Grid and Transmission

ISA to be Implementing Agency for ‘One Sun One World One Grid’ Initiative

The Ministry of New and Renewable Energy (MNRE) has announced that regarding its Request for Proposals (RfP) for developing a Long Term Vision, Implementation Plan, Road Map and Institutional Framework for implementing the ‘One Sun One World One Grid’ (OSOWOG) initiative, it has now been decided that the International Solar Alliance (ISA) will be the implementing agency for carrying out all the activities of OSOWOG initiative.

Under its role as the implementing agency, ISA will now handle the bid process management and all subsequent activities of the initiative.

The RfP for the project was first issued by MNRE on May 26, 2020. Subsequently, a pre-bid meeting was held on June 22, 2020, through video conferencing, and decided by competent authority too put corrigendum to the RFP based upon prearound 30 bidders participated in the on hold the RfP, for developing a long term bid queries and invite the final bids. meeting. Various queries had been vision, implementation plan road map, India’s motive behind the OSOWOG received from interested bidders. and institutional framework for initiative is to take another leap towards

However, later the RFP was put on hold implementing the One Sun One World building a global ecosystem of till finalisation of certain administrative One Grid initiative, on hold until further interconnected renewable energy arrangements. In its notification, the notice.” resources that are seamlessly shared for ministry had stated that “it has been Now, the ISA will issue appropriate mutual benefits and global sustainability.

India has Attained “One Nation, One Grid, One Frequency”: Nandan Sahai

Sanjiv Nandan Sahai, IAS, Secretary, Ministry of Power, has recently said that India has already attained the status of “One Nation, One Grid, One Frequency”, and that there are now no constraints in inter-regional transfer of power.

Sahai, while deliberating on the Amendments to the Electricity Acts said that the Consumer/Prosumer is at the heart of renewable energy power generation. Towards this end, amendments are being considered to the Electricity legislations which will recognise the right of the consumer to get good quality power at reasonable rates. For the renewable energy sector, the “prosumers” will be allowed to set up roof-top solar units up to their sanctioned loads.

Speaking at a webinar organised by PHD Chamber of Commerce and Industry on ‘Innovations in Renewable Energy’, the Powermin Secretary also mentioned how the Long-term PPAs lie at the heart of all renewable energy contracts. “Of late the Discoms, which are themselves financially stressed, look for escape routes when they see the renewable energy prices falling every day.”

He further informed that a ‘Liquidity Scheme for the Power Sector’ with an outlay of Rs 1,20,000 crore has been started under the Aatmanirbhar Bharat Scheme to prevent any crisis of confidence in this sector. For this, an amount of Rs 68,000 crore has been sanctioned and out of this, Rs 25,000 crore has already been disbursed.

Further during the Webinar, J. N. Swain, IAS, MD, SECI appealed to NBFCs to come forward and fund RE projects. Pension funds can also contribute to long term financing. It’s only a matter of time that PPAs are signed as soon as PSAs are finalised.

First Real Sign of Recovery; Peak Power Demand Returns to Normal

The Peak Power Demand in India, which has perhaps taken one of the biggest hits that lasted nearly 4-6 months due to the lockdown imposed for containment of COVID-19, has finally found its way back to ‘normal’ as India touched 174.33 GW demand on September 9, 2020. Showing a spurt in commercial and industrial activities in the country that had been halted during the lockdown, the peak demand surpassed the highest level of 173.15 GW in September last year.

According to data made available by the Power Ministry, the peak power demand met had reached its previous highest level of 173.15 GW also on September 9 last year.Of course, keep in mind that the 2019 figures themselves were a little dissapointing, with demand 1.5 percent below September 2018 levels. So in some ways, the new ‘normal’ is benefiting from the lower base effect too.

The government had imposed the lockdown from March 25, 2020, to fight the deadly coronavirus in the country. It also resulted in lower commercial and industrial demand in April onwards. The government started easing lockdown restrictions from April 20, 2020.

The relaxation in lockdown resulted in perking up electricity demand in the country due to the increase in economic activities. The experts had earlier exuded confidence that the power demand will not only be back to normal levels but will also achieve marginal growth from September onwards. However, bucking the trend, the slump in peak power demand met rose marginally to 5.65 percent in August from 2.61 percent in July, largely due to the onset of monsoons in most parts of the country. TN, AP and Telangana Account for 71% Discom Dues to RE Generators

Discoms are the weakest link in the Corporation and Rural Electrification entire value chain of the Indian Corporation (PFC-REC) to help cash electricity sector. Their inability to strapped Discoms pay their dues till pay generators on time, manage their March 2020. Now, the government is set losses and improve on other inefficiencies to hike this to INR 1,200 billion to help weighs down the entire power sector. discoms pay their outstanding bills until Discoms in India have been functioning June 2020. Though this move has been sub-optimally and have even been welcomed by various stakeholders, it does described as a “leaking bucket”, due to not provide a long- term solution. their inability to break-even despite According to PRAAPTI portal, the multiple financial bailouts over the years. overdue of conventional generators

In 2015, Ujwal DISCOM Assurance amounts to Rs 106,500 crore in July 2020 Yojana (UDAY) was launched by the whereas Rs 10300 crore is overdue to nongovernment wherein financial and conventional generators. Infusion of one technical targets were given to the states. time-liquidity cannot ensure the The states took over 75 percent of the debt improved effectiveness of Discoms in the of the Discoms and issued bonds that were longer run. Several past instances of subscribed to by banks and financial liquidity infusion have done little good to institutions. Five years since the scheme improve the financial health of Discoms. was launched, the condition of Discoms As can be seen from the above graph, have remained the same- debt-ridden. the RE rich states like Tamil Nadu, Andhra

The government, in May 2020 Pradesh, and Telangana account for ~81 announced liquidity infusion to the extent percent of the total outstanding dues from of INR 900 billion through Power Finance Discoms to RE generators.

Power Consumption up 0.9% on Yearly

Basis in September: RK Singh

Power consumption rose 0.9 percent on a yearly basis in the first fortnight of September, indicating a spurt in commercial and industrial demand for electricity, the Lok Sabha was informed on September 17, 2020, by Union Minister RK Singh. Power consumption had declined following the COVID-19 outbreak as economic activity came to a standstill due to the lockdown.

Power Minister RK Singh, in a written reply in the Lok Sabha, said power consumption has increased by 0.9 percent at 53.17 billion units (BU) from September 1 to September 14, compared to 52.68 BU in the same period last year.

Power consumption had declined by 8.7 percent in March, 23.2 percent April, 14.9 percent in May, 10.9 percent in June, 3.7 percent in July, and 1.7 percent in August compared to the same months last year. According to the power ministry data, electricity consumption had grown by 11.73 percent in February. Thus, the COVID-19 situation affected power consumption for six months in a row since March this year.

The data provided by the minister also showed that peak power demand in the first fortnight of September surpassed last year’s level, recording a growth of 0.7 percent at 174.33 GW. And that, peak power demand met was the highest supply of power in the country in a day. “The peak demand and the energy requirement had dropped by around 23-24 percent in the month of April 2020 compared to April 2019 due to the effect of the COVID pandemic,” Singh said. “The peak demand and the energy requirement are increasing on a month to month basis since May 2020. There is a marginal increase in peak demand and energy requirement in the current month of September 2020 (up to September 14, 2020) vis a vis the corresponding period last year,” he added.

Ministry of Power to set up `2000 Cr JV to Ease Smart Meter Rollouts

The Ministry of Power has begun the process to set up a Rs 2,000 crore joint venture (JV) for providing a common backend infrastructure facility (CBIF) to power distribution companies (Discoms) for faster roll-out of smart electricity meters in the country. The JV would have four promoters, NTPC Ltd, REC Ltd, Power Grid Corporation of India Ltd (PGCIL) and Power Finance Corporation (PFC). All the firms are under the administrative control of the Ministry.

The CBIF will enable the fast-track implementation of smart meters across the country. It will simplify smart meter rollout for discoms by offering a plug and play architecture with standardised, preconfigured, pre-integrated, scalable back-end infra for rollout of smart meters. There would be an ease of scalability, avoiding asset duplication and flexibility to discoms in installing smart meters in a phase wise manner, wherein the Meter Data Management (MDM) services can be expanded on the basis of requirement.

Discoms would be required to pay only for use of the asset without incurring additional capex, along with features of built-in upgrades, which would lead to cost reductions and savings to discoms.

The boards of PFC and REC have approved an equity investment of Rs 150 crore each in the JV for the CBIF, according to regulatory filings. The boards of NTPC and PGCIL are yet to approve the equity investments of Rs 150 crore each in the joint venture. There would be an equity investment of Rs 600 crore by the four promoters and the debt component would be of Rs 1,400 crore. Power Ministry Drafts Rights of Electricity Consumers for the First Time

The Ministry of Power has consumers and have also set up announced that it has drafted rooftop solar units or solarised rules providing for the Rights of their irrigation pumps. They will Electricity Consumers for the very first have the right to produce time. In its notification, the ministry electricity for self-use and inject claims the electricity consumers are excess in the grid using the same the most important stakeholders in the point of the connection up to power sector, the sector exists because limits prescribed by the SERC. of them. Reliability of service: State The main feature of the draft Electricity Regulatory regulation are: Commissions (SERCs) to fix the

Recognition to the emerging average number and duration of category of consumers known as outages per consumer per year for

“Prosumers”. Persons who are Discoms. Timely and simplified procedure for connection: Only two documents for connection up to load of 10 kW and no estimation of demand charges for loads up to 150 kW to expedite giving connection. Time period of not more than 7 days in metro cities, 15 days in other municipal areas and 30 days in rural areas, to provide new connection and modify existing connection.

DERC Cuts Fixed Charge for Unutilised Capacity by C&I Segment

In a relief to industrial and commercial (C&I) consumers, power regulator Delhi Electricity Regulatory Commission (DERC) has ordered for the slashing of fixed charges for unutilised capacity of sanctioned load or contract demand by Rs 125 for the months of April and May when the lockdown was imposed to prevent the spread of coronavirus.

Delhi Power Minister Satyendar Jain also welcomed the move. “This will be a huge relief for non-domestic and commercial users. The expected impact of the said waiver is around Rs 160 crore. The move will benefit around 44,000 industrial consumers and around 10 lakh nondomestic (commercial) consumers,” he said.

The fixed charges for the unutilised capacity for April and May 2020 (Contract Demand/Sanctioned Load - MDI) for eligible industrial and non-domestic consumers shall be billed at a reduced rate of Rs 125/ KVA/month as against the existing rate of Rs 250/KVA/month, the DERC said.

The Commission also observed that during the lockdown period (till May 30), the majority of non-domestic and industrial consumers did not use their system to the contracted capacity.