POWER SECTOR REFORMS
Hot Press
☀ Target for 24x7 will be Mar 2019
☀ AT&C losses must go below 15% before 24x7 is started
☀ Losses will not be passed through
☀ Cross-subsidies will be phased out. Start with max of 20%
☀ Subsidy will be paid by DBT
☀ Most meters will be pre-paid meters, with no human involvement
☀ Customers will be allowed to change suppliers
☀ Discoms will be penalised for blackouts
RK Singh, power minister
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❡ Free electricity? You want electricity, you have to pay for it. You want to subsidise the farmer? Fine subsidise the farmer, but instead of farmer, you have to pay. That is what I will be pressing for ❡ —
He is very right but will States agree? He wants metered connections, States to pay for subsidy on electricity bills, market competition in distribution and degree of uniformity in tariffs across India. This spares discoms and other users from profligacy of States and gives industry reasonably low and stable tariffs.
State power ministers meeting on 10th-11th Nov (cancelled)
☀ Subsidy by DBT rather than low tariffs
☀ Fair policy in dealings with power suppliers
☀ Reduce industrial tariffs, simplify tariff structure and promote power consumption
☀ Promote metering and efficiency through private participation in discoms
Cabinet
⚙— Amend Electricity Act to separate distribution into infra handling and retail operations.
⚙— Hydropower policy to solve problems incl dealing with NGO menace.
Domestic solar manufacturing -- keys to success
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Solar manufacturing policy would be successful if it delivers competitive prices matching recent low tariffs from Rajasthan, large scale & highly cost-effective production, predominantly domestic design & build incl components, continuous upgrades with latest technology and ability to compete in export markets without subsidies. Many states have attractive packages for solar manufacturing.
Govt will bring 20GW MII tenders for solar equipment. If domestic manufacturers make it worthwhile, govt can hike import tariffs, bring forth anti-dumping provisions or make future tenders on MII basis.
Domestic firm Patanjali will use its solid reputation, famed indigenous bent, govt subsidy, roof-to-rent model to make it a successful player in solar manufacturing. It has acquired a solar firm and opening a Noida factory. "We will manufacture solar panels in India without compromising the quality."
Govt is clear that subsidy will not go for substandard panels. Each panel must now show Radio frequency ID tag and all developers must share ID of rejected panels. Central database will spot duplication of claims. Quality standards will deter cheap Chinese brands and help Indian firms compete on quality. It will root out corrupt practices like installing rejected panels, using foreign panels in MII projects or making fake claims.
Hot Press
☀ Target for 24x7 will be Mar 2019
☀ AT&C losses must go below 15% before 24x7 is started
☀ Losses will not be passed through
☀ Cross-subsidies will be phased out. Start with max of 20%
☀ Subsidy will be paid by DBT
☀ Most meters will be pre-paid meters, with no human involvement
☀ Customers will be allowed to change suppliers
☀ Discoms will be penalised for blackouts
RK Singh, power minister
❡ Free electricity? You want electricity, you have to pay for it. You want to subsidise the farmer? Fine subsidise the farmer, but instead of farmer, you have to pay. That is what I will be pressing for ❡ —
He is very right but will States agree? He wants metered connections, States to pay for subsidy on electricity bills, market competition in distribution and degree of uniformity in tariffs across India. This spares discoms and other users from profligacy of States and gives industry reasonably low and stable tariffs.
State power ministers meeting on 10th-11th Nov (cancelled)
☀ Subsidy by DBT rather than low tariffs
☀ Fair policy in dealings with power suppliers
☀ Reduce industrial tariffs, simplify tariff structure and promote power consumption
☀ Promote metering and efficiency through private participation in discoms
Cabinet
⚙— Amend Electricity Act to separate distribution into infra handling and retail operations.
⚙— Hydropower policy to solve problems incl dealing with NGO menace.
Domestic solar manufacturing -- keys to success
Solar manufacturing policy would be successful if it delivers competitive prices matching recent low tariffs from Rajasthan, large scale & highly cost-effective production, predominantly domestic design & build incl components, continuous upgrades with latest technology and ability to compete in export markets without subsidies. Many states have attractive packages for solar manufacturing.
Govt will bring 20GW MII tenders for solar equipment. If domestic manufacturers make it worthwhile, govt can hike import tariffs, bring forth anti-dumping provisions or make future tenders on MII basis.
Domestic firm Patanjali will use its solid reputation, famed indigenous bent, govt subsidy, roof-to-rent model to make it a successful player in solar manufacturing. It has acquired a solar firm and opening a Noida factory. "We will manufacture solar panels in India without compromising the quality."
Govt is clear that subsidy will not go for substandard panels. Each panel must now show Radio frequency ID tag and all developers must share ID of rejected panels. Central database will spot duplication of claims. Quality standards will deter cheap Chinese brands and help Indian firms compete on quality. It will root out corrupt practices like installing rejected panels, using foreign panels in MII projects or making fake claims.
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- A big boost to domestic solar manufacturing: India plans a huge 20GW solar tender
REPLY Nov 11, 2017 - Legislative route for power reforms
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Agreement has been reached with states. Finer points can be resolved in parliament, esp Rajya Sabha.
Main ideas are: Reduce AT&C losses through competition, low industrial tariffs and reducing cross-subsidy by imposing max 20% difference between highest and lowest tariffs.
Why? Billing needs to be professionalized to recover losses and improve efficiency. States want to reduce cost to industry, to attract industrial tenants to their industrial corridors. Low tariffs are probably essential. Reduction in disparities helps to simplify tariffs.
How? Separate grid infra from supply, and open supply to competition -- thus users make the final choice. DBT subsidy into farmers bank accounts will virtually eliminate leakages and waste. Make low industrial tariffs affordable by simply doing away with cross-subsidization.
REPLY Dec 17, 2017 - New rules to stop corrupt practices
REPLY Dec 7, 2017 - Hot Press: states agree!
▬ Meters will be 90% pre-paid (poor) & rest smart (rich)
▬ Payment can be done by mobile phones
▬ Human involvement is minimal
- AT & C losses beyond 15% paid by state. This may go down in due course
- Subsidy of up to 20% allowed as differential tariff. Rest is paid by State through DBT
- Amendment to Electricity Act 2003 (in next session) will impose stiff penalties on discoms for outages without good reason
- Amendment in Act to remove human interface and make metering, collection by prepaid or by smart meterers
REPLY Dec 17, 2017 - Additional points from power ministers meet
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▬ States agree that : All census villages will be electrified. Only those willing to be connected will be. Seamless power supply needs transmission and distribution infra spend, and right of way from states: all must be completed by Mar 2019.
▬ States agree to: reduce number of tariffs and divergence between low and high. PPAs have to be entered into and honoured. In case of solar and wind, only if the tariff was done through transparent, competitive bidding. States agree to buy their share of renewable obligations - but in future, they decide collectively on how much they can take.
▬ States will make: all effort to promote digital payments -- in fact, they must make digital cheaper and more convenient than cash.
▬ States resolved to adopt energy efficient building codes for commercial property. Very important measures that will positively impact future business costs (even if costs are more now).
▬ Though all states have agreed, how far will states go to replace old farming pumps with low cost, energy-efficient one?
▬ States SHOULD adopt best practice and technologies (ie junking old ones). Centre will guide states on it.
▬ States WILL to full extent possible: Showcase 1 city at 100% renewable, replace all diesel pumps for solar pumps (all types) & ensure smart meters plus communication aids are placed at every substation.
▬ States will provide their requirements under KUSUM scheme for planning purposes, so: appropriate ground solar capacity (or incremental capacity addition) can tendered; collective RPO that will be accepted; equipment procured for solar retrofitted to agri pumps and lift irrigation projects.
FULL TEXT----------------
4x7 Power for All
States resolve to:
◙ Electrify all remaining Census inhabited un-electrified villages by December 2017.
◙ Provide electricity connections to all willing households by December 2018.
◙ Provide infrastructure for seamless power supply to the consumers by March, 2019.
◙ States resolve to clear all current years Government dues of DISCOMs along with 25% of arrears so that entire old dues are paid by March, 2019.
◙ Provide continuous support to resolve Right of Way issue for seamless power transfer.
◙ Improve quality of power supply and minimise load shedding for non-technical reasons.
Power Reforms
States resolve to:
◙ Prepare roadmap for reduction of cross subsidies as per Tariff Policy by March 2018 and bring in Tariff reforms by simplification of Consumer Tariff categories and rationalization of Electricity Tariff.
◙ Ensure that DISCOMs enter into PPAs and honour PPAs, particularly for wind and solar sector, where tariff has been discovered through a transparent and competitive bidding process.
◙ Ensure compliance of RPO, including compliance through a mechanism of purchase of REC (renewable energy certificates), as per revised Tariff policy and RPO trajectory notified by Ministry of Power on 22.7.2016. States to send suggestion on the future RPO trajectory from 2019-20 to 2021-22.
Promotion of Digital Payments
◙ States resolve to promote digital payments through various measures such as cash incentives, waiving convenience fee, consumer friendly on line payments and promotion of digital payments through various media.
Energy Conservation
◙ States resolve to adopt ECBC 2017 for all new commercial buildings to make them energy efficient
◙ Promote use of BEE Star Rated Energy Efficient Pumps for agricultural purpose
New and Renewable Energy
States resolve to:
◙ Ensure forecasting and scheduling of renewable energy for large scale grid integration by utilizing services of NIWE/other agencies.
◙ Set up necessary infrastructure for metering & communication at all substation levels for real time data generation.
◙ Submit a trajectory for bidding for solar/wind (mark with annual plan) and participate in scheduled bidding programme.
◙ To achieve the RPO target every year.
◙ To promote decentralized production of power – learning from models implemented in Karnataka, Telangana, Maharashtra and Gujarat.
◙ Submit proposals for solar parks under additional 20000 MW capacity under Solar Park scheme
◙ Promote solar rooftops and ensure hassle free grid connectivity
◙ Promote solar pumps to replace diesel pumps
◙ Participate in Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM) for setting up of 10,000 MW of Decentralized Ground Mounted Grid Connected Solar Power Plants, installation of 17.50 Lakh Stand-alone Solar Pumps and Solarisation of 10 Lakh Grid Connected Agriculture Pumps and 50 Thousand Tube-wells/Lift Irrigation Projects by Financial Year 2021-22, with the objective of providing financial and water security to farmers.
◙ Identify at least one city for making it 100% Renewable Energy city.
During his concluding remarks, Shri Singh proposed forming of Consultative Groups of Experts to handhold State Governments in bringing efficiency through best practices in their respective Power Sectors and phase out obsolete practices and technologies. By doing this, Shri Singh emphasized that Power Sector in India would become robust and efficient and ultimately ensure Ease of Living for every citizen of the country.
REPLY Dec 17, 2017 - Saubhagya scheme aims to electrify over 41m households across the country in one year. UP has 15.6m or 38% workload. Only 52% of UP is electrified.
Since power was a major election issue in Assembly polls, UP govt is aiming finish by 2018, before LS elections. "It is a major task with only one year left." Each district will set up its own committee and compete with other districts. Best performers will be selected on set parameters.
REPLY Jan 4, 2018 - Wants to end cross subsidy cost for industry.
REPLY Jan 24, 2018
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