30 July 2022 – The Indian Express

Energy Poverty

India’s electrical industry has the following problems:

• India continues to struggle with severe energy poverty; it has the largest number of unconnected households of any country at 31 million rural families and about five million urban households. Rural dwellings with connections still don’t have enough access to both quantity and quality of supply.
• The central government has set an ambitious aim to link all remaining homes by the end of March 2019 and has budgeted provisions to cover the cost of electricity.
• As part of a Center-State collaborative endeavor on “Power for All” beginning in April 2019, state administrations have already committed to continuously powering all dwellings. It is not easy to achieve the objective of ensuring that everyone has access to affordable, dependable, clean energy.
• The regional differences in access to power have persisted. Seven States—Uttar Pradesh, Bihar, Odisha, Jharkhand, Assam, Rajasthan, and Madhya Pradesh—are home to 90% of non-electrified households. By coincidence, these States have low rankings in social development indices and two-thirds of their population lives below the poverty line. The confluence of energy and economic destitution will obstruct the achievement of universal access.

Inconsistencies in Distribution:

• As of March 2016, the total debt owned by electricity distribution companies (DISCOMS) in these seven States, which made up 42% of the total debt held by DISCOMS, is already extremely high. The States’ debts account for 17% of their overall liabilities.
• The other major challenge is the distribution network’s capacity. When it comes to electrification, India has opted for an expansionist approach that is typically driven by political considerations, with little attention paid to building the system’s capacity and making it future-proof.
• The distribution system is currently overloaded as a result of the rise in demand, which causes substantial technical losses and frequent breakdowns. The ability of the distribution networks in many States to transfer the available electricity is insufficient.
• DISCOMS have started implementing load shedding due to the underutilization of their contracted generation capacities. By placing more strain on the already fragile distribution network, the quality and dependability of the supply will be put in jeopardy. As a result, the poor in rural places may continue to face blackouts during peak hours.

Government initiatives:

• establishing state-specific action plans for “24-hour power for everyone” that take the demands of the generating, transmission, and distribution systems into account.
• The “4 Es,” also known as “Electricity for Everyone,” or “Energy for All,” “Efficiency,” “Environment,” and “Ease of Doing Business,” stand for “Attracting Investments,” “Ensuring Financial Viability,” and “Environment for a Sustainable Future,” respectively, and are the focal points of the updated tariff policy.
• A program called Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) is being launched for rural communities:
• The plan calls for (a) separating agricultural feeders from non-agricultural feeders, (b) strengthening and expanding the sub-transmission and distribution network in rural areas, including metering at distribution transformers, feeders, and consumers’ ends, and (c) electrifying rural areas.
• The Urban Integrated Power Development Scheme (IPDS) was launched. The plan calls for (a) boosting distribution and sub-transmission networks in urban areas; (b) metering distribution transformers, feeders, and customers in urban areas; and (c) improving distribution network and IT capabilities.

Operationalization of the Power System Development Fund (PSDF):

• The PSDF will be used to fund projects proposed by distribution utilities for things like, among other things: (a) developing a crucial transmission network of strategic importance; (b) installing shunt capacitors and other devices to improve the voltage profile in the grid; (c) establishing regular and special protection plans, and (d) renovating and modernizing transmission and distribution systems to relieve congestion.

Launch of the Ujwal Discom Assurance Yojana (UDAY): To assist Discoms in improving their financial and operational status, a program has been introduced.

Initiatives are taken to reduce the cost of generating coal-based electricity projects:

• Expanding domestic coal supplies; adaptability in coal use

PM Saubhagya (PM-Saubhagya) Sahaj Bijli Har Ghar Yojana:

• The Pradhan Mantri Sahaj Bijli Har Ghar Yojana, also known as “Saubhagya,” is a recent initiative that seeks to electrify all willing families nationally, both in urban and rural areas. Beyond that, SAUBHAGYA’s objective of supply the entire nation with electricity and maintain energy security.
• In order to facilitate and hasten the implementation of the Scheme, modern technologies will be used for the household survey through Mobile App. The Rural Electrification Corporation Limited will continue to serve as the program’s nodal organization for its nationwide execution (REC).

The Scheme’s anticipated result is as follows:

• The ecology is improved by using kerosene instead of conventional lights.
• Superior educational services
• better health care services
• enhanced connectivity through radio, television, mobile devices, etc.
• increased economic activity and employment
• improved quality of life, especially for women

Conclusion:

• The goal of the government is to electrify every home by the end of March 2019. The achievement of the target date of March 31, 2019, will depend on the ability of the Center and States to fund necessary capital investments, timely modifications to transmission and distribution networks, and payment of costs associated with servicing less lucrative loads.
• Since all 597,464 census villages acquired electricity last month, the government is now focusing on giving electricity connections under the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya). The government wants every home in India to have an electricity connection by the end of 2018, and REC would be in charge of implementing Saubhagya.
• Free electricity is merely the start. Consideration of the price and calibre of the electricity should come next. Despite the fact that India is supposedly a country with a power surplus, the utilities for producing electricity are nevertheless remarkably underutilized. Further efforts should be undertaken in that area even if the Ujwal DISCOM Assurance Yojana (UDAY) hasn’t had much success in changing the debt of State distribution agencies.
• Following discussions with many stakeholders, the DISCOMS should be permitted to meet demand while making a profit.
• By implementing some pertinent measures, such as smart meters, infrastructure upgrades, and franchisee agreements with neighbourhood self-help groups, the problem could be somewhat alleviated (for more efficient billing, monitoring, and collection).
• Success depends on maintaining customer loyalty and cutting DISCOM losses. Distributed generation, in addition to the centralised grid, may be able to sustain the rural economy as a whole, encompassing farms, schools, hospitals, and small businesses. If energy started to encourage prosperity in rural India, consumer contentment would rise.