Strengthening Power Infrastructure: Centre Urges Western States to Focus on Long-Term Capacity and Modernization – EQ
In Short : The Centre has urged western states to secure long-term power capacity tie-ups until FY2035, focusing on smart metering and power islanding. At the Regional Power Conference, states were advised to expedite prepaid smart meter installations and strengthen transmission infrastructure. Emphasis was placed on cybersecurity and reducing AT\&C losses to enhance grid stability and support future energy demands.
In Detail : The Centre has advised western states to secure long-term power capacity tie-ups through the fiscal year 2035. This recommendation was made during the Regional Power Conference held in Mumbai, where officials stressed the importance of aligning with the national resource adequacy framework. The move aims to address the increasing energy demands while ensuring grid stability and reliable power supply.
During the conference, the Union Power Minister emphasized the need to accelerate the installation of prepaid smart meters in government establishments by August 2025. These smart meters are expected to improve billing accuracy, reduce energy losses, and enhance overall efficiency. The initiative is seen as a critical step towards modernizing the power distribution system and promoting better energy management practices.
The Ministry also highlighted the importance of developing robust transmission infrastructure, both inter- and intra-state, to accommodate the growing integration of renewable energy sources. Financing models such as Tariff-Based Competitive Bidding (TBCB) and Regulated Tariff Mechanism (RTM) were recommended to facilitate these infrastructure improvements. States were encouraged to leverage these models to upgrade their power systems effectively.
Amid rising geopolitical concerns, the Ministry stressed the urgency of strengthening cybersecurity measures to protect the power sector’s infrastructure. Power islanding schemes were also recommended to ensure the continuity of essential services during potential grid disturbances. Implementing these measures is seen as vital to maintaining stability in the power sector during emergencies.
The conference also addressed financial challenges faced by distribution companies (DISCOMs), emphasizing the need to reduce Aggregate Technical and Commercial (AT\&C) losses. The Union Power Secretary called for timely payment of government dues and subsidies to improve the financial health of DISCOMs. Progress made by states like Gujarat, Goa, and Chhattisgarh in reducing AT\&C losses was highlighted as a model for others to follow.
Concluding the conference, the Centre called for continuous collaboration between the central and state governments to develop a modern and efficient power sector. Such efforts are essential to meeting the country’s long-term energy goals and ensuring a reliable supply for all consumers. The focus on modernization, cybersecurity, and financial stability will help the sector support India’s aspirations of becoming a developed nation by 2047.
