Choices to Borrow
? Choices to
Lend ?
Context :
Niti Aayog pitches for
greater financial autonomy for state-owned discoms / Busi
Standard / 04 Aug. 21
Extract :
In a report titled ' Turning
Around the Power Distribution Sector
( Aug 2021 ) ', Niti Aayog said
the performance of state-owned discoms is
also determined by the ability of the respective State Electricity Regulatory
Commissions (SERC) to revise tariff frequently and adequately.
"...For a state-owned utility to
succeed, there should be a clear separation
between utility and state. The utility should have operational and financial autonomy." it suggested.
Noting that discoms have
a monopoly in their area of functioning, the think tank suggested that delicensing distribution can introduce competition and
enable retail choice for customers.
"This reform can be challenging
and should be accompanied with careful market design.
The total loss is estimated to be Rs 90,000 crore in FY 2021.
" As
long as the markets continue to provide low-cost power, discoms should
not sign new expensive long-term thermal PPA," it
opined.
According to the government think tank,
discoms should use time of day (ToD) tariffs to incentivise changes in
demand patterns.
"Dynamic tariffs,
enabled by advanced metering and a smart grid,
can reduce the discoms' power purchase costs and help manage peak loads,"
it said.
According to an official statement,
Niti Aayog member V K Saraswat said that this report presents policymakers with
a menu of reform options to put the distribution
sector on the track of efficiency and profitability.
==================================================
MY TAKE :
Key recommendations
of Niti Aayog are :
# De-licensing of
distribution
# Competition
among DISCOMS
# Choice for customer
( from whom to buy power )
# Market Design
# No long-term PPA with THERMAL POWER plants
# Time-of-the-Day Tariff ( ToD )
# Dynamic Tariff
# Advanced Metering
# Smart Grid
Some of these, I have
listed in my following e-mails to our Policy Makers over past 4 YEARS :
Congratulations, Shri Vijaybhai
Rupaniji, ………………………………[ 30
Dec 2020 ]
Extract :
[ A ]…………Gujarat Policy :
GROUP OWNERSHIP for Self-Consumption based on ratio of
OWNERSHIP
My Suggestion :
(
source : Congratulations
, Shri R K Singhji / 19 Nov 2020 ]
# Introduce “ Co-operative Farming of Solar Power / CFSP “ { call it a
kind of “ Contract
( incorporate this into just released FARM LAWS to encourage setting-
up of “
Solar
“Dairy Farmers’ AMUL Milk Cooperative Society “)
# Under CFSP, provide 30 % Capital Cost Subsidy to companies setting
up large ( > 500 MW ) Solar
of Kutch – Spiti – Lahul – Ladakh etc , which have a potential to
generate 315 GW of Solar power )
Read : https://myblogepage.blogspot.com/2018/08/from-ladakh-with-love-and-sun-shine.html
# 1 MW of ( grid ) solar will need 100,000 sq ft of solar panels ( 1 KW
will need 100 sq ft )
# The estimated cost of 1 MW solar power plant is approx. Rs 4 - 6
crore.
# That works out to approx. Rs 400 - 600 / sq ft of Capital cost for
Solar panels
# Solar Farm company can “ Sell “ ownership rights of solar panels to
individuals in modules of 1000
module ). These rights can be sold / transferred to any buyer, only
with prior permission of the Solar Farm Company concerned
# Each module ( of 1,000 sq ft ) will generate 10 KW of power, which
Company will feed into a
# Each such Co-operative Company can reserve / own by itself, 30 % of
Solar Panels for generating
# My nearest DISCOM will supply me those 10 KW, free of cost ( ie:
deduct from my monthly usage ) .
Any excess over my actual consumption, to be
credited to my account
# Depending upon my usage / need , I as an individual CO-OPERATIVE
OWNER , can “ buy “ any
any number of Cooperative Farming companies or other Co-op Owners
# This set-up will require NATIONAL SOLAR EXCHANGE in
which ALL discoms
will be mandated to
================================================
[ B ] … Gujarat Policy :
DISCOMs
to purchase SURPLUS ENERGY
My Suggestion :
(source
: Congratulations , Shri R K Singhji / 19 Nov
2020 ]
# My nearest DISCOM will supply me those 10 KW, free of cost ( ie:
deduct from my
consumption, to be credited to my account
==================================================
[ C ] …………….Gujarat Policy :
This policy will enable any one… who want to generate electricity
and sell
it after own
My Suggestion :
( source : Not
Good Enough ! / 02 Dec 2017 )
And I hope, it recommends amending Electricity Act whereby ,
Anyone can generate and SELL
to anyone and at any price
==================================================
[ D ] ……. Gujarat Policy :
LEASE
OF ROOFTOP / PREMISES
My Suggestion :
(
source : Not
Good Enough ! / 02 Dec 2017 )
# For reaching the target of 100 GW of Solar power generation by Nov
2022, we need to
next 60 month ( remaining 85 GW after current installations
totaling 15 GW )
# That would require an investment of Rs 10,000 Crore per month,
every month for the next
per GW )
# Part of this investment will have to come from Roof Top
Solar projects, to be set up
by :
* An Individual home-owner ( who may also want to sell surplus
power to a neighbour )
* A Coop Housing Society wanting its huge unutilized terrace to
produce solar power, for its
* A Business which will install these roof-tops at its own cost and is
allowed to sell
power to
====================================================
[ E ] …..
..Gujarat Policy :
POWER
AT LOW COST
Currently, the industry gets power at an average cost
of ₹8 per unit.
The new policy will help bring it down to ₹4.5 per unit, savings for
# residential units could be in
the
# for industrial
units it will be about ₹ 2.99 to ₹ 4.31 per
and for the third party buyers it will be in the range of ₹0.91 to ₹ 2.30
per unit.
My Suggestion :
( source : Solar
Power at Rs 1 per Kwh ? / 29 Jan 2017 )
In India , we are planning to add Solar Power to the tune of 100 GW
by 2022
How can we make that happen? And, can we make that happen at Re
1 per Kwh ? or less ?
We
can, if CAPITAL COST is ZERO ! No interest burden !
How
?
It can happen if NDA government musters enough courage
to implement what I
have been
* Government declares units belonging to " Solar Power ( Panel Mfr
/ Power Production
industry
* Units will need to register as such with Department of Company
Affairs ( DIPP )
* Units will be exempt from paying Corporate Income Tax for 10
years , on whatever income
they
operations latest by 31 March 2018 )
No
Godfather for Rooftop Solar ? ……………………………………………..[
01 June 2021 ]
Extract :
Dear Shri R K Singhji ( Minister for
Power ) :
Ø It is high time we stop limiting our SOLAR VISION HORIZON like a “ Frog
in the Well “
Ø It is time to remember that the nomenclature : Roof Top Solar “ , somehow
ties us down to the words ROOF TOP , which is only just one of the locations
which can be used to harness Solar Energy
Ø Solar Energy can also be harvested at other locations on Earth, such as
FARMS , DESERTS, LAKES, MOUNTAIN TOPS, HIGHWAYS , TRAIN TRACKS
, etc., or even through solar panels farms in SPACE ( low earth orbits ? )
, beaming electricity down to Earth-based receivers ( using
micro-waves ? )
Ø We must break loose from the
narrowly defined, Roof-Top Solar / Land-based Solar and latch on to the
all-encompassing concept of ,
SOLAR ENERGY TRADING INFRASTRUCTURE ( SETI )
A
Tale of Two States …………………………………………………………………..[ 28 Oct 2020 ]
Extract
:
MY SUGGESTION :
Out-of-the-Box Concept :
In my building, we are 10 flat-owners. Each needs 20 KW of solar – total of
200 KW
That would require 20,000 sq ft .
But the terrace is no more than 2,000 sq ft . Not enough for all
So, I ask :
Why do we need space in our own terrace in a Mumbai building for
getting200 KW of Solar Power ?
Why cannot we use 20,000 sq ft of space, 500 Km away from Mumbai, in
Kutch desert ?
In a nut-shell, produce solar power in Kutch desert and consume it in
Mumbai !
Or
produce power in Ladakh and consume it in Kolkata
Dear Shri R K
Singhji,
In the process of TRANSFORMING INDIA, we need to take, not only decisions
which are OUT-OF-BOX , but we need to take these VERY FAST
When poverty is rampant and poor people ( 400 million ? ) are dying , either
because they have lost their income due to pandemic or because their huts got
washed away in floods, we do not have the luxury of endless ANALYSIS of “ What
If “ type of scenarios
Sure, we will make mistakes, as we did in the IMPLEMENTATION – STAGES of our
earlier BOLD / OUT-of-BOX decisions to TRANSFORM INDIA , such as De-
Monetization / GST /
E-Comm / Data Protection / CoWin platform etc
But, in each of these, we learned our lessons, did “ Course Correction “– and came out stronger
We did not allow endless
analysis to produce an “ ACTION
PARALYSIS “ !
I urge you to consider my above-listed suggestions for URGENT IMPLEMENTATION
With regards,
Hemen Parekh
/ hcp@RcruitGuru.com / 05
Aug 2021
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