Pricing is a significant variable in success of renewable energy promotion. The pricing models for renewable energy are based on the same fundamental as the fossil fuels, but incorporating the unique characteristic of the renewable source.
The application of smart grid technology promises to provide benefit to electricity consumers
by better utilizing electric system assets to securely satisfy consumer energy demands at a lower monetary and environmental cost.
In determining the electricity tariff structure, the criteria have been taken into consideration are marginal cost, load pattern, social criteria as well as the revenue requirement of the power utilities.