India is witnessing a rapid economic and industrial growth with a projected GDP of 7.8 per cent in 2019 by IMF. To achieve this growth, it is important to ensure power security for the nation.
Power generation has grown at a CAGR of 7 per cent since 2010.The Ministry of Power reports that the current installed power capacity is 346 GW with 64 per cent thermal 21 per cent renewable generation, 13 per cent large hydro balance, and 2 per cent nuclear. Further, Central Electricity Authority (CEA) projects a coal capacity addition of 41 GW by 2027 that leads to a CO2 emission of 117.3 million tonne, which may cause an adverse impact on the environment.
T&D inefficiencies: Despite power generation being on the rise, CEA has reported that the peak power deficit was 2.1 per cent while overall electricity deficit was 0.7 per cent across the country in 2017-18. One of the major reasons for this deficit may be attributed to the high T&D losses in the power network, which is currently around 22 per cent. Additionally, AT&C losses also stand at around 21 per cent, leading to huge financial and operational stress on the DISCOMs.
Grid Resilience: Natural disasters have taken a toll on the power network, leading to blackouts and brownouts across India. The country has faced its worst blackout in July 2012, when the entire northern grid across eight states failed due to demand mismatch between the northern and western grids. It has now become more common for coastal cities and states to face blackouts during cyclones due to damaged grid infrastructure, bringing into question grid resilience.
To overcome the above challenges, the Government of India has announced programmes to improve energy efficiency, reduce emissions, and develop grid infrastructure. Initiatives introduced include: UJALA (Unnat Jeevan by Affordable LEDs and Appliances for All), Renewable Energy-175 GW target by 2020, Power for All, Remote Village Electrification programme. All of these ensure the nation's progress towards achieving a cleaner and equitable power supply to all.
The gap between the ambitious energy policies and programmes and challenges to the grid infrastructure can be bridged by GBCI's Performance Excellence in Electricity Renewal (PEER) programme, thus ensuring reliable, quality, resilient, and safe power to consumers and thereby improving the nation's living standard and economy. PEER has the potential to accelerate the transformation of the power and energy market to meet these goals. It establishes global best practices and supports programmes in achieving national goals, and creates a common language between the electricity consumer, power distribution companies, and energy professionals. This policy brief detail show PEER can complement the Government's work to achieve its target outcomes and holistically support grid modernisation in India. It also outlines how PEER can jumpstart a sustainable transformation in the power market, support national energy policies, and achieve targets.
India's energy policies
The government has introduced several major energy initiatives:
India's intended, nationally determined contributions aim to reduce greenhouse gas emissions intensity by 20-25 per cent by 2020 and increase the share of renewables in installed capacity to up to 40 per cent by the same year.
To achieve this, the Bureau of Energy Efficiency launched the PAT scheme - a regulatory instrument to reduce specific energy consumption in energy-intensive industries.
PEER complementing PAT
PEER can holistically support the identified DCs of PAT (DISCOMs, aluminium, cement, chlor-alkali, fertiliser, iron and steel, paper industries etc.) in achieving their energy reduction targets through its structured framework. It helps to:
Addressing energy sectors beyond PAT
PEER is a comprehensive programme developed to address sustainability, reliability, and resiliency of energy infrastructure incities, utilities, campuses (airports, hospitals, IT parks, universities, SEZ etc.), and transits (railways and metros) thereby addressing the various energy sectors of PAT. Here is a segmentation snapshot of PAT and PEER.
The UDAY scheme was launched to improve the financial and operational efficiencies of weaker state DISCOMs. The UDAY scheme could majorly be referred as a debt restructuring plan for the financially weak DISCOMs emphasising on the operational improvements through mandating feeder segregation, transformer up-gradation, compulsory smart metre installation, AT&C loss reduction, and deployment of energy efficiency measures.
PEER complimenting UDAY
With its integrated approach, PEER could drive DISCOMs towards UDAY targets and further through its proven programmes and processes. The performance outcomes could also help Indian DISCOMs in benchmarking regional and global peers.
Setting benchmarks beyond UDAY
Though UDAY has broader visions of uplifting the financially-weaker DISCOMs by mandating energy-efficiency measures and feeder metering, reliability, resiliency, and environmental performance have a greater impact on efficiency improvement and economic stability. However, they are not currently valued or measured under UDAY. PEER presents a forward-looking driving tool that emphasises tracking the reliability and environmental performance of DISCOMs through key performance indicators such as the following:
Benefits of PEER
PEER helps electricity leaders, professionals, operators, and energy stakeholders to:
The PEER case of EPB Chattanooga, Tennessee
In 2015, EPB Chattanooga became the first PEER certified municipal utility in the world.
The EPB system was put to the test in 2012, when two major storms knocked out power throughout most of Chattanooga. With electricity infrastructure improvements, power was restored to most of the system within hours instead of days.
As part of the PEER process, EPB identified opportunities for sustained improvement through
These strategies have helped EPB provide further value to customers, raise awareness of their accomplishments to date and support additional investments.
Based on 2013 data, EPB's was able to compare its SAIDI of 83.5 outage minutes per year favorably to the state of Tennessee's average SAIDI of 170 and the national average of 240 minutes projecting its reliability performance.
PEER case study: Tata Power Delhi Distribution Limited
In 2018, Tata Power Delhi Distribution became the first PEER GOLD certified utility in India.
Through PEER, Tata Power realized the following benefits:
TPDDL was able to uniquely benchmark across four PEER categories - Reliability & Resiliency, Energy efficiency & Environment, Operations, Management & Safetyand Grid Services and helped quantify their performance. They reported energy savings of 26 million units, cost savings of Rs 17.7 crore and 450 kilotons carbon emission reduction perannum.