Indian economy is on a recovery path. As per calculations, if India’s GDP has to grow at 7% by 2030, its electricity energy consumption should jump from about 1350 BU to around 2300 BU, which translates into a CAGR of 6.8%. To achieve this energy sector has to expand, innovate, adapt and become greener. Given this backdrop, the proposed Electricity Amendment Bill 2022 is welcome for many reasons. The Bill allows multiple distribution licensees to perform in a single area. The Bill has a strong clean energy component with defined penalties for non-compliant with Renewable Purchase obligations. The focus on Energy Storage Systems is highly praiseworthy. Also, the proposed legislation strengthens the regulatory framework to reduce delays and expedite dispute resolution. Finally, the bill allows State Electricity Regulatory Commission to be able to ensure distribution tariffs reflect electricity supply costs.
Is there any other Electricity reform you would like to mention? What is your opinion on these reforms? Do let us know.