Agency: In a landmark development, India has witnessed an unprecedented influx of investments totaling Rs 16.93 lakh crore in the power and renewable energy sectors since 2014, announced Union Minister R K Singh on Monday. Additionally, a staggering Rs 17.05 lakh crore is in the pipeline, signifying the nation’s commitment to robust energy infrastructure.
Minister Singh revealed that out of the Rs 16.93 lakh crore investment, Rs 11.2 lakh crore has been allocated to sectors encompassing generation, distribution, and transmission, while Rs 5.73 lakh crore has fueled advancements in the renewable energy sector. The ambitious pipeline includes Rs 7.4 lakh crore for the power sector and Rs 9.65 lakh crore dedicated to renewable energy.
Speaking on the future trajectory, Singh highlighted the ongoing construction of 80 GW of thermal power generation capacity, slated for completion by 2030. Furthermore, a significant 99 GW of renewable energy projects are currently under construction, solidifying India’s commitment to sustainable energy sources.
In tandem with this, the Ministry introduced the Electricity (Amendment) Rules 2024, ushering in a new era for the power sector. Notable provisions include allowing consumers with substantial loads and Energy Storage Systems to establish dedicated transmission lines without a license, fostering a new category of Bulk Consumers.
The rules aim to simplify grid connectivity for bulk consumers and energy storage systems, ensuring more affordable electricity and bolstered grid reliability. This move aligns with India’s ambitious goal to increase power generation capacity to over 800 GW from the current 428 GW, with plans to bid out 50 GW of renewable energy projects annually.
Moreover, the rules address open access charges, ensuring consumers, including industries, benefit from competitive rates. By prescribing methodologies for determining various charges like wheeling charges and state transmission charges, the rules strive to create a conducive environment for the power sector’s financial health.
Emphasizing the government’s commitment to transforming the sector, Minister Singh highlighted the significant reduction in distribution company losses, from 27 percent in 2014 to 15.41 percent in 2022-23. The elimination of licensing requirements for dedicated transmission lines is anticipated to facilitate ease of doing business, fostering accelerated industrial growth and job creation.
(Courtesy: The Financial Express)
