Introduction

It is a critical component of infrastructure that determines the economic development of a country
India is the 3rd largest producer of electricity but ranks 106 in terms of percapita consumption as per IEA
The growth rate of demand for power is generally higher than the GDP growth rate
Studies point that in order to have 8 per cent GDP growth per annum, power supply needs to grow around 12 per cent annually.
Electricity is in concurrent list

Ministry of Power
Ministry of New and Renewable Energy
Ministry of Petroleum and Natural Gas

Electricity Power capacity of India

Coal	59.8
Renewable	16.1
Hydro	14
Gas	8
Nuclear	1.8
Diesel	0.3

Renewable	16.1 breakup
Wind	9.2
Solar	2.9
Bio Power	2.6
Small Hydro	1.4
Waste to power	0.04

Total Installed Capacity 367 GW (Central sector 25%, State sector 28.5%, Private sector 46.5%)

Electricity Act, 2003

Enacted to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity
Has provisions conducive to the development of electricity industry, protecting interest of consumers and supply of electricity to all areas, rationalization of electricity tariff, ensuring transparent policies
It also constituted bodies such as Central Electricity Authority, Central and State Electricity Regulatory Commissions and Appellate Tribunal.

Draft Electricity (Amendment) Bill, 2020

Amends Electricity Act 2003
Provisions

Electricity Contract Enforcement Authority (ECEA) and Appellate Tribunal for Electricity (APTEL).
Single Selection Committee to be established for selection of chairpersons, members of the bodies constituted under this act
Cost reflective tariff and simple tariff structure

Any subsidy provided by Govt has to be given directly to consumer

Reduction of cross subsidy and tariff policy should be designed to reduce cross subsidies in phased manner
Central Electricity Regulatory Commissions (CERC) - sole authority for cross border trade of electricity
National Renewable Energy policy and Renewable purchase obligations
National Load Dispatch Centre

Central Electricity Authority

Statutory organization, constituted under the Electricity Act(2003), ; Ministry of Power
To advise the Central Government on the matters relating to the national electricity policy, co-ordinate the activities of the planning agencies and to provide reliable and affordable electricity for all consumers

Central Electricity Regulatory Commission CERC

Statutory organization, constituted under the Electricity Act(2003)
Functions

To regulate the tariff of generating companies owned or controlled by the Central Government;.
to regulate the tariff of generating companies other than those owned or controlled by the Central Government specified in clause (a), if such generating companies enter into or otherwise have a composite scheme for generation and sale of electricity in more than one State;
to regulate and determine the tariff fo inter-State transmission of electricity;
to issue licenses to persons to function as transmission licensee and electricity trader with respect to their inter-State operations;
Improve access to information for all stakeholders.
to adjudicate upon disputes involving generating companies or transmission licensee and to refer any dispute for arbitration;
to levy fees for the purposes of the Act;

Formulates National Electricity Policy and Tariff Policy

National Green Corridor Programme

Launched in 2013 under Ministry of New and Renewable Energy
It is grid connected network for the transmission of renewable energy produced from various renewable energy projects. (solar, wind)
to address the fluctuations/variability in the renewable power supply

Note: Not highways, or not environment

The Power Grid Corporation of India is developing the inter-state transmission corridor and the state transmission utilities are responsible for setting up and strengthening the intra-state transmission infrastructure

NOTE: Not Indian Renewable Development Energy Agency , Not Rural Electrification Corporation

Green Corridor I:

Inter-State transmission network is constructed for connecting renewable energy-rich states. [TN, KA, AP, MH, GJ, MP, HP, RJ]
Power Grid Corporation of India (PGCIL) is implementing this corridor.
Asian Development Bank (ADB) has provided loan assistance.

Green Corridors II:

This is intra-state transmission network implemented by respective states and connects solar parks in different states.

Germany has agreed to provide Euro 1 billion soft loan to this project in 2013 and also technical assistance
Renewable Energy Management Centre (REMC) will monitor renewable energy generation on a real-time basis and also make forecasts for hassle-free integration of solar and wind energies with the grid

NOTE: Green Highways Policy - plantation drive along the highways

Ujwal DISCOM Assurance Yojana UDAY Scheme

DISCOM - Electricity Distribution Companies

Launched in 2015
Aim

Reduce interest burden of debt-ridden DISCOMs (In 2014-15, 4.3 L crore debt with interest rate of 14-15 percent)
Reduce cost of power
Reduce the AT &T Aggregate Transmission and Technical Losses (In 2014-15, AT&T loss at 22%)

Achieved through Four Initiatives

Improving Operational Efficiencies

Reduce AT&T loss from 22% to 15%
Reduce the gap between ARR Average Revenue Realized and ACS Average Cost of Supply
Compulsory Smart metering
Upgradation of transformers, meters etc.
Energy efficient LED bulbs, pumps, fans, ACs

Reduction in Cost of Power

Increased supply of cheaper domestic coal
Coal price rationalization based on GCV Gross Calorific Value
Faster completion of transmission lines

Reduction in interest costs

State shall take over 75% of the DISCOM debt- 50% in 2015-16 and 25% in 2016-17
GoI will not include the debt taken over by the states in calculation of Fiscal Deficit in FY 2015-16, 16-17
Financial liabilities of DISCOMS are contingent liabilities of respective states
DISCOMS debt is de facto borrowing of states which is not counted in de jure borrowing
DISCOM debt not taken over by States are converted by banks/FIs into loans/bonds at an interest rate not more than base rate +0.1

Enforcing financial discipline

UDAY is optional for states to enroll
Benefits such as additional/priority funding on various electricity related schemes given to those states that are performing/achieving operational milestones

Terms

Wheeling charges - charges for the transmission of electricity from one source to another through the transmission lines or grid.
Power Purchase Agreement is a contract between the seller (one who generates electricity for the purpose of sale) and the buyer.
Mini grid

A mini grid, as defined by the Ministry of New and Renewable Energy, is an off grid power system with a generation capacity of between 10 KW and 500 KW.
Demand for mini grids comes from telecom service providers for powering mobile towers
Mini grids for rural areas

Electrification of a village

According to the definition of electrification that came into effect from 2004-05, a village would be declared electrified if

No. of households electrified should be at least 10% of the total number of households in the village

Electricity is provided to public places like Schools, Panchayat Office, Health Centers, Dispensaries, Community centers etc
Basic infrastructure such as Distribution Transformer and Distribution lines are provided in the inhabited locality as well as the Dalit Basti hamlet where it exists.

Open Access in Electricity

Open access is a mechanism that allows generators to sell power to the highest bidders while consumers can source their needs from the most economic seller
Electricity Act, 2003 provides for open access for private generators and bulk consumers (who consume 1MW electricity and more).

Electrical Energy