Weekly Power Sector Round up: 20th February 2021

States to be consulted on proposed amendments to power bill

The Union Ministry of Power is to hold consultations with its state counterparts on the proposed Electricity (Amendment) Bill, 2020. This is a 2020 proposal to amend the Electricity Act, 2003.

The Centre has proposed privatisation of power distribution and removal of subsidies along with the removal of the distribution license, which would allow DISCOMs to lease out their distribution networks to private players.

The removal of subsidies has been proposed, subsidies are to be replaced by direct cash transfers to the customer if the Govt wishes to subsidise power.

$500 billion investment needed to reach 450 GW RE target by 2030: IEEDA

India will need an investment of $500 billion to reach its 450 GW capacity target by 2030, according to a report by the Institute for Energy Economics and Financial Analysis (IEEFA).

$300 billion would be for wind and solar infrastructure, $50 billion for grid firming investments and $150 billion on expanding and modernising transmission.

India represents a lucrative market for renewable energy investments with plunging solar module costs, record low interest rates and the security of Government backed 25 year power purchase agreements.