Power Transmission & Distribution Sector in India

IN NEWS:

• Recently, the government accepted the recommendations of a task force set up under the chairmanship of CMD, POWERGRID, to suggest ways for modernizing the transmission sector and making it smart and future-ready.

MAJOR RECOMMENDATIONS OF THE TASK FORCE:

• The task force, in its report, has recommended a bouquet of technological and digital solutions that can be adopted to make the transmission grids future ready.
• The Task Force has recommended centralized remote monitoring, operation of substations including SCADA (Supervisory Control and Data Acquisition), flexible AC transmission devices (FACTs), predictive maintenance technique using Artificial Intelligence and Machine Learning, cyber security, energy storage systems, and the use of drones and robots in the construction/inspection of transmission assets.
  • The use of robots is expected to not only minimize human intervention and minimize life risks/hazards but also save time while ensuring accuracy during construction and maintenance.
• The Task force also recommended benchmarks for transmission network availability and voltage control based on performance of global transmission utilities.
• While the short-term to medium term recommendations will be implemented over 1-3 years, the long-term interventions are proposed to be implemented over a period of 3-5 years.

STATISTICS:

• India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 408.71 GW as of October 31, 2022.
• The country has one of the largest synchronous interconnected electricity grids in the world, with 4.6 lakh circuit kilometres of transmission line (as of January 2023).
  • In the last decade, the power transmission system in the country has expanded from 2.4 lakh circuit kilometres in 2011 to 4.6 lakh circuit kilometres in 2023.
• The Central Electricity Authority estimates that India's power requirement will reach 817 GW by 2030, and renewable energy generation will increase from 18% to 44% by 2029-30, while thermal energy's share is expected to reduce from 78% to 52%.

WHY A SMART, FUTURE-READY POWER TRANSMISSION SYSTEM IS IMPORTANT?

• To meet the growing demand:
  • India is currently experiencing significant economic growth and population expansion, due to which there is an increasing demand for energy. For instance, as per the Central Electricity Authority estimates that India's power requirement will reach 817 GW by 2030.
  • Therefore, the country needs a smart and future-ready transmission system that can efficiently transmit power from new power generation sources to the distribution networks to meet this demand.
• To integrate renewable energy into the grid:
  • The government’s clean energy transition agenda aims to reduce fossil reliance through both distributed systems and large-scale RE parks.
  • Future power grids will have to accommodate renewable energy plants, such as the 10 GW solar park envisioned at Leh or the 30 GW project planned for Gujarat, along with rooftops in houses and factories.
  • To integrate such a large-scale and diverse renewable energy network into the grid, a future-ready transmission system is essential.
• To ensure grid stability:
  • A future-ready and smart transmission system can also improve grid stability by providing backup power during emergencies, ensuring the availability of power during natural disasters, and preventing blackouts.
  • Also a fully automated, digitally controlled, fast responsive grid which is resilient to cyber-attacks is the need of the hour.
  • For instance, last year (2022), the Union Power Minister confirmed that Chinese hackers made two attempts to target electricity distribution centers near Ladakh but were not successful.
• To reduce transmission losses:
  • A smart, future-ready power transmission system can play a vital role in reducing transmission losses.
  • For instance, transmission losses currently account for around 22% of the total power generated in India.
  • By reducing transmission losses, the country can save a significant amount of energy and reduce greenhouse gas emissions.
• To provide 24x7 power:
  • A modern transmission grid is vital to achieving the government’s vision to provide 24x7 reliable and affordable power to the people and also meet sustainability goals.
  • It can ensure efficient transmission and distribution of power and facilitate the integration of advanced technologies such as smart grids, energy storage systems, and demand response systems.

CHALLENGES ASSOCIATED WITH THE TRANSMISSION & DISTRIBUTION SECTOR:

• Old and inefficient thermal power plants:
  • The transmission system in the country is heavily reliant on thermal power plants based on fossil fuels, which account for 80% of the country's generation.
  • However, many of these plants are old and inefficient, leading to reduced output and higher maintenance costs.
• Distressed discoms:
  • The electricity distributors in the country, or distribution companies (discoms), have been suffering losses due to inadequate tariff increases and high aggregate technical and commercial losses.
  • For instance, the tariffs have not risen enough for years to cover the costs of subsidies in the agriculture sector, resulting in financial stress for discoms.
• Issues associated with land acquisition and clearance:
  • Many transmission projects have faced delays because of the developer’s inability to acquire land and get timely clearances from all stakeholders.
  • There have been instances of transmission lines being forced to take a different route than planned, resulting in the entire project budget going out of control.
• Higher cost of fuel:
  • One of the major challenges facing the transmission system in the country is the higher cost of coal.
  • Coal, which is the primary source of energy for thermal power plants in India, is extracted from state-run Coal India, which has faced stagnation due to various issues like delayed environmental clearances, land acquisition problems, and little investment in advanced technologies.
  • This has forced many power companies to look for coal mines overseas and source more expensive imports.

GOVERNMENT INITIATIVES:

• Ujjwal Discom Assurance Yojana (UDAY):
  • The Government of India launched Ujwal Discom Assurance Yojana Scheme in 2015 to aid operational and financial turnaround of Power Distribution Companies (DISCOMs) owned by any state.
  • This scheme was established with a vision to provide affordable and accessible 24×7 power to all. It also aims to provide a solution for revenue-side efficiency and cost-side efficiency.
  • Moreover, the scheme envisages reform measures in the following sectors—generation, transmission, distribution, coal and energy efficiency.
  • Initially, the scheme was targeted for four years until 2019, providing revival package for electricity distribution companies; however, after understanding impact and prospect of this scheme, the government launched ‘UDAY 2.0’ as the next leg of reforms in the power distribution sector, under the Union Budget 2020-21.
• Integrated Power Development Scheme (IPDS):
  • The Ministry of Power, has launched Integrated Power Development Scheme (IPDS) for strengthening of Distribution Infrastructure for the Urban areas having population of more than 5,0000 as per census 2011 with the following components:
    • Strengthening of sub-transmission & distribution networks including provisioning of Solar Panels and Net-metering.
    • Metering of distribution transformers / feeders / consumers.
    •  IT enablement of distribution sector and strengthening of distribution network.
• Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY):
  • Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) is designed to provide continuous power supply to the entire rural India. The scheme was launched in November 2014.
  • It is one of the key initiatives of Government of India and a flagship programmes of the Ministry of Power.
• Power System Development Fund (PSDF)

WAY FORWARD:

• Participation of all stakeholders:
  • The Indian power sector is listed as a concurrent subject in the Constitution of India, where both center and states have control.
  • Therefore, success of power sector policy and execution has to have a buy-in of both the stakeholders.
  • This applies in particular to distribution reform policies where regional dynamics and priorities vary. All the stakeholders in the federal structure — Center & State, Political, Bureaucracy, Technocrats, Regulators, Consumers etc., the complete ecosystem has to contribute towards a common goal.
• Success stories:
  • Despite obvious challenges, success stories of states such as Gujarat, Karnataka, Andhra Pradesh, among others, and private Discoms operating out of Delhi, Mumbai, Kolkata, Ahmedabad, and others are available for emulation in terms of world-class performance, best practices, and benchmarks.
  • Hence, by focusing on key result areas, following a pragmatic strategy, and balancing diverse stakeholder interests, it is possible to achieve distribution sector financial sustainability on a pan-India basis.

PRACTICE QUESTION:

Q. Discuss why a smart, future-ready power transmission system is crucial for India.