Power Sector in India
- June 24, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
Power Sector in India
- On June 10, India’s power demand met during the day hit a record 211.86 gigawatts (GW), demand went up by 25 percent in one year.
- In 2015, the average power availability in rural areas was about 12.5 hours at the national level, today it is 22.5 hours.
Revamped Distribution Sector Scheme (RDSS)
- The CCEA approved a Reforms-based and Results-linked, Revamped Distribution Sector Scheme worth Rs. 3.03 trillion wherein the Centre’s share will be Rs. 97,631 crore.
- It aims to improve the operational efficiencies and financial sustainability of discoms (excluding Private Sector DISCOMs).
- It will provide conditional financial assistance to strengthen the supply infrastructure of discoms (power distribution companies).
- The financial assistance will be based on meeting pre-qualifying criteria and upon achievement of basic minimum benchmarks.
- All the existing power sector reforms schemes such as Integrated Power Development Scheme, Deen Dayal Upadhyaya Gram Jyoti Yojana, and Pradhan Mantri Sahaj Bijli Har Ghar Yojana will be merged into this umbrella program.
- The scheme will be available till 2025-26.
- It would be based on the action plan worked out for each state rather than a ‘one-size-fits-all’ approach.
- Rural Electrification Corporation and Power Finance Corporation is the nodal agency for its implementation.
Green Energy Open Access Rules
- Green Open access is allowed to any consumer and the limit of Open Access Transaction has been reduced from 1 MW to 100 kW for green energy, to enable small consumers also to purchase renewable power through open access.
- Provide certainty on open access charges to be levied on Green Energy Open Access Consumers which includes transmission charges, wheeling charges, cap on cross-subsidy surcharge and standby charges.
- Transparency in the approval process of the open access application through a national portal. Approval to be granted in 15 days or else it will be deemed to have been approved subject to fulfillment of technical requirements.
- Determination of green tariff: The tariff for the green energy shall be determined separately by the Appropriate Commission, which shall comprise of the average pooled power purchase cost of the renewable energy, cross-subsidy charges if any, and service charges covering the prudent cost of the distribution licensee for providing the green energy to the consumers.
- Banking of surplus green energy with the distribution licensee mandated.
- There shall be a uniform renewable purchase obligation, on all obligated entities in the area of a distribution license. It has also included the Green Hydrogen/Green Ammonia for fulfillment of its RPO.
- Consumers will be given the green certificates if they consume green power.
- Cross subsidy surcharge and additional surcharge shall not be applicable if green energy is utilized for production of green hydrogen and green ammonia.