Powering Growth in the Renewable Sector
Union Minister R K Singh announced a monumental investment of Rs 17.05 lakh crore in India’s power and renewable energy sector. This substantial commitment follows an already noteworthy investment of Rs 16.93 lakh crore since 2014, with Rs 11.2 lakh crore allocated to generation, distribution, and transmission sectors, and Rs 5.73 lakh crore in renewable energy.
Unprecedented Growth Projections
Singh emphasized the sector’s growth, projecting India’s power generation capacity to exceed 800 GW, a substantial increase from the current 428 GW. With 80 GW of thermal power generation capacity under construction and plans for an additional 99 GW in renewable energy capacity, the nation is on a trajectory towards unparalleled growth.
Revolutionary Electricity (Amendment) Rules 2024
Singh delved into the recently introduced Electricity (Amendment) Rules 2024, highlighting key provisions. The rules empower consumers with a specified load and Energy Storage Systems (ESS) to establish, operate, and maintain dedicated transmission lines without the need for a license. This move aims to create a new category of Bulk Consumers, promoting affordability and grid reliability.
Open Access Charges Reforms
The rules address open access charges, ensuring competitive electricity rates for consumers, including industries. The regulations outline methodologies for determining various charges, such as wheeling charges and state transmission charges, with a gradual reduction and eventual elimination of additional surcharges within four years for consumers availing General Network Access or Open Access.
Financial Health Boost for Distribution Companies
In an effort to bolster the financial health of distribution companies (discoms), the rules target the elimination of revenue gaps and advocate for cost-reflective tariffs. Mandating cost-reflective tariffs, the rules aim to bridge any gap between approved Annual Revenue Requirement and estimated annual revenue from approved tariffs, except under exceptional circumstances.
The comprehensive set of rules is poised to reshape the power and renewable energy landscape, fostering investments, efficiency, and sustainable practices in the sector. This significant announcement propels India further towards a robust and sustainable energy future.
Source：businessworld.in
