The energy sector in India is impacted by certain key market trends, including unprecedented growth of renewable energy sources and advent of new technologies like electric vehicles and rooftop photovoltaic. These trends create uncertainty in the sector and require regulatory and policy changes to accommodate the increasing penetration of renewables into the grid. In this regard, CSTEP has identified two main challenges: smooth transition of state utilities to renewable energy and development of robust operational processes for long-term sustainability of distribution companies. Our work aims to explore the potential of states to meet renewable energy targets and strategise with government bodies for policy implementation at both state and national levels.

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Evaluation of Prepaid Metering Scheme: Boost to Utility's Revenue

India’s present installed capacity, 1,62,366.80 MW excluding captive power, allows for a modest per capita consumption of some 800 kWh/capita (CSTEP’s estimate). The mix is dominated by coal, which is only 53% of the capacity but higher when it comes to generation. The generation is insufficient to meet the demand, resulting in a shortfall of both peak capacity as well as energy overall (officially 12.6% and 9.9%, respectively). There is a large push towards increasing supply, with an aim of tripling capacity in the coming 1-2 decades.

AT&C loss reduction: Hopes pinned on UDAY

The electricity distribution sector in India is considered to be the most important link in the entire power sector value chain. It is also the face of the electricity sector for consumers. The most critical issues plaguing the distribution sector are high aggregate technical and commercial (AT&C) losses, poor billing and revenue collection efficiency and inadequate infrastructure. This sector has been reeling under losses to the tune of Rs.3.8 trillion due to systemic inefficiencies.

Continued Support for the Implementation of UDAY Initiatives in Karnataka

An important concern with distribution companies (DISCOMs) is the wide gap between the costs incurred and the revenue realised by them. CSTEP proposes to carve out an implementation plan to improve the actual revenue realised for the energy supplied by focusing on three areas:

 

Karnataka Distribution Sector Landscape

The launch of Ujwal DISCOM Assurance Yojana (UDAY) in November 2015 gave new hope to the ailing distribution companies (DISCOMs) in India. Karnataka signed up for UDAY with a view to improve its operational efficiency. The DISCOMs under the scheme have to reduce Aggregate technical and commercial (AT&C) losses to 14.2% , and bring down the gap between average cost of supply (ACS) and average revenue realisation (ARR) to zero by 2019.