TRANSFORMING TRANSITION OF ELECTRICITY EVOLUTION

An article by R.K. Pandey, Head International Business, Core Infra - Tata Projects Ltd.

- R.K. Pandey

The survival with thrive of each one of us along with changing con-sumption pattern and behaviour is key in today’s transforming transition of electricity. Electricity business persists over a century and is continuously transitioning to overcome various challenges in meeting demand in congruence to public and environment. The electricity business approach until 20th century accelerated economic growth in many countries due to aggressive investment.

The base of prosperous developed countries is built upon fossil fuel, carbon intensive industries, and lifestyles which have resulted only in global warming. This is spurring developing countries to ensure that its development goal follows no carbon as future model. India should decouple the challenges of becoming prosperous while simultaneously climbing the unclimbed journey of sustainability - enabling net zero transformation to be habitant of green future.

Time zone is the essence of any business model and with shifting of economy to low growth, facilities tend to be surplus under the legal monopoly, so switched to a model for efficiency based on market principles. This invites fair competition in the wholesale and electricity generation businesses in which transmission and distribution businesses unbundled to ensure competitive neutrality. Intermittency of renewables will increase the quantum of transmission capacity needed, which will translate to even higher investments. This enabled the power sector in witnessing significant changes in course of 4th regime of transmission pricing as Inter State Transmission System has grown from yearly transmission charges of Rs 100 bn in 2011 to Rs 360 bn in 2019. Now, entered with more pragmatic model of Framework of Point of Connection Charges “2020 Sharing Regulations” to bring deeper value proposition.