India has Attained “One Nation, One Grid, One Frequency”: Nandan Sahai

Sanjiv Nandan Sahai, Secretary, Ministry of Power, has said that India has already attained the status of “One Nation, One Grid, One Frequency”.

Sanjiv Nandan Sahai, IAS, Secretary, Ministry of Power, has recently said that India has already attained the status of “One Nation, One Grid, One Frequency”, and that there are now no constraints in inter-regional transfer of power.

Sahai, while deliberating on the Amendments to the Electricity Acts said that the Consumer/Prosumer is at the heart of renewable energy power generation. Towards this end, amendments are being considered to the Electricity legislations which will recognise the right of the consumer to get good quality power at reasonable rates. For the renewable energy sector, the “prosumers” will be allowed to set up roof-top solar units up to their sanctioned loads.

Speaking at a webinar organised by PHD Chamber of Commerce and Industry on ‘Innovations in Renewable Energy’, the Powermin Secretary also mentioned how the Long-term PPAs lie at the heart of all renewable energy contracts. “Of late the Discoms, which are themselves financially stressed, look for escape routes when they see the renewable energy prices falling every day.”

He further informed that a ‘Liquidity Scheme for the Power Sector’ with an outlay of Rs 1,20,000 crore has been started under the Aatmanirbhar Bharat Scheme to prevent any crisis of confidence in this sector. For this, an amount of Rs 68,000 crore has been sanctioned and out of this, Rs 25,000 crore has already been disbursed.

“With the extension of electrification to all households, the average cost of power to Discoms has gone up. This has created further financial stress for the Discoms especially when they see the renewable energy prices falling almost with every tender,” he added. “However, the Ministry of Power is all for honouring the PPAs. For this, they are considering the amendments to the Electricity Act, like setting up a Contracts Enforcing Authority, mandating a Letter of Credit to back every PPA, and introducing an “Arms-Length Distance” between the Regulator and the Government.”

He highlighted that eleven Renewable energy Management Centers have been set up all over the country to ensure seamless generation, transmission, and distribution of renewable power. And that the Day of the Time Tariff systems have also taken off and are being made full use of.

“The government is in the process of privatising all the Discoms in the Union Territories. The first such case will be finalised by December this year,” he concluded.

Further during the Webinar, J. N. Swain, IAS, MD, SECI appealed to NBFCs to come forward and fund RE projects. Pension funds can also contribute to long term financing. It’s only a matter of time that PPAs are signed as soon as PSAs are finalised.

Dr. D K Aggarwal, President, PHD Chamber of Commerce and Industry in his presidential remarks said that the small pause in industrial activity due to COVID did disrupt the economic activities but at the same time turned opportunities by providing some time to introspect and deliberate on innovations and new models of producing and integrating Renewable Energy in our energy mix.

While appreciating the Government for undertaking proactive reform measures in the Power and Renewable Energy Sector, Aggarwal said that the Ministries of Power and New and Renewable Energy have been doing remarkably well and the Government of India as also the State Governments are doing their best to work towards achieving these goals but challenges remain.