The Union Minister for Power and New & Renewable Energy has informed about the steps taken by the government for the modernization of the nation’s electricity market.
The power demand in the country has gone up by 50.8 percent in energy terms from 2013-14 to 2022-23. The peak demand has gone up from 135,918 MW in 2013-14 to 243,271 MW in September 2023. We have been able to meet the increase in demand because we added 196,558 MW of capacity between 2014 to 2023 which includes 104,059 MW of renewable energy capacity. The details of the quantum of power generated in the country during the last three years and the current year 2023-24 (till December 2023) are given below.
The details of total quantity of power produced in the country in the last three years and the current year 2023-24 (till December 2023)
(All figures are in Million Units) | ||||||
Fuel | 2020-21 | 2021-22 | 2022-23 | 2023-24 (up to Dec) | ||
THERMAL | COAL | 950937.55 | 1041487.43 | 1145907.58 | 932258.66 | |
DIESEL | 126.31 | 117.24 | 229.71 | 300.5 | ||
HIGH SPEED DIESEL | 0 | 0 | 0 | 0 | ||
LIGNITE | 30505.68 | 37094.04 | 36188.34 | 24324.57 | ||
MULTI FUEL |
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|
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NAPTHA | 101.41 | 0 | 0.83 | 0 | ||
NATURAL GAS | 50842.59 | 36015.77 | 23884.21 | 23903.53 | ||
THERMAL Total | 1032513.54 | 1114714.48 | 1206210.67 | 980787.26 | ||
NUCLEAR | 43029.08 | 47112.06 | 45861.09 | 36263.36 | ||
HYDRO | 150299.52 | 151627.33 | 162098.77 | 114757.77 | ||
Bhutan Import | 8765.5 | 7493.2 | 6742.4 | 4672.1 | ||
Renewable Energy Sources (excluding large hydro) | 147247.508 | 170912.297 | 203552.685 | 172488.39 | ||
Grand Total | 1381855.15 | 1491859.37 | 1624465.61 | 1308968.88 | ||
In order to accommodate the substantial capacity addition, the Government of India planned and added 1,89,052 circuit kilometers (ckm) of transmission lines, in the same period (2013-14 to 2022-23) connecting the whole country into one grid running on one frequency with the capability of transferring 1,16,540 MW from one corner of the country to another, also further integrating the whole country into one national market.
We have introduced new products in the Exchange for Renewable Energy such as the Green Day Ahead Market and the Green Term Ahead Market.
India has one of the fastest growing Renewable Energy Capacities in the world and has emerged as the most favoured destination for investment in Renewables in the world. Government has constructed Green Energy Corridors and put in place 13 Renewable Energy Management Centres. Presently, Renewable Energy Capacity is 180,800 MW and 103,660 MW is under installation.
Government has made concerted efforts to make Power Sector viable. The AT&C losses have come down from 25.72% in 2014-15 to 15.40% in 2022-23. All current payment of Gencos are up-to-date and the legacy dues of Gencos have come down from Rs. 1,39,947 crores as on 03.06.2022 to Rs. 49,451 crores as on 31.01.2024. The subsidy payment to DISCOMS on account of subsidies announced by State Government are up-to-date.
In order to reduce the AT&C losses, the Government of India has implemented the following steps:
- Provided funds under DDUGJY and IPDS to install meter on unmetered connections; and installed covered wire in loss prone areas to make theft difficult;
- Put in place energy accounting and energy audit system;
- Revised prudential norms to ensure that no loans are given by REC/PFC to DISCOMs which are making losses, unless they draw up a plan to reduce the losses, get their State Government approval on it and file it with the Government of India; and follow up on these steps;
- Put in place a merit order despatch system to ensure that cheaper power is despatched first;
- Reduced the late payment surcharge to reduce the burden on the DISCOMs;
- Put in place rules to ensure that if the Genco is not paid for the power supplied, the access to the power exchange of the defaulting DISCOMs is automatically cut off;
- Put in place an incentive of an additional borrowing space of 0.5% of GDP for the State, if the DISCOMs puts in place loss reduction measures;
- Provided that no funds will be given under RDSS to loss making DISCOMs unless they put in place measures to reduce their losses; and
- Put in place Rules to ensure that the tariff is up-to-date.
As a result of the above measures, the power sector has become viable and profitable.
