Among other things, free discoms from State control, allow them to set tariff for all consumers and permit private firms into the distribution business Faced with an acute power crisis caused amongst others by sudden spurt in power demand in this season, the Modi Government has fired all cylinders to tackle the most crucial of all bottlenecks in the way, namely coal which accounts for nearly 52 percent of total power generation capacity in the country. During April/May2022, the Union Power Ministry – using powers vested in the Government under Section 11 of the Electricity Act, 2003 – issued directions to (i) all imported coal-based plants (ICB) to operate and generate power to their full capacity and (ii) all generation...
More
Comments are closed
Category: Demand vs Supply
Power sector pushed to the brink
Faced with an acute power crisis caused amongst others by sudden spurt in power demand in this season, Modi – government has fired all cylinders to tackle the most crucial of all bottlenecks in the way, namely coal which accounts for nearly 52 percent of total power generation capacity in the country. During April/May 2022, the Union Power Ministry – using powers vested in the government under Section 11 of the Electricity Act, 2003 – issued directions to (i) all imported coal-based plants (ICB) to operate and generate power to their full capacity and (ii) all generation companies (gencos) based on domestic coal to import at least 10 percent of their fuel requirements (there is a move to further raise...
More
Comments are closed
National Electricity Policy – a bundle of pious intentions
In yet another attempt to improve the power sector, Modi – Government has come up with a new draft National Electricity Policy (NEP) its major objectives being (i) to promote clean energy such as power based on renewable and gas – without debunking coal; (ii) revitalize power distribution companies (discoms) and (iii) developing an efficient market for electricity distribution. All the three objectives are laudable. These are crucial to development of an efficient, competitive and sustainable power sector to meet the needs of the economy on a high growth trajectory while at the same time, meeting the environment goals (especially India’s commitment under the Paris Agreement on Climate Change). What is being done on ground zero to achieve these goals?...
More
Comments are closed
Power reforms – chasing a mirage
The special economic and comprehensive package ‘Atmanirbhar Bharat Abhiyan’, unveiled by the finance minister, Nirmala Sitharaman in 5 tranches during May 13 – 17, 2020, has two components that have a crucial bearing on the fledgling power distribution companies – commonly known as discoms. The discoms – mostly owned and controlled by state governments – procure power from independent power producers [IPPs] and public sector undertakings [PSUs] viz. National Thermal Power Corporation [NTPC] besides their own generating stations and sell to consumers. The first component under the first tranche provides for a special loan of Rs 90,000 crore from Rural Electrification Corporation [REC], Power Finance Corporation [PFC] to discoms to enable the latter clear their dues to IPPs and PSUs....
More
8 comments
Discoms on the ventilator, how long?
The power distribution companies [discoms] are the core of the electricity supply, transmission and distribution chain in the country. Mostly owned and controlled by state governments, the discoms source power from independent power producers [IPPs], public sector undertakings [PSUs] viz. National Thermal Power Corporation [NTPC] etc besides their own generating stations. Yet, these have been in the news for all the wrong reasons in particular, increasing losses, galloping debt and rising dues to IPPs/PSUs etc. During 2015-16, the combined loss of all discoms was about Rs 52,000 crore even as their debt had reached a colossal about Rs 400,000 crore. Under an unprecedented financial restructuring packages [FRP] orchestrated by the Centre, the state governments took over 75% of this debt...
More
Comments are closed
Powerless discoms
The house must be set in order, else this will have catastrophic consequences for power producers, banks, States and Modi’s plans to supply electricity to every household Even as there are incessant promises from the ruling establishment of electrifying all villages in the country and making power available to each and every household for maximum duration in a day, the most crucial wheel required for making this happen has got stuck. And the irony is that the political brass is only paying lip service to the urgent need for extricating it. The reference here is to the power distribution companies (discoms) — mostly owned and controlled by State Governments which procure electricity from the independent power producers (IPPs), Public Sector...
More
Comments are closed
PM’s renewable pitch ignores existing power capacity
During an interactive session at the Bloomberg Global Business Forum in September, Prime Minister Narendra Modi faced a dilemma on the issue of clean energy versus coal-based power. Even as Modi reiterated his commitment to rapidly promote the use of renewable energy solar, wind, bio-mass, small hydro (India has more than doubled its original goal of having power capacity on renewable from 175 GW by 2022 to 450 GW by 2030)— he was confronted by the Bloomberg CEO Michael Bloomberg on what plans he had with regard to use of coal which has been the biggest polluter (India has the third-largest reserves of coal in the world and currently, about 54% of generation capacity is based on its use). Fully conscious...
More
Comments are closed
Boost renewable but not at the cost of existing non-renewable assets
During an interactive session at Bloomberg Global Business Forum [GBF] on September 25, 2019 coinciding with the United Nations General Assembly [UNGA], Prime Minister, N Modi faced a dilemma on the issue of clean energy versus coal based power. Even as Modi reiterated his commitment to rapidly promote use of renewable energy viz. solar, wind, bio-mass, small hydro [India has more than doubled its original goal of having 175,000 mega watt (MW) of power capacity on renewable to 450,000 MW; it is also the founder of International Solar Alliance (ISA) jointly with France with 121 countries having already joined the ISA], he was confronted by CEO, Bloomberg on what plans he has with regard to use of coal [India has...
More
No comments
Latest solar scheme is a non-starter
The Government’s launch of the KUSUM programme to promote solar power bodes well for farmers, DISCOMs and the environment. But there are impending challenges, including a huge financial liability on farmers themselves. Moreover, will they really be willing to join the scheme? In a recent interview, Minister of State for Power and Renewable Energy RK Singh informed about a scheme viz the Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM), which the Government proposes to implement over a period of three years. Intended to promote the use of solar energy in rural areas, KUSUM allows a farmer to use his barren land — currently lying fallow — to set up a solar plant on it for 1 MW or so (in...
More
No comments
Can KUSUM salvage farmers and discoms?
In a freewheeling interview given to a leading national daily, Minister of state for power and renewable energy RK Singh, informed about a scheme for rural areas viz. Kisan Urja Suraksha evam Utthaan Mahabhiyan [KUSUM] already approved by the cabinet and will be launched within a time frame of 2-3 weeks – to be implemented over a period of three years. Intended to promote the use of solar energy in rural areas, the scheme allows a farmer to use his barren land – currently lying fallow – to set up a solar plant on it for 1 MW or so [in case, the land is cultivable then he can set it up on stilts and grow crop below]. Whereas, during...
More
No comments