Behind India’s ‘bijli’ revolution

In the past nine years, the Narendra Modi government has achieved a remarkable transformation in the power sector. Before 2014-15, the deficit in power supply was at 4.5%. However, since the government took office in 2014, an impressive 185 gigawatts (GW) of generation capacity has been added, turning the country from power deficit to power surplus. As a result, India is now exporting power to its neighbours.Upgrading the ecosystemSignificant progress has also been made in the transmission sector. Since 2013, an extensive network of transmission lines spanning nearly two lakh circuit kilometres has been established, connecting the entire country into one integrated grid operating at a single frequency. The ability to transfer 112GW of power from one corner of the country to another, as against just 36GW in 2014, has transformed India into a unified power market, allowing distribution companies to purchase power from any generating company across the country at the most competitive rates. This has resulted in lower electricity tariffs for consumers. medium101617391Before our government came to power, more than 18,000 villages and numerous hamlets were without electricity. In August 2015, Prime Minister Modi announced the target of electrifying every village within 1,000 days. The government achieved this target in just 987 days — 13 days ahead of the schedule. Building upon this success, the government then aimed to connect every household with electricity. This goal was achieved within 18 months, with a total of 2.86 crore homes being connected.To strengthen the distribution systems, the government implemented comprehensive schemes across all states with a sanctioned cost of over ₹2 lakh crore. This included the addition of new substations, upgrades to existing ones, the installation of transformers, and the construction and replacement of thousands of kms of low tension and high tension lines.Renewables and environmentIn 2015, Prime Minister Modi announced the target of installing 175GW of renewable energy capacity by 2022. Presently, India has established 172GW of renewable energy capacity, with an additional 84GW under various stages of implementation. This growth has positioned India as the fastest-growing country in terms of renewable energy capacity, attracting investments from major funds worldwide.Furthermore, India has achieved its commitment of 40% power generation capacity from renewables by 2030, nine years ahead of schedule. Currently, non-fossil fuel sources account for 43% of the installed power generation capacity, totalling 180GW. medium101617384The government has also been successful in reducing emissions intensity. By achieving the target of reducing emissions intensity by 33-35% compared to 2005 levels. We have now pledged to reduce our CO2 emissions by 1bn tonnes and energy intensity of our economy by 45% by 2030 against 2005 levels. We shall also achieve these targets before 2030.Comprehensive reforms have been implemented across the entire power sector. The legacy dues of power distribution companies to firms generating electricity have reduced to nearly half — from ₹1.4 lakh crore to ₹80,000 crore. The current payments for electricity drawn by discoms are up-to-date. Promoting efficiencyBy allowing flexibility for the most efficient generating stations to be scheduled first, we have reduced the cost of power for consumers. The electricity market has also expanded through the introduction of the real-time market; and by putting in place separate term-ahead and day-ahead markets for renewable energy. In an effort towards energy transition, we have permitted bundling of renewable energy with thermal energy and biomass co-firings in thermal power plants. The hydro sector — which was in doldrums, has been re-energised with almost 15GW under construction. Rules and guidelines for setting up charging infrastructure for electric vehicles (EVs) have been simplified and charging from domestic connections has been made possible. The dispute resolution mechanism now decides disputes within a month. With a focus on expanding generation capacity, enhancing transmission networks, increasing access to electricity, promoting renewable energy and implementing comprehensive reforms, India has achieved unprecedented milestones.The government’s commitment to the environment, energy efficiency and sustainable development has positioned India as a global leader in the energy transition.With increased targets for renewable energy and further reductions in emissions, the Modi government continues to power the future of India’s power sector.