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09-11-2021, 01:40 PM
By Andy Mukherjee +Get Alerts
November 9, 2021, 6:00 AM GMT+8
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India surprised delegates at the COP26 climate summit in Glasgow by announcing a net zero goal for emissions by 2070.
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It’s a daunting target. The share of renewables in the country’s current energy mix is only 12%. Besides, the third-largest emitter would guzzle 2.5 trillion kilowatt-hours of electricity annually by 2030, almost double what it required at the start of the decade.
Still, the world’s lowest-cost solar and second-lowest-cost wind producer can deliver on its pledge, provided a 6 trillion rupees (US$80 billion) hole in the heart of the country’s power system can be filled.
That’s the quantum of accumulated financial liabilities at India’s electricity distribution companies, or discoms.
......
A 22.3% “technical and commercial loss” — euphemism for free electricity to farmers and power theft — means that the distribution firms never quite manage to find their footing, despite several restructuring attempts. Their shaky financial position hurts generators, including clean-energy firms. Many discoms now have outstanding dues of between six and 12 times their monthly bills.
Without reforming this bankrupt industry, India will struggle to meet its bold target of raising non-fossil-fuel generation capacity — including hydroelectric and nuclear power — to 500 gigawatts by 2030, up from roughly 150 gigawatts now.
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During last year’s Covid-19 lockdown, the government of Prime Minister Narendra Modi provided US$17 billion in emergency liquidity support to discoms to prevent them from defaulting.
https://www.bloomberg.com/opinion/articl...er-wanting
November 9, 2021, 6:00 AM GMT+8
......
India surprised delegates at the COP26 climate summit in Glasgow by announcing a net zero goal for emissions by 2070.
......
It’s a daunting target. The share of renewables in the country’s current energy mix is only 12%. Besides, the third-largest emitter would guzzle 2.5 trillion kilowatt-hours of electricity annually by 2030, almost double what it required at the start of the decade.
Still, the world’s lowest-cost solar and second-lowest-cost wind producer can deliver on its pledge, provided a 6 trillion rupees (US$80 billion) hole in the heart of the country’s power system can be filled.
That’s the quantum of accumulated financial liabilities at India’s electricity distribution companies, or discoms.
......
A 22.3% “technical and commercial loss” — euphemism for free electricity to farmers and power theft — means that the distribution firms never quite manage to find their footing, despite several restructuring attempts. Their shaky financial position hurts generators, including clean-energy firms. Many discoms now have outstanding dues of between six and 12 times their monthly bills.
Without reforming this bankrupt industry, India will struggle to meet its bold target of raising non-fossil-fuel generation capacity — including hydroelectric and nuclear power — to 500 gigawatts by 2030, up from roughly 150 gigawatts now.
......
During last year’s Covid-19 lockdown, the government of Prime Minister Narendra Modi provided US$17 billion in emergency liquidity support to discoms to prevent them from defaulting.
https://www.bloomberg.com/opinion/articl...er-wanting
