Power ministry working on Reconductoring

  • July 4, 2023
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Power ministry working on Reconductoring

Subject :Economy

Section: Infrastructure Sector

Key Points:

  • Reconductoring is a process of stringing of new conductors on existing towers using the same right of way (RoW) to increase the thermal capacity of transmission lines.
  • India has installed power generation capacity of 417,688 MW (as of May 31, 2023), which is expected to double by 2030. So, there is a need to upgrade the transmission system so that it is able to carry that much more energy.
  • Transmission capacity can be increased either by laying new transmission lines, or the by “reconductoring” — doing up the existing lines so that more energy could be put through akin to broadening an existing highway. Ministry of Power is working on both approaches.
  • Laying of new lines poses the issue of a securing ‘right of way’ (ROW); hence ‘reconductoring’ is being prioritized in the effort of improving the country’s transmission capacity.
  • A recent ‘Draft paper on Reconductoring of Transmission lines’ produced by the Central Electricity Authority notes that a key issue in reconductoring would be the choice of tariff mechanism – regulated tariff mechanism (RTM) or tariff derived by a competitive bidding process (TBCB).
  • RTM (regulated tariff mechanism)
    • RTM is a cost-plus model where projects are executed under the supervision of state-run Power Grid Corporation of India
    • This would involve allocating reconductoring works to the licensee of the original line
    • There is a concern of higher implementation cost and lack of transparency in RTM
  • TBCB (tariff-based competitive bidding)
    • Under this model private companies can also bid, with contracts awarded to the lowest bidders under a build, own, operate and maintain (BOOM)
    • The National committee on transmission (NCT) was constituted by the power ministry to identify inter-state transmission projects to be developed through competitive bidding
    • For competitive bidding, first the question of ownership of the asset needs to be resolved. Disputes may arise on sharing of tariff as towers are owned by one licensee, and the conductor by another licensee.
CEA vs CERC

Central Electricity Authority (CEA) is a statutory body responsible for plans for development of the electricity system and advise the Central Government on the matters relating to the national electricity policy. It deals with technical matters related to generation, transmission, trading, distribution and utilisation of electricity and makes appropriate recommendations to the central government or State government.

Central Electricity Regulatory Commission (CERC) is the principal regulator for tariffs and inter-state transmission. Its role is to regulate the inter-State transmission of electricity, to determine tariff for inter-State transmission of electricity. It is responsible for the formulation of National Electricity Policy and Tariff Policy. Other role includes promotion of competition, efficiency and economy in the activities of the electricity industry and  promotion of investment in electricity industry

economy Power ministry working on Reconductoring