Year-End Review – Ministry of Power

In view of the growing need of the Indian Economy, Government of India has embarked upon a massive programme to provide 24×7 power across the country by 2019. After the completion of half of its term, the Government has achieved many important milestones in the Power sector. Special focus has also been given to North East by giving approval to the North Eastern power system improvement project and comprehensive scheme for strengthening of transmission and distribution in the North Eastern States.

Several landmark decisions have already been taken in thermal power generation, hydel and more importantly in solar, wind and other green energy, besides strengthening of transmission and distribution, separation of feeder and metering of power to consumers.  These also include not only achievements in capacity addition but also important reforms being undertaken on increasing energy efficiency of the present infrastructure and thereby reducing power losses.

During the 12th Plan period (2012–17), a capacity addition of about 88928.2 MW against the target of 88537 MW from conventional sources have been achieved till 31^st October, 2016 and about 21,128 MW against the target of 30000 MW from renewable sources have been achieved till 30^th September, 2016.

Due to large generation capacity addition, the electricity energy shortage in the country has reduced to 0.7%during the current year 2016–17 (up to October, 2016) from 8.7% during the year 2012-13. Adequate supply of the domestic coal to power plants has been ensured. The growth of domestic coal supply to power plants has been around 6.2% during 2015–16.

During the 12^th Plan period (2012–17), 1,00,468 ckm against the target of 1,07,440 ckm of transmission lines and 2,88,458 MVA against the target of 2,82,750 MVA of transformation capacity have been completed till 31^st October, 2016.

The government has launched a scheme by providing support from Power System Development Fund (PSDF)for operationalization of stranded gas based generation. The outlay for the support from PSDF has been fixed at Rs. 3500 crores and Rs. 4000 crores for FY 2015-16 and FY 2016-17 respectively.

Under the ‘24×7 Power for All’ initiative, State specific Plans for 34 out of 36 States/UTs, have already been prepared and are under implementation. In these documents, an assessment of energy required to provide ‘24×7 Power for All’ for connected and unconnected consumers, adequacy of power to the State from various generating sources, inter-state transmission system, intra-state transmission system and distribution to ensure 24X7 power supply has been made. The concurrence for the signing ‘24×7 Power for All’ documents for 2 States viz., Tamil Nadu and Uttar Pradesh is awaited.

Progress under Specific Schemes is given as under:

Rural Electrification

Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY)

Under DDUGJY, projects with total cost of Rs. 42392.46 Crore for 29 States/UTs have been sanctioned.

Status of implementation of RE Component

Cumulatively (as on 30.11.2016), electrification works in 1,16,680 (96%) un–electrified villages, intensive electrification in 3,99,829 (67%) villages has been completed. Under DDUGJY, Government of India is providing free electricity connections to Below Poverty Line (BPL) households. Out of total 4.27 crore connections sanctioned, free electricity connections to 2.5 crore BPL households have been provided as on 31.10.2016 under the scheme.

The State–wise data on Rural Electrification, as on 23.12.16:

Penalty is imposed by the respective implementing agencies on the contractors, if the delay is attributable to the contractors as per extant rules. Multilevel monitoring mechanism has been developed at Central and State level.

Remote Village Electrification Programme (RVEP)

Government has implemented RVEP under the Ministry of New & Renewable Energy (MNRE) in various States to provide basic lighting through Renewable Energy Sources in un-electrified villages and hamlets of electrified census villages. MNRE has covered 9006 villages and 2329 hamlets under RVEP so far.

Integrated Power Development Scheme (IPDS)

A scheme to provide quality and reliable 24×7 power supply in the urban area. A total of 4041 towns have been found eligible under IPDS across the States, as on 24.11.16. The scheme provides to complete the projects within a period of 24 months from the date of issue of Letter of Award. The IT and technical intervention will help in improvement in billing and collection efficiency which will ultimately result in reduction in Aggregate Technical and Commercial (AT&C) losses. So far, 20 out of 21 Data Centres have been commissioned and 1246 towns have been declared ‘Go–Live’. All India Short Code ‘1912’ for Consumer Connect adopted in 44/51 Discoms in India.

Energy Efficiency Schemes

A number of initiatives have been taken up by the Government to ensure promotion of energy efficiency in the country like Standards & Labelling programme for appliances by the Bureau of Energy Efficiency (BEE), Perform Achieve and Trade (PAT) Scheme, Energy Conservation Building Codes (ECBC), Unnat Jyoti by Affordable LEDs for All (UJALA) & Street Lighting National Programme (SLNP), Promotion of Energy Efficient Fans and Agriculture pump sets, among others.

National LED Programme

Prime Minister Shri Narendra Modi launched the National LED Programme in 100 cities, on 5th March, 2015. This programme has two components viz., Domestic Efficient Lighting Programme (DELP) and Street Lighting National Programme (SLNP).

Domestic Efficient Lighting Programme (DELP)

The Unnat Jyoti by affordable LEDs for All (UJALA) scheme was launched to provide LED bulbs to domestic consumers aiming to replace 77 crore incandescent bulbs with LED bulbs. The e-procurement of LED bulbs through a transparent and competitive bidding process under UJALA has resulted in reduction of approximately 88% in procurement prices of LED bulbs from Rs.310 in February, 2014 to Rs.38 in August 2016, the retail price being reduced from Rs.550 to Rs.65, which is passed on to the consumers. A total of 5.96 crore of dwelling units have been provided LED bulbs under the UJALA scheme, as on 20.11.16.

The Street Lighting National Programme (SLNP) aims to replace 3.5 crore conventional street light with smart and energy efficient LED street lights by March, 2019.

Progress of National LED Programme as on 23.12.2016 is given below: –

Parameters	Domestic Efficient Lighting Programme (DELP)	Street Lighting National Programme (SLNP)
Total number of bulbs/street lights replaced	18.68 crores	15.01 lakhs
Avoided Peak Demand	4,858 MW	49.56 MW
Energy saved	24.26 billion kWh/year	5,45,208 kWh/day
Reduction in carbon footprint	19.65 million tonnes CO2/ year	452.52 tonnes CO2/day

 

Energy Efficiency Services Limited (EESL) has issued Secured, Redeemable, Taxable, Non–Cumulative, Non–Convertible Bonds in the nature of Debentures in dematerialized form of Rs. 500 Crores in the month of September, 2016 for the purpose of financing the various energy efficiency projects, which was fully subscribed. These Bonds are listed with Bombay Stock Exchange.

During the course of PAT Cycle – II, 621 units have been assigned specific energy consumption (SEC)reduction targets covering 11 sectors with projected savings of 8.869 MTOE. In the PAT – II cycle three more sectors have been included namely Railways, DISCOMs and Refineries.

 Power Generation

Power Generation during 2016–17 (April–November, 2016) is 777.506 Billion Units, showing a growth rate of 4.99% over the same period in previous year. Coal based power generation during the current year is 595.124 BU, showing a growth rate of 5.92% over the same period in the previous year.

Till September, 2016, a total of 3000 MW of inefficient thermal generating capacity has been retired.Measures initiated for reducing the generation cost of coal based power projects: Increasing supply of domestic coal; Coal usage flexibility; Rationalisation of coal linkages.

The Coal Mitra Web Portal, launched by Shri Piyush Goyal on 21^st December, 2016, has been designed to bring about flexibility in Utilization of Domestic Coal by transferring the reserves to more cost efficient State/Centre owned or Private sector generating stations, leading to lower generation costs and ultimatelylesser cost of electricity for the consumers.

During the year 2016-17, 29 thermal stations, having total installed capacity of 13440.5 MW, are likely to be commissioned, out of which 9 projects with installed capacity of 3608.5 MW have already been commissioned till 31.10.2016. In-principle has been clearance given to replace 11000 MW Thermal Power Plants, older than 25 years, with Energy Efficient Super Critical Plants in about five years, with an investment of around Rs. 50,000 crores.

 In Hydro power sector, 13 hydro stations, having total installed capacity of 1949 MW, are likely to be commissioned, out of which 5 projects with installed capacity of 320 MW have already been commissioned till 31.10.2016. Detailed Project Reports (DPRs) of 12 Hydroelectric Projects, with an aggregate installed capacity of 7,165 MW are under examination in CEA. The total power generated by hydro power projects in the country from 1st April, 2016 to 31st October, 2016 is 88306.78 MU (excluding power imported from Bhutan which is 4908.67 MU).

 Power Availability Position in India

Increase in electricity generation from 967 BU in 2013-14 to 1048 BU in 2014-15 and 1107 BU in 2015-16 resulting in lowest ever energy deficit of 2.1% in 2015–16, which has further lowered to 0.7% (April–Oct, 2016) from 2.1% (2015–16). The National Peak Power Deficit is down to half at 1.6% in the same period as compared to 2015-16.

 Power Situation of North East Regions

As per information given by States / UTs to Central Electricity Authority (CEA), during the current year 2016-17 (April, 2016 to Oct., 2016), the peak power shortage in North Eastern Region (NER) has reduced to 0.5%from 8.4% during the corresponding period last year. Similarly, the energy shortage during current year has reduced to 3.5% from 6.9% during the corresponding period last year.

Six thermal power units/modules aggregating to 1103.1 MW have been commissioned during the 12th Plan period in the North-Eastern States. Further, five thermal units/modules aggregating to 625.5 MW are presently under construction in the North–Eastern States for benefits during 12th Plan period and beyond.

Scheme of Utilization of Gas based power generation capacity

The government has sanctioned a scheme for importing spot Re–gasified Liquefied Natural Gas (RLNG) in 2015-16 and 2016-17 for the stranded gas based power plants as well as for plants receiving domestic gas up to the target Plant Load Factor (PLF) selected through a Reverse e–bidding process. The scheme provides for financial support from PSDF (Power System Development Fund). The outlay for the support from PSDF has been fixed at Rs. 7500 crores (Rs. 3500 crores and Rs. 4,000 crores for the year 2015–16 and 2016–17 respectively).

Foreign Direct Investment

The existing (FDI) policy notified in June 2016 by DIPP for FDI in Power Sector provides for 100% FDI under automatic route for projects of power generation (except atomic energy), transmission, distribution and trading. Government of India has also allowed the FDI up to 49% in Power Exchanges registered under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010, under the automatic route, subject to certain conditions, as laid down in the policy.

Power Transmission

National Grid

Target of one nation–one grid–one frequency–one market–one price has been achieved through reforms, unbundling of the utilities, improved inter-state transmission capability, corresponding increase in generation capacity etc. On 29th December, 2015, a single pan–India price at Rs. 2.30 per unit for power was discovered in the power exchange platform. 50,215 ckm transmission lines and 1,28,403 MVA sub–station capacity added during 2014-16.

Available Transfer Capacity of Southern Grid has increased to 5900 MW (i.e. by 71% in 2014-16) due to addition of a number of transmission lines. The ATC would be further enhanced by 625 MW by December 2016 with the commissioning of 765 MW at Angul–Srikakulum–Vimagiri line.

On 21^st December, 2016 Shri Piyush Goyal released reports on ‘Renewable Energy Integration: Transmission an Enabler’, ‘Green Energy Corridor II’ and ‘Electricity Demand Pattern Analysis’.PGCIL has prepared the first two reports that cover aspects of comprehensive transmission plan to integrate renewable energy sources into the National Grid and role of Transmission as an Enabler in growing Renewable Energy (RE) penetration scenario.

 Power Distribution

Ujwal DISCOM Assurance Yojana (UDAY)

Ujwal DISCOM Assurance Yojana (UDAY), a scheme for financial and operational turnaround of Power Distribution Companies was formulated and launched by the Government on 20th November, 2015 in consultation with the various stakeholders. The scheme aims to provide permanent solution to legacy debts of approximately Rs.4.3 lakh crores and address potential future losses.

As on 08.12.2016, 17 States of Jharkhand, Chhattisgarh, Rajasthan, Uttar Pradesh, Gujarat, Bihar, Punjab, Jammu & Kashmir, Haryana, Uttarakhand, Goa, Karnataka, Andhra Pradesh, Manipur, Madhya Pradesh, Maharashtra, Himachal Pradesh and the Union Territory of Puducherry have signed Memorandum of Understanding under UDAY. The Government of Telangana has not signed a MoU under UDAY so far.

In order to facilitate such States that want to join but could not join UDAY, the Government of India has now decided to extend the timeline to such States up to 31.03.2017. So far, Governments of Rajasthan, Uttar Pradesh, Chhattisgarh, Jharkhand, Punjab, Bihar, Haryana, Jammu & Kashmir and Andhra Pradesh have issued Bonds to the tune of Rs. 1,82,204.29 crore including Bonds issued by Rajasthan DISCOMs worth Rs.12,368.00 crores and by UP DISCOMs worth Rs. 10,714 crores.

A Multi–Level Monitoring mechanism for Ujwal DISCOM Assurance Yojana (UDAY) has been put in place to ensure a close monitoring of performance of the participating States under UDAY. Also a web portal (www.uday.gov.in) has been created for monitoring purpose. The last meeting of the Monitoring Committee was held on 03–11–2016.

Smart Grid Mission

National Smart Grid Mission (NSGM) was launched on 27th March 2015. Funds allocated for NSGM were Rs.40 Crore & Rs.30 Crore for the years 2015–16 and 2016–17 respectively. Smart Grid Projects at Chandigarh for Rs. 28.58 crores, at Amravati (Maharashtra) for Rs. 90.05 crores, at Congress Nagar (Nagpur) for Rs. 139.15 crores and at Kanpur for Rs. 319.57 crores have been sanctioned under NSGM. The National Smart Grid Mission Project Management Unit (NPMU) is handholding States for speeding up development of Smart Grid Network in the country.

Reforms

Amendments in Tariff Policy

The Union Cabinet approved proposal for amendments in the Tariff Policy on 20.1.2016. Resolution issued on 28.1.2016. It will provide the motivation to harness the hydro as well as renewable capacity for energy security of the country.

Main amendments are as under:

• Promotion of Renewable Generation Obligation (RGO).
• Compulsory procurement by Discoms from waste-to-energy plants.
• Thermal Power Plants within 50kms of sewage treatment facilities to use treated sewage water.
• Hydro projects continued to be exempted from competitive bidding upto 15th August 2022.
• Use of Smart meters in a phased manner to enable ‘Time of Day’metering.
• Inter-State and Intra-State transmission lines only through competitive bidding.
• Procurement of power from coal washery reject based plants of PSUs or their JVs on regulated tariff.
• Expansion of capacity of IPPs (on regulated tariff)from 50%to 100% of existing capacity.
• Compulsory purchase of power from micro grids at regulated tariff.

Mobile applications and websites launched to ensure accountability and transparency

• Grameen Vidyutikaran (GARV)app to help citizens track rural electrification under Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) (http://garv.gov.in/)
• GARV –II App, launched on 20^th December 2016, hosts the data in respect of about 6 lakh villages, with more than 15 lakh habitations having 17 crore people, that has been mapped for tracking progress on household electrification in each of the habitations of these villages.
• VIDYUT PRAVAH appcreated to provide real time information of electricity price and availability (http://www.vidyutpravah.in/)
• Unnat Jyoti by Affordable LEDs for All (UJALA)app to keep track of LED distribution under the Domestic Efficient Lighting Programme (DELP) (http://delp.in/)
• URJA (Urban Jyoti Abhiyaan)MobileApp – the Consumer Dashboard of the URJA App, launched on 16.06.16, provides for Urban Power Distribution Sector to enhance Consumer Connect, Project Monitoring of Urban Distribution Sector projects and providing information on the monthly performance on parameters like Consumer complaints redressal, Release of New service connection, Average number of interruptions faced by consumer, Number of consumers making e-payments, Energy lost / power theft i.e. AT&C loss.
• E–Tarang appis for monitoring the real time Status of Transmission System.
• E–Trans appis a platform for better price discovery in respect of Inter State Transmission projects to be awarded through tariff based competitive bidding (TBCB) process.
• ‘DEEP (Discovery of Efficient Electricity Price)e–Bidding’ portal – the Portal will provide a common e–bidding platform with e–reverse auction facility to facilitate nation-wide power procurement through a wider network so as to bring uniformity and transparency in the process of power procurement.
• Mobile app for Star Labelled Appliances– BEE has developed a mobile app for Standards and Labeling Programme (S&L) for consumers, which is linked with S&L database of BEE and provides a platform to receive real-time feedback from consumers and other stakeholders.

 Other Good Governance Initiatives

• Separate e–auction windowof coal for Power Sector started.
• Revised Guidelines for short–term procurement of powerby Distribution Licensees through tariff based bidding process was notified on 30.3.2016.  Introduction of short-term procurement through e-bidding portal will result in greater transparency and fairness in the procurement process for ultimate benefit of the consumers.
• Self–certification of the electrical installations:Notifications on voltage level for self–certification under these Regulations have been notified on 16.5.2016. This will facilitate Ease of Doing Business.
• e–bidding and reverse bidding for Goods & Services being procured under the Ministry and its PSUs has been implemented.
• Study of “Best Practices of ten DISCOMs where AT&C losses reduced in last 5 years”conducted.
• Third Party Sampling:To improve process of measurement of quality of coal. Central Institute of Mining and Fuel Research (CIMFR), Dhanbad appointed. Further, CIL would supply sized coal to power plants to increase its power generation efficiency.
• Policy guidelines notified for grant of Bridge Linkagesto specified end use plants of Central and State Public Sector Undertakings (both in Power as well as Non-Power sector).
• Government has approved continuation of the Payment Security Mechanism (PSM)beyond 31st October, 2016 for recovery of current over dues of state power utilities.

Source: Ministry of Power