Lok Sabha Question No. 3010 (UNSTARRED), answered on 2025-08-07
Subject: Promoting Innovation to increase Efficiency and Sustainability of Power Sector
Ministry: POWER
Asked by: Dr. Shrikant Eknath Shinde, Smt. Shambhavi, Shri Ravindra Dattaram Waikar, Shri Rajesh Verma, Shri Naresh Ganpat Mhaske

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.3010 ANSWERED ON 07.08.2025

## PROMOTING INNOVATION TO INCREASE EFFICIENCY AND SUSTAINABILITY OF POWER SECTOR

3010. DR. SHRIKANT EKNATH SHINDE:

SMT. SHAMBHAVI:

SHRI RAVINDRA DATTARAM WAIKAR:

SHRI RAJESH VERMA:

SHRI NARESH GANPAT MHASKE:

Will the Minister of POWER be pleased to state:

- (a) whether the Government is encouraging innovation in the power sector to enhance efficiency and sustainability;
- (b) if so,  the  specific  initiatives  undertaken  to  promote  research  and development in power generation, transmission and distribution;
- (c) whether  the  Government  is  collaborating  with  private  industry  and startups to drive technological advancements in the sector and if so, details thereof;
- (d) the steps being taken by the Government to integrate renewable energy and smart grid solutions for improved energy management; and
- (e) whether any policy incentives are being introduced to make the power sector a key driver of economic growth and if so, the details thereof?

## A N S W E R

## THE MINISTER OF STATE IN THE MINISTRY OF POWER (SHRI SHRIPAD NAIK)

(a) & (b) : Ministry  of  Power,  through  the  Central  Power  Research  Institute (CPRI), has launched R&D schemes for power sector to promote research and development in the areas of power generation, transmission, and distribution. These scheme encourages need-based, applied research in collaboration with academic  institutions,  industries,  and  utilities,  aiming  to  address  real-world challenges in the power sector. Under these schemes, a wide range of projects have been undertaken, including those aimed at renewable energy integration into the national grid, development of electric vehicle (EV) charging infrastructure, and enhancement of power quality through advanced monitoring and control systems.

…….2.

Additionally, research efforts have been directed toward enabling cofiring of biomass with coal in thermal power plants to reduce emissions, as well as strengthening cyber security frameworks to safeguard the power grid from digital  threats.  These  projects  collectively  contribute  to  building  a  more efficient, secure, and sustainable power sector in India.

- (c) : The  Government  of  India  actively  promotes  collaboration  with private  industry  and  startups  to  drive  technological  innovation  in  the  power sector.  Under  the  National  Perspective  Plan  (NPP)  component  of  the  R&D scheme, joint research projects with industry and startups are encouraged. This collaborative approach aims to foster the development of cutting-edge technologies and advance them to higher Technology Readiness Levels (TRLs), paving the way for their practical deployment in real-world applications.

Further, the 'Powerthon' initiative has been launched to identify, nurture, and scale technology-driven solutions by engaging Technology Solution Providers (TSPs), including individual innovator, startups, entrepreneurs, MSMEs etc., to address critical challenges faced by Distribution Companies (DISCOMs).

(d) : The  Ministry  of  Power  has  taken  following  broad  steps  to  integrate renewable energy (RE) and smart grid solutions for improved energy management:

- i. Innovative  products  like  Solar-Wind  Hybrid  Projects,  RE  projects  with energy storage systems (including battery energy storage) and supply of RE power balanced with power from non-RE sources launched to reduce intermittency.
- ii. Implementation of flexible operation of thermal power plants to facilitate grid balancing.
- iii. Transmission plan for integration of more than 500 GW RE capacity by 2030 has been developed, which also include strong inter connection of Inter-State Transmission System (ISTS) RE schemes with the intra-state network to ensure better reliability in terms of anchoring voltage stability, angular stability, losses reduction etc.
- iv. Framework for development of Energy Storage System (ESS) has been issued.
- v. Renewable Energy Management Centers (REMCs) have been commissioned for smooth integration of growing RE capacity into the Grid sources. The system operators have started using these REMCs for forecasting and scheduling of RE generation to the best possible extent.
- vi. Green Term Ahead Market (GTAM) to facilitate sale of Renewable Energy Power through exchanges and Green Day-Ahead Market to facilitate the trading  of  RE  power  to  meet  green  targets  and  Real-time  market  to manage RE intermittency and demand variation have been launched.

…….3.

- vii. For promotion of RE projects , the waiver in the levy of ISTS charges for Solar  and  Wind  Projects  commissioned  upto  30.06.2025  with  gradual increase  in  charges  leading  to  full  ISTS  charges  from  01.07.2028  has been provided. ISTS charges are exempted for 25 years for offshore wind power projects commissioned by 31.12.2032.
- viii. For promoting Battery Energy Storage Systems (BESS), VGF schemes for BESS capacity of about 43 GWh has been launched.
- ix. Waiver  of  ISTS  charges  has  been  extended  for  electricity  from  BESS projects,  commissioned  till  June  2028  ,  which  are  co-located  with renewable energy projects and for Hydro Pumped Storage Plants (PSP) for which construction work is awarded by June 2028.
4. (e) : The power sector is a key driver to economic growth. At present, electricity accounts for approximately 22% of the country's total final energy consumption. To ensure adequate electric supply the total installed generation capacity has been increased to now 484.8 Giga watt.

Broad policy incentives aimed at making the power sector a key driver of economic growth are as follows:

- i. 'Make in India' programme in power sector has already been launched for promoting manufacturing and production of goods and services in India with a view to enhancing income and employment.
- ii. Approved  development  of  13.2  GWh  BESS  in  various  States  under Viability Gap Funding (VGF) Scheme.  Tendering process for 10.7 GWh has been concluded and 5.7 GWh has been contracted.
- iii. The Production Linked Incentive (PLI) Scheme for National Programme on  High  Efficiency  Solar  PV  Modules,  for  achieving  manufacturing capacity of Giga Watt (GW) scale in High Efficiency Solar PV modules have been approved.
- iv. PM-KUSUM  (Pradhan  Mantri  Kisan  Urja  Suraksha  evam  Utthaan Mahabhiyan) - In this scheme, use of agricultural solar pumps is being promoted. It is  aimed  at  providing  energy  security  to  the  farmers  in India.
- v. PM Surya Ghar Muft Bijlee Yojana is a Central Scheme that aims to provide free electricity  to  one  crore  households  in  India,  who  opt  to install roof top solar electricity unit. The scheme will result in addition of  30  GW  of  Solar  capacity  through  rooftop  solar  in  the  residential sector. It is estimated that scheme will create around 17 lakh direct jobs in manufacturing, logistics, supply chain, sales, installation, O&M and other services.

………4.

- vi. The Government is providing Budgetary Support for cost of Enabling Infrastructure  which  are,    i)  construction  of  roads  and  bridges  (ii) transmission  line  from  power  house  to  the  nearest  pooling  point including upgradation of pooling substation of State /Central Transmission Utility (iii) ropeways (iv) railway siding, and (v) communication infrastructure. The strengthening of existing roads/bridges  leading  to  the  project  are  also  eligible  for  central assistance under this scheme. Total outlay of the scheme is ₹12,461 crores for the period from FY 2024-25 to FY 2031-32.
- vii. The  Union  Cabinet  has  approved  the  scheme  for  providing  Central Financial Assistance (CFA) to the State Governments of NER towards their equity participation for development of Hydro Electric Projects in the North Eastern Region (NER) through Joint Venture (JV) Collaboration between  State entities and Central Public Sector Undertakings.  Under  this  scheme,  the  equity  portion  of  the  State Government of NER is proposed to be funded (capped at 24% of the total project equity, subject to a maximum of ₹ 750 Crore per project). This scheme has an outlay of ₹ 4136 crore.

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