Government planning major reforms for the Indian Power Sector
The Government is lining up major reforms that include changes to the operation of the domestic electricity market. The Special Secretary has been tasked with charting a course for “deepening of power markets in India”. EY (Ernst & Young) have also been appointed to explore the deficiencies in the current system and suggest measures to remedy them.
Broadly, the changes are intended to encourage DISCOMs to buy most of their power through trading platforms and optimise their capacity and source to compete and offer lower tariffs.
Government expected to introduce new tariff policy, UDAY 2.0 for resolving DISCOM losses
According to Power Minister R K Singh, DISCOM losses are the “only difficulty” in ensuring round the clock supply of electricity throughout India.
DISCOMs would have to pay a surcharge for delayed payment, which would be equal to the commercial rate of interest, under the new tariff policy.
Standards of service will also be enforced to ensure timely maintenance and smooth operating of the distribution grid.
Energy projects worth Rs. 13,161 crore being implemented under smart cities mission
Energy projects worth Rs. 13,161 crore have been earmarked by the government under Smart Cities Mission (SCM) with a majority of the funds dedicated to developing basic grid and supply infrastructure. Solar Rooftop projects will account for half of this expenditure according to a report by the Centre for Policy Research (CPR).
The remaining investments were dedicated to end users, such as lighting, mobility and green buildings.
The report called for clear and comprehensive institutional systems for cities to help move towards the path of low-carbon energy.