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How to overcome power breakdowns in India

Part I: Darkness at economic noon

Part II: Why states indulge in grid indiscipline

A slew of solutions are being suggested by experts. Tata Electric's officials feel availability-based tariff is mandatory for power utilities.

Parekh says that badly behaving SEBs can be checked in two ways. One is a technical solution. Put in place systems that trip if a state drags more power. Two, introduce incentive compatible pricing where the price of power is a function of the grid's frequency and time of the day.

In other words, if a state draws more power even when the grid frequency is vulnerable, make it pay for its indiscretion.

A senior power ministry official says that the devil-may-care style of public sector functioning will hopefully change with stricter controls. "If the central government makes it clear that power breakdowns will be seriously dealt with, everyone will behave."

Parekh however says transmission being a public sector activity has nothing to do with the problem. Wholesale privatisation is not the answer. "You cannot separate generation, transmission and distribution too much. Power is a strategic sector. A certain degree of regulation is necessary. I'd prefer one common owner of transmission facility for large economies of scale."

Power Minister Suresh Prabhu says a long-term perspective is necessary. "I've ordered close monitoring of load dispatch centres. The power sector reforms have to be put on fast track. Breakdowns are a symptom; the malaise is somewhere else. There is not enough investment in transmission and distribution. The solution is three-fold: legal, organisational, and technological.

"Experts may debate strong measures, but I've gone ahead and issued directions that punitive action be initiated against those responsible for breakdowns. If states and SEBs don't fall in line, we will cut off power supply. Thankfully, the World Bank, which is acting as a catalyst in the reform of SEBs, is in agreement with my perception."

CERC member Sinha says that the real challenge is to make the various offenders realise their responsibility and to educate them on why grid discipline is important for all. "We do not want to be seen as a harsh organisation.

"We are all the time talking of grid management but the right thing to discuss would be greed management. Both the suppliers and the beneficiaries are greedy. The suppliers want to generate more power so that they can claim improved performance while those who buy power want more and more of it to maximise their profits."

The CERC has invited SEBs and the Central Electricity Authority for a public hearing on January 15 to discuss the issue threadbare.

EXTERNAL LINKS

How Power Distribution Grids Work

Meeting India's Future Power Needs

Indian Power Sector: Change of Gear

Overview of India's power sector

Union Ministry of Power

Power sector in Ninth Five Year Plan

Money

Specials

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