Policy Wise: India’s Power Sector

CERC steps in to tackle sudden Surges in Power Demand

Prelims Only | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Central Electricity Regulatory Commission (CERC)

Why in the News?

India’s power regulator, the Central Electricity Regulatory Commission (CERC), has appointed a Single Member Bench to assess the challenges of a sudden surge in power demand.

Projected Power Demand for October 2024

  • India’s projected peak power demand for October 2024 is 230 Gigawatts (GW).
  • After factoring in Inter-State Transmission System (ISTS) losses, the demand is expected to rise to 232.2 GW.
  • To meet this demand, an additional 12.60 GW of generation resources is required.

Concerns over Power System Operation:

  • The steep rise in electricity demand, without enough generation sources, could pose a risk to power system operations.
  • The Regional Load Despatch Centres (RLDCs) and State Load Despatch Centres (SLDCs) are responsible for conducting operational planning to manage this surge, especially due to seasonal variations.

 

About Central Electricity Regulatory Commission (CERC):

Details
Establishment It was constituted on July 24, 1998, under the Electricity Regulatory Commissions Act, 1998, and later brought under the Electricity Act, 2003.
Type Statutory body with quasi-judicial status under Section 76 of the Electricity Act, 2003.
Ministry Functions under the Ministry of Power, Government of India.
Primary Functions – Regulates tariffs of power generation companies (owned/controlled by the Government of India).
– Regulates interstate transmission tariffs.
– Issues licenses for interstate transmission and trading.
Key Role in Tariff Evolution – Introduced a Two-Part Tariff in 1992.
– Introduced Availability Based Tariff (ABT) in 2000 to improve grid stability.
Advisory Role – Contributes to National Electricity Policy and Tariff Policy.
– Promotes competition, efficiency, and investment in the electricity sector.
Licensing – Issues licenses for electricity transmission and interstate trading.
Grid Operation Standards Enforces standards under the Indian Electricity Grid Code (IEGC) to improve grid stability and power quality.
Dispute Resolution Adjudicates disputes involving power generation companies and transmission licensees.
Collaboration Signed a MoU with the U.S. Federal Energy Regulatory Commission (FERC) in 2009 for enhancing power market regulation and grid reliability.
First Chairman Mr. S.L. Rao (1998–2001).

 

PYQ:

[2016] Which one of the following is the purpose of ‘UDAY’, a scheme of the Government?

(a) Providing technical and financial assistance to start-up entrepreneurs in the field of renewable sources of energy

(b) Providing electricity to every household in the country by 2018

(c) Replacing the coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over a period of time

(d) Providing for financial turnaround and revival of power distribution companies

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