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Power distribution losses nearly halved in 10 years – EQ

Power distribution losses nearly halved in 10 years – EQ


In Short : Power distribution losses have nearly halved in the last 10 years. This improvement reflects advancements in distribution infrastructure, grid management, and efficiency measures, contributing to a more reliable and sustainable power distribution system.

In Detail : There has been a 65% increase in the transmission network in the last nine years.

Aggregate Technical & Commercial (AT&C) losses or power lost during transmission and distribution due to commercial issues like power theft and technical issues, of discoms (distribution companies) have gone down from 27% in 2014 to 15% in 2023 and will further go down to 12% soon, says R.K. Singh, Union Power Minister.

There has been a 65% increase in the transmission network in the last nine years. The peak demand has gone up from 136 megawatts (MW) in 2014 to 243 MW in 2023, thereby registering about 80% growth, while installed power generation capacity has gone up by almost 70%, from 249 GW to 426 GW in the same timeline, he says while inaugurating a three-day exhibition and conference organized by Indian Electrical and Electronics Manufacturers’ Association (IEEMA) in Mumbai yesterday.

Sources say the Government launched the Revamped Distribution Sector Scheme (RDSS) in July 2021 to improve the quality and reliability of power supply to consumers. The five-year scheme has an outlay of Rs.3,03,758 crore and estimated Government budgetary support from the Central Government of Rs.97,631 crore. The plan was to reduce the AT&C losses to pan-India levels of 12-15% and the ACS-ARR (Average Cost of Supply – Average Realizable Revenue) gap to zero by 2024-25. The scheme has two major components – ‘Financial support for Prepaid Smart Metering & System Metering and upgradation of the Distribution Infrastructure’ and ‘Training & Capacity Building and other Enabling & Supporting Activities’.

Availability of power in rural areas has increased from 12 hours in 2015 to 20.6 hours and in urban areas it has increased up to 23.8 hours. ”More capacity is being installed at a great pace so that more Power Producers and Suppliers (PPS) come forward and the general public may get 24×7 electricity supply”, he elaborated.

He explains the present policy has given every distribution licensee a responsibility to tie up different installed capacities to have power adequacy so that they can meet the demand of the areas under them. Their performance related to it is to be assessed by a committee headed by the Chairperson of the Central Electricity Authority and defaulters are liable to be penalized. No distribution licensee can shed their responsibility because of high price of electricity exchange and will be penalized for failing to provide power because of a shortage of supply in the licensed area, said the Minister.

Talking about renewable power, the Minister says within a couple of years, the entire value chain of the renewable electricity sector, starting from poly-silicon to photovoltaic modules will be made in India. In the hydel sector, 18000 MW hydel power capacity is presently under construction. A capacity of 40,000 MW Pumped Storage Projects (PSPs) are at various stages of clearance. India should give preference to making the required components in India, says the Minister.

Anand Gupta Editor - EQ Int'l Media Network