in this regard. “So far, 12 state electricity regulatory commissions have expressed their willingness for preferential tariff,” he said.
Already, eight state electricity regulatory commissions - Andhra Pradesh, Madhya Pradesh, Karnataka, Gujarat, Rajasthan, Orissa, Maharashtra and Tamil Nadu - have made it mandatory for power distribution companies to purchase a certain percentage of power generated by renewable energy sources.
With the renewable energy production picking up gradually with stepped up investment from private sector, there is a demand from the industry for preferential tariff owing to high cost of production.  Currently, a total of 10255.79 MW green energy is being produced in the country. Of this, 1975.60 MW comes is derived from small hydro sources, 7093.99 MW from wind power and 1140.63 from bio mass sources.