Surging power demand calls for better transmission and distribution

Quality, reliable electricity supply is the need of the hour, as India looks to become a $5-trillion economy by 2024 and many industries require power to fuel their economic activities. We look at how the T&D system can be strengthened to meet the increasing power demand.

A strong transmission and distribution system is a crucial aspect of a country’s economic success. Regular access to quality power is vital for industries to undertake operations smoothly. We talk to key players in the industry on how the T&D system can be improved and how the challenges in enabling this reality can be effectively mitigated.

Building a better T&D system step by step
A strong transmission and distribution infrastructure requires structural changes in the system. This has to be done on a large scale by the government and DISCOMs, as they have the required resources and capabilities to achieve this goal. Shekhar Brahmankar, Executive Director, Electro Crimp Contacts (India) Pvt. Ltd. tells us, “Certain government policies related to the power sector need to be rethought or redrafted. As we know, the renewable energy sector has huge potential in India. But due to certain policies, producers are unable to ensure competencies and efficiencies in their operations because of which they are suffering losses. Subsequently, the business of ancillary manufacturers like us gets affected greatly, including by duties.”

Manish Gupta, Regional Manager, OMICRON Energy Solutions Private Limited, says, “Although we have surplus power generation, it’s still not reaching all the corners of the country. India has more than enough power suppliers, but there is definitely a big scope of improvement in the quality of power.”

Subhash Sethi, Power Consultant, explains, “The power sector today has about 3,67,000 MW of installed generating capacity comprising various sources of energy such as coal, gas hydro, nuclear and renewable, while the demand is only about 1,80,000 MW, which means that the installed capacity is almost double that of the current demand. Demand comes from the industrial, commercial and residential consumers, from which the industry contributes to the demand increase on a consistent basis while domestic demand varies in different regions. As energy cannot be stored, power is generated according to demand. Increase in demand depends on the economic growth in the country. The elasticity factor, which is the relation between the GDP growth and electricity growth, varies between 0.9 and 1.1 as sometimes the demand is higher and vice versa. All the generating stations have full evacuation capacity of transmission lines in the country. So if the installed capacity is about 3,67,000 MW, the system including the transformation capacity is much more than this.”

He adds that transmission lines are usually designed for a load that is estimated for the next 20-25 years. Planning and commissioning of new generating stations depends on demand, and transmission lines are accordingly commissioned. So, the capacity of the transmission system is adequate for the existing capacity. With respect to distribution, around 95 percent of DISCOMs in India are owned by state governments, and there are very few private company players in the country. Only Delhi, Surat, Mumbai, and Kolkata are privatised. Delhi has a joint venture between the private sector and the government, with the private sector holding a 51 percent stake and the government holding 49 percent.

Distribution losses have two components, i.e., the technical component and the theft component. Under the technical component, losses can be reduced by designing the system with new technologies according to the load. Sethi states further, “The onus of developing the distribution system to commensurate with the demand lies on the state governments that manage the DISCOMs. Thefts happen due to faulty meters, billing system and collection and so on. Here also the onus lies on the state DISCOMs on how they run the DISCOM. Certain states like Gujarat, Andhra Pradesh and Uttarakhand have only 10 percent losses, while Delhi has around 8-9 percent losses. If the state government wishes to give subsidies to DISCOMs, they should do it upfront as DISCOMs have to pay the generating and transmission companies on a monthly basis. Otherwise DISCOMs will have to borrow loans from banks and FIs, for which they have to pay interest, and that will be included in the electricity tariff.”

Making electricity smart
Smart electricity can be an effective tool to strengthen the T&D system. It involves the use of data to monitor electricity usage, which can help users understand where they can improve their energy consumption, thereby helping in saving and conserving energy. Energy saved is energy gained, and it can be a small but important step in improved power generation, transmission and distribution. Brahmankar supports this, saying, “Energy savings is a crucial part of smart electricity. Some of the products that we manufacture are bimetallic lugs, which are used for aluminium cables and copper connections and help minimise galvanic corrosion between the terminal and the lug by keeping the two metals homogeneously connected through friction welding.” Such steps taken by industry players are aiding the country to move closer towards achieving smart electricity.

Sethi differs saying that India already has smart electricity as there are digital systems like SCADA being used, so the communication between devices is good. Data recording and analysis is already happening. The electrical system is controlled by microprocessors and works on digital platforms and computerised systems. New developments keep happening, so companies only need to update their systems as per their requirements.

Automation and Internet of Things (IoT) are being added to the arsenal of T&D companies to improve grid stability for better power distribution. Gupta says, “The focus should be on investing in technology so that the system and network can operate at the most efficient level.”

Sethi states, “This has two aspects. One is the national grid which is already fully computerised and automated. The second aspect is the distribution part which is based on static meters. Billing all over the country happens through computerised systems. So it gets automatically updated into the system. Good DISCOMs have already automated their operations, but state DISCOMs need to come to that level. The technology already exists; it only needs to be adopted by them.”

Hope ahead for the T&D sector

WAGO Private Limited, says, “I do not see any limitation in the growth potential in the sector, as we still have a long way to go in terms of industrialisation in India. The GDP growth we are targeting, i.e., a $5-trillion economy, will involve a lot of industrial and commercial activity, and none of this can happen without electricity. So at least for the next 5-6 years, there is a lot of growth potential in the electrical sector, which will also depend on the upcoming government policies.”

The government recently announced that it will reduce DISCOMs’ losses from the current 18 percent to below 15 percent. According to Sethi, this move will make the T&D sector more efficient. Investing in the technical upgradation of the distribution system provides more business to the sectors that supply materials and components such as transformers, conductors, switchgears, etc. for it. So, the sector will certainly benefit when there’s a technical upgradation as it gets more business, making the future bright for transmission and distribution companies.

Shekhar Brahmankar, Executive Director, Electro Crimp Contacts (India) Pvt. Ltd.
Due to certain policies, producers are unable to ensure competencies and efficiencies in their operations because of which they are suffering losses.

Manish Gupta, Regional Manager, OMICRON Energy Solutions Private Limited
Although we have surplus power generation, it’s still not reaching all the corners of the country.

Subhash Sethi, Power Consultant
The onus of developing the distribution system to commensurate with the demand lies on the state governments that manage the DISCOMs.

WAGO Private Limited
The GDP growth rate we are targeting, i.e., a $5-trillion economy, will involve a lot of industrial and commercial activity, and none of this can happen without electricity.