Lok Sabha Question No. 944 (UNSTARRED), answered on 2024-02-08
Subject: Modernization of Nation's Electricity Market
Ministry: POWER
Asked by: Krishna Pal Singh Yadav, Unmesh Bhaiyyasaheb Patil, Sujay Radhakrishna Vikhepatil, Ranjeeta Koli, Rita Bahuguna Joshi, Heena Vijaykumar Gavit, Manoj Rajoria, Shrikant Eknath Shinde, Sumedhanand Saraswati

## GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.944

## ANSWERED ON 08.02.2024

## MODERNIZATION OF NATION'S ELECTRICITY MARKET

944.   DR. KRISHNA PAL SINGH YADAV:

SHRI UNMESH BHAIYYASAHEB PATIL:

DR. SHRIKANT EKNATH SHINDE:

DR. SUJAY RADHAKRISHNA VIKHE PATIL:

DR. HEENA VIJAYKUMAR GAVIT:

PROF. RITA BAHUGUNA JOSHI:

SHRIMATI RANJEETA KOLI:

SHRI SUMEDHANAND SARASWATI:

DR. MANOJ RAJORIA:

Will the Minister of POWER be pleased to state:

- (a) the total quantity of power produced in the country till now;
- (b) the details of the initiatives the Government has implemented to modernize and restructure  the  nation's  electricity  market  particularly  to  facilitate  the  seamless integration of renewable energy sources into the power grid, ensuring optimal utilization of electricity generation resources;
- (c) the  details  of  the  corrective  measures  taken  by  the  Government  to  ensure  the financial  stability  of  the  power  sector,  including  Discoms,  electricity  consumers  and power generation companies; and
- (d) the initiatives implemented by the Government to enhance the efficiency of the power  sector  and  achieve  substantial  reductions  in  transmission  and  distribution losses?

## A N S W E R

## THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY

(SHRI R.K. SINGH)

- (a)  to  (d)  :  The  power  demand  in  the  country  has  gone  up  by  50.8  percent  in  energy terms from 2013-14 to 2022-23. The peak demand has gone up from 135918 MW in 201314  to  243271  MW  in  September  2023.  We  have  been  able  to  meet  the  increase  in demand  because  we  added  196558  MW  of  capacity  between  2014  to  2023  which includes 104059 MW of RE capacity.  The details of the quantum of power generated in the  country  during  the  last  three  years  and  the  current  year  2023-24  (till  December, 2023) is given at Annexure.

In  order  to  accommodate  the  substantial  capacity  addition,  the  Government  of India planned and added 1,89,052 circuit kilometer (ckm) of transmission lines, in the same period (2013-14 to 2022-23) connecting the whole country into one grid running on one frequency with the capability of transferring 1,16,540 MW from one corner of the country to another, also further integrating the whole country into one national market.

We have introduced new products in the Exchange for Renewable Energy such as the Green Day Ahead Market and the Green Term Ahead Market.

India has one of the fastest growing Renewable Energy Capacities in the world and have emerged as the most favoured destination for investment in Renewables in the world.  Govt have constructed Green Energy Corridors and put in place 13 Renewable Energy Management Centres. Presently Renewable Energy Capacity is 180800 MW and 103660 MW is under installation.

Government has made concerted efforts to make Power Sector viable. The AT&C losses  have  come  down  from  25.72%  in  2014-15  to  15.40%  in  2022-23.    All  current payment of Gencos are up-to-date and the legacy dues of Gencos have come down from Rs. 1,39,947 crore as on 03.06.2022 to Rs. 49,451 crore as on 31.01.2024.  The subsidy payment to DISCOMS on account of subsidies announced by State Government are upto-date.

In  order  to  reduce  the  AT&C  losses,  the  Government  of  India  has  implemented the following steps:

- (i) Provided  funds  under  DDUGJY  and  IPDS  to  install  meter  on  unmetered connections;  and  installed  covered  wire  in  loss  prone  areas  to  make  theft difficult;
- (ii) Put in place energy accounting and energy audit system;
- (iii) Revised  prudential  norms  to  ensure  that  no  loans  are  given  by  REC/PFC  to DISCOMs which are making losses, unless they draw up a plan to reduce the losses,  get  their  State  Government  approval  on  it  and  file  it  with  the Government of India; and follow up on these steps;
- (iv) Put in place a merit order despatch system to ensure that cheaper power is despatch first;
- (v) Reduced the late payment surcharge to reduce the burden on the DISCOMs;
- (vi) Put  in  place  rules  to  ensure  that  if  the  Genco  is  not  paid  for  the  power supplied,  the  access  to  the  power  exchange  of  the  defaulting  DISCOMs  is automatically cut off;
- (vii) Put in place an incentive of an additional borrowing space of 0.5% of GDP for the State, if the DISCOMs puts in place loss reduction measures;
- (viii) Provided  that  no  funds  will  be  given  under  RDSS  to  loss  making  DISCOMs unless they put in place measures to reduce their losses; and
- (ix) Put in place Rules to ensure that the tariff is up-to-date.

As a result of the above measures, the power sector has become viable and profitable.

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ANNEXURE QUESTION NO. 944 ANSWERED IN THE LOK SABHA ON 08.02.2024

## ANNEXURE  REFERRED  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  UNSTARRED *************

The details of total quantity of power produced in the country in the last three years and the current year 2023-24(till December, 2023)

(All figures are in MU)

| Fuel                                             | Fuel                                             | 2020-21    | 2021-22    | 2022-23    | 2023-24 (upto Dec)   |
|--------------------------------------------------|--------------------------------------------------|------------|------------|------------|----------------------|
|                                                  | COAL                                             | 950937.55  | 1041487.43 | 1145907.58 | 932258.66            |
|                                                  | DIESEL                                           | 126.31     | 117.24     | 229.71     | 300.5                |
|                                                  | HIGH SPEED DIESEL                                | 0          | 0          | 0          | 0                    |
| THERMAL                                          | LIGNITE                                          | 30505.68   | 37094.04   | 36188.34   | 24324.57             |
|                                                  | MULTI FUEL                                       |            |            |            |                      |
|                                                  | NAPTHA                                           | 101.41     | 0          | 0.83       | 0                    |
|                                                  | NATURAL GAS                                      | 50842.59   | 36015.77   | 23884.21   | 23903.53             |
| THERMAL Total                                    | THERMAL Total                                    | 1032513.54 | 1114714.48 | 1206210.67 | 980787.26            |
| NUCLEAR                                          | NUCLEAR                                          | 43029.08   | 47112.06   | 45861.09   | 36263.36             |
| HYDRO                                            | HYDRO                                            | 150299.52  | 151627.33  | 162098.77  | 114757.77            |
| Bhutan Import                                    | Bhutan Import                                    | 8765.5     | 7493.2     | 6742.4     | 4672.1               |
| Renewable Energy Sources (excluding large hydro) | Renewable Energy Sources (excluding large hydro) | 147247.508 | 170912.297 | 203552.685 | 172488.39            |
| Grand Total                                      | Grand Total                                      | 1381855.15 | 1491859.37 | 1624465.61 | 1308968.88           |

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