Life beyond the pandemic
There is a striking similarity between the ongoing pandemic outbreak and the electricity supply chain. They both have touched every human life, impacted society and affected economic activity.
There is a striking similarity between the ongoing pandemic outbreak and the electricity supply chain. They both have touched every human life, impacted society and affected economic activity.
Production of electrical machinery has rebounded in June 2020, when compared to May 2020, as judged from recently-released official statistics.
Let us momentarily leave the devastation caused by the COVID-19 pandemic in terms of human life and economy aside. One must admit that the pandemic has imparted several lessons ranging from how humans should lead their lives right up to how nations should be run.
In late April 2020, the Union Ministry of Power (MoP) released the much awaited Draft Electricity (Amendment) Bill, 2020, which proposes many critical changes to the existing Electricity Act, 2003.
In his very influential book “Small is Beautiful,” first published in 1973, British economist E.F. Schumacher championed the cause of small and appropriate technologies. He argued that such technologies can empower the people more than so-called modern technologies that are not sustainable in the long run.
The Union finance minister in her Budget speech on February 1, 2020, acknowledged that taking electricity to every household was a major achievement. She obviously was referring to the Saubhagya scheme that was launched on September 25, 2017 and envisaged complete electrification of all households (rural and urban) by December 2018.
In a very significant recent development, Odisha Electricity Regulatory Commission (OERC) awarded the letter of intent to Tata Power as the successful bidder to own the licence for the distribution and retail supply of electricity in Odisha’s five circles, together constituting Central Electricity Supply Utility of Odisha (CESU).
India has pledged to have 100 GW of grid-connected solar power capacity by December 31, 2022. Out of this, 60 GW is to come from ground-mounted solar plants while 40 GW is envisaged to come from rooftop solar (RTS). According to reliable estimates, India’s total solar capacity stood at 33.8 GW as of September 30, 2019. The worrisome issue is that the performance of RTS is belying even the most conservative expectations. The total quantum of RTS installations is today barely 4 GW, which is just about 10 per cent of the 2022-target.
Aggregate financial losses by state power distribution utilities (discoms) reportedly stood at Rs.28,369 crore as of March 31, 2019, nearly doubling from the corresponding Rs.15,049 crore in 2018. After the launch of the UDAY scheme in 2015, there was a secular trend of decline in such losses during FY16 and FY17. This reversal of trend is worrisome.
The Union power minister has reportedly cautioned seven states—Karnataka, Maharashtra, Andhra Pradesh, Telangana, Madhya Pradesh, Rajasthan and Tamil Nadu—that renewable energy developers could drag discoms of these states to the National Company Law Tribunal (NCLT) over the non-payment of dues. It is learnt that these seven states together owe around Rs.5,300 crore to RE developers, and that the total outstanding of RE developers, pan India, is around Rs.8,200 crore.