New Delhi: The Conference of Power Ministers of States and Union Territories was held on November 12 in New Delhi, chaired by Union Minister of Power and Housing & Urban Affairs, Shri Manohar Lal. The event was also attended by the Minister of State for Power and New and Renewable Energy (NRE), Shri Shripad Yesso Naik, alongside key dignitaries, including the Chief Minister of Jammu & Kashmir, three Deputy Chief Ministers, and 12 Power Ministers from various states. The conference was a platform for in-depth discussions aimed at addressing the operational challenges and financial viability of India’s power sector.
Key Agendas and Deliberations
The conference focused on several critical issues, including the financial health of distribution companies (DISCOMs), smart metering, renewable energy integration, the national transmission plan, and infrastructure for electric vehicle (EV) charging. The goal was to enhance operational efficiency and ensure sustainable growth in the power sector.
Improving Financial Viability of DISCOMs
One of the main themes was the financial stability of DISCOMs. Union Minister Shri Manohar Lal highlighted the significant reduction in the **Average Cost of Supply-Average Revenue Realized (ACS-ARR) gap**, which improved from ₹0.45 per kWh in FY 2022-23 to ₹0.21 per kWh in FY 2023-24. This improvement reflects efforts to reduce revenue losses and improve the financial health of power distribution companies.
The Minister urged states to ensure timely payment of government dues and subsidies, suggesting a centralized mechanism for payments. All government offices were asked to switch to prepaid smart meters by March 2025. States were encouraged to offer a 5% rebate to prepaid consumers to promote the adoption of smart meters, thereby enhancing revenue collection efficiency.
Focus on Smart Metering and Technology Innovation
States like Madhya Pradesh and Assam showcased their best practices in smart metering, emphasizing the benefits of improved billing accuracy and reduced losses. The conference also marked the launch of Phase-II of Powerthon, a technology-driven initiative to tackle DISCOM challenges using artificial intelligence (AI). Through this program, up to ₹37 crore will be allocated to incubate 40 technology solutions, with additional funding for scaling existing solutions from Phase-I.
Renewable Energy and Storage Solutions
Shri Manohar Lal emphasized the need for states to ramp up investments in renewable energy, particularly in Pumped Storage Projects (PSPs) and Battery Energy Storage Systems (BESS). With India’s power demand growing, he underscored the importance of integrating renewable resources into the grid to ensure energy reliability during peak demand hours, especially non-solar periods.
The conference discussed plans to increase the capacity of nuclear power plants from the current 8 GW to 20 GW by 2032. This expansion is part of India’s broader strategy to diversify its energy mix, especially in states lacking proximity to coal sources.
Enhancing Transmission Infrastructure
India’s synchronized power grid, the largest in the world, requires robust infrastructure for efficient power evacuation. The Minister emphasized the need for a comprehensive National Transmission Plan, including the identification of projects for Green Energy Corridors Phase-III to support the growing renewable energy capacity. States were also urged to align their intra-state transmission plans with the Interstate Transmission System (ISTS) for better integration of renewable sources.
Promoting Consumer Rights and Efficiency
The Minister reiterated the importance of implementing the Electricity (Rights of Consumers) Rules, mandating compensation for service deficiencies. DISCOMs were advised to promote rooftop solar installations under the PM Surya Ghar Yojana and engage in consumer education for energy conservation.
New Initiatives and Policy Directions
The conference also saw the introduction of several new initiatives:
– Combined Ranking Methodology: A new ranking system for DISCOMs to foster healthy competition, with the first set of rankings expected by January 2025.
– Resource Adequacy Planning: States were asked to optimize their power purchase agreements to ensure resource adequacy, especially during peak demand periods.
– Fly Ash Utilization: A directive for efficient disposal of fly ash, including backfilling of abandoned coal mines, in collaboration with the Ministry of Coal.
Future Outlook
Shri Shripad Yesso Naik, Minister of State for Power & NRE, reiterated India’s commitment to achieving 500 GW of non-fossil fuel power capacity by 2030. He emphasized the need for states to align their downstream network development with the national ISTS for efficient renewable energy transmission.
In his closing remarks, Secretary (Power) Shri Pankaj Agarwal urged states to support ongoing reforms, particularly those under the Revamped Distribution Sector Scheme (RDSS). The RDSS aims to reduce Aggregate Technical and Commercial (AT&C) losses and improve the operational efficiency of the power sector.
The Conference of Power Ministers served as a crucial platform for collaborative discussions between the Centre and states, setting the stage for enhanced cooperation in the power sector. The conference highlighted India’s commitment to transitioning towards a sustainable and efficient power sector while addressing the financial and operational challenges faced by DISCOMs.
The strategies and solutions discussed are expected to play a pivotal role in meeting India’s growing energy demands and achieving its ambitious renewable energy targets.
As India moves forward, these initiatives will be instrumental in securing a reliable, sustainable, and financially viable power sector, driving the nation towards a greener future.
