The panel tasked with review of the National Electricity
Policy is meeting on Friday to finalise its recommendations.The review is meant
to address problems relating to integration of renewable energy which is
intermittent by nature, financial viability of distribution companies, setting
up of peaking and reserve power plants, scaling up of energy efficiency
projects, improvement in reliability and quality of power supply, training of
utility personnel and market competition.Similar changes are also being introduced
in the National Tariff Policy.
The purpose of this exercise is to align the
Electricity Policy with proposed changes in the Electricity Act 2003.India has
envisaged adding 1,75,000 MW generation capacity by 2022. When this capacity
becomes operational, it will pose serious challenges to grid stability. This
calls for setting up peak and reserve power plants which can be switched on
when renewable power supply to the grid dips.Making discoms viable by getting
state governments to accept a financially accountability is another challenge.
Encouraging market competition by ensuring implementation of open access
provisions in the true spirit of the Electricity Act 2003 also remains an
unfinished business.
The power ministry has moved the Electricity Act (Amendment)
Bill, 2014, seeking legislative changes to pave the way for separation of wore
ownership from power supply business. The idea is to encourage competition in
power distribution business. That would enable state electricity regulatory
commission to issue multiple licences for power supply in the same circle.The
Bill also proposes to create an Electricity Distribution Code which will
provide for the recovery of electricity charges, intervals for electricity
billing, disconnection of services on non-payment of bills, among others.The
legislative exercise is also to define renewable energy. It provides for
additional Renewable Energy Policy.The Bill also proposes to enhance the
penalty ceiling for non-compliance with directives issued by regulatory commissions.The
draft legislation also defines Smart Grid as an electricity network that uses
information and communication technology to generate, transmit and distribute
electricity efficiently.
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