Reliable Power: We believe that providing reliable power should be the first priority, thereby restoring the balance between demand and supply. With this having been accomplished, policy makers can then address the affordability criterion as the next step.
Consequently, it is critical that the over 30 GW of capacity (that is ready for commissioning and is awaiting fuel supply), is supplied with fuel immediately. This applies for both coal and gas-based plants.
Also, it is now critical to firmly address the dismal financial health of the State Electricity Boards. This needs to be done through a combination of increasing electricity tariffs (where needed) and by reducing distribution losses through reforms in the distribution sector. Any further capacity addition would not be possible unless this is addressed.
The country uses the most expensive fuel, diesel (and that too subsidised), to generate more than 25 GW power and more than three per cent of electricity. Imported LNG is far more advantageous as it is cleaner and a more widely used primary energy source while being more than 40 per cent cheaper than diesel. It is high time that we, as a country, made rational choices regarding our primary energy mix and ensured that we replace diesel with gas.
Renewable power: India should be proud to have done very well in the renewable sector.
More than six per cent of our electricity needs are met by renewable sources. The cost of renewable power is competitive with Wind power having achieved grid parity. This success has also set the base for a strong manufacturing sector. It is imperative that catalysts such as Renewable Power Off take obligation, Renewable Energy Certificates and Generation Based Incentive should be aggressively implemented.
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