National Solar Mission
- Target: 100 GW of Solar Power by the end of 2022
- Strategy: Solar Park and Ultra Mega Solar Power Projects: 40,000 MW of Solar power through 50 Solar Parks (Capacity of 500 MW and Above) +. Grid-connected Roof up Solar Program: Target of 40,000 MW. Implemented through DISCOMs.
PM-KUSUM scheme
- Setting up of 10,000 MW of Grid-Connected Solar and Other Renewable energy plants on Barren/Uncultivable land --> Sell Power to DISCOMs and earn Income.
- Off-Grid Areas: Replacement of diesel agriculture pump sets with 20 lakh Solar Agriculture Pumps --> Reduce the dependence of farmers on diesel and meet their irrigation needs.
- Grid-connected Areas: Replacement of diesel agriculture pump sets with 15 lakh Solar Agriculture Pumps --> Use the generated solar power to meet the irrigation needs and the excess solar power will be sold to DISCOMs.
National Wind-solar Hybrid Policy:
- Hybrid System --> Wind Turbine Generators (WTGs) and Solar PV systems can operate on same land. However, for being considered as Hybrid system, the Installed capacity of at least one of them should be minimum 25%.
- Note: PM Modi has laid down the foundation stone for the Hybrid Renewable Energy Park near Vighakot village in the Kutch district of Gujarat. It will be the India's largest renewable energy generation park
Atal Jyoti Yojana (AJAY) Phase-II:
- To illuminate dark regions through installation of solar streetlights. Implemented by Energy Efficiency Services Limited (EESL).
Public Sector Undertaking (CPSU) Scheme:
- A scheme for setting up 12 GW Grid- Connected Solar PV Power Projects by Public Sector Undertakings with domestic cells and modules is under implementation. Viability Gap Funding support is provided under this scheme.
Production linked Incentive scheme for manufacturing of high-efficiency solar PV Modules:
- Close to 75 per cent of India’s solar power capacity is built on Chinese solar cells and modules. Hence, the PLI scheme is expected to ensure Aatma Nirbhar Bharat in solar energy sector.
Distribution Sector Reforms
Electricity Amendment Act, 2003:
- Established regulatory bodies - Central Electricity Regulatory Commissions (CERCs) and State Electricity Regulatory Commission (SERCs).
- Appellate tribunal for dispute resolution.
- Introduction of competition through open access policy
- Delicensing of Thermal Generation
- Introduction of Renewable Purchase Obligation Policy (RPO) which requires DISCOMs certain percentage of their electricity needs from Renewable energy.
Deen Dayal Upadhyaya Gram Jyoti Yojana–DDUGJY:
- Focuses on feeder separation (rural households and agricultural) and strengthening of sub-transmission and distribution infrastructure in rural areas. It is meant to provide round-the-clock power to rural households and adequate power to agricultural consumers.
UDAY Scheme:
- Aims at improving the financial position of DISCOMs. Under the scheme, states are supposed to take over 75 percent of the discoms’ debt and the DISCOMs were required to reduce AT&C losses to 15%.
Saubhagya Scheme:
- Free electricity connections to all households (both APL and poor families) in rural areas and poor families in urban areas.
Reforms based Results linked Revamped Power Distribution Scheme:
- Help DISCOMs improve their operational efficiencies and financial sustainability by providing result-linked financial assistance to DISCOMs to strengthen supply infrastructure based on meeting pre-qualifying criteria and achieving basic minimum benchmark. Under this scheme, the DISCOMs are required to reduce AT&C losses to 12-15% by 2024-25.
Private Participation and Competition in Distribution:
Some of the states have promoted private participation in the DISCOMs through
(a) Franchise Model and
(b) Privatisation of DISCOMs.
(a) Under the Franchise model, the private entity has no ownership over the distribution grid assets. The private party manages billing and revenue collection. Example: Bhiwandi, Maharashtra.
(b) In case of privatisation, the private entity not only manages the billing and revenue collection but also owns the distribution grid. Example: Privatisation of Delhi Vidyut Board in 2002.
Retail Choice to Consumers:
Presently, the DISCOMs enjoy monopoly in distribution of electricity which in turn leads to lack of consumer choice and higher inefficiencies. Hence, the Union Budget 2021-22 has sought to introduce competition in the distribution sector and provide retail choice to the consumers.
Privatisation of DICOMs:
The Centre has announced that it would privatise the DISCOMs in all the Union Territories.