PowerLine

Rs 100

I N D I A’ S F I R S T P O W E R M A G A Z I N E VOLUME 29 l NO. 10 JUNE 2025

www.powerline.net.in

Hedging Power Prices 14

Innovative tool to drive decarbonisation and renewable energy adoption

Special Section
Testing and
Measurement 33
Infocus
Power
Distribution 67

28 Interview with Tata Power’s Nilesh Kane

48 Interview with MAHAGENCO’s Radhakrishnan B.
58 MoP takes steps to promote ESS adoption
68 Key highlights of PFC’s report on discom performance
 CONTENTS

2 POWER LINE l June 2025

 VOLUME 29 n No. 10 June 2025 CONTENTS

PowerLine
PUBLISHER
EDITORIAL
Alok Brara

EDITOR-IN-CHIEF As the energy transition accelerates and power demand surges, India’s power
Nandita Sardana Kochhar distribution sector is undergoing rapid transformation. Utilities are gearing up
OPERATIONS to integrate rising renewable energy, enable the electrification of transport, and
Mudita Mehta (Senior Director) ensure reliable and affordable power supply. The coming years will be transfor-
Shyama Warner (Editorial Consultant)
mational for discom operations and business models.
EDITORIAL
Sugandha Khurana (Copy Editor) However, the operational and financial performance of state utilities continues
Sourya Majumder (Senior Subeditor) to be an area of concern. According to the latest Power Finance Corporation re-
Yunmila Makang (Subeditor) port on the performance of state utilities, AT&C losses worsened from 15.36 per
Rama Sudhakar Patnaik (Consultant)
cent in 2022-23 to 16.12 per cent in 2023-24. During the same period, outstand-
Anagha Mohan (Consultant)
ing debt increased from Rs 6.72 trillion to Rs 7.53 trillion, while accumulated
RESEARCH
losses rose from Rs 6.59 trillion to Rs 6.92 trillion.
Reya Ramdev (Director)
Priyanka Kwatra (Associate Director)
Currently, the government’s flagship Revamped Distribution Sector Scheme
Akanksha Chandrakar (Research Analyst)
Aastha Sharma (Research Analyst)
(RDSS) is at the centre of reform initiatives in the segment. The scheme aims to
Mohammed Ali Siddiqi (Research Associate) reduce AT&C losses to 12-15 per cent and eliminate the ACS-ARR gap by 2024-25.
Swarna Kesavan (Consultant) Smart metering has been one of its most significant interventions. Over 32 million
BUSINESS DEVELOPMENT smart meters had been installed by mid-June 2025, with 14.7 million added in the
Raman Dev Narang (Deputy CEO) past year alone. However, progress remains uneven across states, and the target of
Vipul Jain (Vice-President, Marketing) replacing 250 million meters by 2025 appears increasingly ambitious.
Armaan Singh Gujral (Senior Manager)
Ritesh Pania (Manager) In this context, the proposal for RDSS 2.0 is timely. The next phase of reforms
DIGITAL MARKETING must build on the current gains while addressing gaps in technology, resilience
Rashmi Mahajan (General Manager) and execution. Priorities such as AI-based load forecasting and advanced sub-
DESIGN station automation will be critical for creating a future-ready distribution system.
Jaison Jose (Sr. Graphic Designer)
Lakhvinder Singh (Sr. Graphic Designer) Alongside, a broader set of reform measures is being actively discussed. These
include the public listing of profit-making discoms and utilities, separating
ADMINISTRATION
Jose James, Saroj Kumar technical and commercial losses for more precise intervention, and a renewed
push for privatisation of discoms in select states and union territories.
CIRCULATION
[email protected]
This edition of Power Line’s In Focus section examines the key recent develop-
OFFICE ments in the distribution segment, emerging trends, persistent challenges and
B-17, Qutab Institutional Area
the road ahead.
New Delhi 110 016
Phone: +91-11-4103 4600-01
Fax: +91-11-2653 1196
E-mail: [email protected]

Printed and processed at

Thomson Press (India) Limited
© 2024 Power Line
All rights reserved. Reproduction in whole or
in part without permission is prohibited.

Picture courtesy: Shutterstock images

POWER LINE l June 2025 3

 CONTENTS

NEWS BRIEFS 6 Ensuring safety 42 Towards smarter networks 76

SPECIAL STORIES Transformer testing methods and Technologies enhancing discom
best practices operations
Hedging power prices 14
India launches electricity derivatives Rigorous inspection 44 Charging ahead 80
market Generation equipment testing is Building the EV ecosystem
fundamental to operational
excellence Key statistics 82
Financial performance of discoms
Quality assurance 46 after subsidy support
Ensuring smart meter reliability
through testing FOCUS ON REGULATION
Power market design 84
FORUM CERC’s latest draft amendment
Interview with Radhakrishnan B. 48 signals structural reform
“Maharashtra is leading
India’s clean energy shift” COMPANY RELEASE 88

Policy updates 16 Maintaining balance 54 PHOTOGALLERY 89

MoP promotes ESS adoption to Power sector confronts demand
accelerate India’s clean energy surges and decarbonisation PEOPLE
transition goals Dr P.R. Jaishankar, IIFCL 90
Tracking growth 18 Scaling battery storage 58 Ranendra Sarma, NEEPCO 90
Demand trends and capacity GEAPP and BRPL achieve milestone Priya Kumar, PFC 91
expansion in the power sector for BESS projects in India Arjun Mehta, GH2 India 91

New avenues 22 Balancing the grid 60 POWER DATA

GEOA opens the doors to Evolution of the energy mix and its Key statistics 92
competition across states impact on grid stability Power supply position of states
Egypt’s power reforms 26 Powering the green transition 62 Trading data 93
EETC separated from EEHC to Imperative of including TTPs in the Day ahead market
support full market liberalisation Carbon Credit Trading Scheme
Power generation 94
COMPANIES
FINANCE Total power generation in
Tata Power 28 March 2025
Green yields 64
Building a cleaner, smarter and
Recent bond activity in the
more reliable power network
renewables space
First Solar 30
Financial briefs 66
Enabling resiliency and reliability in
India and overseas
India’s solar supply chain
INFOCUS: POWER DISTRIBUTION FORM IV
SPECIAL SECTION: TESTING AND Publisher Alok Brara
MEASUREMENT Widening losses 68 Printer Alok Brara
Owner India Infrastructure Publishing Pvt. Ltd.
Key highlights of PFC’s report on Editor Alok Brara
Critical checks 34 discom performance Printing Press Thomson Press (India) Limited,
Importance of equipment testing 18/35, Delhi Mathura Road, Faridabad
Place of B-17, Qutab Institutional Area
and measurement Tracking progress 70 Publication New Delhi 110016
Update on the RDSS programme
Preventive testing 38
Optimal maintenance of cables and Digital reforms 74 For advertising in the magazine, please email
conductors crucial for stable power Smart meter roll-out gains us at [email protected] or
supply momentum under the RDSS call +91 9818 176 276

4 POWER LINE l June 2025

 CONTENTS

INDUSTRIAL POWER: MANAGING COST

OF ENERGY
Smart strategies 76
Energy and cost saving measures for C&I
facilities

POWER LINE l June 2025 5

 NEWS BRIEFS

National News
Summary of key developments
REFORMS AND REGULATIONS The scheme permits approved applicants to import complete-
The Central Electricity Regulatory Commission has released the draft ly built-up electric four-wheelers manufactured by global group
Power Market (First Amendment) Regulations, 2025, marking a sig- companies with a minimum cost, insurance and freight value of
nificant move to modernise India’s electricity market. The key $35,000 at a reduced customs duty of 15 per cent for five years.
changes include the formal recognition of virtual power pur-
chase agreements (PPAs), which offer a financial contracting Central Sector
mechanism for renewable energy and will be crucial for ac-
celerating clean energy adoption. The regulations also expand The Prime Minister has laid the foundation stone for NTPC Limited’s
the over-the-counter market to include new instruments such upcoming Nabinagar super thermal power project (TPP) Stage-II
as battery energy storage system (BESS) contracts and power (3x800 MW) in Aurangabad, Bihar. The project entails an estimat-
banking. ed cost of Rs 299.48 billion and is based on ultra-supercritical
technology. The plant is expected to enhance electricity supply
The Ministry of Power (MoP) has issued a clarification on the waiver of to Bihar and other beneficiary states, including Rajasthan, Ut-
interstate transmission system (ISTS) charges for hydro pumped storage tar Pradesh, Odisha, West Bengal and Punjab.
projects (PSPs) and BESS projects. As per the latest provisions, a 100
per cent waiver on ISTS charges will apply to hydro PSPs for which The central government has approved a viability gap funding scheme
construction has been awarded on or before June 30, 2028. Sim- of Rs 54 billion to support the development of 30 GWh of BESS.
ilarly, co-located BESS projects commissioned by June 30, 2028, To further strengthen transmission infrastructure, the govern-
will also receive a full ISTS charges waiver, provided the power ment plans to roll out ultra-high voltage alternating current
is consumed outside the state and the BESS is connected to the transmission systems. Additionally, the compensation struc-
same ISTS substation as the associated renewable energy project. ture under the right of way rules has been revised.

The MoP has issued the draft Electricity (Amendment) Rules, 2025, Power Grid Corporation of India Limited has acquired MEL Power
to amend the Electricity Rules, 2005, introducing provisions on Transmission Limited, a project specific special purpose vehicle
the utilisation, ownership and legal treatment of energy storage (SPV) established for the evacuation of power from Mahan En-
systems (ESSs). As per the draft, ESS may be utilised either as an ergen Limited’s generating station in Madhya Pradesh. The project
independent storage system or as an integrated component of entails the establishment of a 400 kV C transmission line and
generation, transmission or distribution infrastructure. associated bays at the Rewa pooling station (PG) substation in
Madhya Pradesh, on a build, own, operate, transfer basis.
The Ministry of New and Renewable Energy (MNRE) has revised the
Approved List of Models and Manufacturers for solar modules. The list The Securities and Exchange Board of India has approved the launch
now has additional capacities from Reliance Industries Limited of electricity derivative contracts on the Multi Commodity Exchange
and SASA Energy. Other firms, such as Agrawal Renewable Ener- of India and the National Stock Exchange. The new contracts will
gy, Unique Sun Power, Oswal Solar, Navitas Green, and Insola- enable power generators, discoms and large consumers to
tion Green Energy, have also seen capacity additions or updates. hedge against price volatility in the electricity market.

The MNRE has issued revised guidelines for the installation and NTPC Renewable Energy Limited (NTPCREL) has signed a PPA with
testing of prototype wind turbines to improve safety, certification Uttar Pradesh Power Corporation Limited (UPPCL) for 1,000 MW of
and technical compliance. The National Institute of Wind En- solar capacity. The PPA was signed at a discovered tariff of Rs
ergy will serve as the nodal agency, with limits set on the num- 2.56 per kWh. The agreement follows NTPCREL’s win in UP-
ber of prototype installations and a cap of 18 months for grid
synchronisation. The rules prohibit the use of second-hand POW E R N E W S
components, ban serial production without a Revised List of
Models and Manufacturers listing, and mandate full ownership
retention by the manufacturer. If you would like to receive up-to-the-day news briefs every Monday by
email, contact Farhan Ahmed at 98913 09676 or 4103 4600.
Please note that each newsletter is priced at Rs 21,000 per year
The Ministry of Heavy Industries has notified detailed guidelines for the
plus 18 per cent GST.
Scheme to Promote Manufacturing of Electric Passenger Cars in India.

6 POWER LINE l June 2025

 NEWS BRIEFS

POWER LINE l June 2025 7

 NEWS BRIEFS

PCL’s solar PV project auction in January 2025. Phase II. In a separate development, RECPDCL has transferred
the SPV Talegaon Power Transmission Limited to Adani Energy
THDC India Limited has commissioned the first unit (250 MW) of the Solutions Limited through a tariff-based competitive bidding
1,000 MW Tehri PSP in Uttarakhand. The power electronics and process. The scheme involves the establishment of a 765/400
controls, in addition to the 250 MW variable-speed pumped kV (2x1500 MVA) substation near South of Kalamb, a line-in
storage hydropower unit, were supplied by GE Vernova. line-out of approximately 89.18 km of the 765 kV Pune-III to
Boisar-II transmission line.
NTPC has commissioned Unit-3 (660 MW) of the 1,980 MW (3x660
MW) North Karanpura super TPP. Additionally, NTPC has com- The Ministry of Coal has opened bids for the 12th round of com-
missioned 193 MW of the 245 MW capacity at Plot-3 of its Nokh mercial coal block auctions, excluding six underground blocks.
solar PV project (3x245 MW) in Rajasthan. Following this, the Among the participants were key central sector public sector
total standalone and group commercial capacity of NTPC will undertakings, including Damodar Valley Corporation, NLC In-
become 60,266 MW and 81,368 MW respectively. dia Limited and Western Coalfields Limited. In a parallel devel-
opment, the ministry has awarded the Marwatola-II coal block
NTPC Green Energy Limited has commissioned the first 110.25 MW of to Singhal Business Private Limited. This marks the 200th coal
the 1,255 MW Khavda-I solar project in Gujarat. The project is be- mine allocation by the ministry.
ing developed by NTPCREL, a subsidiary of NTPC Green. The
commissioning aligns with NTPC’s roadmap, aiming to add 699 Nepal has commenced the export of 40 MW of electricity to Bangladesh
MW of renewables in 2025. through the Indian transmission network. The move follows the tri-
lateral agreement signed between Nepal, India and Bangladesh
NLC India Renewables Limited (NIRL) has signed a joint venture on October 3, 2024, to enable cross-border electricity trade. As
(JV) agreement with Mahatma Phule Renewable Energy and In- per the agreement, Nepal will supply 40 MW of electricity to Ban-
frastructure Technology Limited (MAHAPREIT). The JV compa- gladesh from June 15, 2025, to November 15, 2025, using India’s
ny will initially focus on developing 2,000 MW of renewable 400 kV Muzaffarpur-Baharampur-Bheramara transmission line.
energy capacity, with 500 MW in Phase I and will scale up to
5,000 MW in the future. The equity structure of the JV compa- The Indian government will reportedly invest approximately Rs 900
ny will consist of 74 per cent ownership by NIRL and 26 per billion to establish undersea power transmission lines for exporting
cent by MAHAPREIT. electricity to Saudi Arabia and the UAE. The JV agreements have
been signed with both countries. The Saudi Arabia link, with a
The Prime Minister has inaugurated Unit-1 (660 MW) of the 1,980 cable length of 1,400 km, is estimated to cost Rs 470 billion, while
MW Ghatampur TPP in Kanpur Nagar, Uttar Pradesh. The project is the UAE link, spanning 1,600 km, will require Rs 430 billion.
being developed by Neyveli Uttar Pradesh Power Limited, a JV
between NLC India Limited (51 per cent) and Uttar Pradesh Ra- State Sector
jya Vidyut Utpadan Nigam Limited (49 per cent), at an estimat-
ed cost of Rs 217.81 billion. The Rajasthan Electricity Regulatory Commission (RERC) has issued
a draft procedure under the RERC (Rajasthan Electricity Grid Code)
PFC Consulting Limited has incorporated three new SPVs for the Regulations, 2024, for granting connectivity to the intra-state trans-
development of ISTS in Maharashtra and Andhra Pradesh. The first mission system. The procedure lays out the technical, commer-
SPV, Waghdari Transmission Limited, has been incorporated cial and regulatory framework for grid connectivity at 33 kV
for the development of a 400/220 kV substation at Waghdari and above for various entities.
in Solapur district, Maharashtra. The second SPV, Kurnool
IV REZ Power Transmission Limited, will be responsible for The Kerala State Electricity Regulatory Commission (KSERC) has is-
implementing the transmission system for Kurnool-IV renew- sued the draft KSERC (Renewable Energy and Related Matters) Regula-
able energy zone (REZ) Phase II (3 GW) in Andhra Pradesh. tions, 2025. The draft regulations cover grid-interactive renewable
The third SPV, Saswad Transmission Limited, has been formed energy systems, captive generators, consumers and prosumers
for the development of a 400/220 kV substation at Saswad in across domestic, agricultural and industrial categories.
Pune district.
The Odisha government has approved 17 investment proposals worth
REC Power Development and Consultancy Limited (RECPDCL) has Rs 38.79 billion at the state-level single window clearance authority. In
incorporated an SPV named Rajgarh Neemuch Power Transmission the energy sector, in particular, Iron Triangle Limited plans to in-
Limited for two transmission projects in Madhya Pradesh. The SPV vest Rs 3.10 billion to set up a 200 MWh BESS in Bolangir district.
has been set up for the evacuation of power from renewable
energy projects in Rajgarh (1,500 MW) under Madhya Pradesh The Parsa East and Kanta Basan coal mine in Surguja, Chhattisgarh,
Phase III and from renewable energy projects in Neemuch has become the state’s first coal mine and among the first in In-
(1,000 MW) special economic zones under Madhya Pradesh dia to achieve complete energy self-sufficiency through solar pow-

8 POWER LINE l June 2025

 NEWS BRIEFS

POWER LINE l June 2025 9

 NEWS BRIEFS

er. Mundra Solar Limited, a wholly owned subsidiary of Adani Projects and Ventures
Green Energy Limited (AGEL), has been commissioned to power
the mine’s internal operations through a 9 MW solar power plant. KEC International Limited has secured new orders totalling Rs
22.11 billion across its transmission and distribution (T&D), oil and
The Haryana Electricity Regulatory Commission has issued revised gas pipelines, and cables businesses. In the T&D segment, the
draft order for the Haryana Deviation Settlement Mechanism Regu- company received orders for 380 kV overhead transmission
lations, 2025. The regulations aim to ensure grid security, dis- lines in Saudi Arabia and for the supply of towers,
cipline and efficient operation of intra-state transmission sys- hardware and poles in the Americas. The cables business
tems, including interstate wheeling for transactions of 10 MW won orders for the supply of various types of cables in India
and above. The framework defines provisions for scheduling and overseas.
and despatch, deviation measurement, and operation of the
state deviation pool account. Larsen and Toubro’s (L&T) power T&D business has secured grid
infrastructure orders in India and overseas. In India, the compa-
The Uttar Pradesh State Industrial Development Authority (UPSIDA) ny secured an order to construct 765 kV and 400 kV transmis-
has launched a solar energy initiative aimed at powering industrial sion lines for integrating a renewable energy zone in Andhra
zones across the state. As part of this effort, UPSIDA has identi- Pradesh. Additionally, L&T’s Heavy Civil Infrastructure busi-
fied 13 sites for the installation of solar power plants. The zones ness has secured a major order from JSW Energy to execute the
have been selected for their industrial significance and will be 1,500 MW Bhavali PSP in Maharashtra.
developed as solar-enabled hubs.
Andritz has secured an order from AGEL for the supply of electrome-
Private Sector chanical equipment for the 1,500 MW Tarali PSP in Satara district,
Maharashtra. As part of the contract, the technology group will
IndiGrid has signed agreements to acquire equity stakes in ReNew So- supply pump turbines, motor-generators and other associated
lar Aayan Private Limited (RSAPL) and Koppal Narendra Transmission electromechanical systems.
Limited (KNTL) in two separate transactions from ReNew Solar
Power Private Limited and its affiliates. RSAPL is a 300 MW oper- Waaree Renewable Technologies Limited has received a letter of award
ational solar project located in Barmer, Rajasthan, and KNTL is for executing engineering, procurement and construction works for a
an ISTS project based in Karnataka. 300 MW AC/435 MW DC solar power project. The contract is worth Rs
3.46 billion and is scheduled to be completed this financial year.
Juniper Green Energy Limited has commissioned a 145.99 MWp solar
power project at Chapalgaon in Maharashtra, supplying electricity Torrent Green Energy Private Limited has received two letters of
to Maharashtra State Electricity Distribution Company Limited (MSED- award from Solar Energy Corporation of India Limited for develop-
CL). The plant will operate at its full capacity of 145.99 MWp ing 300 MW of ISTS-connected wind power capacity under wind
from the date of commissioning. In a separate development, Tranche XVIII. The projects, comprising 175 MW and 125 MW,
Juniper Green Energy has commissioned the 59 MWp/42 MW have been awarded at a tariff of Rs 3.97 per kWh through a
solar component of its 75 MW hybrid power project in Karanja competitive bidding process.
(Ghadge), Wardha district, Maharashtra. The plant was commis-
sioned on June 6, 2025, a full 17 months ahead of its scheduled Volks Energie has secured a contract from Bharat Petroleum Corpo-
commercial operation date of November 17, 2026. The hybrid ration Limited for the commissioning of a solar PV system integrated
project, known as Juniper Green Power Five, includes a con- with lithium-ion BESS and charger systems for the Irugur-Devangonthi
tracted capacity of 75 MW under a PPA signed with MSEDCL. pipeline (IDPL) project. The IDPL pipeline spans Tamil Nadu and
Karnataka, connecting Irugur near Coimbatore to Devangonthi.
Delta Electronics India has signed a 12-year PPA to procure 9.6 MUs
of wind energy annually for its manufacturing and operational Sembcorp Green Infra Private Limited has secured its first round-the-
facilities in Tamil Nadu. The power will be sourced from wind clock renewable energy project in India. Sembcorp will deploy ap-
farms located in Tirunelveli, Tuticorin and Tiruppur, and will be proximately 300 MW of solar, wind and BESS to meet the sup-
supplied through the Tamil Nadu Generation and Distribution ply requirement under a 25-year PPA.
Corporation grid.
Crompton Greaves Consumer Electricals Limited has secured a Rs
Torrent Power Limited has signed a long-term sales and purchase 1.01 billion order from Maharashtra Energy Development Agency
agreement with BP Singapore Pte Limited for the supply of up to for the supply and installation of 4,500 off-grid solar PV water
0.41 million metric tonnes per annum of liquefied natural gas. The pumping systems. The project is being implemented under
supply period will span from 2027 to 2036. The deal is expected Component B of the Pradhan Mantri Kisan Urja Suraksha
to support Torrent Power’s fuel security and energy mix diversi- evam Utthaan Mahabhiyan scheme and will be executed on
fication strategy for its power generation operations. turnkey basis. n

10 POWER LINE l June 2025

 NEWS BRIEFS

POWER LINE l June 2025 11

 NEWS BRIEFS

International News
Around the globe

Power Grid Company of Bangladesh has successfully energised the 400 transmitting clean electricity across borders via a new subsea
kV Rooppur-Gopalganj transmission line. The transmission line now cable. The electricity is planned to be wheeled through Penin-
connects the Rooppur nuclear power plant to the national grid, sular Malaysia’s national grid, with possible support from addi-
with final grid connection work completed on June 2, 2025. The tional firming renewable generation and storage capacity.
line spans 158 km and includes 414 towers, and is one of eight
planned transmission lines designed to link the nuclear plant to The Laotian government is preparing to inaugurate the Monsoon
the national grid – four at 400 kV and four at 230 kV. These in- wind power project by the end of 2025. The $930 million project
clude the 400 kV Rooppur-Bogra line, the kV Rooppur-Gopalganj features 133 fully installed turbines spread over 68,000 hectares
line, and the under-construction 400 kV DC Rooppur-Aminba- across Dakcheung district in Xekong province and Sanxay dis-
zarp-Kaliakoir line. On the 230 kV side, the lines include the trict in Attapeu province, covering multiple provinces for the
Rooppur-Baghabari and Rooppur-Dhamrai DC routes. first time. The wind farm will generate 600 MW of clean energy,
which will be exported to Vietnam under a 25-year power pur-
Indonesia has unveiled its 2025-2034 Electricity Supply Business Plan, chase agreement with Vietnam Electricity. Power transmission
outlining the addition of 69.5 GW in new power generation, with will use a 500 kV line. The project is operated by Monsoon Wind
76 per cent of the capacity sourced from renewables and storage. Power Company Limited, a joint venture that includes ACEN,
The plan supports Indonesia’s 2060 net zero emission goal and the Ayala Group’s renewable energy platform, which holds a 25
aims to meet rising urban energy needs. The first phase (2025- per cent stake. The turbines, standing 110-140 metres tall, are
30) will see 27.9 GW of additions, including 12.2 GW from re- strategically positioned based on eight years of wind data.
newables, 9.2 GW from gas, 3.5 GW from existing coal projects
and 3 GW in energy storage. The second phase (2030-34) will Syria has signed an MoU with a consortium of international compa-
focus heavily on green energy, with 37.7 GW from renewables nies led by Qatar’s UCC Holding to develop major power generation
and storage, and only 3.9 GW from thermal sources. infrastructure with a foreign investment of approximately $7 billion.
The agreement includes the construction of four combined-cy-
The Vietnam Electricity National Power Transmission Corporation has cle gas turbine power plants with a total capacity of 4,000 MW
signed a financing agreement with the French Agence Française and a 1,000 MW solar power project in southern Syria.
de Développement worth $76.48 million to bolster Vietnam’s power
transmission network. The investment will fund three sub-projects, China Railway Electrification Bureau International Engineering Compa-
including the construction of two 500 kV substations and asso- ny Limited has energised the new 22 kV high voltage switchgear and
ciated transmission lines in Binh Duong and Dong Nai provinc- distribution transformers for Singapore’s Sengkang-Punggol De-
es. These projects aim to enhance grid stability and operational pot Power Supply Reconstruction Project (810H Project). This
efficiency, supporting the infrastructure needs of Vietnam’s fast marks the first power supply activation by a Chinese enterprise
growing economy and energy transition efforts. This funding in Singapore’s rail transit sector. The Sengkang-Punggol light
forms part of a broader collaboration between France and Viet- rail, which connects 28 stations, is a critical part of Singapore’s
nam under the Just Energy Transition Partnership. Between 2023 urban transport network and serves a high daily ridership. The
and 2027, France plans to mobilise up to $570.84 million in con- depot upgrade includes an “air stacking” design constructed
cessional loans to assist Vietnam’s transition to clean energy. above the existing Northeast Line depot and features two new
traction substations located at Rumbia and Damai stations.
Leading energy companies from Malaysia, Vietnam and Singapore
have signed a joint development agreement to explore the export of Mozambique’s Ministry of Mineral Resources and Energy has signed
renewable electricity from Vietnam to Malaysia and Singapore. two MoUs with Zimbabwe and Zambia. The agreements, formalised
The Malaysian side is represented by the MY Energy Consor- during the 11th Mining and Energy Conference in Maputo, aim
tium, an unincorporated consortium formed by Tenaga Nasi- to strengthen Southern Africa’s energy integration, industrial-
onal Berhad and Petroliam Nasional Berhad. It will collaborate isation and sustainable development, aligning with the core
with a consortium comprising PetroVietnam Technical Ser- objectives of the Southern African Development Community.
vices Corporation, a member of the Vietnam National Indus- The MoU with Zimbabwe focuses on deepening collaboration
try-Energy Group (Petrovietnam) and Sembcorp Utilities Pte in electricity generation, transmission and fuel trade, along with
Limited. The trilateral partnership will focus on tapping Viet- joint infrastructure development to support the country’s indus-
nam’s offshore wind potential and evaluating the feasibility of trial and energy demands. The MoU signed with Zambia focuses

12 POWER LINE l June 2025

 NEWS BRIEFS

on the development of a gas pipeline between the two countries. Scatec won a 123 MW/492 MWh for the Haru BESS project.
Mulilo’s awarded BESS projects include Erfdeel (123 MW/492
Kenya has taken a major step towards modernising its national elec- MWh), Retreat (123 MW/492 MWh), Bloemhoek (124 MW/496
tricity transmission system with the launch of the National System MWh) and Vanilla (123 MW/492 MWh). With a total estimat-
Control Centre (NSCC) project in Embakasi, Nairobi. The Euro 82.7 ed cost of ZAR 2.2 billion, Scatec’s project will be 90 per cent
million flagship initiative is being developed through a Euro debt-financed, and the company will retain a majority equity
48.6 million concessional sovereign loan from the French AFD stake and oversee the EPC process.
and a Euro 34.1 million concessional loan from the French Trea-
sury. The NSCC is being implemented by a consortium of GE Sungrow has signed a supply and long-term service term sheet with
Vernova and Larsen & Toubro, integrating cutting-edge super- Globeleq for the 153 MW/612 MWh Red Sands BESS project in South
visory control and data acquisition systems, energy manage- Africa. The agreement includes the supply of Sungrow’s Pow-
ment systems and enterprise asset management technologies. erTitan 2.0 liquid-cooled energy storage system and a 15-year
The project will provide real-time grid monitoring, automated operations and maintenance contract. The project is located in
despatch control and full integration with substation outsta- the Northern Cape, and is part of South Africa’s battery ener-
tions across the country. gy storage IPP procurement programme. It will connect to the
grid through Eskom’s Garona substation. The project will span
GameChange Solar has expanded its regional manufacturing capac- around 5 hectares and is positioned to support South Africa’s
ity in Saudi Arabia to 6 GW annually. The expansion is anticipated power system through load shifting, grid stabilisation and en-
to be completed by September 2025. The facility will contin- hanced renewable energy integration.
ue producing GameChange Solar’s advanced Genius Tracker
systems for utility-scale projects. Furthermore, the increased Singa Renewables Pte Limited has received a conditional licence from
manufacturing capacity will support Saudi Arabia’s ambitions Singapore’s energy market authority to import 1 GW of renewable elec-
under Vision 2030 to become a leading hub for renewable ener- tricity from Indonesia. The project involves the development of a
gy. The expansion also strengthens GameChange Solar’s ability hybrid renewable energy facility in Indonesia’s Riau province,
to supply high quality tracker systems for projects across Saudi comprising a solar farm, BESS and a subsea interconnector for
Arabia, in compliance with local sourcing mandates. electricity transmission to Singapore. The joint venture has also
signed an MoU with Singapore Energy Interconnections Pte
Scatec ASA has secured preferred bidder status for the Haru battery Limited to jointly develop the subsea cable infrastructure.
energy storage system (BESS) project. The project has a capacity of
123 MW/492 MWh and is situated in South Africa. The preferred The Oman Electricity Transmission Company (OETC) has completed
bidder status has been secured in the third bid window of the the construction and commissioning of a fault current limiter (FCL)
battery energy storage independent power producer (IPP) pro- system on the 132 kV transmission network in Muscat. With an in-
curement programme by South Africa’s Department of Mineral vestment of over OMR 4 million, the project marks a major step
Resources and Energy. The company will receive payments un- in OETC’s drive to modernise and safeguard the country’s pow-
der a 15-year agreement for making the storage capacity avail- er grid. The new system is expected to significantly improve
able for the National Transmission Company of South Africa, operational safety and reliability across the national transmis-
which will utilise the capacity to balance the grid. Furthermore, sion infrastructure. The installed FCLs are designed to contain
Scatec will own 50.01 per cent of equity in the project. fault currents within safe levels without interrupting power
flow. By doing so, they protect vital grid components, such as
Lightsource bp has secured approximately TWD 6 billion in financ- transformers, cables and circuit breakers, from thermal and
ing for its fishery solar project. The project has a capacity of 115 mechanical damage caused by short circuits.
MWp and is situated in Budai and Yizhu townships within Chiayi
county, Taiwan. Construction of the project is set to commence Namibia and Angola have agreed to fast-track the long-delayed
in June 2025. The project is expected to produce 180,000 MWh of Baynes hydropower project during a bilateral meeting in Luanda,
renewable energy per year once operational. Furthermore, the reaffirming their commitment to the project and regional co-
company is cooperating with local developer GreenRock Ener- operation. Namibia’s Ministry of Industry, Mines and Energy
gy for the development and fishery management of the project. has presented a NAD 56.3 million budget proposal for the de-
Shihlin Electric & Engineering Corporation is the engineering, velopment work of the hydropower station. Angola and Namib-
procurement and construction (EPC) contractor for the project. ia had signed the implementation agreement for the project in
November 2024. The Baynes project, situated on the Cunene
Scatec ASA and Mulilo have secured preferred bidder status in river approximately 48 km downstream of Epupa Falls, involves
South Africa’s BESS IPP procurement programme bid Window 3, the development of a 600 MW hydropower dam to be shared
hosted by the Department of Mineral Resources and Energy, equally between the two countries, along with the construction
which offered 616 MW of BESS capacity in this round. Muli- of a 400 kV transmission line with 275 km in Angola and the
lo secured four projects totalling 493 MW/1,972 MWh, while remaining 175 km in Namibia. n

POWER LINE l June 2025 13

 SPECIAL STORIES

Hedging Power Prices

India launches electricity derivatives market

I
n a landmark move to deepen power
markets and provide effective price risk
hedging tools, the Securities and Ex-
change Board of India (SEBI) has granted
regulatory approval to the Multi Commod-
ity Exchange (MCX) and the National Stock
Exchange (NSE) to launch monthly base
load electricity derivatives. These contracts
will allow generators, distribution compa-
nies and large consumers to hedge against
price volatility and manage risks more effi-
ciently. By enabling better price discovery
and risk mitigation, derivatives are expect-
ed to enhance overall market efficiency.
The introduction of electricity futures is
a key step towards strengthening India’s
power market framework, attracting cap-
ital across the electricity value chain, and Operating procedures at MCX and NSE for prior to expiry, and trading would begin
enabling greater investor confidence. electricity derivatives from the first business day of the launch
MCX and NSE are expected to commence month, with a total contract duration of
According to Praveena Rai, managing electricity trading in the coming weeks. To four months. The tick size has been set at
director (MD) and chief executive offi- foster liquidity and deepen participation Re 1 per MWh. On the expiry day, trading
cer (CEO), MCX, “The introduction of in the newly launched electricity futures in the contract would close prior to the
electricity derivatives marks a pivotal market, the two exchanges have outlined dissemination of the spot price, which is
development in India’s commodities operational mechanisms. MCX has intro- determined based on the unconstrained
ecosystem. These contracts will offer duced the Liquidity Enhancement Scheme market clearing price (UMCP) of the cor-
participants a reliable, transparent and (LES) in electricity (monthly base load) fu- responding day-ahead market (DAM) on
regulated platform to manage power tures contracts to encourage active partic- the Indian Energy Exchange (IEX).
price risks, which are becoming more ipation and market development. Market
dynamic due to renewables and mar- makers registered under the LES will be To encourage early adoption, NSE has an-
ket-based reforms. With India’s growing eligible for monthly incentives, based on nounced a six-month waiver of transac-
focus on renewable energy and open the fulfilment of committed quote obli- tion fees on electricity futures trade post-
access power markets, electricity deriva- gations. The eligibility criteria for market launch, applicable to all participants. The
tives can serve as a vital bridge between makers under the LES include a minimum waiver will be effective until December
the physical and financial sectors.” of three years’ experience in the com- 31, 2025. To put this into perspective,
modities or securities market, including the typical transaction fee is expected
The introduction of electricity derivatives experience across group companies. Prior to be Rs 170-Rs 200 per Rs 10 million
in India has been a long journey. A de- experience in trading or market-making transaction. Other key features of NSE’s
cade-long regulatory stalemate over the is preferable. Applicants must also have electricity futures contracts are monthly
jurisdiction of electricity derivatives was a minimum net worth of Rs 50 million contracts available year-round, with each
resolved in 2021, when the Central Elec- and a minimum manpower strength of 10 contract commencing on the first busi-
tricity Regulatory Commission (CERC) employees, which may include personnel ness day of the month and expiring one
and SEBI issued a joint framework that across group companies. The electricity day before month-end. Each contract has
clearly delineated their roles – SEBI would futures on MCX will have a trading unit a lot size of 50 MWh, equivalent to 50,000
regulate financial products on commod- of 50 MWh, with the maximum order size units of electricity, and is cash-settled
ity exchanges, and CERC would oversee capped at fifty times the trading unit. Each based on the difference between the fu-
physical delivery-based contracts. contract would be launched three months tures and spot prices. The price bench-

14 POWER LINE l June 2025

 SPECIAL STORIES

mark is derived from a 30-day weighted

average of spot prices across IEX, Hindu- Key contract specifications of electricity futures on the MCX
stan Power Exchange, and HPL Electric
and Power Limited. Following the launch Particulars Details
Contracts available for Contracts are available for all 12 calendar months of the
of the monthly electricity futures con-
trading year. These contracts are listed for the current month and the
tract, NSE plans to launch quarterly and
following three months.
annual contracts as well.
Contract start day First business day of the launch month. A contract is launched
three months prior to the expiry month.
Ashish Kumar Chauhan, MD and CEO,
Contract duration The trading period for these contracts is four months.
NSE, notes that the approval for deriva-
Price quote basis Rs per MWh (excluding all taxes and levies)
tives is only the beginning of a broader
Trading unit 50 MWh
electricity derivatives ecosystem. He adds
Maximum order size Fifty times the trading unit
that plans are under way to gradually in-
Tick size Re 1 per MWh
troduce contracts for difference and oth-
Due date rate (DDR) DDR is based on the volume-weighted average of the DAM-
er long-duration electricity derivatives
UMCP on the IEX across all calendar days of the expiry month
such as quarterly and annual contracts,
Settlement Cash-settled
subject to regulatory approvals.
Source: MCX
New market dynamics
Electricity derivatives are set to transform also fix prices in advance to avoid paying NITI Aayog suggests that India’s net zero
India’s power sector by offering mar- more during evening or non-solar hours. target will require more than $250 billion
ket participants a robust tool to hedge annually in energy investments through
against price volatility, enhancing cost Power producers, too, can offset revenue 2047. With renewables expected to con-
protection for buyers and revenue pre- risk by taking hedge positions in the deriv- tribute over 50 per cent of installed ca-
dictability for sellers. Historically, India’s atives market, ensuring more stable cash pacity by 2030, a deep and liquid elec-
electricity market has depended primar- flows and reducing dependence on rig- tricity derivatives market is essential to
ily on long-term PPAs of up to 25 years id long-term contracts. With renewables mobilise long-term climate capital from
to meet baseload requirements, comple- comprising close to 40 per cent of installed domestic and global investors.
mented by short-term procurement from capacity, managing intermittency has be-
the power exchanges to manage peak de- come critical. Electricity futures offer a That said, to ensure fair and transparent
mand. Derivatives offer a flexible hedge financial hedge, enabling clean energy operations, it is crucial to implement
between long-term contracts and volatile players to lock in returns and de-risk proj- strong checks and balances to prevent
spot markets by decoupling price certain- ect revenues, thereby accelerating capaci- price manipulation. Without adequate
ty from physical supply contracts and en- ty additions and attracting investment. safeguards, the market risks being dis-
abling participants to respond flexibly to torted by speculative trading rather
market conditions. The derivatives mar- For India’s fast-growing commercial and than reflecting genuine supply-demand
ket also addresses the issue of fragment- industrial segment, electricity futures in- dynamics. Stronger oversight, transpar-
ed pricing and exchange-driven spot troduce a mechanism to manage power ent capacity reporting and close coor-
volatility in the power sector. Electricity cost volatility, supporting more predictable dination between SEBI and the CERC
futures will allow utilities, industries and operational and financial planning. From are necessary to encourage meaningful
clean energy developers to manage price an investor perspective, these contracts participation from discoms, generators
risks more effectively, thereby promoting open up access to energy-linked, tradable and large consumers.
energy price stability, better investment financial instruments aligned with India’s
planning and market efficiency. transition to a net zero economy by 2070. To conclude, the regulatory approv-
al and imminent launch of electricity
Discoms have historically witnessed Opportunities ahead derivatives on the MCX and NSE mark
unpaid dues and poor financial perfor- According to the NSE, India’s electricity a watershed moment in India’s pow-
mance, which is, in part, attributable to derivatives market is projected to scale er sector. By enabling stakeholders to
inflexible PPAs, subsidised tariffs and to $174 billion-$475 billion, with growing manage price volatility and adapt to a
technical losses. With electricity deriva- interest from generators, discoms and renewable-driven energy landscape,
tives, discoms can adopt more dynamic large consumers in adopting structured electricity futures are poised to become
and responsive procurement strategies. hedging solutions. Benchmarked against a cornerstone of India’s evolving energy
Instead of selling extra solar power at low global markets, electricity derivatives in economy, supporting market efficiency,
prices during the day, discoms can use India could reach an annual volume of investment confidence and sustainable
futures to lock in better rates. They can 8,000 billion units. sector growth. n

POWER LINE l June 2025 15

 SPECIAL STORIES

Policy Updates
MoP promotes ESS adoption to accelerate India’s clean energy transition

I
n a significant move to accelerate In- One of the most significant provisions However, pumped storage hydropow-
dia’s transition towards a cleaner pow- of the draft is the flexibility granted er plant projects awarded after June 30,
er system and promote storage, the to ESS developers or owners to mon- 2028 and co-located BESSs commis-
Ministry of Power (MoP) has introduced etise their storage capacity. They are sioned beyond that date will not be eli-
two key policy updates aimed at promot- allowed to sell, lease, or rent out their gible for the waiver. Additionally, BESS
ing the deployment of storage systems. storage—either fully or partially—to projects that are not co-located with
These include the draft amendments to any entity engaged in power genera- renewable energy sources will be sub-
Rule 18 of the Electricity Rules, 2005, po- tion, transmission, distribution, or to a ject to ISTS charges in accordance with
sitioning energy storage systems (ESS) as load despatch centre. This clause opens the existing MoP orders and the Central
an integral part of the country’s power the door to innovative business models Electricity Regulatory Commission’s reg-
sector infrastructure. Also, this month, such as capacity leasing, storage-as-a- ulations.
the government has approved the waiver service and multi-user shared storage
of interstate transmission system (ISTS) infrastructure. The way forward
charges for co-located ESS projects as By clearly defining the ownership struc-
well as pumped storage hydro projects. ISTS charges waiver for energy storage proj- ture, legal status and commercial use of
ects storage systems, alongside incentivising
Draft amendments to Electricity Rules, 2005 The MoP has issued a new notification co-located storage with cost waivers,
The MoP’s draft amendment to Rule 18 extending the provisions for waiver of MoP is addressing both operational clar-
of the Electricity Rules, 2005, proposes ISTS charges. This waiver, which applies ity and financial viability.
an expanded regulatory framework for to electricity generated from renew-
energy storage. It explicitly recognises able energy, ESS and green hydrogen or This month, another crucial policy mea-
that ESS may be deployed either inde- ammonia, is designed to ease the cost sure has been the announcement of the
pendently or as an integral part of gener- burden for projects seeking to transmit VGF scheme expansion to support 30
ation, transmission, or distribution net- power across states. The updated waiver GWh of BESS. The VGF amount has been
works. The draft further allows ESSs to be builds upon earlier notifications issued set at Rs 1.8 million per MWh, sourced
developed, owned, leased, or operated between November 2021 and June 2023, from the Power System Development
by a wide array of entities. These include offering additional clarity, particularly Fund, with a total financial outlay of Rs
generating companies, transmission and for hydro pumped storage and battery 54 billion. Of the total allocation, 25 GWh
distribution licensees, system operators, energy storage systems (BESSs). of capacity has been distributed across
consumers and independent energy 15 states, including Rajasthan, Gujarat,
storage service providers. As per the latest order, hydro pumped Maharashtra, Tamil Nadu, Karnataka,
storage projects, which are awarded for Andhra Pradesh, Madhya Pradesh, Tel-
To address the legal and operational clas- construction on or before June 30, 2028, angana, Uttar Pradesh, Haryana, Ker-
sification of ESS, the draft amendment will receive a 100 per cent waiver of ISTS ala, Punjab, Chhattisgarh, Odisha and
provides a clear framework. An ESS will charges. Likewise, BESSs that are co-lo- Uttarakhand. NTPC Limited has been
assume the legal status of its owner. For cated with renewable energy projects assigned the remaining 5 GWh to utilise
example, if a generating company owns and commissioned by the same date its existing thermal and transmission in-
the storage system, it will be treated as will also be eligible for full ISTS charge frastructure.
a generation asset. However, the draft exemption, provided the power is con-
introduces a distinction in the case of sumed outside the state where the proj- As India scales up its renewable energy
non-co-located ESS. If an ESS is not lo- ect is situated. capacity, such frameworks will be cru-
cated at the site of the associated genera- cial to ensuring that ESSs are seamlessly
tion, distribution licensee, or consumer, To qualiFY for the ISTS waiver, BESS integrated into the grid, helping manage
it will still carry the owner’s legal identity, must meet the co-location criteria, which variability, ensure reliability and support
but will be treated as a separate storage are defined as both the storage system round-the-clock green power delivery. n
entity for scheduling, despatch and relat- and the renewable energy project being
ed regulatory purposes. connected at the same ISTS substation. Akanksha Chandrakar

16 POWER LINE l June 2025

 SPECIAL STORIES

POWER LINE l June 2025 17

 SPECIAL STORIES

Tracking Growth
Demand trends and capacity expansion in the power sector

A
review of data by the Central Elec-
tricity Authority (CEA) indicates
that power demand grew by a
moderate 3 per cent year on year in FY
2025, compared to FY 2024 when power
demand grew 7.8 per cent year on year
over FY 2023. The slowdown was not a
surprise.

Power demand is correlated to GDP, and

FY 2025 saw a slowdown in GDP growth
(estimated at 6.5 per cent) compared to
FY 2024 when GDP grew by over 9 per for Q4 FY 2024. For Q4 FY 2025, electric- over the same period will have to keep
cent. Unseasonal rains in May 2025 also ity demand improved with the early on- pace to meet this growing demand.
lowered demand in the first quarter (Q1) set of summer and peak demand reach-
of FY 2026 (April-June 2025). However, ing 238 GW during Q4 FY 2025. There The capacity addition of 33 GW (28.7
long-term demand should continue to was an improvement in merchant pric- GW renewables, 4.2 GW coal and 0.8 GW
grow at a compound annual growth rate es, as day-ahead market (DAM) prices hydro) in FY 2025 was an improvement
(CAGR) of over 5 per cent on the basis of on the Indian Energy Exchange (IEX) in on FY 2024, when 26 GW was added (18
anticipated GDP growth. Q4 FY 2025 hit Rs 4.4 per kWh compared GW renewables and 6 GW coal). The past
to 3.7 per kWh during Q3 FY 2025, but two fiscals have seen a sharp increase in
Capacity addition did pick up in FY 2025 this was still down 9 per cent year on capacity addition compared to the long-
with an emphasis on renewables. About year compared to Q4 FY 2024. By May term average of 15 GW annual capacity
33 GW of new capacity was added, with 2025, however, DAM had stabilised at additions. There were some acquisitions
renewables contributing 29 GW (solar just above Rs 5 per kWh. as well, such as NTPC Green Energy Lim-
alone contributing 24 GW). However, ited’s acquisition of Ayana Renewable
there were disappointments in terms of Renewable generation was up 25 per cent Power (2.1 GW) and JSW Energy’s KSK
slippages in the commissioning of new year on year to 60 BUs in Q4 FY 2025, Mahanadi (1.8 GW) takeover.
capacities, and merchant tariffs for com- while coal-based generation increased 2
panies such as JSW Energy were consid- per cent year on year to 341 BUs in Q4 FY The managements of Tata Power and
erably lower. Nonetheless, Tata Power 2025, and hydro generation increased 23 JSW Energy have commented in their lat-
and NTPC Limited both benefited from per cent year on year to 25 BUs. Gas-based est earnings calls that they expect peak
favourable tariff orders. generation declined 30 per cent year on demand to hit a record 270 GW in the
year to 5 BUs. The IEX achieved the high- summer of FY 2026, well above the re-
Seasonal factors play a role in demand. est-ever quarterly electricity volume trad- cord demand of 250 GW hit in May 2024.
FY 2025 started with a heat wave (up 7.5 ed at 31,747 MUs in Q4 FY 2025, marking The CEA forecasts peak demand require-
per cent year on year in 1Q FY 2025), but an 18 per cent year on year increase. ments of 366 GW by FY 2032, necessitat-
this was followed by a surplus monsoon, ing capacity enhancements across both
leading to a dip of 0.7 per cent year on The CAGR in demand over the past ten thermal and renewable energy. India
year in demand in 2Q FY 2025. The sec- fiscal years (2015-25) is about 4.6 per targets an increase of installed capacity
ond half of FY 2025 saw a slight recovery cent, and the CAGR in the past five fis- to 610 GW by FY 2027 and 900 GW by FY
at 2.8 per cent year on year, leading to the cal years (2020-25) is 6.6 per cent. So, a 2032 from the current installed capacity
overall 3 per cent growth. projection of approximately 5.5 per cent of 475 GW as of March 2025.
CAGR in demand for the next five years
Cumulative all-India electricity demand (2025-30) is reasonable. Roughly, India There is 34 GW of under-construction
in January-March 2025 (Q4 FY 2025) can expect around 2,200 BUs of power thermal coal capacity, which will be
stood at 416 BUs, compared to 400 BUs demand by FY 2030. Capacity additions commissioned over the next six to sev-

18 POWER LINE l June 2025

 SPECIAL STORIES

POWER LINE l June 2025 19

 SPECIAL STORIES

en years. However, there is a need to ac- Coal production and offtake were muted
celerate the pace of renewable capacity in FY 2025. India imported 243.62 million Installed capacity (GW)
additions. Capacity additions per annum tonnes (mt) of coal in FY 2025 (down 8 per
should improve further to over 40 GW cent year on year) compared to 264.53 mt
in FY 2026, and to 46 GW by 2030, if all in FY 2024. Coal India Limited produced
the anticipated renewable capacity does 781 mt of coal in FY 2025, around 7 per
come on stream. cent less than the company’s target for
FY 2025. As of May 2025, Coal India has
Notwithstanding the impressive capaci- around 105 mt in its inventory, with oth- 172.4
221.8
ty additions registered in FY 2025, many er coal producers holding an additional
companies missed their respective addi- 20 mt.
tion targets during FY 2025, and Power
Grid Corporation of India Limited (POW- On the renewables front, India now has
ERGRID) missed its transmission and a cumulative module manufacturing 47.7
distribution guidance. Profitability was capacity of 87,973 MW from 104 manu-
24.5
affected by lower merchant tariffs (down facturers as per the updated Approved
16 per cent year on year). List of Models and Manufacturers issued 8.2 0.6
by the Ministry of New and Renewable
Among PSUs, NTPC Limited added 4 Energy (MNRE). A forum of regulators Coal Gas Diesel
GW capacity (including 2 GW through recommends exempting electricity duty
Nuclear Hydro Renewables
the Ayana acquisition), against guidance and cess on input energy for pumping
to reduce running costs and encourage Source: Central Electricity Authority
of 6 GW. NHPC Limited was unable to
complete the commissioning of Parbati investments in pumped storage proj-
III (800 MW) or any units of Subansiri ects. However, the 2,000 MW Sharavathi ministered price mechanism in gas sup-
(Lower) in FY 2025, despite the guidance Pumped Storage Hydroelectric Project plies have made investors cautious, and
of 1.5 GW capacity addition. NHPC did in Karnataka is stalled, since the Minis- net 505 MW of gas capacity was decom-
commission Parbati III in April 2025. try of Environment, Forest and Climate missioned in FY 2025. However, the MoP
Change has rejected forest clearance for has also directed operational gas-based
Among private players, JSW Energy add- the project. power plants to run under Section 11 of
ed an incremental capacity of 3.6 GW in the Electricity Act, 2003, if required to en-
FY 2025, including the acquisition of KSK As per Mercom India Research, India’s sure maximum generation during peak
Mahanadi (1.8 GW). Tata Power gained solar market leaders included Adani summer months.
from improved performance of Odisha Green (developer), Tata Power (rooftop),
discoms, full-capacity operations in its Jakson Green (engineering, procure- Nuclear is another source where capac-
module and cell manufacturing busi- ment and construction), TBEA (string ity addition remained zero. However,
ness, a favourable tariff order in its Delhi inverters), Sungrow (central inverters), the Nuclear Energy Mission has a bud-
distribution business (Rs 3 billion) and Jinko (modules), Arctech (trackers), get allocation of Rs 200 billion to boost
regulatory benefits (Rs 3 billion) at the Goodluck (mounting structures), Arce- nuclear capacity, encourage private
Mundra plant, which is operating under lorMittal (open access) and TryPro (ro- sector participation, and accelerate the
Section 11 of the Electricity Act, 2003. botic cleaning). deployment of advanced technologies
ACME Solar saw strong growth in Q4 FY like small modular reactors (SMRs). The
2025 owing to capacity additions – it has Aside from solar, the CEA forecasts to- mission aims to develop at least five in-
an operational capacity of 2,540 MW as tal wind capacity to reach 73 GW by FY digenously designed SMRs by calendar
of FY 2025-end compared to 1,320 MW in 2027 and 122 GW by FY 2032. As of Feb- year 2033 and supports the development
March 2024. ruary 2025, wind capacity stood at 48.6 of Bharat Small Reactors. To achieve the
GW (compared to 48.2 GW in December target of 100 GW of nuclear capacity by
POWERGRID was impacted by a big miss 2024). The CEA targets an annual wind 2047, the mission seeks to scale capacity
on capitalisation (only Rs 90 billion was capacity addition of 10 GW, which is in from 8.18 GW to 22.5 GW by 2031-32.
achieved against Rs 180 billion guid- line with the MNRE’s tender targets of 10
ance). Management attributed the miss GW of wind (up to FY 2028). The picture across the sector is that of
to challenges in land acquisition (owing steady capacity growth and increasing
to changes in the compensation policy While the projections in solar, wind and decarbonisation. However, the missing
by the central government starting June coal are fairly clear, gas-based capacity of guidances is a cause for concern, and
2024), as well as tightness in terms of is a question mark. The volatility of fuel the targets in the nuclear segment may
manpower availability. pricing and the uncertainty of the ad- not be realistic. n

20 POWER LINE l June 2025

 SPECIAL STORIES

POWER LINE l June 2025 21

 SPECIAL STORIES

New Avenues
GEOA opens the doors to competition across states

C
ompetition and choice are relative-
ly new concepts for Indian consum-
ers. Till not too long ago, electricity,
like many other public utility services,
was under the monopoly of local distri-
bution companies, which were the sole
suppliers of power in their respective ar-
eas of jurisdiction. This began to change
with the liberalisation of the sector and
the introduction of open access through
the Electricity Act, 2003. The act aimed
to foster competition by allowing eligible
consumers to buy electricity from sup-
pliers of their choice.
at 1 MW, excluded a large pool of smaller By May 2025, the GEOA framework had
With renewables becoming more afford- C&I consumers interested in tapping the gained strong traction, with 23 out of
able than thermal power, the renewable renewable open access market. 29 states and union territories formally
open access route has become even adopting the regulations.
more crucial for commercial and indus- To address these issues, the central
trial (C&I) customers, who have ambi- government introduced the Electricity In 2023, 11 states proactively embraced
tious climate targets and need to pro- (Promoting Renewable Energy Through the GEOA framework. These were West
cure a certain percentage of renewables Green Energy Open Access) Rules, 2022 Bengal, Karnataka, Madhya Pradesh, Tri-
for meeting their electricity needs. With (GEOA Rules 2022), which significantly pura, Haryana, Sikkim, Punjab, Chhat-
most discoms not providing a green tar- lowered the threshold to 100 kW, allow- tisgarh, Uttarakhand, Maharashtra and
iff for the supply of only renewable elec- ing smaller C&I consumers to participate Odisha. This momentum continued into
tricity, many C&I players prefer the open in the green power market. The rules pro- 2024, with another 11 states – Arunachal
access route. “This route has redefined vided much-needed clarity by defining Pradesh, Gujarat, Telangana, Manipur,
energy procurement for C&I consumers, eligibility norms, banking provisions and Mizoram, Andhra Pradesh, Meghalaya,
offering lower tariffs, greater control over associated charges, along with offering Jharkhand, Nagaland, Goa and Bihar –
the energy mix and an alternative to dis- key exemptions such as relief from sur- joining in. A few other states have only
coms’ inefficiencies. By leveraging open charges. To further strengthen the frame- released draft regulations so far. These
access, businesses can now optimise work, two amendments were introduced are Uttar Pradesh, Himachal Pradesh,
costs while achieving their sustainabili- in 2023. These updates allowed demand Tamil Nadu, Delhi and Assam. All of
ty goals,” says R. Sunder, business head, aggregation across multiple connections these drafts were circulated in 2024. Ker-
C&I, India, Hero Future Energies. and clarified issues related to banking ala is the only state that is yet to initiate
charges and settlement timelines, mak- any GEOA-related policy, making it the
However, the uptake of open access ing the open access mechanism more ef- lone outlier in an otherwise comprehen-
transactions, especially for renewables, ficient, flexible and inclusive for a broad- sive roll-out.
has been slow. State-level inconsistencies er spectrum of users.
in charges, exemptions and policies cre- “Progressive policies across Karnataka,
ated uncertainty and discouraged wid- Status across states Maharashtra, Gujarat and Tamil Nadu
er adoption. While some states offered While the regulations were passed by the have led the charge in enabling open
waivers or concessions to promote re- centre, on-ground implementation de- access and fostering a cleaner energy
newable energy, others frequently revised pended on individual state-level policies. ecosystem. Meanwhile, states such as
open access charges, disrupting business Initially, adoption across states was grad- Haryana, Rajasthan and Uttarakhand are
models and investment decisions. More- ual. However, over the past two years, expanding opportunities for C&I con-
over, the eligibility threshold, typically set the landscape has shifted significantly. sumers to participate in this transforma-

22 POWER LINE l June 2025

 SPECIAL STORIES

tive regime,” says Sunder. tributing 1.43 GW and 0.98 GW, respec- in banking, wheeling and SLDC approv-
tively, in financial year 2024. als risk stalling investor confidence and
According to data from the Green Open industrial uptake,” says Mishra.
Access Registry Portal, there have been This strong growth trend has continued
a total of 1,127 GEOA injection applica- into 2025. Rajasthan, already a frontrun- Measures to promote domestic manu-
tions over the last five years (2021–2025), ner in renewable energy, has formally facturing, such as the enforcement of
with the top five GEOA-injecting states adopted the GEOA framework. Haryana the Approved List of Models and Man-
being Karnataka (384 applications), Ra- has also revised and strengthened its ufacturers and the imposition of basic
jasthan (119), Gujarat (79), Maharash- GEOA guidelines. customs duties, have also created tem-
tra (66) and Andhra Pradesh (57). These porary disruptions and impacted the
states are rich in renewable energy re- Challenges and the way forward pace f project buildout. While these pol-
sources and have robust generation ca- Despite the positives of the GEOA rules, icies aim to strengthen India’s renewable
pacity and infrastructure, making them several challenges hamper achievement manufacturing base, in the short term,
key contributors to green energy injec- of their full potential. One of the most im- they have led to supply constraints and
tion into the grid. Meanwhile, there were portant developments — lowering the el- delays in procurement, affecting time-
a total of 2,216 drawee applications, with igibility limit to 100 kW — has technically lines for open access project execution.
the top five GEOA-drawee states being opened the market to micro, small and
Tamil Nadu (737), Uttar Pradesh (356), medium enterprises (MSMEs), which In fact, in January 2025, the High Court
Andhra Pradesh (197), Gujarat (156) and make up a large part of India’s industrial of Karnataka struck down the centre’s
Telangana (110). This was likely driven base. However, adoption remains limit- Electricity (Promoting Renewable Ener-
by their high C&I energy demand, which ed, even in industrial hubs such as Guja- gy Through Green Energy Open Access)
fuels the consumption of green power rat and Maharashtra. For many MSMEs, Rules, 2022, as well as the Karnataka
under open access. lack of awareness about the mechanism, Electricity Regulatory Commission’s
limited in-house technical capacity and Terms and Conditions for Green Energy
Since the introduction of the GEOA concerns around project bankability are Open Access Regulations, 2022 under
rules, India’s C&I renewable energy open major hurdles. Small-scale consumers the legal reasoning that the centre over-
access market has seen strong growth. often struggle to secure financing or find stepped its authority under the Electric-
As highlighted in the report, “Impact of developers willing to aggregate demand ity Act, 2003 by attempting to regulate
Green Energy Open Access”, by the Insti- at such a scale, especially in the absence open access and wheeling/banking, ar-
tute for Energy Economics and Financial of long-term purchase commitments or eas that fall within the exclusive jurisdic-
Analysis (IEEFA) and JMK Research & credit-worthy offtake guarantees. As a tion of the state commissions. In March
Analytics, the market achieved a com- result, while open access is now more in- 2025, the state announced the Karnataka
pound annual growth rate of 46 per cent clusive on paper, practical uptake among Open Access Regulations, 2025. This has
between financial years 2022 and 2024, smaller C&I players - especially MSMEs set a precedent for other states.
expanding from 10.2 GW in 2022 to a - remains a challenge.
cumulative 18.7 GW by the end of 2024. Another market risk, going forward, will
Rahul Mishra, senior vice-president and State-level bottlenecks, such as delays in be the gradual phase-out of the ISTS
head, C&I business, BluPine Energy, approvals, deviations from central guide- waiver. “This waiver for renewable ener-
presents a similar estimate, noting that lines and administrative inefficiencies, gy projects has been a major cost-saving
the GEOA market accounts for just 15–18 are slowing down progress. For instance, measure, enabling C&I consumers to
GW of India’s 232 GW of installed renew- although the central rules mandate a 15- procure green power at competitive pric-
able energy capacity as of May 2025, day approval window, Maharashtra al- es. This has supported the commercial
representing less than 10 per cent of the lows 30 days, while states such as Madhya viability of long-term renewable power
overall renewable pie. Pradesh and Chhattisgarh have no clear purchase agreements and helped lower
timelines. Similarly, standby charges vary industrial power costs, boosting man-
The report goes on to add that the influ- widely. Although set at 25 per cent of en- ufacturing competitiveness under the
ence of the GEOA framework became es- ergy charges by the centre, they could be Make in India initiative,” says Mishra.
pecially pronounced between financial as high as 125 per cent in states such as
years 2023 and 2024, during which an- Chhattisgarh and Andhra Pradesh. “The He cautions that if the ISTS waiver is not
nual installed capacity soared by 90.4 per momentum of GEOA faces real threats. extended beyond June 2025, the viabil-
cent. A significant portion of this growth Policy misalignment across states, retro- ity of industrial green energy contracts
- over 70 per cent - was driven by five spective implementation of regulations will be at serious risk. Projects current-
states: Gujarat, Tamil Nadu, Karnataka, by states, uncertainties such as the pro- ly in the pipeline and expected to come
Maharashtra and Rajasthan. Gujarat and posed rollback of the inter-state transmis- up within the next two years may face
Rajasthan stood out in particular, con- sion system (ISTS) waiver and challenges abandonment due to unviable pricing

POWER LINE l June 2025 23

 SPECIAL STORIES

Case Study
Rajasthan Electricity Regulatory Commission (Terms and To ensure operational clarity, the GEOA outlines three catego-
Conditions for Green Energy Open Access) Regulations, 2025 ries of open access by duration: short term (up to one month),
medium term (over three months to three years) and long
Rajasthan has made a noteworthy move towards broader term (twelve to twenty-five years). Consumers already us-
energy access and sustainability through the GEOA Regu- ing open access can choose to either stay with their current
lations, 2025. Issued by the Rajasthan Electricity Regulatory arrangements or migrate to the GEOA framework through a
Commission (RERC) on May 21, 2025, these regulations al- one-time opt-in.
low any industrial, commercial or institutional user with a
contract demand of 100 kW or more in the same electricity Haryana Electricity Regulatoary Commission (Green Ener-
division of a discom to be qualified for green open access. In gy Open Access) Regulations, 2023, 1st Amendment Regu-
a progressive move, there is no minimum demand limit for lations, 2025
captive users, thereby opening participation to even small-
scale producers. In January 2025, the Haryana Electricity Regulatory Commis-
sion (HERC) released amendments to the GEOA regulations
The regulations permit captive renewable energy plants to be originally notified in 2023. A major change pertains to the
established at up to twice the consumer’s contracted load. In eligibility criteria for open access. Previously, only consum-
a measure to promote battery energy storage systems (BESS), ers with a contracted load of 100 kW or more were eligible.
if the installed capacity exceeds 100 per cent of the contract The amended regulation clarifies that consumers with a total
demand, 20 per cent of that excess must be backed by a BESS. contracted demand of 100 kW or above, whether through a
For projects exceeding 5 MW, the inclusion of a BESS that can single connection or multiple connections within the same
store at least 5 per cent of the renewable energy capacity for electricity operation division of a distribution licensee, will
two hours is mandatory. Aligned projects will benefit from a 75 qualiFY for GEOA.
per cent reduction in transmission and wheeling charges for a
period of seven years - an attractive incentive for large-scale Another significant amendment is the extension of addition-
users. For each additional 1 per cent of the capacity, up to 30 al surcharge exemption for electricity generated by offshore
per cent, a further 1 per cent exemption will be granted. Stand- wind projects. This exemption, which was earlier applicable
alone BESSs and those connected at 11 kV or 33 kV substations only to projects commissioned until December 2025, will now
are also fully exempt for seven years. apply to projects commissioned up to December 2032 when
supplying power to open access consumers.
Green hydrogen or ammonia projects commissioned before
2030 will get 50 per cent charge waivers. Cross subsidy sur- Additionally, HERC clarified that consumers of a distribution
charge (CSS) applies in addition to transmission and wheeling licensee who are not connected through independent feeders
charges, and is determined by RERC tariff orders. CSS will not can still avail of open access. However, this is conditional upon
exceed 20 per cent of the average cost of supply, and may be their acceptance of system limitations and any power cut re-
capped at 50 per cent of the surcharge set in the year of com- strictions imposed by the distribution licensee. In such cases,
missioning, for a period of 12 years. No additional surcharge any under-drawal of power resulting from these restrictions
will apply if fixed charges are paid for the amount drawn, up to will not be eligible for compensation.
the contract demand; surcharge will be applied to excess con-
sumption. Captive projects are allowed to bank an amount up Furthermore, HERC introduced provisions allowing consumers
to 100 per cent of the contract demand within the state, with a to draw power without unnecessary limitations, as long as their
maximum limit of 25 per cent of the injected energy or 30 per total drawal does not exceed the sanctioned contract demand.
cent of the monthly discom consumption.

structures. Such a setback could slow consumers are also demanding battery solar and battery storage, offer precisely
down future renewable energy adoption storage solutions and, in some cases, that: 24x7 renewable power suited to the
for industrial decarbonisation and af- even green hydrogen. Going forward, demands of hard-to-abate sectors. All
fect India’s export competitiveness, es- open access solutions will have to in- in all, as global value chains tilt toward
pecially in carbon and energy-intensive corporate these technologies. “The way greener inputs and carbon accountabil-
sectors tied to global market access. forward is to shift the conversation from ity, India’s clean industrial growth will
intermittent green power to dependable, depend on how effectively it scales open
Power market dynamics are changing. despatchable clean energy. Integrated access,” says Mishra. n
Alongside renewable electricity, C&I open access solutions, combining wind, By Sarthak Takyar and Sakshi Bansal

24 POWER LINE l June 2025

 SPECIAL STORIES

POWER LINE l June 2025 25

 SPECIAL STORIES

Egypt’s Power Reforms

EETC separated from EEHC to support full market liberalisation

E
gypt’s Integrated and Sustainable En- provision of non-discriminatory access General Assembly of the two companies
ergy Strategy until 2040 aims to secure to the transmission network. For this, the approved amending the articles of asso-
electricity supply, diversiFY energy government is undertaking reforms and ciation for each of them, in accordance
sources and maximise the share of renew- restructuring the sector. In April 2025, the with the provisions of the Electricity Law
able energy sources (RES) in the energy Ministry of Electricity and Renewable En- No. 87 of 2015, its executive regulations
mix to reach 42 per cent by 2030 and over ergy officially announced that the Egyp- and amendments, and Joint Stock Com-
65 per cent by 2040. The 2030 target in- tian Electricity Transmission Company panies Law No. 159 of 1981 and its execu-
cludes 22 per cent from solar, 14 per cent (EETC) has finally become an indepen- tive regulations and amendments, as part
from wind, 4 per cent from concentrated dent operator of the electricity transmis- of completing unbundling procedures.
solar and 2 per cent from hydropower. In sion grid, separating it from its parent
comparison, by June 2024, RES’ (including company, the Egyptian Electricity Hold- The decisions issued by the two compa-
hydro) share in the total capacity was only ing Company (EEHC). In particular, since nies’ general assemblies are the culmi-
around 11 per cent (or 6.8 GW), which is the launch of the economic reform pro- nation of the efforts made over the past
projected to increase to around 13 per cent gramme with the support of the Interna- few months to separate the EETC and
(or 8.3 GW) by June 2025. Another 4.6 GW tional Monetary Fund in 2016, Egypt first start its work as a network operator and
and 12.2 GW of RES are under construction introduced legislative amendments in the to establish clear, specific and compre-
and development, respectively, which, if same year, which aims to transform the hensive controls that ensure the creation
completed, are likely to take the RES share state from a sole market player to a mar- of a climate conducive to attracting local
to over 30 per cent. This capacity (16.8 GW) ket regulator and unbundle generation, and foreign private investments in new
is almost entirely being developed by the transmission and distribution activities renewable energy fields. It aims to ensure
private sector (except 20 MW). to promote private sector participation. continuity and stability of the national
Initially, the state’s electricity companies electricity grid in a way that guarantees
The government is committed to increas- were given eight years to complete the the sustainability of energy.
ing the electricity prices and fuel prod- transition to a market regulator by 2023.
ucts and achieving cost-recovery levels However, in 2020, the deadline was ex- With this separation, EETC will exclu-
by December 2025 (already postponed tended by another two years till 2025. sively undertake the activities of elec-
electricity price liberalisation from 2022 tricity transmission and network opera-
earlier due to Covid-19 and its impact) On April 29, 2025, the Ordinary General tion, and will be committed to allowing
through a gradual plan to remove energy Assembly of EEHC and EETC, approved electricity producers to use its networks
subsidies. Further, the renewable energy opening financial statements of the two without discrimination, to supply elec-
sector received policy support, including companies as of July 1, 2024, after com- tricity to distributors and consumers
the government’s latest national low-car- pleting the separation process, based on in return for a fee, in accordance with
bon hydrogen strategy, which requires at the balances shown in the companies’ specific rules and standards approved
least 19 GW and 72 GW of RES capacity financial statements as of June 30, 2024. by EgyptERA. It will also be committed
by 2030 and 2040 to produce 1.5 million The General Assembly decided to assign to managing and maintaining the trans-
tonnes (mt) and 5.8 mt of green hydro- the Board of Directors of each company mission network, implementing elec-
gen annually by 2030 and 2040 respec- to quickly complete the prescribed proce- tricity transmission projects at extra and
tively, most of which will be exported. dures in accordance with the findings of high voltages, regulating the procedures
Additionally, the issuance of the Green the report of the Separation Committee for buying and selling electricity.
Hydrogen Project Incentives Law aims to formed by Prime Ministerial Decree No.
incentivise investments in the RES sector 1607 of 2024, including the preparation of This will ensure a level playing field and
for green hydrogen and facilitates pri- the necessary contract models to regulate preserve the interests of electricity produc-
vate-to-private renewables (market mov- and govern contractual relations between ers and consumers, achieve efficiency and
ing away from the single-buyer model). the companies, in coordination with the stability, and help expand the injection of
EETC and the Egyptian Electric Utility and new investments, in line with the Electric-
It is, however, essential to ensure greater Consumer Protection Regulatory Agency ity Law, thereby achieving the state’s goals
investment in grid infrastructure and the (EgyptERA). Separately, the Extraordinary for sustainable development.n

26 POWER LINE l June 2025

 C O M PA N I E S

Tata Power
Building a cleaner, smarter and more reliable power network
In a recent interview with Power Line, Nilesh Kane, Chief – Transmission and Distribution, Tata Power, talked about the company’s
achievements and future plans for its Mumbai Distribution business. He highlighted the significant progress made in advancing green
energy adoption, enhancing customer service and deploying smart grid technologies. He also shared insights on operational challeng-
es faced, financial strategies and the strategic importance of the recently approved 100 MW battery energy storage system (BESS) in
strengthening Mumbai’s power infrastructure.
What have been the key focus areas and mile- and consumer-first utility – leading with
stones for Tata Power Mumbai Distribution purpose, driven by innovation and com-
over the past year? mitted to inclusive, green growth aligned
Over the past year, Tata Power Mumbai with India’s energy transition.
Distribution has sharpened its focus on
three strategic pillars – reliability, custom- What are the major operational and financial
er centricity and sustainability through challenges facing the Mumbai Distribution
innovation. These priorities have shaped business today?
key initiatives and delivered measurable Tata Power Mumbai Distribution op-
outcomes, positioning the utility as a key erates at the core of one of India’s most
player in the power distribution sector densely populated and rapidly evolving
both nationally and globally. urban centres. The combination of age-
ing infrastructure, accelerated vertical
Reliability has been a critical focus in development and rising consumer ex-
Mumbai’s dense urban environment, pectations presents a unique set of op-
where uninterrupted power is essential erational challenges. While earlier solu-
to the city’s economic and social fabric. Sustainability through innovation has tions like tower-mounted substations
Tata Power has delivered exceptional been the third key pillar, reinforcing served the purpose, the scale and pace of
performance, achieving a system aver- Tata Power’s commitment to building Mumbai’s vertical expansion have com-
age interruption duration index of 4.14 a greener, future-ready energy ecosys- pelled Tata Power to completely reimag-
minutes and a system average interrup- tem. The discom has further cemented ine its infrastructure strategy.
tion frequency index of 0.38 – among its role as a frontrunner in clean energy
the lowest in India and at par with glob- adoption by facilitating over 1,665 MUs In response, the utility has implemented
al benchmarks. of renewable and 724 MUs of hydro- advanced infrastructure solutions such
power supply in FY2025, reaching 2,389 as compact substations, which reduce
It also recorded low aggregate technical MUs of clean and green energy, which is spatial footprint by up to 50 per cent,
and commercial (AT&C) losses of 0.40 per about 40 per cent of the overall supply. and vertical substations integrated with-
cent, with billing efficiency exceeding 99 The company has enabled consumer in high-rise buildings. One such exam-
per cent and collection efficiency surpass- participation in clean energy through ple is the substation commissioned as
ing 100 per cent, reflecting the strength of rooftop solar net metering, open access high as the 44th floor of a premium resi-
its technical and commercial systems. and group captive models. At the infra- dential tower.
structure level, Tata Power has started
Customer centricity has remained cen- phasing out SF6 breakers and introduced Further, recognising Mumbai’s vulnera-
tral to Tata Power’s strategy, especially in standardised, eco-friendly alternatives. bility to waterlogging, Tata Power is also
an era where seamless service is as vital working on underground substations
as supply reliability. The digital payment These efforts have been widely recognised, designed to remain operational even
index rose to 88 per cent, reflecting a as Tata Power Mumbai Distribution has during heavy flooding – a move that ex-
wide adoption of digital platforms. Call earned an A+ rating in the national rank- emplifies forward-thinking infrastruc-
centre operations are now benchmarked ings of discoms and has received several ture design. These physical upgrades are
against sectors like telecom and retail, other accolades for its services and initia- further supported by the deployment of
underscoring Tata Power’s commitment tives. Looking ahead, the company will ester-filled transformers and compact,
to service excellence. continue to evolve as a smart, sustainable extensible feeder pillars, marking a de-

28 POWER LINE l June 2025

 C O M PA N I E S

cisive shift towards resilient, space-effi- er-driven grid participation through In- The recent approval by the MERC for
cient and environmentally responsible dia’s first-of-its-kind Demand Response Tata Power Mumbai Distribution to in-
urban power systems. Programme, with over 125,000 registered stall a 100 MW BESS marks a significant
consumers. In the past year alone, 10 step forward in the company’s energy
Parallel to physical infrastructure inno- events under this initiative led to a cu- transition journey. Scheduled for de-
vation, Tata Power has strengthened its mulative demand reduction of 100 MW. ployment across 10 strategic locations
technological backbone to manage Mum- in Mumbai over the next two years, the
bai’s dynamic and growing load profile. To To strengthen grid resilience further, Tata BESS will play a pivotal role in strength-
ensure efficient, reliable operations, the Power is rolling out BESS at 10 strategic ening grid resilience. One of its most
utility has accelerated the deployment of locations. Controlled centrally via an critical features is the ability to provide
smart grid technologies such as advanced advanced energy management system rapid black start capabilities, enabling
metering infrastructure (AMI), supervi- integrated with SCADA and managed the swift restoration of power to essential
sory control and data acquisition (SCA- through the power system control centre, services such as hospitals, metro systems
DA) and distribution management sys- these storage systems will optimise reac- and data centres during outages.
tems. By anticipating urban constraints, tive power management, address peak
adapting infrastructure and maintaining demand and seamlessly integrate with Beyond emergency support, the BESS
robust financial health in a competitive distributed renewable energy assets. will facilitate peak load management
regulatory environment, Tata Power and deliver key ancillary services, in-
Mumbai Distribution exemplifies fu- Internet of things-led innovations are cluding frequency regulation and volt-
ture-ready urban utility leadership – re- also contributing to improved infra- age stabilisation. These capabilities are
silient, agile and committed to serving structure monitoring. Long range-based essential for maintaining grid stability
Mumbai’s ever-growing energy needs. substation systems now track equipment during periods of high demand. Addi-
health and environmental conditions in tionally, the system will optimise the use
What smart grid and automation initiatives has real time, providing early warnings to of renewable energy by storing excess so-
Tata Power Mumbai Distribution undertaken to prevent potential failures. Additionally, lar power generated during the day and
modernise its network? the Auto Transfer Scheme ensures in- discharging it during peak consumption
In an era where electricity distribution stantaneous switchover to backup feed- hours, ensuring a more efficient and re-
must keep pace with the scale, speed and ers during faults, maintaining uninter- liable integration of clean energy into
complexity of urban growth, automation rupted supply even in critical situations. Mumbai’s power grid.
and digital technologies have become
indispensable. For Tata Power Mumbai Cloud technology drives many of these What are the key operational benefits and an-
Distribution, smart grid modernisation is advancements, providing a scalable foun- ticipated use cases of this BESS within Mum-
not a one-time initiative but a continuous dation for real-time analytics, remote di- bai’s power ecosystem?
transformation aimed at future-proofing agnostics and consumer-focused service The 100 MW BESS is a strategically de-
the network, enhancing grid resilience delivery. By leveraging cloud intelligence, signed solution aimed at addressing the
and delivering an elevated consumer ex- Tata Power is transitioning from reactive multifaceted demands of Mumbai’s dy-
perience. With over 220,000 smart meters grid management to predictive and pre- namic power ecosystem. Engineered to
already deployed, Tata Power aims to ex- scriptive operations – improving efficien- provide instant emergency backup, the
tend this digital infrastructure to all its cy, optimising performance and enhanc- system will ensure uninterrupted power
800,000 consumers by FY2027, accelerat- ing the customer experience. supply to critical infrastructure such as
ing Mumbai’s transition to a fully digital hospitals, metro networks, airports and
energy ecosystem. Through its integrated smart grid and data centres during grid outages – safe-
automation strategy, Tata Power Mum- guarding essential services and prevent-
Artificial intelligence and machine bai Distribution is redefining the role of ing large-scale blackouts. The BESS also
learning are being increasingly lever- a utility in a megacity. It is not just about supports a greater integration of renew-
aged for predictive maintenance. Da- power supply – it is about building an able energy by storing surplus solar pow-
ta-driven models analyse thermal scans intelligent, responsive and inclusive er during the day and releasing it during
and forecast equipment failures, while energy ecosystem that anticipates to- evening peak hours.
BOLA (Better Operations and Life by An- morrow’s challenges while consistently
alytics) sensors embedded in transform- delivering excellence today. As a flagship project in distributed ener-
ers and switchgear monitor temperature gy infrastructure, the 100 MW BESS sets a
and humidity, facilitating preventive ac- How critical is the recent Maharashtra Electric- new industry benchmark and further ce-
tion and extending asset life. ity Regulatory Commission (MERC) approval ments Tata Power’s leadership in build-
for the 100 MW BESS project in advancing the ing a cleaner, smarter and more reliable
Tata Power has also pioneered consum- company’s long-term energy transition goals? power network for Mumbai. n

POWER LINE l June 2025 29

 C O M PA N I E S

First Solar
Enabling resiliency and reliability in India’s solar supply chain

A
rizona-headquartered First Solar had a chance to visit this colossal facili- across the US, Malaysia, Vietnam and
set up its first solar manufacturing ty in Chennai that has a floor area of 2.5 India. It is headquartered in Tempe, Ar-
unit in India in 2023 with a mas- million square feet, and was given a tour izona, and has a corporate R&D centre
sive 3.3 GW annual production capacity. of the factory by Sujoy Ghosh, Vice-Pres- in Santa Clara and another one in Swe-
One of the only companies of its scale ident and Country Managing Director, den. In 2007, the company built a facto-
in the world that makes thin-film mod- India. Alongside discussions on thin- ry in Frankfurt Oder, Germany, however,
ules instead of crystalline ones, it is also film technology and the factory’s green it had to be closed down by 2012, due
the only solar manufacturer from the agenda, we talked about the company’s to unviable environment, triggered by
western hemisphere, and specifically global presence, the reason for selecting dumping of solar module into the Euro-
from the United States, that has set up a Chennai as the factory location, and the pean Union primarily by Chinese man-
module manufacturing facility in India. importance of supply chain security in ufacturers, due to excess capacity from
Moreover, it has the distinction of being the Indian solar power space. This arti- their home country.
the only foreign company getting select- cle begins with highlights of First Solar’s
ed as a beneficiary of the government of global operations and then dives into the While crystalline solar cells and modules
India’s production-linked incentive (PLI) key specifics of the Indian facility such continue to dominate the market, thin-
scheme Tranche-II, for setting up this fa- as project implementation and environ- film technology has witnessed an in-
cility in Sriperumbudur, near Chennai, ment conservation efforts. crease in demand in recent years, driven
in Tamil Nadu. Now, featuring on the Ap- by a slow but steady transition towards
proved List of Models and Manufactur- Background ensuring security of supply chains. The
ers (ALMM) of the Ministry of New and First Solar was founded in 1999, with its dumping of solar cells by Chinese com-
Renewable Energy, and also eligible for first production line commissioned in panies across the world, along with the
DCR solar projects, First Solar produces Ohio in 2003. Today, the company has sudden halt of cell and module supplies
its Series 7 solar modules at this facility. an aggregate name-plate capacity of from Chinese factories during the Covid
21.7 GW/annum with factories spread pandemic, made industries and govern-
I

30 POWER LINE l June 2025

 C O M PA N I E S

ments aware of the need to diversify sup- Ghosh. One, the facility had to be near agreement signed between the two com-
ply chains. Even so, China continues to a seaport as the company has to rely panies in January 2024.
dominate most of the global polysilicon on imports of some portion of its glass
production, which is the building block requirement. The project site has three Key takeaways
for a crystalline cell. As thin-film cells ports within a distance of 40-50 km – It was a highly enriching experience to
use cadmium and tellurium, which are Chennai, Kattupalli and Ennore. Two, visit this vast end-to-end solar produc-
basically impurities found in the ores of Tamil Nadu has a has a good land bank, tion facility. The entire unit is built on
zinc and copper respectively, First Solar a stable industrial policy with structured 130 acres of land of which 33 per cent is
is not dependent on any one country for state incentives like capital subsidy, and green cover and the actual manufactur-
its raw material. various private industrial clusters al- ing facility encompasses about 2.5 mil-
ready developed. For instance, one of lion square feet of the total area. Interest-
The focus on reducing the dependence First Solar’s global glass suppliers, St ingly, the factory is fully automated, and
on China for solar imports by expanding Gobain, is located close by. Three, this the modules are not touched by human
domestic manufacturing capacities has project site was already permitted for hands during the production process, in-
led to the adoption of various tariff and a red category industry. Four, the state cluding packaging.
non-tariff barriers by many countries in- has a very well-developed ecosystem
cluding the US and India. And, this has of engineering colleges, which helped According to Ghosh, it takes 4.5 hours to
worked in First Solar’s favour which has the company find the right talent for convert a sheet of glass into a module in
set up two more factories recently, one in its project, especially considering the this thin-film module producing factory,
Alabama and the other under-construc- fact that its goal was to have 50 per cent and every 5 seconds a module comes off
tion in Louisiana, apart from the one gender diversity in the workforce. It was the line. As we explored the factory on our
in Tamil Nadu to cater to the growing pertinent to select a city and seaport golf cart, we tracked the module’s journey
domestic demand in these countries. It combination as the company had to not from a glass pane to a completed module
aims to reach 25 GW of annual produc- only find the right talent but also nur- being packed and stored, as it travelled
tion capacity by 2026 driven by the rising ture and retain it. through 4.5 km of conveyor belts!
demand for thin-film technology.
Interestingly, this solar manufactur- As India focuses on enhancing its en-
The Chennai facility ing facility is reportedly the world’s first ergy security by reducing imports and
Built in a time-frame of 19 months from net-zero water withdrawal solar mod- promoting domestic manufacturing of
ground-breaking, the factory’s formal ule production unit. Built in an area of clean energy equipment, this 3.3 GW
inauguration was done in January 2024. high baseline water stress, it entirely First Solar manufacturing facility ticks
Meanwhile, the facility commenced sales relies on water from Chennai’s Metro- some of the key boxes in this journey.
in November 2024 after securing the nec- water TTRO plant. The water is treated First, the company does not depend on
essary local certifications like BIS. Apart through reverse osmosis. In addition, it Chinese imports for producing its solar
from incentives from the Indian govern- is a zero-wastewater discharge facility. modules. Second, it co-develops all of
ment in the form of PLI, the project was To further adopt the principle of circu- its process equipment with its manufac-
supported by the US International De- larity, the facility has a solar PV recycling turing partners through shared intellec-
velopment Finance Corporation (DFC), plant. While many of the materials such tual properties; this helps it in creating a
which financed $500 million out of the as aluminum, glass and laminates are re- captive and controllable ecosystem for
total investment of approximately $700 covered using established practices, the the future. Third, the company’s focus is
million. In addition, the company re- facility employs a closed-loop semicon- on localising the connected component
ceived significant support from the state ductor recovery technology that helps ecosystem such as glass, frame and oth-
government of Tamil Nadu, in the form recycles cadmium and tellurium from er bill of materials, by getting its global
of quick permits (which were granted scrap modules. suppliers to India or tying up with do-
within 35 days) through a single window mestic suppliers who can supply to the
portal, helping the company to start con- Staying on track towards achieving its facility. Finally, First Solar is adopting
struction on time. Facilities such as high green manufacturing goals, First So- circular economy principles through
voltage power connection and water lar has tied up with Cleantech Solar to recycling, green energy procurement
connection were also made available to source 7.3 GWh renewable energy from and net-zero water withdrawal practic-
the company on time. the latter’s intrastate solar-wind hybrid es, which sets a benchmark for future
project coming up in Tamil Nadu. First clean energy manufacturing units in the
There were a few other reasons for First Solar has taken 26 per cent equity in this country, in turn, paving the way for the
Solar to select Tamil Nadu as the state group captive project, which will meet sustainable growth of India’s manufac-
and then zero in on Chennai for its 50-70 per cent of the factory’s energy turing capabilities. n
first-ever facility in India, according to needs, as per the 15-year power purchase Khushboo Goyal

POWER LINE l June 2025 31

 TESTING AND MEASUREMENT SPECIAL SECTION

Special Section

Testing and Measurement

Critical checks: Importance of equipment testing and measurement ......................................................................................... 34

Preventive testing: Optimal maintenance of cables and conductors crucial for stable power supply........................................ 38

Ensuring safety: Transformer testing methods and best practices................................................................................................ 42

Rigorous inspection: Generation equipment testing is fundamental to operational excellence................................................. 44

Quality assurance: Ensuring smart meter reliability through testing............................................................................................. 46

POWER LINE l June 2025 33

 SPECIAL SECTION TESTING AND MEASUREMENT

Critical Checks
Importance of equipment testing and measurement

T
he integration of new assets into In- Transmission requirements equipment testing and measurement,
dia’s power grid is dependent on ac- A new Central Electricity Authority (CEA) particularly with the development of
curate testing and measurement due report on the “Failure of 220 kV and above critical 765 kV voltage level and high volt-
to the country’s fast power system ex- Voltage Class Substation Equipment be- age direct current projects.
pansion and improvement. Maintaining tween July 2023 and December 2024” un-
efficient and effective equipment per- derscores the importance of testing power Smart metering testing requirements
formance and assuring a constant pow- equipment. The report notes a total of 162 Significant investments are being un-
er supply are both made possible by the failure incidences involving transformers, dertaken to improve and modernise the
testing and measurement practices of reactors, instrument transformers, surge distribution network. Since 2015, the
power equipment. The failure of even a arrestors, circuit breakers, disconnectors, government’s National Smart Grid Mis-
single component in a power system can wave traps, coupling capacitors, gas-in- sion (NSGM) has advanced smart grid
cause the entire grid to collapse, neces- sulated switchgear bays, cables, and plug operations across discoms. It helped
sitating regular testing and maintenance and switch system modules of 220 kV establish an advanced metering infra-
of the system. Their indispensable role and above voltage ratings between July structure (AMI) ecosystem and demon-
in facilitating early fault detection, grid 1, 2023, and December 31, 2024. It was strate smart grid functions. Further, the
modernisation, efficiency gains, regula- observed that in most cases, utilities typi- Revamped Distribution Sector Scheme,
tory compliance and technology integra- cally withhold information on factory test with a total outlay of Rs 3,037.58 billion
tion makes them vital to India’s contin- records, pre-commissioning test reports, and a gross budgetary support of Rs
uous energy transformation and growth. operation and maintenance (O&M) and 976.31 billion over a period of five years,
repair histories, relay settings, environ- from 2021-22 to 2025-26, aims to imple-
Drivers mental and system conditions pertinent ment prepaid smart meters. As of June
The industry relies on testing and mea- to the failure, etc. The CEA suggested that 2025, about 223,756,990 smart consumer
suring to ensure grid efficiency, safety and depending on the state of the running meters have been sanctioned, of which
reliability at every level, from generation equipment, the measurement frequen- 30,655,677 have been installed. With the
to distribution. Conducting this on a reg- cy should be adjusted. It noted that it is installation of 250 million smart meters
ular basis aids in predictive and preven- more important to track the overall trend envisaged under the initiative, it is like-
tive maintenance by revealing abnormal- of test findings than to track their abso- ly to drive the demand for smart meter
ities, wear and flaws in machinery before lute levels. Another suggestion empha- testing labs across India.
they cause catastrophic breakdowns. sised that it should be the standard prac-
tice for utilities to conduct tests on large Smart meters are required to adhere to
Testing and measuring ensure power electrical equipment at their sites around relevant technical and quality standards
quality and dependability by detecting, one or two months before the warranty and must have valid tests and Bureau of
diagnosing and fixing flaws that might period ends. This way, if anything out of Indian Standards (BIS) certificates. Tests
disturb electrical systems. This practice the ordinary comes up during the testing, and inspections are under the complete
has become crucial in gauging parame- the utility can discuss it with the original purview of the AMI service provider and
ters such as voltage, current, power fac- equipment manufacturer (OEM) and take its sub-vendors.
tor and harmonics to ensure efficient any further action that is needed during
functioning of the equipment deployed the warranty period. The Standard Bidding Document covers
in electricity infrastructure. For instance, detailed clauses for the supply, installa-
high voltages and currents are managed In transmission, utilities use advanced tion, integration, testing and commis-
via transformers. To avoid accidents and testing tools such as relay protection tes- sioning of smart meters, as well as for
equipment damage, some pre-commis- ters to simulate fault events and exam- tests, inspections and management of
sioning tests, such as periodic/condition ine the reactions of protection devices the quality assurance/quality control of
monitoring and emergency testing, are to guarantee quick fault separation and smart meters.
conducted at the consumer’s location, minimise outage durations. The growing
whereas type, routine and special tests number of transmission projects in India All smart meters are required to under-
are conducted at the production plant. is expected to increase the demand for go various tests. The factory acceptance

34 POWER LINE l June 2025

 TESTING AND MEASUREMENT SPECIAL SECTION

test (FAT) is conducted on all the equip-

ment, which includes the verification
of all functional characteristics and re-
quirements specified. After the success-
ful completion of FAT, the field installa-
tion and integration test are performed
to ensure the successful operation of the
installed smart metering system. The site
acceptance test is conducted to assess
the functioning of the complete system,
including cloud data centres and their
hardware and software components,
along with the supply, installation and
integration of smart meters/data con-
centrator units (along with their related
hardware and software equipment).

Generation equipment testing

In the power generation segment, ther-
mal power plant efficiency, safety, reli- quantities to determine the hydraulic/ New and Renewable Energy (MNRE),
ability, regulatory compliance and op- electrical efficiency of the units, and es- the lab can test solar inverters. Solar in-
erational cost-effectiveness depend on tablishing the criteria for fulfilment of verters with current ratings of up to 250
testing and measurement. Measuring contract guarantees and penalties in the kVA are tested and evaluated in this lab
devices such as resistance temperature case of non-fulfilment. These guidelines for use by discoms, small companies, re-
detectors and thermocouples alert oper- are applicable to all types and sizes of search and development (R&D) centres,
ators to aberrant circumstances, allowing units, comprising generators, motors and manufacturers.
them to act before safety is endangered. and impulse/reaction turbines, and
pump-turbines above 5 MW. Likewise, the CPRI is India’s leading elec-
In addition, India’s goal to achieve 500 trical power engineering research, test-
GW of renewable energy capacity by Testing and measurement ecosystem ing, certification and consultancy institu-
2030 is expected to drive the demand for OEMs, suppliers and third-party testing tion. The CPRI is an autonomous society
renewable energy equipment, such as organisations make up the testing and within the Ministry of Power. The Power
solar cells, PV modules and wind turbine measurement market. Many equipment System Division of the CPRI provides
generators. Hence, the testing and mea- manufacturers and utilities undertake the sophisticated testing, measurement and
surement of equipment used in clean testing of ultra-high voltage/extra-high advisory services for power system com-
energy projects will ensure the quality, voltage systems, transmission towers, ca- ponents and operations, making it vital
reliability, efficiency and long-term suc- bles, meters and sophisticated switchgear. to the Indian power sector.
cess of the renewable energy market in National Accreditation Board for Testing
the coming years. and Calibration Laboratories-accredited The National Institute of Solar Energy
laboratories, such as the Central Power (NISE), an autonomous specialised insti-
In 2023, the CEA had notified guidelines Research Institute (CPRI) and the Elec- tute within the purview of the MNRE, con-
for the field efficiency test in hydropower trical Research and Development Asso- ducts R&D, solar component testing and
plants, including pumped storage plants. ciation (ERDA), conduct tests and certify certification, capacity building, and solar
The objective was to guide hydropower transmission and distribution equipment. product and application development. In
generating utilities in the country, pro- April 2025, the NISE inaugurated a solar
viding a uniform approach for carrying ERDA holds national and international PV module testing and calibration lab in
out tests, enabling its acceptance and accreditations for in-house and on-site conjunction with the MNRE. The newly
minimising disputes between the proj- testing. It has a laboratory that can eval- opened facility will ensure high-quality
ect authority and the unit supplier for uate many types of high-temperature, domestic solar modules to support the
the project. This guideline mainly focus- low-sag conductors, such as ZTACTR, production-linked incentive scheme.
es on defining the terms and quantities TACSR, ACSS, ACFR, ACCC and GTACSR.
to be used in the process, specifying the In May 2025, ERDA opened a solar in- Similarly, the National Institute of Wind
validity and acceptance period for tests, verter test facility in Gujarat. In accor- Energy (NIWE) is an autonomous R&D
identifying the testing agency, outlining dance with BIS standards and a quality institution functioning under the MNRE.
the methods for measuring the relevant control directive from the Ministry of It has a testing, standards and regulation

POWER LINE l June 2025 35

 SPECIAL SECTION TESTING AND MEASUREMENT

division that offers safety and function the draft guidelines stipulate a test set- Challenges and the way forward
testing. Further, another division, called up that includes cold storage tempera- The electricity sector in India faces sev-
the Wind Resource Assessment Division, ture measurement, electric air heaters eral challenges when it comes to testing
aims to offer world-class facilities to test with energy meters, energy meters on and measurement. As the pace of network
full wind turbine generator systems to systems, energy meters for auxiliary addition grows, there will be a need for
international standards. The division load and other test procedures. It also more reliable testing facilities for electrical
also facilitates load measurements and highlights test procedures for the per- equipment. This includes smart meters,
power performance measurements for formance evaluation of solar-powered transformers and other important com-
wind energy infrastructure. cold storage and emphasises the mea- ponents to avoid certification and deploy-
surement of parameters such as tem- ment delays. Supply chain interruptions
Key policy mandates perature and electricity load, along with may delay testing and deployment, as the
In April 2025, in a key development for the calibration of the apparatus. industry remains heavily reliant on critical
the wind industry, the MNRE issued re- imported components. Establishing a re-
vised guidelines for the installation of In November 2024, the CEA published liable domestic supply chain is essential,
prototype wind turbine models. The re- draft guidelines aimed at standardising though it remains an ongoing challenge.
vised guidelines allow prototype wind the periodicity of type tests for major
turbines a maximum of three years to equipment in India’s electrical power Further, thorough testing necessitates
complete type testing and obtain certi- sector. Previously, the CEA introduced a substantial financial outlay towards
fication from internationally accredited the “Guidelines for Type Test Validity” state-of-the-art equipment, trained
agencies. The guidelines form part of an in 2022 to address the challenges faced workers and several testing cycles. The
updated framework for prototype wind by manufacturers and stakeholders due quality and dependability of deployed
turbine installations, to be implemented to varied testing requirements. The re- equipment could be compromised if
by the NIWE. As per the revised guide- vised guidelines outline a rationalised smaller utilities and manufacturers are
lines, prototype models will be installed approach for testing intervals. They pro- unable to adequately test their products
solely for the purpose of type testing. pose a fixed periodicity for type tests due to financial constraints. Neverthe-
across various equipment classes, taking less, innovative breakthroughs will bring
Meanwhile, in May 2025, the MNRE into account environmental factors, the about significant change in the testing
released draft guidelines for simplify- availability of testing infrastructure and and measurement industry in the future.
ing the testing of solar PV modules in standardisation requirements. The in-
labs for the implementation of solar tent is to eliminate unnecessary retesting In recent years, digitalisation and auto-
systems, devices and components. The for equipment that has not undergone mation have revolutionised data acqui-
draft guidelines attempt to streamline substantial design or manufacturing sition, analysis and usage in testing and
the procedures for performance testing changes. According to the revised guide- measurement. The ability to easily save,
and the compulsory registration of so- lines, periodicity is categorised based retrieve and audit digital documents
lar PV modules with the BIS. The draft on equipment classes, with the aim of facilitates regulatory compliance and
guidelines also aim to standardise test- ensuring consistency across utilities, re- accreditation (such as ISO/IEC 17025).
ing techniques across certified labora- ducing costs and improving efficiency. Automated testing systems can run tests
tories and guarantee that all solar PV faster than manual techniques. Artificial
modules fulfil current Indian standards Likewise, in July 2024, the MNRE re- intelligence-driven thermal power mea-
and quality control orders. Moreover, leased the funding guidelines for testing suring systems in power plants simplify
the laboratories are obligated to follow facilities, infrastructure and institutional data gathering, processing and report-
testing standards such as IS/IEC 61730- assistance for developing standards and ing, eliminating human intervention and
1: 2023, IS/IEC 61730-2: 2023, and IS a regulatory framework under the Na- saving time and resources for complicat-
14286: 2023. tional Green Hydrogen Mission. This ini- ed testing procedures.
tiative is expected to help identify gaps
In February 2025, the MNRE notified in the current testing infrastructure for Although automation entails significant
the draft guidelines on the design, green hydrogen and its derivatives’ val- initial investment, it decreases long-term
specifications, performance and testing ue chain components, technologies and expenses by reducing labour, errors and
procedure for solar cold storage with processes. New testing facilities will be downtime owing to faster issue identifi-
thermal energy storage (TES) backup. built and existing ones will be upgrad- cation. In the future, the growing need
The guidelines outline a comprehen- ed as part of the programme to ensure for electrical infrastructure and networks
sive procedure for testing solar-pow- everything runs smoothly and securely. will create significant opportunities for
ered cold storage systems with TES Up to FY2025-26, a total of Rs 2 billion is testing and measurement equipment
backup across capacities ranging from expected to be incurred on the scheme’s manufacturers, driven by increased de-
2 metric tonnes (mt) to 20 mt. Further, implementation. mand for testing practices. n

36 POWER LINE l June 2025

 TESTING AND MEASUREMENT SPECIAL SECTION

POWER LINE l June 2025 37

 SPECIAL SECTION TESTING AND MEASUREMENT

Preventive Testing
Optimal maintenance of cables and conductors crucial for stable power supply

I
n a power transmission and distribu- mandatory processes and quality checks. ness test” in power sector procurement
tion network, cables and conductors These standards apply to all tenders is- tenders, aligned with the ASTM B987
are among the most critical compo- sued by transmission and distribution standards. It further specifies that the
nents. They form the backbone of the companies nationwide. The Bureau of salt spray test is unsuitable for deter-
power sector. Any failure within this net- Indian Standards, along with the mines mining the thickness of the galvanic pro-
work can disrupt power evacuation and ministry and the Department for Promo- tection barrier layer on CFC cores, as no
affect end-user power delivery. Therefore, tion of Industry and Internal Trade, had correlation exists between the two tests.
timely, comprehensive and accurate test- issued these quality control orders for al-
ing of cables and conductors is essential uminium and aluminium alloy products. Emerging trends – conductor and cable testing
to ensure a stable and reliable power sup- The move aligns with the government’s Smart cables: With the increasing de-
ply. With the growing electricity demand, aim to enhance product quality in the mand in power systems, cable testing
it becomes even more important to power sector, promote Indian manufac- has evolved to incorporate advanced
maintain these components in optimal turing, encourage “Made in India” prod- technologies for better efficiency, accu-
condition through effective testing and ucts and achieve self-reliance. To ensure racy and safety. One of the significant
measurement (T&M) techniques. compliance, the CEA has mandated that advancements in this domain is the
suppliers of these raw materials provide emergence of smart cables. These cables
Cables and conductors are not only vital quality test certificates before bidding for are embedded with sensors and commu-
for expanding new transmission net- conductor and cable supply contracts. nication modules that enable real-time
works but also for strengthening existing Additionally, the CEA requires that sam- monitoring of operational parameters
grids, particularly in areas where space pling and inspection of conductors and such as temperature, mechanical stress
constraints limit the laying of new lines. cables be carried out at the delivery site and voltage. This continuous data stream
This situation underscores the need specified in the contract. This process is not only supports early fault detection
for a robust network supported by ad- to be conducted in addition to the exist- but also enables adaptive power man-
equate T&M practices. The testing and ing inspections and testing at the manu- agement strategies, significantly enhanc-
monitoring of power equipment play a facturer’s or supplier’s facilities. ing grid reliability and performance.
crucial role in maintaining operational
efficiency and ensuring round-the-clock The CEA also recommends the adoption z Use of automation and robotics: The
electricity supply across the country. To of high-performance conductors (HPCs) use of automation and robotics is also
achieve optimal performance and pre- made from diverse materials, including gaining traction in cable and conduc-
vent equipment failures, utilities must galvanised steel, zinc alloy and fibre-re- tor testing. Automated test systems
adopt well-defined T&M practices for ca- inforced composites. While India lacks and robotic arms are being deployed
bles and conductors. adequate test facilities for HPCs, leading to handle repetitive and high-risk test-
to reliance on international testing cen- ing activities, ensuring consistency,
Key developments tres and increased costs, these conduc- while minimising human interven-
In March 2024, the Central Electricity tors provide cost efficiencies over time. tion. These systems are particularly
Authority (CEA) has issued an advisory, Despite being two to three times more useful in hazardous or hard-to-reach
urging power sector companies to rig- expensive than conventional conductors, environments, reducing exposure
orously adhere to quality control orders HPCs reduce losses and associated oper- risks and improving testing efficiency.
and established standards for materi- ational expenses, making them an eco- Fibre-optic monitoring presents an-
als such as aluminium ingots, wire rods nomically viable choice in the long term. other cutting-edge approach to cable
and wires, crucial for manufacturing assessment. Fibre optics integrated
conductors and cables. These include Additionally, in May 2024, the CEA re- within or along the cable can detect
compliance with standards such as IS leased guidelines for testing the carbon minute temperature variations and
5484 and IS 2067 for aluminium rods and fibre composite (CFC) core of high-tem- other environmental changes. This al-
wires, and IS 4026 for aluminium ingots. perature low-sag conductors. The advi- lows for precise thermal profiling and
The CEA’s guidelines call for conductor sory emphasises including a mandatory condition monitoring even when the
and cable manufacturers to implement “galvanic protection barrier layer thick- conductor is under load, enabling util-

38 POWER LINE l June 2025

 TESTING AND MEASUREMENT SPECIAL SECTION

POWER LINE l June 2025 39

 SPECIAL SECTION TESTING AND MEASUREMENT

ities to prevent overheating and opti- tive action. Continuity tests verify that must meet the required specifications.
mise load distribution in real time. electrical paths are intact and properly z Stress-strain or creep tests: These
z Online and offline test: A combination connected. Insulation resistance tests are used to assess long-term elonga-
of online and offline testing methods measure the resistance of the dielectric tion under constant load. A 10-metre
is used to get a comprehensive under- material to electrical flow, and earth re- sample compressed with dead-end
standing of cable health. Online tests sistance tests ensure the effectiveness clamps provides critical data for pre-
are conducted without taking the sys- of grounding systems. High-voltage dicting conductor performance over
tem out of service and are ideal for tests are used to verify the dielectric time, aiding in system design and life-
routine monitoring. In contrast, of- strength of the insulation under elevat- cycle planning.
fline tests offer deeper diagnostics, but ed electrical stress. z Others: Key measurements include
often require the cable to be de-en- z Test for HVDC cables: The need to test diameters of individual aluminium
ergised, leading to planned outages. longer HVDC cables, often exceeding and steel wires and the lay ratio of
Together, they provide a balanced ap- 200 metres due to complex routing each wire layer, both of which must
proach for predictive and preventive through tunnels and ducts, is growing. match design specifications. The
maintenance. Further, visual inspec- This increased length poses challeng- breaking load test, conducted using
tion techniques remain a key part of es for testing equipment, particularly a tensile testing machine, checks the
cable testing, especially for overhead impulse generators. At the same time, mechanical strength of individual
lines. Ground-based inspections are there is a rising emphasis on transient wires. Maintaining the correct rate
being enhanced with high-resolution overvoltage testing, which evaluates of jaw separation ensures accurate
cameras and AI-enabled analysis, how cables perform under fault con- results. Wrapping tests are carried
while aerial inspections using drones ditions in HVDC systems, especially out to evaluate wire flexibility and
and helicopters are becoming more those using voltage source converters. ductility. Aluminium and galvanised
common. However, environmental Utilities are now requesting polarity steel wires are wrapped into helices,
factors such as glare, rain, or fog can reversal and superimposed impulse then unwrapped and rewrapped. Any
hinder visibility, making it essential to tests to ensure the reliability of cable signs of cracking or breakage indicate
complement these methods with oth- systems under such stresses. These poor material quality. Galvanised
er diagnostic tools. tests are conducted in line with CI- wires undergo similar testing with
z Non-invasive testing: Techniques such GRÉ TB 852 guidelines and require mandrels to ensure coating integrity.
as online partial discharge (PD) testing, generating specific waveforms such Electrical resistance testing, especial-
time-domain reflectometry and ther- as oscillating discharges and slow or ly for aluminium wires, is performed
mal infrared imaging play a crucial role fast-front impulse s. To carry out as per IEC 889, correcting results to
in modern cable diagnostics. These these advanced tests, laboratories are 20°C for standardisation.
methods allow utilities to assess the upgrading their set-ups with compo-
internal condition of cables without nents such as rectifiers, reactors and Conclusion
physically accessing them, identifying coupling capacitors, enabling testing Overall, testing is carried out to assess
issues such as insulation degradation, at voltage levels up to 525 kV. Another the conformity, quality and function-
water ingress, or joint failure without emerging trend is the use of full-scale ality of components. Given the impor-
service interruption. By leveraging cable loops—including joints and tance of conductors, proper testing is
such technologies, utilities can ensure terminations—during type testing, imperative. Regular testing and main-
proactive maintenance and extend the which helps streamline the process tenance of cables and conductors are
life of critical cable asset. Several stan- and reduce the set-up time. Addition- necessary, as the failure of even a single
dard tests are widely used to assess ca- ally, labs are enhancing test circuit component can lead to widespread grid
ble integrity. PD testing is a vital diag- designs and using simulations to ad- disruptions. A reliable testing procedure
nostic technique used to evaluate the dress challenges such as DC offset and enhances the durability and perfor-
insulation condition of critical electri- reduced testing efficiency. mance of conductors, while preventing
cal equipment. PD occurs due to local- z Galvanising tests for conductor: Test costly breakdowns. These tests provide
ised breakdowns within the insulation, on steel wires verify the weight and accurate insights into potential issues,
causing small discharges of electrical uniformity of zinc coatings as per IS help assess their severity and reduce
energy. If not addressed, these dis- 4826-1979, ensuring corrosion resis- the recurrence of faults—ultimately in-
charges can progressively damage tance. Surface condition tests are con- creasing the overall uptime of the util-
the insulation, potentially leading to ducted by applying tension equal to 50 ity network. Moreover, effective T&M
equipment failure. A key benefit of PD per cent of the conductor’s ultimate not only improves system reliability,
testing is its ability to identify insula- tensile strength. The surface must re- but also results in cost savings, as pre-
tion defects at an early stage, allowing main cylindrical, with strands proper- ventive testing is more economical than
for timely maintenance and correc- ly aligned and the measured diameter post-failure repairs. n

40 POWER LINE l June 2025

 TESTING AND MEASUREMENT SPECIAL SECTION

POWER LINE l June 2025 41

 SPECIAL SECTION TESTING AND MEASURING

Ensuring Safety
Transformer testing methods and best practices

Dr Rajesh Kumar Arora, Senior Manager (Technical), Delhi Transco Limited

T
ransformers are vital components
in electrical power systems, used for
voltage transformation, impedance
matching and electrical isolation. Due to
their critical function, ensuring the reli-
ability, safety and performance of trans-
formers is paramount. This is ensured by
testing power transformers governed by
IEC 60076 or IEEE C57 standards.

This article provides a brief explanation of

all tests conducted on power transformers
in accordance with IEC 60076-1 and elab-
orates on their purpose and significance.

Introduction
Power transformers are essential for
stepping up or stepping down voltage
levels, enabling efficient power trans-
mission and distribution. The testing of transformer and optimising returns on As per IEC 60076-1, transformer tests are
transformers is critically important for investment. It also validates manufactur- broadly classified into routine tests, type
ensuring the reliable, efficient and safe er specifications through factory accept­ tests and special tests.
operation of electrical power systems. ance tests (FATs) and site acceptance
Power transformers are essential for var- tests, which verify that the transformer Routine tests
ious reasons. They ensure operational meets the specified performance and Routine tests are conducted on every
reliability through the early detection safety standards before commissioning. transformer before despatch to ensure
of defects that help identify insulation Further, testing ensures compliance with basic operational compliance, while
breakdowns, winding faults, core issues international standards such as those type tests are carried out on one unit of
and tap changer malfunctions before set by the International Electrotech- a design type to validate the design. Spe-
they lead to catastrophic failures. They nical Commission (IEC) and Institute cial tests are performed upon customer
also help minimise downtime by detect- of Electrical and Electronics Engineers request, typically when the transforme­r
ing problems early for planned mainten­ (IEEE), and is often legally required for is expected to operate under special
ance, thereby reducing the risk of un- insurance, safety audits and regulatory conditions. Among the routine tests de-
expected outages. As transformers are approvals. It also supports grid stability, fined under IEC 60076-1 is the measure-
prone to faults due to overload, they also as transformers play a key role in volt- ment of winding resistance, conducted
help prevent failures and accidents due age regulation and power distribution using a DC resistance test set to detect
to overload, short circuits or insulation – faulty units can lead to voltage drops, defects such as loose connections or
failure. Further, testing helps prevent fire blackouts or overall grid instability. broken strands, with values required to
hazards, oil explosions and electrical ac- Transformer testing, as governed by IEC stay within acceptable tolerances. The
cidents caused by undetected faults. standards, specifically the IEC 60076 ser­ voltage ratio and phase displacement
ies, provides standardised guidelines for test ensure correct voltage transforma-
Timely testing reduces maintenance verifying the design, construction and tion and phase relationships across all
costs by enabling condition-based main- performance of power transformers. tap positions. Short-circuit impedance
tenance instead of routine replacement, and load loss measurement determine
thereby extending the lifespan of the Classification of transformer tests impedance voltage and load losses at

42 POWER LINE l June 2025

 TESTING AND MEASUREMENT SPECIAL SECTION

rated current, which must align with the test, as per IEC 60076-5, demonstrates Key precautions include the mandatory
manufacturer’s declared values. No-load the mechanical strength of windings use of personal protective equipment,
loss and current measurement establish under high fault currents; although not proper earthing of equipment, isolation
core loss and excitation current at rated mandatory for every unit, it is often of the test area, installation of emer-
voltage and frequency. Dielectric tests, treated as a type test and may require gency stop mechanisms and placement
including the power frequency with- advanced laboratories or validated sim- of clear warning signage around the
stand test and induced overvoltage test, ulation models. The frequency response testing zone. In addition to safety, best
assess the insulation system’s ability to analysis (IEC 60076-18) is used to detect practices in routine testing must also
withstand specified voltages. Lastly, in- internal core movement or mechanical be followed. These include ensuring all
sulation resistance is measured between deformation, especially following trans- test instruments are calibrated prior
windings and earth or between windings portation or major fault events. to use; conducting tests in a clean, dry
using an insulation tester, with accept- and safe environment; and maintaining
able values typically above 1000 MΩ for Stages of transformer testing detailed documentation of test results
medium and high voltage systems. Transformer testing is conducted at with timestamps and operator identi-
multiple stages, including during manu- fication. Reviewing trends across test
Type tests facturing, FAT, installation and commis- data from multiple production batches
Type tests, as defined under IEC 60076- sioning, routine maintenance, diagnos- is also essential for identifying potential
1, 60076-2 and 60076-3, are conducted tic testing after faults, and post-mortem systemic issues early in the manufactur-
to validate the transformer’s design and evaluation where feasible. During the ing process.
performance under simulated oper­ manufacturing stage, tests are per-
ational conditions. The temperature rise formed to verify correct winding con- Conclusion
test (IEC 60076-2) evaluates thermal be- nections and detect early faults before Power transformers are essential com-
haviour under rated load using direct or the processing and oil-filling phases. ponents in electrical power systems for
simulated loading to determine hot-spot During FAT, the fully assembled trans- stepping up or stepping down voltage
and top-oil temperature rise. The light- former undergoes routine and type tests levels, enabling efficient power transmis-
ning impulse test (IEC 60076-3) ensures in line with customer specifications and sion and distribution. Given their critical
the transformer’s ability to withstand national standards to confirm that its role, thorough testing is mandatory to
voltage surges from lightning by applying performance and insulation levels meet ensure safety, reliability and compliance
full wave and chopped wave impulses the guaranteed technical parameters. At with design specifications. Transformer
based on the insulation class. For trans- the installation and commissioning stag- testing, as outlined in IEC 60076, is a cor-
formers rated above 72.5 kV, a switching es, especially for large units transported nerstone of quality assurance in power
impulse test is conducted to simulate with oil drained and filled with dry air, system infrastructure. By systematical-
stresses caused by system switching op- basic checks are conducted on receipt ly conducting routine, type and special
erations. Additionally, sound level mea- and post-assembly to rule out transit tests, manufacturers and utilities en-
surement (IEC 60076-10) is carried out damage and ensure proper electrical sure that transformers meet the desired
to assess acoustic emissions, especially connections. Once the oil is filled and technical and safety standards. As grid
important for transformers located in filtered, further tests are carried out to demands grow and transformer applica-
noise-sensitive or urban environments. validate readiness for energisation and tions become more complex, adherence
to establish baseline parameters for fu- to these globally accepted testing stand­
Special tests ture condition monitoring. Maintenance ards remains vital for long-term reliabili-
Special tests are generally carried out tests are performed during scheduled ty and system resilience.
based on mutual agreement between shutdowns and may include in-service
the manufacturer and the customer, typ- diagnostic techniques such as dissolved Last but not least, condition monitoring
ically to obtain additional information gas analysis, infrared thermography, par- through various tests of power trans-
or when the transformer is expected to tial discharge measurement and vibra- formers is essential for maintaining the
operate under specific conditions. Com- tion analysis. Following a fault or failure, health, performance and reliability of
mon special tests include the dielectric testing is done to identify the root cause, electrical power systems. Rather than
dissipation factor (Tan Delta) test, which locate the point of failure and evaluate waiting for a failure to occur, condition
assesses insulation health by measuring the damage extent for repair or replace- monitoring focuses on real-time or pe-
dielectric losses, with acceptable values ment planning. riodic assessment to detect early signs
for new transformers usually below 0.5 of deterioration or faults. Implement-
per cent at 20 °C. The partial discharge Safety considerations and best practices ing a robust monitoring strategy can
test helps detect localised insulation Transformer testing involves exposure significantly reduce operational risks,
breakdowns that could lead to full dielec- to high voltages and currents, making enhance system reliability and optimise
tric failure. The short-circuit withstand adherence to safety protocols critical. mainten­ance costs. n

POWER LINE l June 2025 43

 SPECIAL SECTION TESTING AND MEASUREMENT

Rigorous Inspection
Generation equipment testing is fundamental to operational excellence

T
he safe and efficient functioning of mented with predictive diagnostics to to detect microcracks, thermal cycling to
power generation equipment is a improve failure prediction and reduce assess performance under temperature
must to ensure reliable and unin- unplanned downtime. variations and IV curve tracing to validate
terrupted power supply in the country. power output characteristics. Recognis-
Power plants across thermal, hydro and Thermal power plant equipment testing ing the importance of quality assurance,
renewable energy segments are capi- In thermal power plants—comprising the Ministry of New and Renewable En-
tal-intensive and operate under signifi- steam turbines, gas turbines and their ergy (MNRE) issued Draft Guidelines for
cant mechanical and thermal stress. With associated auxiliaries—equipment op- the Testing of Solar PV Modules in Lab-
the growing share of renewables, thermal erates under high pressures and tem- oratories in May 2025. These aim to en-
power plants are increasingly required to peratures, making them susceptible to hance domestic testing capabilities and
operate flexibly, frequently ramping up fatigue, creep, corrosion and vibrational mandate rigorous protocols for modules,
and down to balance variable genera- stress. Consequently, thermal units re- particularly under the Approved List of
tion. This accelerates wear and demands quire frequent and specialised testing. Models and Manufacturers. The draft
more rigorous and frequent testing to Blade inspection for cracks and material mandates accreditation for labs under
ensure reliability and efficiency. deformation is critical in both steam and National Accreditation Board for Testing
gas turbines, particularly given their ex- and Calibration Laboratories and stipu-
Simultaneously, the rapid expansion of posure to cyclic thermal loading. Rotor lates standard test sequences for long-
renewable energy, especially solar and alignment and shaft balancing tests are term reliability, mechanical integrity and
wind, has created new challenges in routinely performed to ensure smooth safety compliance.
testing decentralised and weather-de- operation at high speeds. In addition,
pendent equipment. Ensuring the per- bearing wear is assessed through vibra- Wind turbines, with their mechanical
formance, safety and grid compliance of tion diagnostics using accelerometers complexity and exposure to fluctuating
inverters, modules and turbine compo- and proximity probes. Electrical testing wind conditions, require a different set
nents is essential for smooth integration. of generators includes insulation resis- of diagnostics. Testing includes gearbox
In emerging markets, where infrastruc- tance, polarisation index and surge com- vibration analysis, blade inspections
ture growth must align with reliability parison tests on stator and rotor wind- through drones or ultrasonic tools, and
and regulatory requirements, robust ings. Partial discharge measurements functional verification of yaw and pitch
and adaptive equipment testing is key to are especially significant for high-voltage control systems. Electrical and commu-
supporting the energy transition, while generators, as they provide early warn- nication interfaces of wind turbines are
maintaining operational excellence. ings of insulation degradation. In control also tested to ensure synchronisation
systems, periodic testing of protection with supervisory control and data ac-
Regardless of the generation technol- relays, synchronising equipment and quisition (SCADA) and grid systems. No-
ogy—whether conventional thermal turbine control valves ensures opera- tably, in April 2025, the MNRE released
units or renewable energy systems—the tional safety and responsiveness under Guidelines for Prototype Wind Turbine
equipment used in power generation fault conditions. Testing, standardising testing procedures
demands rigorous testing, tailored to for new turbine models before large-
specific operating conditions and risk Testing of renewable equipment scale deployment. These guidelines cov-
profiles. Common objectives across both On the renewable energy side, equip- er performance validation, structural
domains include ensuring the structural ment testing spans diverse systems— safety and power curve measurement,
integrity of components under thermal, solar photovoltaics (PV), wind turbines to align with international certification
mechanical and environmental stress; and hydroelectric machinery—each practices and promote innovation, while
verifying electrical and control system requiring customised protocols. In so- ensuring safety and reliability.
functionality; and ensuring compliance lar PV systems, inverter performance is
with safety and regulatory standards. tested for efficiency, harmonic distortion In the hydroelectric segment, testing
With increased deployment of real-time and anti-islanding protection to ensure protocols focus on flow-dependent com-
sensors and digital monitoring systems, grid compliance. Module-level testing ponents and long-life machinery. Cavita-
testing protocols are also being aug- includes electroluminescence imaging tion testing of turbine runners, inspec-

44 POWER LINE l June 2025

 TESTING AND MEASUREMENT SPECIAL SECTION

tion of wicket gates, leakage detection in ogy Research Alliance) offers advanced ing internal components for inspection,
seals and governor response trials form scientific support to NTPC stations and especially in tightly packed or aged
part of routine diagnostics. Load rejec- external utilities across multiple special- installations, can be difficult without
tion and over-speed tests are carried out ised domains. NETRA’s services include complete shutdown and disassembly.
to ensure stability under sudden flow health and residual life assessments of Moreover, power utilities often operate
variations. With many hydro plants op- key power plant components using ad- under tight outage schedules, limiting
erating beyond their original design life, vanced non-destructive evaluation tools, the window available for comprehen-
periodic residual life assessments using such as phased array ultrasonic testing, sive testing. In many regions, especially
NDT (non-destructive) techniques have time of flight diffraction, and in-situ in developing countries, the availabil-
become increasingly vital. These ensure techniques for hydrogen damage detec- ity of skilled technicians and advanced
continued safe operation, especially tion and turbine blade crack identifica- testing tools remains inadequate. The
during peak monsoon flows or under re- tion. It has developed robotic systems increasing deployment of digital moni-
vised despatch schedules. for remote inspection of boiler headers toring systems also presents a challenge
and employs magnetic coercive force in terms of data management. Large
Digitalisation in equipment testing measurements to assess post-weld heat volumes of sensor data must be filtered,
The testing and maintenance land- treatment quality. NETRA also conducts analysed and acted upon in real time,
scape in power generation is undergo- condition monitoring of high-voltage which requires robust IT infrastructure
ing a digital transformation, driven by transformers via dissolved gas analysis, and analytics capabilities.
the adoption of advanced technologies frequency domain spectroscopy and in-
such as sensors, robotics, artificial intel- terfacial tension analysis, alongside wear In the case of renewable energy systems,
ligence (AI), drones and data analytics. debris analysis for rotating equipment additional challenges include remote
Embedded sensors across critical assets lubricants and accelerated creep testing and scattered locations of wind and so-
enable real-time monitoring of parame- for superheater/re-heater tubes. lar farms, which complicate routine di-
ters such as vibration, temperature and agnostics and response times. For wind
pressure, feeding data into centralised Additionally, NETRA provides scientific turbines, harsh weather conditions can
platforms such as SCADA and DCS (dis- services in coal and ash characterisation, limit the use of drones and hinder blade
tributed control systems). This supports including ash fusibility, slagging/fouling inspections, while in solar installations,
early anomaly detection and rapid de- tendencies, mercury content estimation maintaining test accuracy across vast
cision-making. Robotics and drones are and fly ash compositional analysis using modular arrays requires significant
enhancing inspection safety and cover- EDXRF (energy-dispersive X-ray fluo- manual effort and coordination. More-
age, facilitating remote diagnostics in rescence). It also supports the technical over, as new renewable energy technol-
boilers, chimneys, turbine blades and evaluation of biomass and municipal ogies evolve rapidly, testing protocols
solar arrays. Meanwhile, digital twin solid waste blends for co-firing in coal and lab infrastructure often lag behind,
models simulate operating conditions, boilers, using CFD simulations and com- leading to delays in certification and
allowing predictive diagnostics powered bustion compatibility studies. quality assurance.
by machine learning to forecast fail-
ures and optimise maintenance sched- Further, the Maharashtra State Power Conclusion
ules. AI tools analyse historical and live Generation Company (MAHAGENCO) Generation equipment testing is a fun-
data to detect patterns of equipment has adopted a comprehensive testing damental pillar of operational excel-
degradation, while integrated analytics and diagnostics regime across its fleet. lence in the power sector. From design
platforms consolidate test results into Regular borescope inspections are con- validation to field performance verifica-
actionable dashboards. Together, these ducted for thermal units and portable tion and condition-based diagnostics,
technologies mark a shift from reactive, vibration analysers are used to monitor testing ensures that power plants deliv-
schedule-based testing to intelligent, rotating equipment. The utility has also er safe, reliable and efficient electricity.
condition-based asset management, im- developed in-house diagnostic labs for As the energy sector undergoes trans-
proving reliability, reducing downtime testing lubricants and insulation oils, as formation, marked by a growing share of
and extending the life of generation as- well as integrated its testing results with renewables, increased decentralisation
sets across both thermal and renewable SCADA systems for enhanced visibility. and the infusion of digital intelligence,
power plants. Such strategies help in early fault detec- equipment testing must keep pace with
tion, reduce forced outages and optimise these developments. Investments in ad-
Best practices from utilities maintenance schedules. vanced testing technologies, analytics
Many leading utilities have success- platforms and workforce skill develop-
fully institutionalised best practices in Challenges ment will be essential to supporting the
equipment testing. For example, NTPC While the benefits of testing are numer- ongoing transition. n
Limited’s NETRA (NTPC Energy Technol- ous, several challenges persist. Access- Aastha Sharma

POWER LINE l June 2025 45

 SPECIAL SECTION TESTING AND MEASUREMENT

Quality Assurance
Ensuring smart meter reliability through testing

S
mart meters are becoming a vital ensure cybersecurity compliance. among these are IS 16444 Part 1 (2015)
part of India’s plan to modernise Amendment 1 and IS 15959 Part 2 (2015)
its power system. With the aim to Interoperability testing ensures that smart Amendments 1 and 2 for whole current
install 250 million smart meters under meters can effectively communicate with single- and three-phase meters; and IS
schemes like the Revamped Distribution other devices within the grid. It checks for 16444 Part 2 (2017) and IS 15959 Part 3
Sector Scheme (RDSS), it is important to protocol compatibility and seamless data (2017) for transformer-operated meters.
ensure that these meters work correctly, exchange with systems like gateways, Communicability tests are conducted as
safely and smoothly with other systems. sensors and other meters using simulated per IS 15959 Parts 2 and 3.
Smart meters help monitor electricity real-world scenarios. Performance testing
use in real time, support remote discon- measures how smart meters operate un- IS 16444 Part 1 outlines general require-
nection, and improve billing and energy der different load conditions. Key metrics ments and tests for AC static direct-con-
efficiency. To perform these tasks well, include response time, data throughput, nected watt-hour meters (Classes 1 and
meters need to be tested thoroughly be- latency and power efficiency. Stress and 2), while Part 2 covers transformer-oper-
fore being rolled out. load testing methods confirm the meter’s ated meters (Classes 0.2S, 0.5S and 1.0S).
stability during peak demand or adverse IS 15959 Parts 1 and 2 define protocols
To support this effort, the Central Power conditions. Compliance testing verifies for data exchange, meter reading, load
Research Institute (CPRI) has developed adherence to safety, legal and technical control and energy meter specifications.
the Smart Meter Integrated Testing and standards across the meter’s lifecycle.
Higher Analysis (SMITHA) – designed Conducted through inspections and cer- As per Central Electricity Authority
for Bharat Smart Meter Protocol Analysis tifications, it ensures regulatory confor- guidelines, the technical features of sin-
(BSMPA). BSMPA sets common rules for mity and quality assurance. gle-phase and three-phase smart meters
how smart meters should communicate, include energy measurement, load limit-
ensuring they all work together, no mat- Emerging testing methods are being ad- ing relay, bidirectional communication,
ter the brand. SMITHA helps test smart opted in India under programmes like tamper and power event detection, pre-
meters under real-world conditions and the Smart Meter National Programme paid functionality (as per IS 15959 Part
checks how well they communicate, and RDSS. Artificial intelligence (AI)- 2), remote firmware updates, time-of-
handle data securely and meet national based anomaly detection is being used day and optional net metering features.
standards. by discoms in states like Uttar Pradesh, All meters must be BIS-certified under IS
Gujarat and Maharashtra to identify 16444 Part 1, with construction as per IS
Testing methods for smart meters tampering and forecast failures. Auto- 16444 or IS 13779.
To ensure reliability, security and com- mated testing systems, supported by the
patibility in smart metering systems, CPRI and the Electrical Research and Communication must be secure and
several key testing methods are applied Devel-opment Association, are stream- compatible with the head-end system
before and after deployment. Function- lining test processes. Cloud-based test- using radio frequency, power line com-
al testing verifies that meters operate as ing, enabled by advanced metering in- munication or cellular technologies as
per design specifications by assessing ac- frastructure platforms, allows for remote per IS 16444 Part 1. Meters must log and
curacy, data transmission, display func- diagnostics and updates. Additionally, report tamper events, and support ran-
tions, power stability and environmen- digital twin simulations and edge ana- dom inspections under a sampling plan
tal performance. This is done both in lytics testing, though still emerging, offer in accordance with IS 16444 Part 1.
laboratories and in the field using tools advanced capabilities for grid simulation
like simulators and reference meters. and localised performance validation. Moreover, the IS 15884 standard outlines
Security testing evaluates the meter’s the technical and operational require-
resistance to unauthorised access, tam- Metering standards ments for prepayment meters, ensuring
pering and cyber threats. It involves as- Smart meter testing in India is governed they operate accurately and consistent-
sessing encryption, authentication and by standards introduced by the Bureau of ly across various regions and utilities. To
data protection using techniques such as Indian Stand-ards (BIS) to ensure accu- ensure reliability, these meters undergo a
penetration and vulnerability testing to racy, reliability and interoperability. Key series of rigorous tests, including accuracy

46 POWER LINE l June 2025

 TESTING AND MEASUREMENT SPECIAL SECTION

verification, electromagnetic compatibili- framework can communicate with any

ty, and safety assessments such as AC high BSMPA-compliant HES or meter data
voltage, impulse and insulation resistance management system. Given the increas-
tests. Additionally, tests for climatic influ- ing number of threats to digital infra-
ences and the robustness of the me-ter’s structure, smart meter communication
accounting process are conducted. These must adhere to stringent cybersecurity
measures ensure that users can rely on standards. SMITHA enables the test-ing
the meter for fair and transparent read- of secure communication protocols, in-
ings, which supports better budgeting and cluding encryption and authentication
energy management. Meters compliant methods mandated under BSMPA. This
with IS 15884:2024 are also equipped with ensures that data transferred between
enhanced security features to prevent meters and control centres is both accu-
tampering and unauthorised access. This rate and protected against unauthorised
safeguards users from potential fraud, access.
incorrect billing or service disruptions. the backend system compatibility of
The standard further ensures protection smart meters. The platform simulates re- Challenges and the way forward
against data breaches and unauthorised al-world communication conditions and A key challenge in testing smart meters
configuration changes, strengthening in- evaluates how meters respond to differ- is the inadequate meter testing capacity,
tegrity in the metering system. ent network scenarios. This includes which results in significant delays. As the
testing for secure data transfer, decoding demand for smart meters continues to
Further, under the RDSS, it is mandatory and interpreting message packets and surge, testing facilities struggle to keep
to include provisions for standardisation analysing communication behaviour up due to limited resources and infra-
testing and quality certification as well as under various operational conditions. structure.
cybersecurity in metering-related con- SMITHA supports both end-to-end
tracts. All procurements must comply communication checks and in-depth Smart metering is key to India’s modern
with the Indian government guidelines diagnostics, making it suitable for use by energy infrastructure, offering benefits
regarding the source of procurement. utilities, meter manufacturers and back- like accurate billing, lower losses and
end software developers. improved grid stability. Realising these
SMITHA-BSMPA benefits requires the rigorous testing of
The CPRI developed the advanced proto- A key strength of SMITHA is its robust ca- meters for functionality, cybersecurity,
col testing platform, SMITHA, specifical- pability to thoroughly analyse the com- interoperability, performance and com-
ly designed for BSMPA. This development plete communication stack associated pliance. Without standardised testing,
represents a crucial step toward ensuring with smart metering systems. From the projects risk failures, data breaches and
standardised, reliable and secure smart data generated by meters to its interpre- poor user experience. CPRI’s develop-
metering systems across India under the tation by the head end system, SMITHA ment of SMITHA under BSMPA is a ma-
Bharat Smart Meter Protocol framework. can test the performance and compliance jor step forward, enabling detailed, pro-
of every link in the chain. It allows users tocol-specific testing to ensure meters
BSMPA is a government-led initiative that to simulate multiple operational scenar- meet national standards, operate secure-
mandates common communication pro- ios, such as stress conditions, packet loss ly and integrate smoothly with backend
tocols for smart meters to ensure seam- and encryption validation, which helps systems – supporting reliable, large-scale
less interoperability across various ven- ensure that meters can function reliably smart meter deployment.
dors and backend software systems. With in the field. The platform also offers fea-
millions of smart meters to be deployed tures like data packet capture and play- As India rolls out millions of smart me-
under schemes like the RDSS, it is criti- back, enabling engineers to replay and ters, SMITHA not only improves testing
cal that all devices follow a uniform stan- analyse specific communication events efficiency but also strengthens the foun-
dard to prevent integration issues and to identify and troubleshoot errors. dation for long-term success. It helps
communication failures. Recognising the detect technical issues early, reduces the
necessity of rigorous testing for this large- Moreover, SMITHA plays a critical role risk of field failures and supports the de-
scale initiative, CPRI introduced SMITHA in verifying the interoperability of smart velopment of a secure, standardised and
as a tool to validate smart meter compli- meters from different manufacturers. As future-ready metering system. Overall,
ance with BSMPA requirements. utilities increasingly rely on diverse sets SMITHA is a key enabler of India’s smart
of devices and software, the assurance grid plans, ensuring that the core com-
SMITHA is an integrated testing plat- that all systems can work together with- ponents of this digital transformation
form designed to test the protocol con- out conflict becomes essential. SMITHA are strong, secure and able to work to-
formance, communication integrity and ensures that any meter tested under its gether smoothly. n

POWER LINE l June 2025 47

 FORUM

Interview with Radhakrishnan B.

“Maharashtra is leading India’s clean energy shift”
In a recent interview with Power Line, Radhakrishnan B. (IAS), Chairman and Managing Director of Maharashtra State Power Generation
Company Limited (MAHAGENCO), shared insightful updates on the company’s operations, project progress and future roadmap. He
spoke about MAHAGENCO’s ongoing efforts to strengthen thermal capacity, drive renewable energy (RE) integration, improve opera-
tional efficiency and embrace new technologies. Edited excerpts…

What have been the key milestones and achieve- 13,880.22 MW, comprising 10,200 MW
ments for Mahagenco over the past year? from thermal, 672 MW from gas, 2,580
MW from hydro and 428.02 MW from so-
Maharashtra is at the front, leading In- lar. The company has steadily increased
dia’s clean energy shift with an ambitious its overall generation, achieving a record
plan targeting 38 GW of renewables, 61,453 MUs in 2024-25, slightly surpass-
attracting investments totalling Rs 3.3 ing the 61,439 MUs it recorded in 2023-
trillion, and generating approximately 24. Segment-wise, hydro generation rose
700,000 jobs. Maharashtra, being India’s to 4,053 MUs from 3,668 MUs, gas gen-
largest industrial hub and the top pow- eration increased significantly to 2,473
er consumer, is projected to see its elec- MUs from 1,769 MUs, and solar output
tricity demand grow by 6.5 per cent each grew to 385 MUs from 329 MUs, indicat-
year. By 2030, the total requirement will ing improved asset utilisation and prog-
be over 280 billion units, while peak pow- ress in its RE initiatives.
er demand is anticipated to rise sharp- of the 660 MW Bhusawal thermal unit in
ly—from 29 GW today to 45 GW. February 2025. In clean energy, Maha- Financial performance
genco completed a green hydrogen pi- Mahagenco has shown positive finan-
Mahagenco was established in 2005 af- lot project at Bhusawal and signed key cial growth in recent years, indicated
ter the restructuring of the Maharashtra agreements—an MoU with SJVN Limit- by its billing performance. Mahagenco
State Electricity Board (MSEB) and today ed for 5,000 MW of renewable projects achieved its highest-ever energy billing
has a total balanced power generation and a joint venture with NTPC Green in March 2025, amounting to Rs 29.30
capacity of 13,880.22 MW . Energy Limited for 2,500 MW of RE proj- billion, surpassing the previous record
ects in Maharashtra. of Rs 28.98 billion in April 2024. In 2024-
Mahagenco has the highest power gen- 25, it recorded a peak annual billing of
eration capacity among all state power How has Mahagenco performed operationally Rs 309.05 billion, up from Rs 287.91 bil-
generation companies in the country, and financially in recent years? lion in 2023-24.
and is the second largest power gen-
eration company in India after NTPC Mahagenco has demonstrated robust Mahagenco has not only maintained its
Limited. On April 27, 2024, Mahagenco operational and financial performance strong operational base in conventional
recorded its highest daily thermal gen- in recent years, reflecting its strategic power generation, as evinced by its re-
eration at 190.612 MUs and a peak load positioning as the largest state pow- cord overall and segment-specific gen-
of 10,829 MW. Additionally, the highest er generation company and the sec- eration figures; it has also strategically
thermal generation load of 8,620 MW was ond largest overall in India. Despite invested in and commenced significant
achieved on April 30, 2024, at 23:40 hrs. the evolving energy landscape and the RE projects. This dual approach, sup-
increasing push for renewables, Ma- ported by robust financial performance,
Mahagenco achieved new generation hagenco has effectively managed its positions Mahagenco as a key player in
records at key stations in 2024-25, in- conventional fleet while aggressively India’s energy transition, balancing im-
cluding Khaperkheda (8,812 MUs), expanding its green energy portfolio. mediate power demands with long-term
Koradi (13,611 MUs) and Nashik (2,974 sustainability goals.
MUs), with ten units operating contin- Operational performance
uously for over 100 days. A major mile- Mahagenco currently operates a bal- What are some recent initiatives undertaken
stone was the successful commissioning anced power generation portfolio of by Mahagenco? What are some initiatives

48 POWER LINE l June 2025

 FORUM

planned for the near future? over 5300 MW in partnership with the er infrastructure in Maharashtra.
Water Resources Department, and ex-
Mahagenco is at the forefront of Maha- ploring thorium-based small modular How is Mahagenco balancing its conventional
rashtra’s energy transition, actively pur- reactors with ROSATOM. generation portfolio with the increasing push
suing a wide range of initiatives to align for renewables?
with both national and state-level clean Mahagenco is not just generating power;
energy goals. These efforts span signifi- we are building a resilient, sustainable Mahagenco is navigating India’s energy
cant RE deployment, strategic collabo- and technologically advanced energy transition with a strategic, balanced ap-
rations and pioneering work in emerging future for Maharashtra, aligning with proach, ensuring grid stability and meet-
green technologies. India’s decarbonisation goals and posi- ing escalating electricity demand while
tioning ourselves as a leader in the clean aggressively integrating RE. The compa-
Mahagenco has established a dedicated energy transition. ny’s strategy hinges on RE bundling – a
subsidiary, Mahagenco Renewable En- sophisticated method of combining in-
ergy Limited, to spearhead its green en- What roles do digitalisation and automation termittent renewable sources with reli-
ergy initiatives. The objective is to build play in enhancing the efficiency of Mahagen- able thermal power – alongside the stra-
a “Green Maharashtra” by focusing on co’s plants? tegic enhancement of its conventional
non-conventional, green energy sourc- generation portfolio.
es to provide affordable and maximum Mahagenco is leveraging digitalisation
electricity to the state’s populace. and automation to enhance the effi- Mahagenco is strategically enhancing its
ciency, reliability and safety of its pow- coal-based thermal capacity to ensure
Mahagenco has prepared an ambitious er plants. With advanced sensors and grid stability and meet Maharashtra’s ris-
plan to add over 8 GW of RE capacity real-time data analytics, the company ing power demand. With a current opera-
by 2030 and over 12 GW by 2035. This has transitioned from reactive to predic- tional thermal capacity of 10,200 MW, the
includes projects under various modes tive maintenance, enabling timely in- utility plans to add 4,380 MW of new ther-
such as bundling/ renewable generation terventions and minimising unplanned mal projects by 2035, including expan-
obligation (RGO) with thermal power, downtime. The deployment of modern sions at Bhusawal, Koradi, Chandrapur,
tariff-based competitive bidding, cap- distributed control systems/ supervisory Paras and Sinnar. This phased augmen-
tive power and pumped storage plants control and data acquisition ensures cen- tation supports reliable base load genera-
(PSP). Beyond conventional solar and tralised, remote monitoring and control tion amid increasing RE integration.
wind, Mahagenco is strategically plan- of plant operations. Automation further
ning to develop green hydrogen/am- empowers systems to autonomously op- To address renewable variability, Maha-
monia, floating solar, battery energy timise fuel input, regulate temperature genco is focusing on RE bundling - com-
storage and wind-solar hybrid projects and pressure, and respond to operation- bining renewable sources with thermal
to achieve the ambitious targets set by al events, thereby reducing human error power to ensure consistent supply and
both the Government of India and the and enhancing responsiveness. meet RPO targets. Key initiatives in-
Maharashtra government. clude the 250 MW solar project at Don-
These digital advancements have sig- daicha, and a planned 1,692 MW of RE
Mahagenco is actively advancing its RE nificantly improved plant performance, bundling with thermal and 264 MW for
portfolio through several major initia- reduced operational costs and strength- RGO, aligned with the Ministry of Pow-
tives. The key solar initiatives include ened regulatory compliance. As Maha- er’s clean energy goals. These projects are
148 MW of capacity under the CM Agri- genco continues to embrace smart tech- currently at the tendering stage.
culture Feeder Scheme; 1,071 MW under nologies, it is better positioned to meet
Mukhyamantri Saur Krishi Vahini Yojna growing energy demands and contribute In addition, Mahagenco is investing in
2.0; and a 1,956 MW RE bundling and to a more resilient and sustainable pow- battery storage to enhance grid flexibili-
RGO initiative, featuring Maharashtra’s ty and manage short-term fluctuations.
largest 250 MW solar plant in Dondaic- “Mahagenco aims to play A 100 MW battery energy storage system
ha. Floating solar projects totalling 605 a crucial role in India’s (BESS) integrated with solar power is being
MW are proposed at Irai Dam and Low- journey towards achieving planned at Uran under a public-private
er Wardha, while a 102 MW project is partnership (PPP) model, with site assess-
planned on agricultural university land. its ambitious clean energy ments already completed. Through this
For green hydrogen, a pilot project at goals, demonstrating integrated approach—thermal expansion,
Bhusawal has been successfully tested, global leadership in climate RE bundling and storage—Mahagenco
and larger projects are being planned in aims to ensure a stable, reliable and clean-
Uran. Additionally, Mahagenco is devel- action.” er power supply for Maharashtra.
oping pumped storage projects totalling

POWER LINE l June 2025 49

 FORUM

How is Mahagenco working towards enhanc- renewables. A 100 MW battery storage SO2 emissions. FGD units have already
ing the flexibilisation of its thermal power project is planned at Uran under the PPP been completed at Koradi Unit 6 and
plants (TPPs) to support grid stability? model. Site visits and preliminary reports Khaparkheda Units 3 and 4, with work
have already been completed, reflecting ongoing across other units. To reduce
Mahagenco is proactively addressing steady progress on the ground. particulate emissions, the company is
the growing challenge of grid stabili- retrofitting electrostatic precipitators
ty in a power ecosystem increasingly Together, these initiatives underline Ma- (ESPs) at Khaperkheda Units 1 and 2,
dominated by intermittent renewable hagenco’s forward-looking strategy. By and Chandrapur Units 5 and 6.
sources. The company is implementing modernising its thermal fleet, deploying
major technological upgrades and mod- large-scale solar capacity and integrating To minimise pollution from coal trans-
ernisation programmes to enhance the battery storage, the utility is ensuring a portation, Mahagenco has implemented
operational flexibility of its TPPs. These resilient and flexible grid. These efforts pipe conveyor systems. These include
measures are essential to ensure that align closely with India’s broader goal of the Bhatadi to Padmapur line operation-
Mahagenco’s thermal units can respond transitioning to a cleaner, more sustain- al since 2021, and additional systems
swiftly to the variable output from solar able and future-ready energy system. from Bhanegaon and Singori to Koradi
and wind energy, thereby maintaining and Khaparkheda, launched in 2023.
reliable and sustainable electricity sup- What progress has Mahagenco made in de- Another pipeline from Gondegaon to IP
ply across Maharashtra. ploying emission control technologies? Bunker is under construction, collective-
ly boosting clean coal handling capacity
A key focus area is achieving lower tech- Mahagenco is making significant prog- to 16,800 TPD.
nical minimum load (TML). Mahagenco ress in deploying advanced emission
has successfully brought all its units into control technologies and implement- Mahagenco is also focusing on sustain-
compliance with a 55 per cent TML, en- ing strong environmental sustainability able waste management with a com-
abling thermal plants to operate efficient- practices across its operations. The com- mitment to 100% fly ash utilisation. The
ly at lower capacities. This flexibility allows pany’s approach involves integrating cut- ash is offered to industries at little or no
them to ramp generation up or down as ting-edge solutions into new plants while cost. Plans are in place to set up cement
needed, supporting grid stability during retrofitting older infrastructure to comply plants and fly ash brick clusters at Kora-
periods of fluctuating renewable input. with stringent environmental standards. di, Khaparkheda and Chandrapur to pro-
mote eco-friendly manufacturing and
Complementing this, ongoing renovation One major step has been the adoption help traditional brick kilns transition to
and modernisation programmes involve of supercritical boiler technology in its greener alternatives.
critical upgrades to boilers, turbines and latest plants. This modern technology
control systems to improve ramping rates boosts efficiency and cuts fuel consump- Water reuse is another key sustainabil-
and turndown ratios, and enable faster tion compared to traditional subcritical ity pillar. Mahagenco, in partnership
start-up/shutdown capabilities which is plants, leading to a significant reduction with Nagpur Municipal Corporation,
crucial for integrating renewables. in CO2 emissions, aligning with India’s has established large sewage treatment
broader climate goals. plants (STPs) to supply treated waste-
In parallel, Mahagenco is strategical- water to thermal plants. These include a
ly integrating RE and storage solutions In terms of emission control, Maha- 130 MLD STP for Koradi, a 190 MLD STP
to augment grid flexibility. Under its RE genco is actively installing flue gas de- split between Koradi and Khaparkhe-
bundling and RGO initiatives, the utility sulfurisation (FGD) systems to lower da, and a 79 MLD STP for Chandrapur.
is making significant progress. Treated supply started in December
“Mahagenco has the 2023. STPs are also proposed at Bhu-
Key projects include an engineering, pro-
highest power generation sawal, Parli and Paras, aiming for a “zero
curement and construction solar project water discharge” policy.
featuring Maharashtra’s largest solar plant capacity among all
(250 MW) at Dondaicha, as well as plans state power generation Through these measures - advanced
for 1,692 MW of RE bundling with thermal
companies in the country, emissions control, efficient fuel use,
power and an additional 264 MW under sustainable waste handling and water
RGO. These projects aim to support coal and is the second recycling - Mahagenco is reinforcing its
savings and environmental sustainability, largest power generation environmental stewardship and con-
and are currently at the tendering phase.
company in India after tributing meaningfully to India’s green
energy transition.
Additionally, Mahagenco is investing NTPC Limited.”
in BESS to address the intermittency of What are the major challenges currently fac-

50 POWER LINE l June 2025

 FORUM

POWER LINE l June 2025 51

 FORUM

ing Mahagenco and how is the company ad- RE integration and grid flexibility a balanced power generation capacity of
dressing them? The growth of solar and wind energy is approximately 13.88 GW. Over the next
introducing variability to the grid, re- 5-10 years, Mahagenco’s strategic vision is
Mahagenco, while committed to its am- quiring flexible thermal plant opera- deeply aligned with India’s national clean
bitious clean energy vision, faces several tions. Mahagenco is modernising plants energy objectives, which include achiev-
critical challenges that are common in for improved ramping capabilities and ing 500 GW of non-fossil fuel-based en-
the power generation sector amidst In- investing in BESS and PSPs to ensure ergy capacity by 2030 and net-zero emis-
dia’s rapid energy transition. The com- grid stability. RE bundling is also being sions by 2070, as well as leadership in
pany is tackling these head-on, with explored to optimise integration. green hydrogen production.
proactive strategies.
Evolving regulatory landscape Mahagenco is poised to significantly
Aging infrastructure and plant modernisation The power sector is increasingly be- augment its power generation capacity
A portion of Mahagenco’s thermal fleet ing shaped by environmental regula- to over 32 GW by 2035, with a strong em-
consists of aging units, many over 30- tions, renewable mandates and perfor- phasis on clean energy sources. This ex-
40 years old, leading to lower efficiency, mance-linked incentives. Mahagenco is pansion will see approximately 12 GW of
higher maintenance costs and frequent aligning its operations with these param- new solar PV and around 3 GW of PSP ca-
breakdowns. To address this, Maha- eters, focusing on emissions compliance pacity additions between 2024 and 2035.
genco is modernising its plants by up- and operational efficiency.
grading boilers, turbines and electrical This will dramatically shift Mahagenco’s
systems. It is also deploying advanced Cost competitiveness energy mix, with RE generation projected
emission control technologies and in- As the power market becomes more to increase from about 7 per cent in 2024-
vesting in supercritical and ultra-super- competitive, Mahagenco is prioritising 25 to 20 per cent in 2034-35, and the share
critical technologies for enhanced effi- cost optimisation across procurement, of RE in the total capacity mix rising from
ciency and reduced emissions. logistics and inventory management to 23 per cent to 56 per cent during 2023-35.
ensure financial sustainability.
Coal supply issues Recognising the future need for diverse
Coal remains the primary fuel for Ma- Water scarcity and cooling needs green energy solutions, Mahagenco is ac-
hagenco’s thermal plants, making con- Water scarcity, especially in the dry re- tively exploring and investing in various
sistent supply critical. Challenges such gions of Maharashtra, threatens plant RE projects, such as large-scale solar, PSP,
as shortages, logistical delays and qual- efficiency. Mahagenco is adopting wa- wind and green hydrogen (positioning
ity inconsistencies impact operations. ter conservation practices and aims for Mahagenco to contribute to India’s lead-
The company is securing long-term coal maximum reuse through a “zero water ership in green hydrogen production).
supply agreements and improving coal discharge” model. A key initiative in-
handling systems. It is also exploring al- cludes the commissioning of STPs with While accelerating its green energy
ternative sources, such as imported coal Nagpur Municipal Corporation, where transition, Mahagenco remains com-
and blending strategies. The recent al- treated sewage water is reused for ash mitted to mitigating the environmen-
lotment of the Gare Palma Sector II coal handling and cooling, showcasing circu- tal impact of its existing thermal power
mine marks a strategic move toward coal lar water management. plants. This includes:
self-reliance, helping reduce dependen- z FGD installation and ESP retrofitting:
cy and improve fuel quality control. By strategically tackling these multifacet- Implementing advanced technologies
ed challenges, Mahagenco is enhancing such as FGD and ESP retrofitting to re-
Environmental regulations and emissions its resilience and reinforcing its role in se- duce emissions and improve air quality.
compliance curing Maharashtra’s power needs while z Sustainable coal transportation: Ado­
Stricter emission norms from the Central advancing India’s clean energy ambitions. pting cleaner methods for coal trans-
Pollution Control Board and the Minis- portation, such as pipe conveyors, to
try of Environment, Forest and Climate What is your strategic vision for Mahagenco minimise environmental pollution
Change of India pose a significant com- over the next five-ten years, especially in the and enhance operational efficiency.
pliance challenge. Mahagenco is aggres- context of India’s clean energy goals?
sively investing in FGD systems for SO2 Through these strategic initiatives, Ma-
reduction, ESP upgrades for particulate Mahagenco, as the largest state power hagenco aims to not only meet Maha-
control, and selective catalytic reduction generation company and the second larg- rashtra’s growing energy demands sus-
systems for NOx control in new projects. est overall in India (after NTPC Limited), tainably, but also play a crucial role in
The integration of RE sources further holds a pivotal position in India’s ambi- India’s journey towards achieving its am-
supports emission reduction goals by tious clean energy transition. Established bitious clean energy goals, demonstrat-
decreasing reliance on coal. in 2005, Mahagenco currently manages ing global leadership in climate action. n

52 POWER LINE l June 2025

 FORUM

POWER LINE l June 2025 53

 FORUM

Maintaining Balance
Power sector confronts demand surges and decarbonisation goals
India’s electricity sector is witnessing unprecedented seasonal demand patterns, driven by rising urbanisation, increased appliance
penetration and extreme weather conditions. The summer months, in particular, often expose the grid to peak stress conditions. In
2025, while power demand touched new highs, effective government interventions and favourable weather patterns helped avert
supply shortages. With long-term goals of decarbonisation and energy security on the horizon, it is imperative to balance short-term
crisis management with long-term structural reforms. Industry experts discuss the current trends, peak demand forecasts and strate-
gic pathways – including energy storage, demand response and efficient market mechanisms – to ensure a reliable and sustainable
power supply. Edited excerpts…
What is your assessment of the power demand shortages, thanks to proactive govern- ket (RTM) averaged at Rs 3.43 per unit,
in India for the upcoming summer months? ment measures. These included extend- a 28 per cent drop. On May 25, 2025,
ing Section 11 of the Electricity Act, 2003, heavy rains pushed RTM prices down to
Rohit Bajaj mandating imported coal-based plants Rs 1.53 per unit, with near-zero prices
India’s peak summer power demand in to run at full capacity till June-end, ac- during several time blocks (9:15 a.m. to
2025 reached 241 GW on June 9. This tivating gas-based power plants and en- 2:30 p.m.). Even in June, prices remained
demand was met without any power suring sufficient domestic coal supply. subdued – DAM prices averaged Rs 4.27
per unit during June 1-19, 2025 (a 21 per
“India’s peak summer The weather also played a key role this cent year-on-year decline), while RTM
year. Despite forecasts of an intense prices averaged Rs 4.08 per unit (down
power demand in 2025 summer, early monsoon and widespread 24 per cent year-on-year).
reached 241 GW on June unseasonal rains kept temperatures
lower, resulting in lower-than-expected This trend is expected to continue with
9. This demand was met power demand. With an increase in hy- the ongoing monsoon season, which is
without any power short- dro and wind, as well as a sustained sup- driving an increase in wind, hydro and
ply from coal-based generation, supply solar power in the overall energy mix,
ages, thanks to proactive liquidity on power exchanges improved thereby improving supply liquidity on
government measures.” and drove prices down. In May 2025, the the power exchanges. Moreover, mon-
average day-ahead market (DAM) price soon months typically see lower ex-
Rohit Bajaj was Rs 4.12 per unit, down 22 per cent change prices as compared to summers,
year on year, while the real-time mar- which will help discoms and commercial

Rohit Bajaj Pankaj Batra Shyamasis Das Somit Dasgupta

Joint Managing Director, Senior Adviser, IRADe; Fellow - Energy, Natural Senior Visiting Fellow, Indian
Indian Energy Exchange Ex-Chairperson and Member Resources and Sustainability, Council for Research on
(Planning), Central Electricity Centre for Social and Economic International Economic Relations,
Authority (CEA); and Ex-Officio Progress and Former Member (Economics
Additional Secretary to the and Commercial),
Government of India CES

54 POWER LINE l June 2025

 FORUM

and industrial consumers meet short- Considering the normal monsoon fore- 241 GW, which occurred on June 9, 2025.
term demand more cost-effectively cast for this year, as predicted by the In-
by replacing expensive power with ex- dian Meteorological Department, it ap- India’s electricity demand has been
change-based procurement. pears that the peak demand for the year growing at about 6.4 per cent per year.
may not exceed the peak demand for last Since the peak in 2024-25 was about
Pankaj Batra year by much, or at all. 250 GW, going by a simple back-of-the-
Peak power demand in India occurs envelope calculation, we can expect a
during the hot and humid months from If the South-West monsoon weakens, peak demand of about 266 GW during
May to September. This demand is pri- the humidity increases, resulting in in- 2025-26. The mid-term review of the
marily driven by air conditioner usage, creased power demand, and wind gener- 20th Electric Power Survey (conducted
which continues to rise alongside im- ation decreases (with an installed capac- by the CEA) puts the peak demand at 277
proving economic conditions. However, ity of 51.1 GW out of a total generating GW during 2025-26. Incidentally, the In-
power demand depends entirely upon capacity of 472.5 GW), creating a bigger ternational Energy Agency (IEA) stated
the weather. In some years, April expe- gap between supply and demand. that India’s electricity demand will hov-
riences extreme heat. The peak demand er around 6.3 per cent during 2025-27.
in 2022-23 was in April, at 215,888 MW, Shyamasis Das However, whether actual demand aligns
whereas the peak demand in 2023-24 So far this year, India has managed to with these estimates will depend on the
was in September, at 243,271 MW, and meet a peak power demand of about monsoon season, among other factors.
the peak demand in 2024-25 was in May 241 GW, recorded on June 9. Last year, The India Meteorological Department
2024 at 249,856 MW. In 2025, so far, April the peak demand catered to was 250 has forecast that the long-range mon-
had a peak demand of 235,321 MW. In GW, in the month of May, which is an soon for June-September 2025 will be
May 2025, the demand was 231,536 MW, all-time high. Since 2019, that is before about 106 per cent of the normal. This is
which was less than the April demand. the Covid-19 induced disruption, the likely to reduce power demand from air
country’s peak demand has grown at an conditioners and agricultural activities.
“Since power demand is average annual rate of 5 per cent. This Hence, if the monsoon prediction is cor-
summer-time trend is primarily driv- rect, actual power demand may fall short
primarily managed at the en by an increase in cooling load due of the projections made by the NLDC,
state level, it is essential for to greater adoption of air conditioners, CEA and IEA. That said, a peak demand
which is largely driven by higher wet- in the range of 260-265 GW seems likely.
states to take the initiative bulb temperatures – a combination of
and formulate their own high air temperature and high level of Sabyasachi Majumdar
relative humidity that affects human The power demand growth in India has
demand response comfort. Hence, depending on weath- been erratic during the summer months
regulations.” er conditions, power demand may rise of the current fiscal, mainly due to ab-
further in the coming months. Notably, errant weather patterns. The energy de-
Pankaj Batra the peak demand for a given year is not mand grew by 2.2 per cent in April 2025
necessarily recorded during the typical (over April 2024) but then declined a lit-
summer months. For example, the pre- tle by over 4 per cent in May 2025 (year
vious all-time high peak power demand on year) due to rains and mild summer
of around 243 GW was registered in Sep- conditions in several parts of the coun-
tember 2023, which is typically consid-
ered a post-monsoon month.
“Provisions must be made
to ensure that over 20
Somit Dasgupta
According to the Short-Term National
GW of gas-based capac-
Resource Adequacy Plan, prepared by the ities, which are currently
National Load Dispatch Centre (NLDC),
Sabyasachi Majumdar the peak demand was expected to be
underutilised, are kept
Senior Director, 273 GW, which was to occur on June 3, operationally ready to
CARE Ratings Limited 2025. This estimate was based on several
assumptions, and weather plays a domi-
meet short-term demand
nant role here. Since the temperature in spikes.”
May and early June 2025 was much cooler
compared to the previous year, the actu-
Sabyasachi Majumdar
al peak demand during 2025-26 was only

POWER LINE l June 2025 55

 FORUM

try. While there was energy demand based generating capacity is expected to the state level, it is essential for states to
growth in early June this year, the de- decrease. Most of the upcoming renew- take the initiative and formulate their
mand growth is likely to be in the low able generation capacity will comprise own demand response regulations.
single digits during the coming quarter, solar and wind, both of which are in-
given the likelihood of satisfactory mon- termittent. Therefore, the key future re- Key strategies for meeting India’s future
soons. However, any unusual breaks in quirements will be standby generation, power demand include continued em-
monsoon rains could lead to a spike in storage capacity and demand response phasis on energy storage and demand
demand, driven by increased cooling – with storage and demand response response. From an energy security per-
needs and increased demand from the expected to play a major role. The Indi- spective, it is crucial to promote the do-
agricultural sector. an government has already taken steps mestic manufacturing of essential com-
to promote hydro storage, including ponents for solar and wind generation,
What, in your view, should be the key short- pumped storage capacity and other as well as electrochemical storage sys-
and long-term strategies to meeting the coun- types of storage (mainly electrochem- tems. Additionally, pilot projects should
try’s power demand? ical storage in the form of batteries), be undertaken to explore emerging stor-
through incentives. The draft National age technologies. States should promote
Pankaj Batra Electricity Policy also emphasises the demand response mechanisms and en-
Coal-based generation capacity at the importance of demand response, sup- courage capacity building in this area.
end of 2023-24 was 49.23 per cent of the ported by corresponding regulations
total generation capacity, and reduced by the Central Electricity Regulatory Shyamasis Das
to 46.68 per cent at the end of 2024- Commission through the Ancillary Ser- To cater to the rising power demand, dis-
25. Meanwhile, renewable generation vices Regulations, 2022. However, since coms should be in a position to arrange
capacity (including large hydropow- power demand is primarily managed at supply. In the short term, discoms should
er) at the end of 2023-24 was 43.12 per contract sufficient power in advance and
cent of the total generation capacity, “Coal-based thermal pow- prepare a contingency plan. The focus
and increased to 46.32 per cent at the should be on developing a long-term
end of 2024-25. The remaining genera-
er plants act as ‘swing pro- comprehensive strategy.
tion capacity is gas, diesel (negligible) ducers’ in India due to the
and nuclear. With nuclear, the share of To this end, readiness is the key. Discoms
non-fossil fuel-based generation capac-
limited availability of gas- can achieve readiness through effective
ity at the end of 2024-25 was 48.02 per based power supply and load forecasting, which provides better
cent. It is likely that the target of 50 per visibility of the possible demand, and the
cent non-fossil fuel-based capacity by
large-scale energy storage development of a resource adequacy (RA)
2030 will be met by the end of 2025-26 capacity.” plan, which helps serve the load. A sim-
itself. The renewable generation capac- plified, straitjacket approach to load fore-
ity, in percentage terms, is expected to
Shyamasis Das casting will not be effective. Understand-
keep increasing, while the share of coal- ing how weather conditions affect power

56 POWER LINE l June 2025

 FORUM

demand will be critical due to the rising regime for all consumers, including res- not find a place in the merit-order dis-
share of cooling-related power demand idential users, is necessary. This would patch system, given the high price of
during summer months. The government require rapid roll-out of smart meters in LNG, and in such a situation, generators
has issued Resource Adequacy Guidelines the residential segment. Initially, this can are directed to sell the excess power on
and recently launched a resource adequa- be kickstarted in a staggered manner as the exchanges. Another step taken by the
cy and capacity expansion planning tool country-wide coverage may take time. government is to delay the retirement of
called STELLAR to assist discoms in the Moreover, the ToD tariff structure should coal-based plants, with only about 2,100
development of their own RA plans. allow enough dis-incentivisation of elec- MW earmarked to be phased out in the
tricity consumption during evening and next seven to eight years. These mea-
It is important to underline that the coun- nighttime while encouraging greater sures aim to maximise the utilisation
try-level headline figure of peak power adoption during solar hours. Discoms of existing generation assets and help
demand does not provide a complete pic- essentially need cost-reflective tariffs for meet demand. However, this also poses
ture of its impact and the required strate- their consumers. risks to achieving net zero by 2070. Two
gy. It is critical to factor in the time of day facts must be kept in mind. First, the
at which the discom experiences high de- Network-level interventions are also crit- power sector accounts for 40 per cent of
mand. If the demand is high around mid- ical. Often, issues emerge at the distribu- greenhouse gas emissions, and second,
day, it may not be all bad news because tion network or feeder level due to insuf- each MW of coal/gas-based generation
inexpensive solar and other sources of re- ficient carrying capacity to handle local kept running keeps 4 MW of renewable
newable energy are available during these power demand surges. Discoms should capacity at bay.
hours. However, managing peak demand carry out detailed load profiling at the
during evening and nighttime is a major distribution transformer and substation Some other measures that can help meet
challenge for discoms. The cost of pow- levels to identify potential choke points. the summer demand include shifting the
er is high during non-solar period as the Capacity augmentation should be done planned maintenance of conventional
supply is largely dependent on expensive before the onset of summer. BESS can generators to the winter months, as well
coal-based thermal power plants, which help discoms better manage local de- as utilising the surplus power from cap-
also act as “swing producers” in India due mand at the distribution level. tive power plants.
to the limited availability of gas-based
power supply and large-scale energy stor- Somit Dasgupta Sabyasachi Majumdar
age capacity. To meet the power demand for the sum- The capacity addition that has taken
mer of 2025, the focus is on short-term place in both the renewable and thermal
The country needs to adopt a multi- measures – that is, making the most of segments has helped meet the growing
pronged approach, covering both sup- existing assets. One such measure in- demand. India was able to comfortably
ply-side and demand-side interventions. volves optimising coal-based genera- meet the highest peak demand of 237
On the supply side, along with adding tion by directing plants to import coal GW on June 9, 2025. To meet the grow-
renewable energy capacity, it must scale and operate at full capacity. This also ing demand in the long run, the coun-
up utility-scale energy storage capacity applies to coastal plants designed to try must expedite capacity addition in
through battery energy storage systems run on imported coal. Separately, the both thermal and renewable energy,
(BESS) and pumped hydro storage to government has placed liquified natu- and aggressively ramp up energy stor-
ensure clean energy is available “on call”, ral gas (LNG) under the Open General age (both battery and pump storage) on
particularly during peak demand hours. License route to help generators get the mission-mode basis. Apart from this,
Progress on this front is currently lag- best price through market-based mech- India needs to ramp up coal mining as
ging. As per the National Electricity Plan, anisms. However, gas-based plants may well to ensure that thermal power plants
India must install 50 GW of non-fossil (TPPs) have adequate amounts of low-
fuel-based capacity annually between cost domestic coal and are able to sup-
2024-25 and 2026-27 and 53 GW of ca-
“To meet the power de- ply power at reasonable prices. In the
pacity between 2027-28 and 2031-32, mand for the summer of short run, the government must ensure
along with BESS capacities of around that all TPPs maintain the stipulated
34.7 GWh by 2026-27 and 236.2 GWh by
2025, the focus is on short- coal stocks as per CEA norms. In addi-
2031-32. term measures – that is, tion, provisions must be made to ensure
that over 20 GW of gas-based capacities,
Supply-side actions alone will offer lim-
making the most of exist- which are currently underutilised, are
ited benefit. Discoms have to find solu- ing assets.” kept operationally ready to meet short-
tions to avoid demand peaks and shift term demand spikes, especially during
load to high renewable energy hours.
Somit Dasgupta peak hours. Demand-side management
Introducing a time-of-day (ToD) tariff by discoms will also be critical. n

POWER LINE l June 2025 57

 FORUM

Scaling Battery Storage

GEAPP and BRPL achieve a milestone in the BESS space

Saurabh Kumar, Vice President of GEAPP India

Introduction ple clearance, which was followed by final and help make battery storage-as-a-ser-
A major milestone in India’s energy tran- approval post reverse auction. This is also vice affordable for distribution utilities.
sition was marked with the commis- the country’s first BESS project using the
sioning of the country’s first utility-scale battery-as-a-service model, with BRPL Since the project’s commissioning, the
standalone battery energy storage sys- only paying a monthly service charge de- site has hosted the Deputy Chief Minister
tem (BESS) project, developed collab- termined through the competitive bid- of Telangana and several senior officials
oratively by Global Energy Alliance for ding process. The project also monetised from the Ministry of Power. This serves
People and Planet (GEAPP) and BSES Ra- multiple value streams by integrating ad- as a powerful demonstration for battery
jdhani Power Limited (BRPL). ditional revenue sources including ancil- storage projects in the country and re-
lary services, significantly improving its inforces the idea that when it comes to
With India’s plans to integrate 500 GW of commercial viability. Beyond deployment, energy storage, seeing is believing.
renewable energy projects into the grid the project’s greatest contribution may
accelerating, an urgent need to estab- be its role as a sectoral template for stan- Driving down costs
lish an estimated 47-50 GW of storage dardised bidding documents, devel­oper- A key highlight of the recently commis-
capacity has emerged. This milestone is utility contracts and regulatory appr­oval sioned BESS project is a significant re-
thus important, as the current installed formats. As a result, the groundwork has duction in benchmark costs, by nearly
capacity stands at just 5.3 GW, largely been laid for other utilities to replicate the 55 percent. This achievement has set a
coming from legacy pumped storage sys- model with reduced transaction costs and precedent in pricing competitiveness.
tems, with no significant additions being clearer regulatory pathways. One of the primary factors was the cre-
made in recent years. GEAPP and BRPL ation of a highly transparent bidding
have, therefore, set a benchmark for stor- Scaling battery storage projects document. The project team conducted
age deployment by completing this proj- In order to scale efforts, GEAPP has three rounds of meetings with bidders,
ect within a 20-month timeline, thus es- been collaborating with the World Bank addressing all doubts and ensuring clari-
tablishing a model that other utilities can and the Government of India to build ty on every clause. This level of transpar-
replicate across the country. This was en- a shared technical assistance facility. ency fostered trust among participants
abled by a combination of regulatory in- While this may not be a pooled fund, it and eliminated ambiguity, which helped
novation and a transparent procurement is a coordinated mechanism that can drive down the risk premiums that are
process, which contributed to making provide support to over 12 utilities. Un- usually factored into bid prices.
the project both commercially viable and der this framework, GEAPP is managing
operationally sound. technical support across the partici- Secondly, the project structure included
pating utilities by helping design the forward-looking incentives. While arbi-
The project was originally conceived in structure and prepare projects for de- trage was the only monetisable stream
2019 and faced early regulatory road- ployment. This coordinated assistance at the time of bidding, the document
blocks, as the Delhi electricity regulator is critical for building a robust pipeline explicitly outlined that future revenue
rejected the proposal twice. It was GE- of projects in order to achieve the target streams, such as ancillary services or ca-
APP’s intervention, which involved identi- of establishing 40-50 GW of storage ca- pacity markets, will be shared with the
fying key gaps and introducing innovative pacity in the next five years. In terms of developer. This allowed bidders to lower
monetisation mechanisms, that led to the financing, discussions are being held to their upfront return expectations, as they
project gaining regulatory confidence and establish a line of credit for capital ex- were assured that the long-term revenues
thus the approval to move forward. penditure support through State Bank of could help offset any initial trade-offs.
India. The World Bank and IndiGrid are
Consequently, the initiative became In- working closely with the Indian govern- A third critical decision was to prioritise
dia’s first grid-connected battery storage ment to finalise a $300 million facility. quality over quantity. Given the impor-
project to secure approval through a two- This will enable developers such as Indi- tance of getting India’s first grid-scale
stage process. This included an in-princi- Grid to access funds at a reasonable cost, battery project right, preference was giv-

58 POWER LINE l June 2025

 FORUM

en to bidders with prior battery storage flexibility is ensured through a capaci- velopment of an open-source battery
experience. Although none of the bidders ty market mechanism. Here, the system management system (BMS). GEAPP has
had deployed projects of this scale be- operator secures a fixed quantum of ca- used international experience to devel-
fore, all three had existing installations pacity, which is often used during peak op a “Make in India” BMS. Currently de-
and technical know-how, which ensured periods such as early morning or evening ployed in the flagship Delhi project, this
competence without compromising cost. in order to maintain grid stability. This ar- system is undergoing testing. Once vali-
rangement allows the system operator to dated, it will be made freely available for
Fourth, the project team ensured that reserve capacity while enabling develop- any utility or developer to adopt, with GE-
the battery storage service agreement ers to participate in the energy market for APP offering technical support at no cost.
was fair and balanced. Unlike typical additional revenue. A key benefit of this
utility contracts in India, which tend to model is the availability of a fixed payment Outlook for India
be one-sided in favour of the utility, the component, which helps lower project The organisation is now focused on scal-
agreement recognised risk-sharing. A costs and increases commercial viability. ing its impact across three core areas that
one-sided agreement often prompts de- are seen as critical to India’s clean energy
velopers to pad costs as a hedge against Accelerating battery storage deployment transition: battery storage, grid digitalisa-
unforeseen liabilities. By creating a more will require intervention from the Cen- tion and decentralised renewables.
equitable contract, the team helped tral Electricity Regulatory Commission
eliminate unnecessary cost buffers. Con- and the Ministry of Power to establish an The first priority is to rapidly scale up bat-
sequently, these measures had a clear ancillary services market that includes tery energy storage and bring the market
impact. This was evident when the bids capacity-based payments. As Spain and to a self-sustaining tipping point. GEAPP
were opened nearly 18 months ago, as Portugal have demonstrated the vulner- envisions a scenario in the next two to
the tariff discovered was 35 percent lower abilities of systems that lack adequate three years where the battery storage sec-
than those seen in other large-scale ten- flexibility, it is crucial to manage the tor functions without the need for external
ders, such as SECI’s 1 GW tender or the growing share of intermittent renewable interventions, like utility-scale solar today.
500 MW Uttar Pradesh and Kerala proj- energy to ensure grid stability.
ects—all of which had tariffs exceeding The second key focus is on the digital-
Rs 10 per unit. In contrast, this project’s Another unresolved issue is the tax treat- isation of the power grid. A digitised
discovered tariff was in the Rs 4.5–Rs 5 ment of battery-as-a-service models. grid allows for greater flexibility by en-
range. Even after excluding the conces- While battery systems have been identi- abling demand response and integrat-
sional loan component, the total cost was fied as generating assets, it is still unclear ing higher shares of renewable energy.
still about 45 percent below the prevail- whether they are subject to the Goods By unlocking the value of real-time data,
ing benchmark. For reference, the Gov- and Services Tax (GST). If considered a utilities can better manage variability,
ernment of India’s viability gap funding taxable service, the applicable GST could reduce losses and plan infrastructure
scheme in 2023 had fixed a benchmark be as high as 18 percent, which can sig- more effectively.
tariff of Rs 6.5 per unit. The discovered nificantly impact the project costs.
tariff was well below that, primarily due The third and equally important priority
to the project’s multi-service approach. Despite these challenges, global learn- is decentralised renewable energy. GEAPP
Unlike conventional tenders that only ings and collaborations under GEAPP sees enormous potential, particularly in
value storage arbitrage, this project rec- have enriched India’s battery deployment light of innovative national schemes such
ognised the broader functionality of bat- strategy. The alliance, backed by three as the Pradhan Mantri Suryoday Yojana
teries, which enabled the monetisation founding philanthropic institutions and (PM Surya Ghar), which aims to install so-
of several additional grid services. supported by partners such as the World lar rooftops on 10 million homes. GEAPP
Bank and KfW, has enabled the transfer of has played a critical role in this initiative,
Addressing challenges by learning from glob- best practices into the Indian context. having developed and maintained the
al experiences digital backend and web infrastructure
Even as the deployment of India’s first The concept of monetising multiple bat- supporting its implementation. The alli-
grid-connected battery storage project tery value streams was inspired by similar ance now hopes to replicate this success
marks a pivotal shift, several policy chal- efforts in the state of California, US, and model not just across Indian states, but
lenges continue to pose barriers in wide- other advanced markets. Additionally, the also in other developing countries.
spread adoption. One of the most critical design framework for ancillary services
gaps is the absence of a capacity market, that GEAPP is proposing to the Govern- In conclusion, these three pillars – stor-
which is an essential feature in many de- ment of India is based on real-world mod- age, digitalisation and decentralisation
veloped energy systems. els adopted in the US, UK and Europe. – collectively represent GEAPP’s strate-
gic vision for accelerating India’s energy
In markets such as the US and UK, grid Another important innovation is the de- transition. n

POWER LINE l June 2025 59

 FORUM

Balancing the Grid

Evolution of the energy mix and its impact on grid stability

R.K. Choudhary, Former Member, Bihar Electricity Regulatory Commission

F
rom 1980 to 2010, India’s power gen- As environmental concerns escalated, High renewable energy penetration
eration was predominantly based on particularly with regard to emissions presents new challenges. Renewable
fossil fuel-based power plants (such from coal-fired plants, the Ministry energy sources, being inverter-based,
as coal, gas and oil), hydroelectric plants of Environment, Forest and Climate contribute little to grid inertia, unlike
and nuclear stations. The primary focus Change began pushing for cleaner tech- conventional rotating machinery. This
during this period was ensuring reliable nologies. The twin goals were: raises concerns, particularly in light of
power supply to the grid, with secondary z Enhancing plant efficiency to reduce recent grid events in Spain and Portu-
emphasis on improving plant efficiency. generation costs, and gal, which may be partially attributable
z Reducing CO2 emissions to combat to low-inertia systems.
Until 1980, many thermal power plants global warming.
operated at unit sizes of 210 MW or less, While battery energy storage systems
based on subcritical steam parameters This led to a push for supercritical tech- (BESSs), pumped storage projects
of 150 ata/530°C/530°C. The efficiency nology, which operates at higher steam (PSPs) and other ancillary services are
of these units was generally below 30 per pressures and temperatures. The first critical for managing variability and en-
cent. In 1984, Tata Power Company Lim- supercritical units in India – 800 MW suring grid stability during renewable
ited commissioned the country’s first at CGPL Mundra (a Tata Power subsidi- energy generation peaks or intermitten-
500 MW unit at Trombay in Mumbai, still ary) and 660 MW at NTPC Sipat – were cy, a balan­ced e­nerg­y mix is essential.
subcritical but operating at higher steam commissioned in 2012. Supercritical
parameters of 170 ata/537°C/537°C. units operate at pressures above 225 kg Research is ongoing in advanced ul-
per cm² (ata). Compared to subcritical tra-supercritical technologies operating
Around the same time, concerns about units, their higher steam parameters (for at even higher steam parameters (300
greenhouse gas (GHG) emissions began instance, 280 ata/600°C/600°C) enable ata/720°C/720°C), along with carbon
gaining global traction. The 1997 Kyoto thermal efficiencies of around 42 per capture and storage solutions. These
Protocol marked a significant interna- cent, up from 37 per cent, resulting in hold promise for the future, with com-
tional effort to reduce CO2 and other GHG lower coal consumption and CO2 emis- mercial viability within reach.
emissions contributing to global warming. sions per unit of electricity generated.
Hence, a diversified and balanced energy
Up until the early 2000s, electricity tar- Parallel to this, several hydroelectric mix is vital – combining renewable en-
iffs in India were determined based plants were commissioned and served ergy with environmentally friendly con-
on plant load factor. Generators were both as baseload and peaking sourc- ventional sources – to ensure a robust
incentivised to maximise generation, es, depending on system requirements. and stable power system. Although re-
even when grid frequency was on the These developments collectively helped newable energy appears cheaper (with
higher side (sometimes exceeding 52 stabilise the Indian grid, maintaining fre- solar/wind generation at around Rs 2.5
Hz, particularly in the eastern region), quency within permissible limits. per unit), the cost advantage diminishes
often by biasing turbine governors. To once the expense of necessary ancillary
address this, the Central Electricity Au- The rate of change of frequency (df/ systems (BESS, PSPs, etc.) for grid sta-
thority, after stakeholder consultations, dt), or grid inertia, remained sufficient bility is factored in.
introduced the Free Governor Mode of during this era due to the prevalence of
Operation to stabilise grid frequency high-inertia rotating machines like steam This holistic approach also promotes op-
within the range of 49-51.5 Hz. Simulta- turbines. Such machines, when tripped, timal utilisation of India’s diverse natural
neously, in 2005, the Central Electricity can take up to 10 minutes to coast down resources such as solar, wind, coal, hydro
Regulatory Commission implemented from 3,000 revolutions per minute (rpm) and nuclear. We must adopt a compre-
the availability-based tariff mechanism. to low turning speeds (around 200 rpm), hensive strategy to achieve this balanced
Together, these reforms brought the fre- helping maintain frequency stability and resilient energy mix by 2047. n
quency closer to the optimal 50 Hz ± 0.5. during disturbances.

60 POWER LINE l June 2025

 FORUM

POWER LINE l June 2025 61

 FORUM

Powering the
Green Transition
Imperative of including TTPs in the Carbon Credit Trading Scheme
Sairam Thandra, Senior Analyst; and Harikrishna K. V., Research Scientist, CSTEP

T
he Indian government notified the around 16 per cent of the country’s to- or carbon capture and storage systems
draft Greenhouse Gas Emission In- tal emissions. However, thermal power requires significant capital invest-
tensity Targets Rules for en-ergy-in- plants (TPPs), which constitute al-most ment. Further, given that more than 50
tensive industries on April 16, 2025. 39.2 per cent of India’s total carbon emis- per cent of TPPs in India are relatively
This is a foundational step towards op- sions, have not been included in this ini- young (less than 11 years old) and al-
erationalising the Carbon Credit Trad- tial phase of CCTS. Given that more than most 41 per cent of these are sub-crit-
ing Scheme (CCTS), which is set to be half of India’s fuel-related carbon dioxide ical and operate under long-term pow-
launched in mid-2026. (CO2) emissions come from TPPs, their er purchase agreements (according to
exclusion is a major miss. But it also can- Global Energy Monitor data), a strict
India is the third largest emitter of green- not be denied that including them in- emissions cap would put them un-der
house gases (GHG) in the world. An In- volves sub-stantial challenges. severe financial stress.
ternational Mone-tary Fund working
paper estimates that India’s current eco- Why are TPPs not included? Strategies for including TPPs
nomic growth trajectory will lead to a TPPs are an integral component of India’s Navigating the complex challenges as-
41 per cent increase in GHG emissions energy mix, meeting almost 73 per cent sociated with bringing TPPs under the
by 2030. As such, decoupling emissions of the country’s total electricity demand, compliance-based mechanism requires
from economic growth will be a major which is growing annually by 6-7 per a comprehensive modelling approach,
goal – and challenge – for India in the cent. The Ministry of Power (MoP) has where multiple scenarios at the re-gional
coming years. proposed an addition of 80 GW of coal- or national level are executed and an ap-
based capacity by 2031-32 for meeting propriate strategy for ploughing back the
Globally, emissions trading systems the growing de-mand, indicating that the revenue to foster cleaner technologies in
(ETSs) are seen as a key mechanism for current reliance on coal-based genera- TPPs is identified.
achieving emissions reduction without tion is likely to persist. While re-newable
compromising economic growth. India energy penetration has been increasing India has adopted emissions intensi-
began developing its ETS by establishing and will continue to do so, owing to the ty-based target setting across all the
the regulatory framework for the Indian push to-wards clean energy transition, sectors covered under the CCTS. This
carbon market under the Energy Conser- coal plants would still be necessary to can be extended to TPPs as well. Given
vation Amend-ment Act, 2022. Based on ensure reliable power supply in view of the technical and operational diversity
this, in 2023, the Indian government no- the intermittency of renewables-based of TPPs across the nation, assigning a
tified the CCTS – a market-based mech- power generation. unit-level target that takes into account
anism to decarbonise the economy and plant-specific challenges would be an
spur investments in clean technologies The majority of TPPs in India are effective strategy for reducing emissions
by pricing GHG emissions and facilitat- sub-critical, which means that they use from TPPs.
ing carbon trading. older technology, are less efficient and
cause more emissions per unit of elec- China’s ETS, which was launched in
Of the two mechanisms defined under tricity produced, as compared to su- 2017, offers a relevant example in the
the CCTS – compliance mechanism and percritical and ultra-supercritical TPPs. context of power sector decarboni-
offset mechanism – detailed regulations In this scenario, including them in the sation. Employing emissions intensi-
for the former were adopted by the gov- compliance carbon market might hike ty-based targets, China operationalised
ernment in July 2024. These cover emis- the per-unit cost of electricity genera- its ETS in the power sector in the initial
sions from nine energy-intensive indus- tion, as retrofitting TPPs with advanced phases, which enabled it to cover more
trial sectors, which together account for technologies like supercritical boilers than 40 per cent of the country’s total

62 POWER LINE l June 2025

 FORUM

CO2 emissions. It adopted a modelling per MWh, its total annual CO2 emis- India must endeav-our to substantially
approach, under which all relevant sions would be 0.727 million tonnes, reduce its power sector emissions. In-
technical and opera-tional parameters which can be granted to the plant as dia’s future generation planning should
were factored in for assigning targets free allowance initially. Once the base- entail building ultra-supercritical and
to individual units, giving them enough line emission is fixed, customised tar- advanced ultra-supercritical TPPs, while
time to transition. For India too, transi- gets can be assigned to each plant af- increasing the share of ultra-supercrit-
tioning from the current specific ener- ter evaluating its potential to cut down ical TPPs (which is currently only 1 per
gy-consumption-based targets under emissions. Depending on whether a cent). The MoP has already mandated
the Perform, Achieve and Trade (PAT) TPP exceeds or falls short of its target, it using 5-7 per cent biomass pellets made
scheme to emissions intensity-based can sell or buy carbon credit certificates from agricultural residue along with coal
targets under the CCTS can prove to be un-der the CCTS. Eventually, the free through co-firing in TPPs. As this mea-
more effective for decarbonising TPPs. allowances can be auctioned through sure reduces CO2 emissions and gener-
As CCTS offers a range of measures for the CCTS, and a portion of the revenue ates carbon credits, it can be incentivised
emissions reduction (as compared to generated can be gradually allocated through carbon markets for effective im-
the PAT scheme), such as off-site re- for modernising grid infrastructure and plementation.
newable installations and other tech- promot-ing clean energy. A similar ap-
nological upgrades, it can prompt TPPs proach has been taken by California’s The bottom line
to lower their emissions. A com-pre- Cap-and-Trade Programme, where rev- Though excluding TPPs in the initial
hensive modelling approach can help enue from auctioning is directed to the phase of CCTS is understandable, they
in understanding the impact of includ- state’s Greenhouse Gas Reduction Fund, cannot be sidelined for long, as that would
ing TPPs in the CCTS, and region-spe- and most of it is allocated for support- negate the possibility of curbing over 1.1
cific projects can be piloted to identify ing projects that deliver significant en- billion tonnes of annual CO2 emissions.
challenges at a granular level. vironmental and public health benefits. The challenges associated with including
Japan’s Green Transformation policy TPPs call for a well thought-out strategy
To begin with, India can permit TPPs to also considers auctioning allowances that integrates contextualised global best
continue emitting at their current levels and uti-lises the resultant revenue for practices with modelling approaches,
to establish a base-line emission (for recovering the initial investment costs aiming for their phased and successful
each plant), which can be considered of decarbonisation projects, especially inclusion in the CCTS.
as initial free allowances. For instance, in the hard-to-abate sectors. The authors work in the Transmission and
if a plant generates 1,000 MUs of elec- Grid Planning group at the Centre for Study
tricity annually, with an average grid In addition to exploring the applicabili- of Science, Technology and Policy (CSTEP), a
emission factor of 0.727 tonnes of CO2 ty of successful global ETS mechanisms, research-based think tank.

POWER LINE l June 2025 63

 FINANCE

Green Yields
June 2025, the Reserve Bank of India (RBI)
attempted to reissue Rs 50 billion worth
of sover-eign green bonds (SGBs). These
30-year bonds, with a 6.98 per cent cou-
pon, were part of a broader Rs 300 billion
Recent bond activity in the renewables space government securities auction. However,
all bids were rejected after investors de-
manded higher yields, despite receiving
India’s transition to a low-carbon econ- IREDA’s approach suggests a shift from over Rs 10.94 billion in competitive bids.
omy has brought green financing instru- project-specific funding to integrating
ments to the fore. Among these, bonds, green-labelled instruments as part of its This was not an isolated case. Since
which are fixed-income instruments is- broader balance sheet management. their debut in February 2023, when
sued to raise capital, have emerged as a both five-year and 10-year SGBs were
key enabler for renewable energy invest- Meanwhile, REC Limited led the market oversubscribed over four times, investor
ments. Governed by frameworks from in issuance volume. In April 2025, it raised interest has shown sharp fluctuations.
the Ministry of Finance (MoF) and the Rs 50 billion and Rs 30 billion via five-year While the debut auction attracted a
Securities and Exchange Board of India bonds at 6.87 per cent per annum coupon, modest “greenium” of six basis points,
(SEBI), they allow government agencies, and Rs 20 billion via 10-year bonds at 6.86 subse-quent auctions have struggled to
public finan-cial institutions and corpo- per cent per annum coupon. Then, in May maintain momentum.
rates to access dedicated capital pools 2025, the company raised Rs 56.35 billion
for clean energy deployment. through private placement bonds, with Rs In May 2024, the RBI cancelled the first
30 billion in two-year eight-month bonds SGB auction of FY 2024-25 entirely, de-
Between January 2025 and June 2025, at 6.52 per cent per annum coupon, and Rs clining all bids against a Rs 60 billion
green bond issuances in India’s domes- 26.35 billion in 10-year 11-month bonds at notified amount due to the absence of
tic market crossed Rs 131.42 billion, ac- 6.81 per cent per annum coupon. All REC a pricing advantage. In August 2024, the
cording to Renewa-ble Watch Research. issuances were rated “AAA” by vari-ous second auction received only Rs 16.97
While investor interest varied, the peri- rating agencies and listed on the Bombay billion in bids at a 6.90 per cent cut-off,
od saw a steady dip in momentum de- Stock Exchange (BSE) and the National well below the Rs 60 billion on offer. In
spite large issuances led primarily by Stock Exchange, ensuring greater liquid- November 2024, 70 per cent of a Rs 50
public sector issuers. ity and vis-ibility for institutional buyers. billion offering had to be devolved on
What stood out was REC’s use of differ- primary dealers at yields between 6.78
Renewable Watch delves into the bond entiated maturities and pricing to cater to per cent and 6.84 per cent. In January
market in the renewable space, recent is- diverse investor needs, from short-term 2025, the RBI partially devolved Rs 39.45
suances, policy developments, challeng- bonds of about three years to those near- billion worth of 10-year SGBs on prima-
es and the future outlook… ing 11 years. This structuring indicates ry dealers after weak investor interest.
that the bond market is beginning to sup- These cases underscore persistent inves-
Issuance activity port more customised profiles, even with- tor hesitation, narrow market participa-
NBFC bond activity in standard regulatory frameworks. tion and the lack of clear pricing incen-
Non-banking financial companies tives for longer-tenor green instruments
(NBFCs), namely, the Indian Renewable In a further diversification effort, REC, in India’s sovereign bond market.
Energy Development Agency (IREDA) in June 2025, received formal approval
and REC Limited, have been the most from the Central Board of Direct Tax- Municipal bond activity
active issuers in the bond segment for es to issue Rs 50 billion in zero-coupon Municipal bodies have begun using
renewable energy projects. IREDA con- bonds (ZCBs), with a 10-year six-month capital markets to fund decentralised,
tinues to expand its capital base through maturity. The previous ZCB issuance, in climate-aligned infrastructure through
mul-tiple instruments. In March 2025, it FY 2024-25, had been nearly seven times green bonds. In April 2025, Ghaziabad
issued Rs 12.47 billion in perpetual Tier I oversubscribed and carried a 6.25 per Nagar Nigam issued India’s first certified
green bonds at a coupon rate of 8.40 per cent yield, around 100 basis points lower green municipal bond under the Swachh
cent per annum. In the same month, a than prevailing market rates at the time. Bharat Mission-Urban, raising Rs 1.5 bil-
Rs 9.10 billion issuance of 10-year Tier II The strong market response to ZCBs has lion for a tertiary sewage treatment plant
green bonds at a 7.74 per cent per annum enabled REC to explore more cost-effi- under a hybrid public-private partner-
coupon rate followed. Both issu-ances cient, tax-aligned funding pathways. ship model. The project aimed at indus-
were privately placed with institution- trial water reuse, and was notable for its
al investors and aimed at strengthen- Sovereign bond activity advanced treatment technologies and
ing capital adequacy ratios. Further, Adding to the sovereign bonds pipeline, in structured financing.

64 POWER LINE l June 2025

 FINANCE

Key bond issuances by renewable energy financiers (January-June 2025)

Issuer Instrument Amount (Rs Tenor Coupon rate (per Issue month
billion) cent per annum)
IREDA Prepetual bonds (Tier I) 12.47 Perpetual 8.4 March 2025
IREDA Subordinated bonds 9.1 10 years 7.74 March 2025
(Tier II)
30 5 years 6.87
REC Limited Privately-placed bonds April 2025
20 10 years 6.86
30 2 years 8 months 6.52
REC Limited Privately-placed bonds 26.35 10 years 11 6.81 May 2025
months

Source: Renewable Watch Research

In June 2025, Pimpri-Chinchwad munici- ing maturity in 2025. Issuance activity by active trading, green bonds may con-
pal corporation launched a green bond to NBFCs and municipalities demonstrates tinue to face limited uptake, particular-
fund sustainable mobility projects. The Rs alignment between capital structuring ly from long-term institutional players.
2 billion is-sue was oversubscribed over and renewable energy financing needs.
five times, receiving strong investor inter- The introduction of a national taxonomy Labelling issues are also a challenge. Ac-
est, and was listed on the BSE. Addition- and stronger disclosure norms will im- cording to the Council on Energy, Envi-
ally, it attracted a Rs 200 million incentive prove regulatory clarity. ronment and Water’s “Unlocking green
under the Urban Challenge Fund, signal- finance for India’s urban local bodies
ling policy support for the bond. Both is- Despite this, several structural chal- through municipal green bonds” report,
suances point to the emerging potential lenges remain. One is the absence of a 83 per cent of municipal bond proceeds
of municipal green bonds as a financial “greenium”, which is the marginal pric- since 2015 had funded green-aligned
instrument for cities to fund climate-re- ing benefit typically ex-pected from projects, yet lacked formal green labels.
lated infrastructure independently. green-labelled bonds. In both sovereign Green-labelled municipal bonds bene-
and NBFC cases, yields have largely mir- fited from a 50-basis-point lower spread,
Policy and regulatory landscape rored those of conventional bonds. This underlining the missed cost advantages
To strengthen the regulatory landscape, leaves issuers with little incentive to bear due to improper classification.
the MoF released a draft Climate Finance the additional compliance costs.
Taxonomy in May 2025. The taxonomy The challenge of inconsistent labelling is
defines sovereign and corporate green Market depth also remains a concern. not confined to municipal bonds alone. It
bonds as core instruments and seeks to The limited supply of outstanding persists across various categories of issu-
align India’s green finance framework with green bonds issues means investors ers and adds to the fragmentation in the
international standards. By standardising who purchase green bonds find it diffi- market. While the new climate finance tax-
definitions and activity classifications, it cult to resell them later due to the lack onomy by the MoF is expected to improve
aims to enhance transparency, prevent of a big or active secondary market in standardisation and ad-dress the labelling
greenwashing and channel credible in- India. This makes green bonds less at- challenge, regulatory compliance alone is
vest-ments through the bond market. tractive for investors seeking liquidity, unlikely to drive demand unless comple-
especially for big institutional inves- mented by targeted incentives, such as
In June 2025, SEBI introduced enhanced tors in the renewable energy space who credit guarantees and tax exemptions.
disclosure norms under a regulatory tend to prefer more liquid and easi-ly
framework for environmental, social tradable investments. This was evident Looking ahead, the market’s next phase
and governance (ESG)-labelled debt in the underwhelming response to the of growth may depend on more ac-
instruments, including sustainabili- RBI’s SGB auctions in November 2024 tive participation from retail investors,
ty-linked bonds. It mandates verified and January 2025, where only around tax-neutral investment vehicles and
use of proceeds and stricter oversight of 30 per cent and 21 per cent of the no- further institutional mandates. As India
ESG ratings. These steps are intended to tified amounts, respectively, were sub- expands renewable energy deployment
improve investor confidence and curb scribed by market participants, as per and investments in the energy transi-
greenwashing, especially in the debt and several media sources. Further, in June tion, bonds may continue to play a role,
bond markets. 2025, the RBI rejected all bids for 30- but their effectiveness will depend on
year SGBs due to investors’ demand for how quickly the structural hurdles are
Challenges and the futue outlook higher yields. These in-stances high- addressed. n
India’s green bond market has seen grow- light that without better liquidity and Karan Sharma

POWER LINE l June 2025 65

 FINANCE

Financial Briefs
India and overseas

3
NTPC raises $750 million ECB term loan to ment by 2034, with testing facilities be- capital raised will enhance IREDA’s Tier I
fund capacity expansion ing developed by the Central Power Re- capital and capital adequacy ratio.
NTPC Limited has raised an unsecured search Institute.
$750 million external commercial bor- 3
SAEL secures $132 million debt funding
rowing (ECB) syndicated term loan fa- 3
REC receives CBDT approval to issue zero from AIIB, NDB and Société Générale for solar
cility to support its capex and capacity coupon bonds worth Rs 50 billion project in Andhra Pradesh
addition plans. The facility comprises a REC Limited has received approval SAEL Solar MHP1, a wholly owned sub-
base issue of $500 million and a green- from the Central Board of Direct Taxes sidiary of SAEL Industries Limited, has
shoe option of $250 million, with a door- (CBDT), MoF, for the issuance of zero secured a total of $132 million in debt
to-door tenor of 10 years and average coupon bonds worth Rs 50 billion. These funding from the Asian Infrastructure
maturity of seven years. Bank of Baroda bonds will have a tenure of 10 years and Investment Bank (AIIB), the New De-
acted as the mandated lead arranger and six months, and will be issued at a deep velopment Bank (NDB) and Société
underwriter for the base tranche of $500 discount, redeemable at face value on Générale for the development of a solar
million, while HDFC Bank served as the maturity. The bond issuance is part of power project in Andhra Pradesh. Each
mandated lead arranger and bookrun- REC’s strategy to leverage innovative fi- institution has committed $44 million to
ner for the greenshoe portion. nancial instruments for effective fund- support the execution and operationali-
raising to support India’s expanding en- sation of the project.
3
Avaana Capital draws first tranche of GCF’s ergy infrastructure requirements.
$24.5 million commitment 3
Vikram Solar gets SEBI approval for Rs 15
Avaana Capital has announced the first 3
NTPC raises Rs 40 billion via debentures billion IPO
drawdown of the Green Climate Fund’s through private placement Vikram Solar Limited has received ap-
(GCF) $24.5 million commitment to the NTPC Limited has raised Rs 40 billion proval from the Securities and Exchange
Avaana Sustainability Fund. The invest- through the private placement of unse- Board of India (SEBI) to launch its initial
ment is anchored by the Small Industries cured, non-convertible debentures. The public offering (IPO) amounting to Rs 15
Development Bank of India, acting as debentures will carry a coupon rate of 6.89 billion. The proposed IPO comprises a
the accredited entity under the guidance per cent per annum and have a tenor of 10 fresh issue of equity shares worth Rs 15
of the Department of Financial Services, years and 1 day. This marks the third such billion and an offer-for-sale of up to 17.45
Ministry of Finance (MoF). Avaana Cap- issue under the approved framework. million equity shares by the promoter
ital invests in technology-led solutions The funds raised will be used for purpos- and promoter group selling shareholders.
across energy, sustainable supply chains, es such as capex, refinancing of existing
agriculture and advanced materials. loans and other general corporate needs. 3
World Bank approves $2.13 billion green
The debentures are proposed to be listed financing for Indonesia (Overseas)
3
Central government approves Rs 54 billion on the National Stock Exchange. The World Bank has approved a total of
VGF for 30 GWh BESS $2.13 billion in blended financing for
The central government has approved 3
IREDA raises Rs 20.06 billion through QIP Indonesia to support its push toward a
a viability gap funding (VGF) scheme of Indian Renewable Energy Development low-carbon and climate-resilient econ-
Rs 54 billion to support the development Agency Limited (IREDA) has raised Rs omy. The financing package combines
of 30 GWh of battery energy storage sys- 20.06 billion through a qualified institu- loans and guarantees aimed at accelerat-
tems (BESS). The initiative is expected to tions placement (QIP). The capital was ing clean energy adoption, reducing car-
attract investments worth Rs 330 billion mobilised through the issuance of 121.5 bon emissions and enhancing infrastruc-
and help meet India’s energy storage re- million equity shares at a price of Rs ture development. It includes funding for
quirements by 2028. This is in addition 165.14 per share, including a premium transmission infrastructure, renewable
to 13.2 GWh of BESS already under im- of Rs 155.14 per share over the face val- energy expansion, disaster preparedness
plementation. To further strengthen ue. The issue price reflected a 5 per cent and improved access to healthcare. The
transmission infrastructure, the govern- discount to the floor price of Rs 173.83 package aligns with the Indonesian gov-
ment plans to roll out ultra high voltage per share. The QIP was oversubscribed, ernment’s Just Energy Transition Part-
AC transmission systems. Nine 1,100 kV receiving bids worth Rs 20.06 billion nership and its broader commitment to
lines have been identified for develop- against a base size of Rs 15 billion. The achieve net zero emissions by 2060. n

66 POWER LINE l June 2025

 POWER DISTRIBUTION INFOCUS

Infocus

Power Distribution

Managing energy flow: Pivotal role of substations and switchgear in the power system..............................................................34
Shifting gears: Transitioning to smarter and safer substations and switchgear.............................................................................38
Enhancing asset performance: O&M strategies and solutions.......................................................................................................40
Modernising transmission: Digital substations to play a critical role in enhancing grid resilience.............................................44

POWER LINE l June 2025 67

 INFOCUS POWER DISTRIBUTION

Widening Losses
Key highlights of PFC’s report on discom performance

I
mproving the financial and operation- per cent) and BSES Rajdhani Power Lim- Electricity Supply Company Limited.
al performance of distribution com- ited (BRPL) (6.58 per cent). On the other
panies remains a persistent challenge end of the spectrum, utilities with the The aggregate losses (on a subsidy billed
in the power sector. As per the Power highest AT&C losses included the Naga- basis) for distribution utilities fell from Rs
Finance Corporation’s (PFC’s) latest re- land Power Department (PD) (47.11 per 594.97 billion in 2022-23 to Rs 255.53 bil-
port on the performance of state power cent), Arunachal PD (44.56 per cent), lion in 2023-24, a 57.05 per cent reduction.
utilities for 2023-24, the average aggre- Ladakh PD (42.46 per cent), Mizoram Based on PFC’s data, the states with the
gate technical and commercial (AT&C) (34.85 per cent) and Jharkhand Bijli Vi- highest loss levels were Karnataka with an
losses for distribution utilities at the na- tran Nigam Limited (JBVNL) (31.17 per aggregate loss of Rs 85.5 billion, followed
tional level increased from 15.11 per cent cent). During 2023-24, 19 states and by Uttar Pradesh at Rs 70.58 billion and
in 2022-23 to 16.12 per cent in 2023-24. union territories witnessed an improve- Telangana at Rs 63.51 billion. In contrast,
Meanwhile, billing efficiency decreased ment in AT&C losses over the previous Gujarat posted a profit of Rs 43.39 billion,
marginally from 86.98 per cent in 2022- year. These were Goa, Sikkim, Arunachal followed by Delhi at Rs 16.81 billion.
23 to 86.91 per cent in 2023-24, while col- Pradesh, Uttar Pradesh, Puducherry, Bi-
lection efficiency declined from 97.6 per har, Assam, Karnataka, Odisha, Gujarat, Aggregate losses on tariff subsidies re-
cent to 96.51 per cent. Haryana, Uttarakhand, Tripura, Mani- ceived, excluding regulatory income and
pur, Punjab, Chhattisgarh, Meghalaya, revenue grants under the Ujwal Discom
The report gives a detailed overview of Nagaland and Delhi. Assurance Yojana (UDAY) for loan take-
key financial and operational metrics for over, decreased from Rs 729.05 billion in
discoms. It is based on a comprehensive The billing efficiency decreased to 86.91 2022-23 to Rs 319.7 billion in 2023-24.
survey covering 63 power distribution per cent in 2023-24 from 86.98 per cent
utilities out of 72 for the year 2023-24, in 2022-23. The top five utilities with the Distribution utilities sold 1,252,633 MUs
compared to 67 utilities covered in the highest billing efficiency as per the re- of energy in 2023-24, a year-on-year in-
2022-23 report. It is compiled based on port were DGVCL (98.69 per cent), IPCL crease of 6.56 per cent from 1,175,474
audited/provisional annual accounts of (97.32 per cent), New Delhi Municipal MUs in 2022-23. The highest energy sales
the utilities. Of the 59 state and private Council (96.08 per cent), Brihanmumbai were recorded in Maharashtra (139.47
discoms covered, 52 submitted audited Electric Supply and Transport (95.88 per BUs), Uttar Pradesh (113.48 BUs), Gujarat
annual accounts. cent) and AEML (94.13 per cent). (109.21 BUs) and Tamil Nadu (92.74 BUs).

Power Line presents the key highlights of The collection efficiency also declined Revenue from operations, including
the report… from 97.6 per cent in 2022-23 to 96.51 per billed tariff subsidies, increased by 13.57
cent in 2023-24. However, several utili- per cent from Rs 8,458.41 billion in 2022-
Performance of distribution utilities ties recorded 100 per cent collection ef- 23 to Rs 9,605.95 billion in 2022-23. The
Overall, AT&C losses for distribution ficiency during 2023-24. These included top revenue-earning discoms for 2022-23
utilities increased from 15.11 per cent DGVCL, Andaman & Nicobar PD, Uttar were Maharashtra State Electricity Dis-
in 2022-23 to 16.12 per cent in 2023-24. Haryana Bijli Vitran Nigam Limited, Cha- tribution Company Limited (Rs 996.11
Among the state sector utilities, Dakshin mundeshwari Electricity Supply Corpo- billion), Tamil Nadu Generation and Dis-
Gujarat Vij Company Limited (DGVCL) ration Limited, Madhya Pradesh Paschim tribution Corporation (Rs 636.75 billion),
registered the lowest AT&C losses (1.31 Kshetra Vidyut Vitran Company Limited, Southern Power Distribution Company
per cent). Overall, 37 utilities report- Meghalaya Power Distribution Corpo- of Telangana Limited (Rs 321.02 billion),
ed AT&C losses lower than the all-India ration Limited, Sikkim PD, Tripura State West Bengal State Electricity Distribu-
national average. The top five among Electricity Corporation Limited, Kanpur tion Company Limited (Rs 284.64 billion)
them were DGVCL (1.31 per cent), India Electricity Supply Company Limited (KE- and DGVCL (Rs 252.09 billion).
Power Corporation Limited (IPCL) (4.07 SCO), Purv­anchal Vidyut Vitaran Nigam
per cent), Tata Power Delhi Distribution Limi­ted, TPDDL, TP Northern Odisha Tariff subsidies billed by distribution util-
Limited (TPDDL) (5.91 per cent), Adani Distribution Limited, TP Central Odisha ities increased from Rs 1,690.16 billion in
Electricity Mumbai Limited (AEML) (6.12 Distribution Limited, BRPL and Gulbarga 2022-23 to Rs 2,107.84 billion in 2023-24.

68 POWER LINE l June 2025

 POWER DISTRIBUTION INFOCUS

Operational and financial performance of distribution utilities

Parameter Unit 2023-24 2022-23* 2022-23 2021-22

Profit/(Loss) after tax Rs billion (256) (611) (595) (272)
Profit/(Loss) with tariff subsidy received Rs billion (310) (466) (450) (132)
Profit/(Loss) with tariff subsidy received excluding revenue
grant under UDAY for loan Rs billion (320) (737) (729) (135)
takeover and regulatory income
Tariff subsidy billed Rs billion 2,107.84 1,690.16 1,690.16 1,447.41
Tariff subsidy received Rs billion 2,053 1,835.21 1,835.21 1,587.55
Tariff subsidy billed as % of total revenue % 20.21 18.04 17.56 17.83
Tariff subsidy received as % of tariff subsidy billed % 97.40 108.58 108.58 109.68
Average cost of supply Rs per kWh 7.09 7.08 7.08 6.28
Average revenue (subsidy billed) Rs per kWh 6.94 6.65 6.67 6.08
Gap (subsidy billed) Rs per kWh 0.15 0.43 0.41 0.20
Average revenue (tariff subsidy received) Rs per kWh 6.91 6.75 6.77 6.19
Gap (tariff subsidy received) Rs per kWh 0.18 0.33 0.31 0.09
Average revenue (tariff subsidy received) without revenue
grant under UDAY for loan takeover Rs per kWh 6.90 6.56 6.58 6.19
and regulatory income
Gap (tariff subsidy received) without revenue grant under
Rs per kWh 0.19 0.52 0.50 0.10
UDAY for loan takeover and regulatory income
Cash adjusted ARR Rs per kWh 6.71 6.49 6.51 5.95
Cash adjusted gap Rs per kWh 0.39 0.59 0.57 0.33
Energy purchased including own generation MUs 1,502,390 1,409,049 1,442,648 1,334,510
Power purchase cost including fuel cost Rs billion 8,160.70 7,712.72 7,903.32 6,362.96
Power purchase cost as % of total cost % 76.61 77.34 77.42 75.91
Billing efficiency % 86.91 86.76 86.98 86.08
Collection efficiency % 96.51 97.56 97.60 97.45
AT&C loss % 16.12 15.36 15.11 16.12

*2022-23 data corresponds to only those utilities for which data is available for 2023-24.
Source: PFC Utility Performance Report 2023-24

As a percentage of the total revenue, tar- The gap in tariff subsidy billed narrowed The average cost of power (including
iff subsidies billed by utilities increased from Re 0.41 per kWh in 2022-23 to Re own generation) for distribution utilities
from 17.56 per cent in 2022-23 to 20.21 0.15 per kWh in 2023-24. The gap in decreased from Rs 5.48 per kWh in 2022-
per cent in 2023-24. Subsidies released tariff subsidy received, excluding regu- 23 to Rs 5.43 per kWh in 2023-24.
by state governments dropped to 97.4 latory income and revenue grant under
per cent of billed subsidies in 2023-24 UDAY for loan takeover, improved from The net worth of distribution utilities
compared to 108.58 per cent in 2022-23. Re 0.5 per kWh in 2022-23 to Re 0.19 per remained negative at Rs 1,733.65 bil-
kWh in 2023-24. lion as of March 31, 2024. Total borrow-
During 2023-24, Rs 9.33 billion was ings rose from Rs 6,848.36 billion to Rs
booked by distribution utilities as in- The cash-adjusted gap also improved 7,526.77 billion.
come recoverable through future tariff from Re 0.57 per kWh in 2022-23 to Re 0.39
as compared to Rs 279.12 billion booked per kWh in 2023-24. Receivables for the Conclusion
during 2022-23. Total revenue (including sale of power (number of days) remained In conclusion, the PFC report high-
tariff subsidy billed, regu­latory income, constant at 115 days as of March 31, 2024. lights that state-owned distribution
revenue grants and other income) for utilities continue to face financial and
distribution utilities increased from Rs Payables for the purchase of power (num- operational challenges. While energy
9,623.42 billion in 2022-23 to Rs 10,429.6 ber of days) improved from 129 days as of sales and revenues have grown, aggre-
billion in 2023-24, whereas total expen- March 31, 2023, to 132 days as of March gate losses have also increased sharply.
diture increased from Rs 10,208.78 bil- 31, 2024. KESCO was the state utility with Addressing these issues will require ho-
lion in 2022-23 to Rs 10,652.4 billion in the lowest payables (0 days), followed by listic strategies focused on debt man-
2023-24. Consequently, cost recovery DGVCL (one day), Uttar Gujarat Vij Com- agement, revenue optimisation and
improved from 94.27 per cent in 2022- pany Limited (two days) and Paschim Gu- improved efficiency across the power
23 to 97.91 per cent in 2023-24. jarat Vij Company Limited (three days). distribution segment. n

POWER LINE l June 2025 69

 INFOCUS POWER DISTRIBUTION

Tracking Progress
Update on the RDSS programme

T
he Indian government launched although significant work remains to be main a pressing challenge impacting the
the Revamped Distribution Sector done to achieve full implementation. financial health of discoms. States have
Scheme (RDSS) with the objective For LT lines, a total of 1,029,591 ckt km been directed to ensure the saturation of
of enhancing the operational efficiency has been sanctioned, with 88.2 per cent prepaid smart meters in all government
and financial sustainability of discoms. awarded and 37.6 per cent installed. In establishments, including colonies, by
The scheme provides result-linked fin­ the case of HT lines, 852,316 ckt km has August 2025, and to complete installation
ancial assistance to discoms, and is been sanctioned, with 71.52 per cent for commercial, industrial and high-load
contingent upon meeting predefined awarded and 22.17 per cent installed. For consumers by November 2025. The MoP
eligibility criteria and achieving basic DT installations, 575,981 units have been has also stressed the need to resolve op-
minimum benchmarks. It entails an out- sanctioned, with 85 per cent (490,527) erational bottlenecks, such as right-of-
lay of approximately Rs 3.04 trillion over awarded and 18.42 per cent (106,109) in- way issues, and to adopt compensation
a five-year period from 2021-22 to 2025- stalled. Under loss reduction, the finan- mechanisms to fast-track transmission
26. Physical infrastructure upgrades un- cial and physical progress stands at 24.82 projects.
der the RDSS have accelerated across per cent and 28.82 per cent respectively.
key states, focusing on replacing ageing The MoP plans to expedite the annual
assets, deploying feeders, installing au- Smart metering evaluation process under the RDSS to
tomation systems and developing dig- As per the RDSS portal, approximately ensure timely and efficient fund disburs-
ital substations. Over 200,000 ckt km of 198 million smart consumer meters, 5.25 als by closely monitoring performance
lines and 300,000 transformers are being million DT meters and 1.95 million feed- quality and result evaluation framework
modernised, and feeder metering has er meters have been sanctioned across parameters across states. To build mo-
reached 98 per cent coverage nationally. participating states. Of these, over 115 mentum, early achievements under the
million consumer smart meters, repre- programme will be showcased through
Progress so far senting 58.11 per cent of the sanctioned impact assessments, sharing best prac-
Sanctions and disbursal quantity, have been awarded. In compar- tices and success stories to promote
As per the RDSS portal (accessed on June ison, about 4.8 million DT meters (91.45 wider adoption. Special attention will
24, 2025), the total sanctioned cost under per cent of the sanctioned) and 172,017 be given to supporting lagging states via
the RDSS stands at Rs 2,814.39 billion. Of feeder meters (87.8 per cent of the sanc- handholding initiatives such as work-
this, the total gross budgetary support tioned) have been awarded. shops and field visits. Technology will
(GBS) committed is Rs 1,158.1 billion, play a pivotal role in accelerating pro­
while the GBS released so far stands at Rs In terms of active communication, gress, with platforms such as the RDSS
229.48 billion. For smart metering proj- 20,022,238 consumer meters, 620,805 DT portal and the National Feeder Moni-
ects under the scheme, the sanctioned meters and 116,545 feeder meters are cur- toring System leveraged for streamlined
cost is Rs 1,306.39 billion. The GBS sanc- rently transmitting data. Under the smart data collection, monitoring, evaluation,
tioned for these projects is Rs 241.23 bil- metering component of the RDSS, the fi- gap analysis and document verification.
lion, out of which Rs 4.95 billion has been nancial progress stands at 2.05 per cent,
released. Meanwhile, the loss reduction while physical progress is at 10.21 per cent. RDSS 2.0
component of the RDSS has a sanctioned While the current RDSS largely focuse­s
cost of Rs 1,483.69 billion, with a GBS of Key priorities under RDSS on distribution system upgrades and
Rs 224.53 billion, which has been fully During a series of regional review con- smart metering, there is a growing case
sanctioned and released. ferences and state visits, the Ministry for an extended and enhanced version
of Power (MoP) urged states and union – RDSS 2.0 – which could bridge critical
Loss reduction territories (UTs) to accelerate the imple- infrastructure and technology gaps. The
The RDSS has made notable progress mentation of the RDSS, focusing on in- proposed extension aims to unlock the
under its loss reduction initiatives, par- frastructure upgrades and prepaid smart full potential of smart meters and facili-
ticularly in the installation of low ten- metering. Emphasis has been laid on tate broader, sector-wide improvements.
sion (LT) lines, high tension (HT) lines the timely settlement of government de- RDSS 2.0 is expected to prioritise mod-
and distribution transformers (DTs), partment dues and subsidies, which re- ernisation and system augmentation, in-

70 POWER LINE l June 2025

 POWER DISTRIBUTION INFOCUS

POWER LINE l June 2025 71

 INFOCUS POWER DISTRIBUTION

cluding the upgrade of substations, trans-

mission infrastructure, underground
State/UT-wise loss reduction and smart metering works sanctioned
cabling and other assets not currently
under RDSS (Rs billion)
covered under the existing framework. It State/UT Sanctioned cost of Sanctioned cost of Total sanctioned
would also incorporate advanced tech- loss reduction works smart metering project cost
nologies such as artificial intelligence Andaman & Nicobar
and machine learning to improve load 4.62 0.54 5.16
Islands
forecasting, peak load management and Andhra Pradesh 107.10 41.28 148.38
demand response optimisation. Arunachal Pradesh 10.42 1.84 12.26
Assam 33.95 40.50 74.44
Another key area of focus would be pro- Bihar 99.83 20.21 120.04
moting consumer-centric solutions by Chhattisgarh 40.21 41.05 81.26
enabling smart home technologies, effi-
Delhi 3.24 0.13 3.37
cient appliances and intelligent energy
Goa 2.47 4.69 7.16
consumption tools. The scheme could
Gujarat 60.89 106.42 167.31
also facilitate peer-to-peer energy trading
Haryana 67.97 – 67.97
through smart meter integration, sup-
Himachal Pradesh 23.27 17.88 41.16
porting decentralised transactions and
Jammu & Kashmir 47.71 10.64 58.35
greater consumer participation. Strength-
Jharkhand 34.62 8.58 43.20
ening core distribution infrastructure to
Karnataka 0.36 – 0.36
meet rising power demand would be a
Kerala 30.18 82.31 112.49
foundational element of RDSS 2.0.
Ladakh 8.76 – 8.76
Madhya Pradesh 94.26 89.11 183.36
Given the persistent operational and fi-
Maharashtra 172.38 152.15 324.53
nancial challenges in the sector, contin-
Manipur 6.15 1.21 7.37
ued modernisation of the distribution
Meghalaya 12.32 3.10 15.42
network is essential, particularly to ac-
Mizoram 3.19 1.82 5.00
commodate growing automation needs,
Nagaland 4.61 2.08 6.68
large-scale renewable energy integration
Puducherry 0.84 2.51 3.35
and electric vehicle infrastructure. In
Punjab 38.73 57.69 96.42
this context, rolling out a comprehen-
Rajasthan 186.93 97.15 284.08
sive RDSS 2.0 would serve the long-term
Sikkim 4.16 0.97 5.14
interests of the power sector and the na-
Tamil Nadu 95.68 192.35 288.03
tion, enhancing the scheme’s effective-
Telangana 1.20 – 1.20
ness, sustainability and resilience.
Tripura 5.98 3.19 9.17
Uttar Pradesh 216.61 189.56 406.17
The way forward
Uttarakhand 17.18 11.06 28.24
With the RDSS scheme currently set to
West Bengal 72.23 126.70 198.93
conclude by 2025-26, an extension ap-
Total 1,508.03 1,306.71 2,814.74
pears imminent. In its response to the
Standing Committee on Energy, the Source: MoP
MoP indicated plans to seek a two-year
extension, citing the substantial work in the distribution segment, with dis- and demonstrating tangible progress. To
still pending, particularly the roll-out of coms’ accumulated losses rising from Rs ensure timely execution, the MoP is ac-
smart meters, which alone is expected to 5.45 trillion in 2021-22 to Rs 6.92 trillion tively engaging with state governments
require at least two more years. Despite in 2023-24. Key operational inefficiencies and discoms through regular coordina-
initial delays in project award and imple- persist, including suboptimal billing and tion meetings and review forums, with
mentation, which hindered early budget collection performance, as well as a sus- a strong focus on expediting tendering,
utilisation, the ministry affirmed that the tained gap between the average cost of project awards and smart meter deploy-
pace of physical progress has now picked supply and average revenue realised. ment. An extension of the RDSS would
up, paving the way for improved fund ab- be crucial to realising its full potential
sorption moving forward. As a reform-linked, results-based initia- and ensuring the long-term financial
tive, the RDSS mandates that most of the and operational sustainability of India’s
The committee, however, expressed con- funds be disbursed only upon meeting power distribution sector. n
cern over the continuing financial stress predefined annual evaluation criteria Aastha Sharma

72 POWER LINE l June 2025

 POWER DISTRIBUTION INFOCUS

POWER LINE l June 2025 73

 INFOCUS POWER DISTRIBUTION

Digital Reforms
Smart meter roll-out gains momentum under the RDSS

S
mart metering is driving a paradigm ters have been sanctioned for deploy- utilities to integrate diverse devices and
shift in the power distribution seg- ment across various participating states. analytics tools efficiently.
ment. With digitalisation and da-
ta-driven reforms at the core, the nation- Of these, contracts have been awarded Emerging trends
wide roll-out of smart meters – supported for over 143 million consumer smart me- The smart metering ecosystem in 2025
by intelligent meter data management ters, accounting for 63.84 per cent of the is being reshaped by rapid technological
systems (MDMS) and advanced analytics approved total. For DT meters, approx- innovation and shifting market priorities.
– is helping address long-standing ineffi- imately 4.6 million, representing 86.79 Artificial intelligence and machine learn-
ciencies. From reducing aggregate tech- per cent of the sanctioned quantity, have ing are central to this transformation,
nical and commercial losses and curbing been awarded, while around 170,304 enabling predictive energy analytics,
power theft to streamlining billing and feeder meters have been awarded, cover- consumption forecasting and intelligent
enhancing consumer engagement, smart ing 82.92 per cent of the target. anomaly detection. Edge computing,
meters are enabling utilities to modernise paired with 5G and LPWAN connectivi-
operations and build a future-ready grid. The policy focus on smart metering is ty, is supporting ultra-fast, decentralised
strong. Under the RDSS, utilities can re- data processing, while cloud-based and
Besides, as India pursues its ambitious ceive up to 15 per cent grant support SaaS meter data management (MDM)
clean energy transition plans and strives from the central government for smart platforms offer scalable, cost-effective
to develop a more sustainable and resil- metering projects. The Ministry of Power solutions that enhance grid responsive-
ient power system, smart metering has has set clear targets for the deployment of ness and utility efficiency.
emerged as a critical enabler. By pro- prepaid smart meters, starting with large
viding real-time, granular insights into consumers and government buildings. The rising demand for smart grid inte-
electricity consumption, smart meters gration, real-time data collection and
empower both utilities and consumers to The Central Electricity Authority and advanced consumption analytics has sig-
make informed decisions that promote the Bureau of Indian Standards have nificantly expanded the market for MDM
energy conservation and efficiency. These issued guidelines on meter specifica- systems. These platforms are increasing-
devices are instrumental in managing tions, data formats and cybersecurity. ly being used in demand response, load
evolving power demands such as rooftop These standards are aimed at ensuring management and renewable energy inte-
solar integration, electric vehicle charging meter interoperability and system re- gration, allowing utilities to better balance
and decentralised energy resources. liability across states. Some state dis- supply and demand. Meanwhile, interop-
coms are taking the lead by setting up erability with IoT devices and smart home
Shift to smart meters dedicated project teams, engaging in systems is driving the need for seamless
While the push for smart metering was competitive bidding and integrating data exchange and system integration.
strong under schemes such as the Na- analytics with their MDMS platforms.
tional Smart Grid Mission and UDAY, the Others are at earlier stages, but are With increasing system interconnected-
rollout has gained the most momentum steadily building capacity with sup- ness, cybersecurity and data privacy are
under the Revamped Distribution Sector port from central agencies and private also gaining attention to safeguard crit-
Scheme (RDSS), which targets the instal- technology partners. Under the Central ical infrastructure. Technologies such as
lation of over 250 million smart meters Electricity Authority’s “AMI Interop- non-intrusive load monitoring provide
by 2030. The shift to a total expenditure erability” guidelines, a key emphasis appliance-level insights without addi-
model under RDSS allows utilities to is placed on standardising communi- tional hardware, enhancing customer
spread costs over time, making the tran- cation protocols, such as RF, PLC and engagement and efficiency. The push
sition more financially feasible. cellular, to ensure seamless interaction for energy efficiency, decentralised gen-
between smart meters, MDMS and grid eration and data-driven decision-mak-
According to data from the NSGM portal, automation platforms. This framework ing is firmly establishing smart meters
nearly 224 million smart consumer me- promotes modularity and scalability and MDM systems as foundational tools
ters, 5.3 million distribution transformer in advanced metering infrastructure, in building a more intelligent, flexible
(DT) meters and 2.05 million feeder me- reducing vendor lock in and enabling and sustainable power ecosystem.

74 POWER LINE l June 2025

 POWER DISTRIBUTION INFOCUS

Challenges
Despite their potential, smart metering
Case Study
projects face several challenges. One ma-
jor hurdle is the high upfront cost. While Tata Power Delhi Distribution Limited (TPDDL), a leading utility in North Delhi,
the TOTEX model helps ease the financial has been at the forefront of digitalising power distribution through smart metering
burden, some utilities still find it hard and integrated grid management. Faced with challenges such as manual meter-
to raise funds or manage the long-term ing, operational inefficiencies and revenue loss, TPDDL undertook a large-scale
contracts required. Consumer resistance smart meter roll-out, integrating it with platforms such as advanced distribution
is another issue, especially in areas where management system (ADMS), geographic information system (GIS) and MDM to
awareness is low. Misinformation about create a unified smart meter operations centre. This integration enabled real-time
prepaid meters or fears of overbilling visibility into meter performance, outage tracking and power quality monitoring.
have sparked protests in some regions. Features such as meter pinging, remote connect/disconnect and virtual metering
Addressing this requires clear communi- for distribution transformers were central to TPDDL’s transition from reactive op-
cation and public outreach by utilities. erations to predictive grid management.

Technical hurdles also persist. Interop- TPDDL also launched behavioural demand response programmes, leveraging
erability between meters from different smart meters to engage consumers in peak load reduction. Between FY 2022 and
vendors can be tricky, as not all devices FY 2025, residential participation grew significantly, with over 126,000 consumers
follow the same protocols. Communica- enrolled and over 400 MW of cumulative load curtailed. Commercial and industrial
tion networks pose another challenge, consumers added another 443 MW in load reduction, demonstrating the potential
especially in rural or hilly areas where of data-driven demand-side management.
connectivity may be poor. Utilities must
choose the right communication tech- To support analytics and tamper detection, TPDDL developed the RvPE platform,
nology – whether RF, PLC, or mobile net- which applies traditional and AI/ML-based algorithms to flag abnormalities such
works – based on the local environment. as voltage failure, direct theft and tampering. Integration with GIS and ADMS
Data security is also a growing concern. enhanced predictive capabilities, enabling faster issue resolution and proactive
With large volumes of personal and us- revenue protection.
age data being collected, ensuring cy-
bersecurity and protecting consumer Smart meters were also redesigned to capture DT-level data, making them effec-
privacy is critical. This calls for strict data tive tools for transformer health monitoring. They tracked oil levels, voltage im-
protection standards and regular audits. balances and high temperatures, issuing automatic trip commands during fault
conditions. This innovation helped prevent breakdowns in 12 DTs and oil theft in
The way forward 21 cases, enhancing asset life and safety.
Smart metering, strengthened by robust
MDMS integration and advanced data The utility also used smart metering data to improve consumer indexing and en-
analytics, is becoming a cornerstone of In- ergy audits. By mapping outage stamps with GIS information, TPDDL correct-
dia’s power sector transformation. Beyond ed feeder-level mappings, reducing energy loss misattribution and enhancing
improving billing accuracy and operation- operational accuracy. Smart meter data further enabled faster new connection
al efficiency, it is laying the groundwork for approvals. By analysing historical peak load data, the system could determine if
a dynamic, decentralised energy ecosys- seasonal margins allowed for new loads, reducing connection timelines by two
tem, supporting renewable integration, days. Additionally, voltage profile dashboards using integrated consumer and
electric mobility, demand response and distribution transformer data helped identify low-voltage issues and plan net-
consumer participation. As utilities in- work upgrades effectively.
creasingly harness real-time data, AI-driv-
en insights, and automation, the potential TPDDL contributed to the Ministry of Power’s efforts to standardise smart meter-
to reduce losses, enhance service quality, ing infrastructure. These efforts support interoperability, cost optimisation and
and strengthen grid resilience continues vendor flexibility in future deployments.
to grow. While challenges around cost,
consumer adoption, and interoperability Overall, TPDDL’s smart metering programme has led to a 98.65 per cent billing suc-
persist, sustained policy support and co- cess rate, over 200,000 remote disconnections and significant operational gains.
ordinated stakeholder efforts will be key to Its comprehensive approach, combining smart meters, analytics and automation,
scaling this reform. In the long run, smart offers a replicable model for other utilities pursuing digital transformation under
metering will be instrumental in realising the RDSS and broader energy transition goals.
India’s vision of a cleaner, smarter and
more reliable electricity future. n

POWER LINE l June 2025 75

 INFOCUS POWER DISTRIBUTION

Towards Smarter Networks

Technologies enhancing discom operations

I
ndia’s power distribution sector is at Smart meters, as part of the advanced nologies are helping utilities move from
a pivotal moment, as it faces growing metering infrastructure (AMI), enable reactive maintenance models to more
energy demand and the need to mod- real-time consumption tracking, remote proactive, real-time operations.
ernise ageing networks. The sector aaims disconnection and reconnection, and
to overcome several structural constraints demand-side management. Most impor- For example, in March 2025, Schneider
that inhabit it. Technology is emerging as tantly, they provide the data for utilities Electric and South Bihar Power Distri-
an important tool to address inefficien- to identify technical losses and address bution Company Limited (SBPDCL)
cies and improve service delivery. billing miscalculations. According to announced an initiative under which
the Press Information Bureau (January Schneider Electric deployed 305 RMUs
A persistent challenge in the sector has 2025), the RDSS has helped lower AT&C and 550 FPIs across SBPDCL’s network.
been the high level of aggregate technical losses and decrease the average cost of The project also included a centralised
and commercial (AT&C) losses. However, supply-average revenue realised gap. command and control centre and a di-
there has been significant progress on saster recovery centre to ensure grid
this front, with over 32 utilities reporting Private utilities have contributed exten- reliability. This deployment is likely to
AT&C losses below the benchmark of 15 sively towards the roll-out of smart meters. enable real-time grid monitoring and
per cent, according to the 13th Annual For instance, Tata Power Delhi Distribu- improved decision-making capabilities
Integrated Rating and Ranking of Power tion Limited (TPDDL) has deployed over for the utility.
Distribution Utilities. 4.3 million smart meters, enabling remote
monitoring, tamper detection and auto- In parallel, after taking over Odisha’s dis-
Transmission and distribution losses mated billing. It also integrated these sys- coms in 2020-21, Tata Power invested a
and limited real-time visibility into sys- tems with geographic information system cumulative Rs 560 billion to automate
tem health have caused operational in- (GIS) mapping and supervisory control systems. It implemented SCADA sys-
efficiency. These issues are further com- and data acquisition (SCADA) to improve tems, RMUs, GIS mapping and drone-
pounded by the challenge of integrating control systems. Similarly, Torrent Power based inspection tools to monitor grid
variable renewable energy sources into achieved 100 per cent electronic meter- assets and faults in real time. The compa-
distribution networks that were not orig- ing and consumer indexing in Bhiwandi, ny also introduced thermo-vision scan-
inally designed to accommodate large Maharashtra. This helped reduce losses ners and trolley-mounted substations to
capacities. Hence, the need to upgrade and billing inefficiencies. It implemented reduce service disruptions and ensure
physical infrastructure and improve net- initiatives such as automated meter read- rapid response to outages.
work intelligence with advanced digital ing systems for high tension consumers,
capabilities is now crucial. which were connected to solar plants and Automation is also being deployed to
captive power plants to a centralised data facilitate faster fault localisation and ser-
Smart grid and digitalisation analysis platform. This ensured accurate vice restoration. Auto-reclosures are in-
Digitalisation is expected to play a crucial energy usage tracking to improve efficien- stalled at feeder and substation levels to
role in improving India’s power distribu- cy and reduce energy losses. help isolate fault zones and reroute pow-
tion system. A key area of focus has been er to unaffected areas. This significantly
the large-scale roll-out of smart meters Automation in distribution reduces outage times and improves reli-
that enable automated billing, remote Automation is increasingly being con- ability indices.
monitoring and granular data collec- sidered a cornerstone of modern grid
tion. The Revamped Distribution Sec- operations as it enables higher opera- Distribution automation is particular-
tor Scheme (RDSS) was launched by the tional efficiency. In India, the deploy- ly critical in dense urban centres where
Ministry of Power (MoP) to address per- ment of automation technologies such manual fault tracing and switching op-
sistent structural challenges in the sector. as fault passage indicators (FPIs), ring erations are time-consuming and prone
As of June 15, 2025, over 223.7 million main units (RMUs), remote terminal to error.
prepaid smart meters have been sanc- units and feeder remote monitoring sys-
tioned under the scheme, of which 143.4 tems is gaining traction across urban Further, remote-controlled switchgear
million have already been awarded. and semi-urban networks. These tech- and pole-mounted circuit breakers are

76 POWER LINE l June 2025

 POWER DISTRIBUTION INFOCUS

POWER LINE l June 2025 77

 INFOCUS POWER DISTRIBUTION

being installed at key nodes in the dis- proves capex returns. their disaster preparedness frameworks.
tribution network to enhance flexibil- For example, utilities deploying control
ity and minimise human intervention. Meanwhile, the MoP’s 13th Integrated centres and remote monitoring systems,
These systems are often paired with re- Rating and Ranking report (2024) further such as SBPDCL, have also set up disas-
al-time communication interfaces that reinforces the link between digitalisation ter recovery centres as part of their digi-
feed operational data to central control and improved utility performance. The tal infrastructure planning to ensure the
rooms, which allow operators to respond highest-ranked discoms in the report continuity of operations in the event of a
quickly to anomalies or overloads. were those investing heavily in metering, breach or system failure.
analytics and IT systems.
AI and big data Further, utilities are increasingly fo-
As the digital footprint of utilities grows, Additionally, a series of recent policy and cusing on access controls, role-based
it results in the generation of vast vol- regulatory developments have created authentication protocols and secure
umes of operational and consumer data. a supportive environment for the adop- communication channels between field
This data holds the potential to trans- tion of these technologies. The STELLAR devices and control rooms. With the ex-
form discom operations – from grid resource adequacy tool, launched by the pected rise in peer-to-peer energy trad-
maintenance and loss reduction to de- MoP and the Central Electricity Authori- ing and virtual metering in the future,
mand forecasting and customer engage- ty (CEA) in April 2025, can help utilities ensuring transaction integrity and data
ment. Artificial intelligence (AI), big data forecast power demand and plan invest- security will only grow in importance.
analytics and machine learning (ML) ments in generation, storage and distri-
tools are increasingly being adopted by bution infrastructure. Future outlook
forward-looking utilities to translate raw The integration of smart metering, au-
data into actionable insights. Cybersecurity and grid resilience tomation and data-driven tools is not
As digital systems become deeply embed- just improving network performance but
Data-driven approaches are also helping ded in the operations of distribution utili- also presents an opportunity to redefine
identify high-loss feeders and localities ties, the risks associated with cyber threats how discoms engage with consumers,
with unusually low billing or collection have intensified. The expansion of smart manage assets and respond to emerging
efficiency. Such insights enable better metering, internet of things deployments, challenges such as load variability and
targeting of enforcement drives and in- SCADA systems and cloud-based analyt- decentralised generation.
frastructure investments. In addition, ics has increased the number of potential
AI models are being developed to detect entry points for malicious actors. As a re- As per Deloitte’s 2024 Global Power and
non-technical losses such as electrici- sult, utilities today must deal with a wide Utilities Outlook report, utilities world-
ty theft by identifying usage anomalies, range of cyber risks, from ransomware wide are transitioning from infrastruc-
meter tampering patterns and inconsis- and phishing attacks to more sophisticat- ture-heavy models to digitally enabled
tencies between billed and recorded con- ed threats targeting grid control systems. ecosystems that prioritise resilience,
sumption. Additionally, discoms have These vulnerabilities can disrupt essential agility and consumer choice. Indian
deployed pilot projects on analytics plat- operations, compromise customer data discoms have also embraced this shift,
forms that can integrate consumer be- and cause significant financial and repu- backed by central schemes, regulatory
haviour data from smart meter readings tational damage. Recognising the grow- reforms and state-level innovation.
to enable real-time decision-making. For ing threat landscape, several government
example, TPDDL adopted AI-based an- agencies have issued guidelines for the Going forward, the focus must remain on
alytics to flag distribution transformer power sector. The MoP has directed dis- scaling successful pilot initiatives, ensur-
overheating risks and conduct predictive tribution licensees to adopt cybersecurity ing the interoperability of digital systems
maintenance. The utility also uses ML protocols in line with advisories from the and strengthening in-house capabilities.
algorithms to detect non-technical loss- Indian Computer Emergency Response
es such as theft and billing anomalies by Team, the CEA and the National Critical Ultimately, the success of these emerging
analysing smart meter data. Information Infrastructure Protection technologies will depend not only on their
Centre. These guidelines include the im- technical deployment but also on the sec-
Digital twin technology is also gaining plementation of firewalls, intrusion detec- tor’s ability to align digital investments with
traction. With this, utilities can create tion systems, multi-factor authentication institutional reform and capacity building.
virtual replicas of physical assets (such and regular third-party security audits. With continued policy support and stake-
as substations, feeders and transform- holder collaboration, India’s distribution
ers) to simulate real-time operations and Some state utilities have taken proactive segment is well-positioned to deliver more
test grid responses under varying load or steps by establishing dedicated cyber- reliable, efficient and consumer-centric
fault conditions. This aids in better plan- security cells, conducting periodic drills power in the years to come. n
ning of asset replacement cycles and im- and integrating cybersecurity as part of Mohammed Ali Siddiqi

78 POWER LINE l June 2025

 POWER DISTRIBUTION INFOCUS

POWER LINE l June 2025 79

 INFOCUS POWER DISTRIBUTION

Charging Ahead
Building the EV ecosystem

E
lectric vehicles (EVs) offer a cleaner tariffs across state and city jurisdictions. tivity and reliability. Discoms could in-
and increasingly cost-effective al- The guidelines enable fast-track clear- stitutionalise regulatory measures, such
ternative to conventional internal ances for public charging stations and as EV tariff categories, and establish
combustion engine vehicles. Their con- the inclusion of charging infrastructure clear standard operating procedures.
tribution to India’s net zero by 2070 goals in urban planning. This will enable them to strengthen their
expected to be significant. According to ability to plan and deliver connections
modelling estimates by the World Re- In January 2025, the MoP issued the for charging stations. They are well-po-
sources Institute, transport electrifica- “Guidelines for Battery Swapping and sitioned to streamline processes to sup-
tion could contribute about 16.66-48.7 Charging Stations”, outlining minimum port efficient deployment. The handbook
per cent to the total required emissions standards for battery interchangeability, proposes that state electricity regulatory
reduction, depending on the extent charging point location coordination and commissions should mandate discoms
of modal shifts and reliance on road- interoperability across multiple operators. to provide public-facing application
based freight and private transport. This guidelines and enable a single-window
will require the rapid deployment of These regulatory measures are rein- system for EV connections. They should
charging infrastructure. The adoption forced by significant budgetary support also conduct technical pre-feasibility
of EVs in India has accelerated in recent under the PM Electric Drive Revolution checks to help charge point operators
years, with a total of 1.95 million EVs in Innovative Vehicle Enhancement (PM (CPOs) understand the sanctioned load
sold in 2024. According to the Ministry E-DRIVE) scheme. The PM E-DRIVE availability. Additionally, there must be
of Road Transport and Highways, this scheme has a total outlay of Rs 109 bil- guidelines for private EV users to ensure
accounted for 7.44 per cent of all vehi- lion, to be implemented from October broader access to EV-specific tariffs and
cles registered that year. As EV adoption 1, 2024, to March 31, 2026. The scheme incentive programmes. Discoms are also
accelerates, it becomes important to in- provides support for the installation of advised to establish internal e-mobility
tegrate charging infrastructure with the 72,000 public charging stations through cells dedicated to handling queries, pro-
current distribution network, the bur- an allocation of Rs 20 billion. cessing applications and conducting site
den of which falls on discoms. visits for EV infrastructure.
Furthermore, the 2025-26 Union Bud-
Against this backdrop, developing an get announced the decision to expand Technology trends
EV charging ecosystem and facilitating import duty exemptions to cover 35 According to the Bureau of Indian Stan-
distribution of the growing demand by categories of capital goods essential for dards (BIS), India’s EV charging speci-
discoms are set to take centre stage in battery production, such as cobalt and fications are aligned with international
India to meet the rising EV demand. As lithium-ion battery scrap. This move will protocols developed by the Internation-
of March 2025, the total number of pub- likely improve the cost economics for al Electrotechnical Commission (IEC),
lic EV charging stations is 6,027. Of this, domestic manufacturers under the ad- which ensures global compatibility and
Tamil Nadu boasts the largest number vanced chemistry cell production-linked ease of trade. A major focus has been the
of stations at 672, followed by Gujarat incentive scheme and reduce supply push for interoperability across equip-
at 520, Maharashtra at 515 and Andhra chain dependence on imports. ment and operators. To enable this,
Pradesh at 507. initiatives such as the Bharat Charge
Roles of discoms and regulatory bodies Alliance (which is a collaboration with
Policy and regulatory push As noted in the “Handbook of Electric Ve- the CHAdeMO Association) have been
The central government has intro- hicle Charging Infrastructure Implemen- launched to develop better protocols
duced a series of policy interventions tation” by NITI Aayog, the expansion of and promote multi-brand compatibili-
and financial support mechanisms. In EV charging infrastructure is expected to ty. The alliance aims to adopt BIS-pub-
September 2024, the Ministry of Power qualify its recognition as a distinct con- lished specifications such as IS 17017-25
(MoP) issued the revised “Guidelines for sumer. This will place a new type of de- (based on IEC 61851-25) and IS 17017-
Installation and Operation of Electric mand on India’s electricity distribution 2-6 (IEC 62196-6) for charging connec-
Vehicle Charging Infrastructure” to sim- network, which will require discoms to tors and inlets. On the technology front,
plify approvals and promote rationalised play a key role in ensuring grid connec- fast-charging capabilities are rapidly

80 POWER LINE l June 2025

 POWER DISTRIBUTION INFOCUS

evolving. Most EVs today operate on 400

Growth in HVDC Transformation Capacity (MW)
V battery systems, which can take up to
10 hours to fully charge using AC home
672
chargers. However, the latest super-
chargers can deliver 80 per cent charge
in just 20-40 minutes. Additionally, ul- 520 515 507
471
tra-fast 800 V systems (expected in EV
models post-2025) can achieve the same
charge percentage in under 10 minutes.

Emerging technologies, such as quantum

charging, wireless charging pads and so-
lar-powered charging stations, are being
piloted in Indian cities such as Delhi and
Mumbai. Software also plays a critical Tamil Nadu Gujarat Maharashtra Andhra Pradesh Rajasthan
role in charging operations. Most public Source: Central Electricity Authority
chargers are now linked to mobile apps
that enable real-time station discovery,
pricing visibility, remote reservation siting and service connection approvals. Discoms, in particular, will need to evolve
and digital payments. On the backend, from power suppliers to playing an active
these platforms support load balancing, Finally, land availability remains one of role in shaping urban charging strate-
predictive maintenance and integration the most pressing obstacles. Many CPOs gies and enabling grid compatibility. If
with renewable energy sources, which do not own the sites they wish to develop planned and executed with foresight, EV
is enabling the emergence of a smart and are forced to negotiate with public infrastructure can move to a future-ready
charging network. authorities, private landlords or parking distribution network that serves both
contractors. Furthermore, the high cost transport and energy sector priorities.
Challenges and bottlenecks of urban land discourages investment
Despite the policy support and an overall in premium locations. Municipal- and The way forward lies in integrating
positive market outlook, the deployment metro-operated parking lots often lease smart planning with smart technolo-
of EV charging infrastructure in India still space at market-linked rates, which gy. This includes co-locating chargers
faces several operational and structural makes it financially unviable for ear- with solar rooftops or distributed gen-
challenges. One of the key concerns is ly-stage CPOs to operate without assured eration systems to reduce grid stress,
the impact of clustered and high-capac- footfall or demand. using time-of-day tariffs to incentivise
ity charging loads on local grid stability. off-peak charging and expanding sup-
The sudden draw of power from multiple Future outlook port for vehicle-to-grid capabilities that
chargers during evening peaks can lead India stands at a critical juncture, with EVs can help balance local loads. Several
to voltage dips, harmonics and trans- emerging as a key component in achiev- cities, including Delhi and Mumbai,
former overloading in low-voltage sys- ing national energy security, enabling air are already experimenting with wire-
tems. These effects are compounded by quality improvement and advancing cli- less charging pads and solar-powered
the high resistance-to-reactance ratios mate goals. While adoption has gained charging stations.
typical of distribution lines, which will momentum in the two- and three-wheeler
make the network more susceptible to segments, the long-term success of elec- Public and private sector partnerships
voltage instability. tric mobility will depend on how efficient- will be crucial in this journey. Public sec-
ly and equitably the EV charging ecosys- tor undertakings can help in land pro-
According to industry estimates, the tem is scaled up across the country. visioning, grid infrastructure and stan-
national roll-out of around 2 million dardisation, while private firms bring
charging points could add an incremen- According to the Bureau of Energy Effi- innovation and speed to this partner-
tal demand of 40,000-50,000 MW, posing ciency guidelines, public fast chargers ship. Ultimately, India’s success in build-
a significant burden on existing infra- must be available within 1×1 square km ing a world-class EV charging network
structure. Another challenge is the lack of in urban areas and at 20 km intervals on will rest not only on financial incentives
coordination across departments. There highways. Achieving this density will re- or regulatory clarity, but also on institu-
is a lack of integrated planning between quire not only more capital investment, tional coordination between multiple
discoms, urban planning authorities but also coordinated efforts between stakeholders and adaptability to adopt
and private developers, which results in central ministries, state transport depart- evolving technology. n
delays in load sanctioning, transformer ments, discoms and private operators. Mohammed Ali Siddiqi

POWER LINE l June 2025 81

 INFOCUS POWER DISTRIBUTION

Key Statistics
Financial performance of discoms after subsidy support

Profit/Loss of discoms with tariff subsidy, excluding regulatory income and revenue grant under
UDAY for loan takeover
2023-24 2022-23 2023-24 2022-23

State sector -344.53 -745.88 UHBVNL 0.71 2.64

Andaman & Nicobar Himachal Pradesh -5.67 -12.19

-1.02 -0.45
Islands
HPSEBL -5.67 -12.19
Andaman & Nicobar
-1.02 -0.45 Jammu & Kashmir - -
PD

Andhra Pradesh -27.47 -22.69 JKPDD - -

APCPDCL -15.25 -6.99 Jharkhand -26.01 -36.46

APEPDCL -10.73 4.61 JBVNL -26.01 -36.46

APSPDCL -1.48 -20.31 Karnataka -100.83 -24.14

Arunachal Pradesh - - BESCOM -28.15 -11.21

Arunachal PD - - CHESCOM -11.56 0.75

Assam 3.89 -8.00 GESCOM -19.73 -4.72

APDCL 3.89 -8.00 HESCOM -30.40 -12.54

Bihar 8.37 -1.84 MESCOM -10.99 3.58

NBPDCL 9.65 -4.04 Kerala 2.20 -9.93

SBPDCL -1.28 2.20 KSEBL 2.19 -9.95

Chandigarh - - TCED 0.01 0.01

Chandigarh PD - - Ladakh -0.28 -0.57

Chattisgarh 9.00 -10.15 Ladakh PD -0.28 -0.57

CSPDCL 9.00 -10.15 Lakshadweep - -

Delhi 4.01 -1.41 Lakshadweep ED - -

NDMC 4.01 -1.41 Madhya Pradesh -16.62 19.42

Goa -5.72 -2.42 MPMaKVVCL -12.11 13.17

Goa PD -5.72 -2.42 MPPaKVVCL 8.16 5.68

Gujarat 41.19 1.47 MPPoKVVCL -12.67 0.57

DGVCL 9.85 0.44 Maharashtra -48.91 -198.46

MGVCL 4.83 0.32 MSEDCL -49.74 -187.56

PGVCL 16.14 0.34 BEST 0.82 -10.90

UGVCL 10.37 0.37 Manipur 0.56 -1.31

Haryana 2.76 9.75 MSPDCL 0.56 -1.31

DHBVNL 2.04 7.11 Meghalaya -3.00 -2.13

82 POWER LINE l June 2025

 POWER DISTRIBUTION INFOCUS

Key Statistics
Financial performance of discoms after subsidy support

Profit/Loss of discoms with tariff subsidy, excluding regulatory income and revenue grant under
UDAY for loan takeover
2023-24 2022-23 2023-24 2022-23

MePDCL -3.00 -2.13 WBSEDCL -9.46 -16.63

Mizoram -1.01 -1.58 Private sector 24.83 16.83

Mizoram PD -1.01 -1.58 Dadra & Nagar Haveli

and - 1.04
Nagaland 0.42 0.33 Daman & Diu

Nagaland PD 0.42 0.33 Daman & Diu PD - -

Puducherry 0.79 -1.85 DNHPDCL - -

Puducherry PD 0.79 -1.85 DNHDDPDCL - 1.04

Punjab 14.47 -13.75 Delhi 17.30 -0.27

PSPCL 14.47 -13.75 BRPL 2.28 -0.41

Rajasthan -35.20 -20.24 BYPL 2.30 -1.30

AVVNL -3.45 -6.60 TPDDL 12.72 1.43

JdVVNL -18.96 -10.01 Gujarat - 6.27

JVVNL -12.79 -3.63 Torrent Power Ahmed-

- 5.10
abad
Sikkim -0.19 0.76
Sikkim PD -0.19 0.76 Torrent Power Surat - 1.17

Tamil Nadu -11.96 -91.92 Maharashtra 10.62 0.42

TANGEDCO -11.96 -91.92 AEML 10.62 0.42
Telangana -63.51 -111.03
Odisha -4.64 7.36
TSNPDCL -14.41 -29.56
TPNODL 0.87 1.47
TSSPDCL -49.10 -81.47
TPSODL -2.31 -1.85
Tripura -3.26 -2.58
TSECL -3.26 -2.58 TPWODL -4.46 7.22

Uttar Pradesh -70.58 -173.65 TPCODL 1.26 0.52

DVVNL -22.55 -52.98
Uttar Pradesh 1.56 2.12
KESCO -5.46 0.01
MVVNL -13.59 -48.20 NPCL 1.56 2.12

PaVVNL 8.63 1.35 West Bengal -0.01 -0.12

PuVVNL -37.60 -73.83
CESC - 0.43
Uttarakhand -1.47 -12.24

UPCL -1.47 -12.24 IPCL -0.01 -0.55

West Bengal -9.46 -16.63 Grand total -319.70 -729.05

Source: PFC Limited’s Report on Performance of Power Utilities 2023-24

POWER LINE l June 2025 83

 F O C U S O N R E G U L AT I O N

Power Market Design

CERC’s latest draft amendment signals structural reform

T
he Central Electricity Regulatory energy generator sells electricity through ment also clarifies the role of OTC plat-
Commission (CERC) recently re- the power exchange or other approved form members, bringing them within the
leased the draft Power Market (First market mechanisms, while the consum- purview of the regulatory framework ap-
Amendment) Regulations, 2025, mark- er guarantees payment of a pre-agreed plied to power market participants.
ing a significant step towards advanc- VPPA price for the duration of the con-
ing India’s electricity market design. tract. The financial settlement is based Further, the price discovery mechanism
Building on the foundation of the Power on the difference between the VPPA price in the OTC market has been broad-
Market Regulations, 2021, the proposed and the prevailing market price, allowing ened to include transactions conduct-
amendment seeks to enhance market the buyer to hedge against market vola- ed through mutual agreements, trading
depth, improve operational flexibility, tility without taking the physical delivery licensees, competitive bidding, OTC
and enable more efficient and intelligent of power. platforms or as determined by the ap-
power trading. propriate commission, thereby ensuring
Additions to OTC market instruments flexibility while maintaining regulatory
The key focus areas under the draft The 2025 amendment expands the scope oversight. Additionally, the amendment
amendment include the formalisation of contracts permitted under the OTC mandates that the scheduling of OTC
of over-the-counter (OTC) platforms, the market, reflecting the evolving needs of contracts must align with the Connec-
introduction of emerging market instru- market participants and the increasing tivity and GNA Regulations and the Grid
ments such as virtual power purchase complexity of electricity trading. Regula- Code, ensuring consistency with nation-
agreements (VPPAs) and battery energy tion 4(2) of the Principal Regulations has al transmission planning norms.
storage system (BESS) contracts, and the been revised to include a broader set of
alignment of regulatory provisions with instruments that can be transacted in the To reinforce financial robustness, the
the Connectivity and General Network OTC space. In addition to existing deliv- amendment prescribes a minimum net
Access (GNA) framework. ery-based energy contracts and renew- worth requirement of Rs 350 million for
able energy certificates, the amendment OTC platform operators, with a compli-
Introduction of VPPA incorporates capacity contracts, VPPAs, ance timeline of 12 months for existing
The formal introduction and regu- BESS contracts and banking of power as platforms. These updates collectively
latory recognition of VPPAs is one of eligible OTC products. aim to build a credible, transparent and
the most notable updates in the draft scalable OTC market structure that can
amendment. Defined under a new- This expanded portfolio is intended to support a wider range of energy con-
ly inserted clause in the amendment, facilitate more tailored and long-term tracts and participants, particularly in
a VPPA is a non-transferable, specif- energy contracting options outside the the context of India’s expanding renew-
ic-delivery-based OTC contract execut- conventional exchange framework. By able energy ecosystem.
ed between a consumer or designated enabling flexible instruments that align
consumer and a renewable energy gen- with emerging business models, such Governance, oversight and compliance
erator. CERC has also proposed that the as storage-backed energy trading and measures
implementation and execution of VPPAs bilateral banking arrangements, the To ensure greater accountability and
will follow specific guidelines, to be no- amendment enhances the OTC market’s market integrity, the amendment
tified separately, ensuring standardisa- relevance for both conventional and re- strengthens the regulatory oversight of
tion and regulatory oversight. newable energy stakeholders. both OTC platforms and power exchang-
es. CERC is now explicitly empowered to
VPPAs represent a significant shift in how Strengthening of the OTC market framework undertake inspections, audits and inqui-
renewable energy procurement can be A notable change is the expanded defi- ries of these entities, either through its
structured in India, offering a financial nition of OTC platforms, which are now own officers or via appointed third-party
contracting mechanism rather than tra- formally recognised not just as informa- agencies. This enhanced supervisory au-
ditional physical power delivery. tion exchange interfaces but also as facil- thority allows CERC to proactively mon-
itators of actual electricity transactions itor market conduct, operational adher-
Under this arrangement, the renewable between buyers and sellers. The amend- ence and financial soundness.

84 POWER LINE l June 2025

 F O C U S O N R E G U L AT I O N

POWER LINE l June 2025 85

 F O C U S O N R E G U L AT I O N

All platform operators, directors and em-

ployees are mandated to fully cooperate
during such regulatory assessments, en-
suring transparency and timely compli-
ance. Moreover, to deter misconduct and
enforce discipline, the amendment au-
thorises CERC to direct the cancellation of
membership of any participant found to
be in violation of the regulations, whether
on a power exchange or an OTC platform.
These provisions are a critical step towards
establishing a robust compliance culture
within the power market ecosystem and
safeguarding stakeholder interests.

Shifting to Connectivity and GNA framework

A pivotal structural change introduced in
the amendment is the replacement of ref-
erences to the Open Access Regulations
with the more contemporary Connec-
tivity and GNA Regulations, 2022. This paving the way for more targeted instru- capacity by 2030. These financial instru-
shift reflects the evolving transmission ments such as VPPAs to be aligned with ments allow large consumers to meet
access paradigm in India, moving away national energy efficiency and decar- their sustainability goals without being
from buyer-linked, contract-specific ac- bonisation mandates. tied to the physical delivery of electricity,
cess towards a more flexible, region-ag- enabling more efficient and flexible pro-
nostic and non-discriminatory access Furthermore, the definition of “market” curement of clean energy.
framework. By aligning power market has been updated to explicitly include
regulations with the GNA framework, OTC platforms, underscoring their legiti- Further, the strengthening of OTC plat-
the amendment ensures greater regula- macy and strategic importance in India’s forms and the broadening of contract
tory consistency, operational clarity and evolving electricity trading ecosystem. structures are expected to significantly
integration with national transmission In line with this, entities transacting on improve market efficiency by enhancing
planning. This transition also facilitates these platforms will now be formally transparency, enabling tailored transac-
easier market participation, particular- recognised as “members” under CERC tions and attracting greater stakeholder
ly for renewable energy developers and regulations, ensuring that they are sub- participation. The formal recognition of
large consumers, by streamlining sched- ject to the same governance, eligibility BESS contracts as tradable instruments
uling, access approvals and transaction and compliance requirements as par- is particularly critical in bolstering grid
settlement across both exchange-based ticipants on power exchanges. These re- stability, as energy storage plays a key
and OTC markets. finements contribute to a more inclusive role in managing peak loads and mitigat-
and coherent regulatory framework, re- ing the variability inherent in renewable
Other key amendments inforcing the integration of bilateral and energy generation.
In addition to the major structural and decentralised trading mechanisms with-
market-driven reforms, the amendment in the mainstream power market. Collectively, these reforms lay the foun-
also introduces several important defi- dation for a resilient, transparent and
nitional and procedural updates that The way forward dynamic power market. To fully harness
enhance regulatory clarity. The defi- The draft Power Market (First Amend- their potential, the focus must now shift
nition of “contingency contracts” has ment) Regulations, 2025, mark a pro- towards creating enabling implementa-
been revised to explicitly state that such gressive step by the CERC to modernise tion frameworks, building institutional ca-
transactions occur on Day T after the fi- India’s electricity market in line with pacity and fostering seamless stakeholder
nalisation of day-ahead trades, with de- evolving sectoral needs. By formally in- coordination. With effective execution,
livery scheduled for T+1, thereby bring- troducing instruments such as VPPAs these forward-looking reforms will not
ing uniformity in contract interpretation and BESS contracts, the amendments only enhance operational efficiency and
and operational timelines. The inclusion are set to accelerate renewable energy market depth but also contribute mean-
of the term “designated consumer”, as adoption and enhance market flexibil- ingfully to India’s long-term decarbonisa-
defined under the Energy Conservation ity, supporting India’s ambitious target tion and energy security objectives. n
Act, 2001, is another notable addition, of achieving 500 GW of non-fossil fuel Aastha Sharma

86 POWER LINE l June 2025

 F O C U S O N R E G U L AT I O N

POWER LINE l June 2025 87

 C O M PA N Y R E L E A S E

Company Release
Schneider Electric drives sustainability and AI innovation with strate- Group, has reported estimated savings of 2.62 billion litres of
gic collaborations water and 8.4 million units (MUs) of energy during 2024–25
Schneider Electric, in collaboration with Farmson Basic Drugs through its micro-irrigation and water management solutions.
Private Limited, has launched a structured sustainability trans- The savings were achieved through customised drip and sprin-
formation programme under its Green Yodha initiative. The kler irrigation systems, community irrigation initiatives and
partnership, initiated in February 2025, focuses on enhancing agricultural water management projects. These efforts align
Farmson’s ESG performance and accelerating decarbonisation. with the company’s broader sustainability agenda focused on
Key components include Scope 1, 2 and 3 GHG emissions in- climate resilience, land restoration and efficient resource use.
ventory, science-based target development, CDP disclosure The company’s initiatives are part of the Mahindra Group’s sus-
support, and deployment of the Resource Advisor platform to tainability mandate, contributing to the national goal of “Per
track energy, water and emissions across Farmson’s facilities. Drop, More Crop.”
Additionally, to boost industrial automation, Schneider Electric
has unveiled Industrial Copilot, a generative AI-powered assis- Cummins India launches BESS
tant developed with Microsoft. Integrated into the EcoStruxure Cummins India Limited has launched its battery energy stor-
Automation Expert platform, Copilot simplifies engineering age systems (BESSs), expanding its sustainable solutions
tasks, enables predictive maintenance and supports real-time portfolio in line with the Destination Zero strategy. Cummins
decision-making. BESSs offer a modular and scalable design, and are available in
10 ft and 20 ft containers with energy capacities ranging from
Bajel Projects secures ultra-mega transmission order from Powergrid 200 kWh to 2 MWh. These systems feature high energy densi-
in Madhya Pradesh ty and integrated AC output, and can be easily scaled to meet
Bajel Projects Limited has secured an ultra-mega order worth diverse energy needs. Built on reliable lithium ferrophosphate
over Rs 4 billion from Power Grid Corporation of India Limit- battery technology, they ensure high safety and long cycle life.
ed (Powergrid) for the execution of a transmission project in An integrated liquid cooling system enhances performance
Madhya Pradesh. The order has been awarded through Pow- and battery longevity. Certified to meet stringent global safety
ergrid’s special purpose vehicle, MEL Power Transmission standards, Cummins’ BESSs also include a robust three-tier fire
Limited, and includes the construction of the transmission safety system. With plug-and-play functionality, the units allow
line package, TL01. The scope involves building a 400 kV dou- for easy transport, rapid installation and flexible deployment.
ble-circuit transmission line spanning approximately 138 km All systems come with the assurance of Cummins’ global ser-
from Mahan (existing bus) to Rewa pooling station. It also in- vice and support network.
cludes extension works for the 400 kV substation bays at Rewa
pooling station for evacuation of power from the Mahan Ener- ABB launches LV Titanium Motor Platform in India
gen Limited generating station. ABB has introduced its new LV Titanium Variable Speed Motor
platform in India, offering a compact, customisable plug-and-
TPREL launches affordable solar rooftop solutions in Odisha play solution that combines the benefits of a high-efficiency
Tata Power Renewable Energy Limited (TPREL) has launched one motor with variable speed drive technology. Designed to help
of India’s most affordable solar rooftop offerings under the “Ghar industrial customers reduce energy consumption, lower op-
Ghar Solar” campaign in Odisha. The rooftop solutions start at erating costs and cut carbon emissions, the platform provides
Rs 2,499 for 1 kW systems and are backed by consumer-centric an easy and cost-effective upgrade path to IE5 Ultra-Premium
financing options, enabling broader adoption across the state. efficiency for applications such as pumps and compressors.
The initiative targets 300,000 rooftop installations in Odisha and Unlike conventional setups, where a drive is simply added to a
1 million nationwide over the next three to five years. It is sup- motor, the LV Titanium is engineered as an integrated system.
ported by Tata Power’s partnership with the Odisha Renewable The drive module is purpose-built for seamless operation with
Energy Development Agency, and further enhanced by central a high-efficiency permanent magnet motor, ensuring optimal
and state government subsidies under the PM Surya Ghar: Muft performance. The motor also supports a wide range of speed
Bijli Yojana and Odisha state rooftop solar programme. and torque requirements, delivering high torque even at low
speeds, making it suitable for diverse industrial environments.
Mahindra EPC reports savings of 2.62 billion litres of water and 8.4 As a drop-in replacement for existing direct-on-line induction
MUs of energy in 2024-25 motors, the LV Titanium ensures quick installation and a fast
Mahindra EPC Irrigation Limited, a part of the Mahindra return on investment. n

88 POWER LINE l June 2025

 PHOTOGALLERY

Sector Snapshots
Recent events and industry highlights

n Affairs
o u s in g and Urba r Pralhad Jo
er and H the powe shi (right)
M in is te r for Pow a ti v e g rowth in a nd (MNRE), , Union M
inister of
Lal, Unio
n transform Power; meets N. New and
Manohar ts 1 1 years of ta ry , M inistry of e c ond Pradesh,
to discuss
Chandrab
abu Naidu Renewable
h re (s Energy
(right), h
ighlig rwal, Sec ctricity A
uthority renewable , Chief M
w it h Pa nkaj Aga tr a l E le energy in in ister of An
dhra
long n, Cen itiatives in
sector, a hairperso t) Andhra P
Prasad, C from righ radesh
Ghan s h y a m an ird
d th

Gurdeep
Singh, Ch
limate airman an
st and C (left, top), d Managin
n v iro n m ent, Fore y
signs an
MoU with g Directo
ter of E ent D a Officer an Damilola r, NTPC L
ion Minis Environm d Special O gunbiyi, C imited
e n d e r Yadav, Un d d re s s on World Sustainab
le Energy
Represen
tative of th hief Execu
Bhup a tive
gives an for All (rig e UN Sec
Change, ht, top), fo
r the deve
retary-Ge
neral for
transition lo pment of
model an energ y

POWER LINE l June 2025 89

 PEOPLE

Dr P.R. Jaishankar, Managing Director, IIFCL

W
ith around 36 years of ex- ent, with a notable reduction reforms including changes in model
tensive experience in the in its non-performing assets. concession agreements, improvements
development banking and More interestingly, Jaishankar in the arbitration process, introduction
financial domains, Dr Pad- has led the introduction of of infrastructure investment trusts and
manabhan Raja Jaishankar is numerous innovative financ- revamping of termination payments
currently managing director ing products such as credit have helped shape the sector.” Talking
(MD) of India Infrastructure enhancement and takeout fi- about the current state of the sector,
Finance Company Limited nance, and reverse mortgages, he says, “Currently, this space demands
(IIFCL). Additionally, he holds and is known to have struc- cost-­effective, long-term resources and
the position of chairman of IIFCL’s wholly tured India’s first ever mortgage securiti- tailored financial solutions to meet its
owned subsidiary companies– IIFC (UK) sation transaction. diverse needs. Beyond engin­eering ex-
Limited, IIFCL Projects Limited and IIFCL He excels in resource mobilisation, cellence, effective structuring of finan-
Asset Management Company Limited. including multilateral borrowings, cial transactions has bec­ome critical. To
He has over 13 years of experience structured financing, project appraisal this end, blended finance, although in
with IIFCL, specialising in infrastructure and developing new financial products. early stages, is gaining momentum.”
project finance. Since May 2020, as the Moreover, around 45 per cent of IIF- He holds an MTech from IIT Delhi, an
MD, Jaishankar has led the formulation CL’s total business, since its inception MBA (Finance) from FMS Delhi Universi-
and implementation of a focused strat- in 2006, has been conducted in the past ty and a doctorate in management from
egy for IIFCL, a first-of-its-kind exercise four years alone under his leadership. Amity International Business School. He
for the company. He has been instru- According to him, “The infrastruc- has also received an honorary doctorate
mental in transforming the company ture financing landscape has matur­ed from Maryland State University, USA,
from an operational loss-making firm in substantially, drawing on experiences for his contribution to infrastructure fi-
2019-20 to a profitable venture at pres- from the past two dec­ades. Re­gulatory nance management. n

Ranendra Sarma, Director (Technical), North Eastern Electric Power Corporation Limited

H
aving joined NEEPCO in id industrialisation and the up in various north-eastern states, this
1990, Ranendra Sarma has massive infrastructure push area is poised to become a major player
risen through the ranks to the country has witnessed in in the country’s electricity segment.
become director (technical) recent years. While this rising With a professional career spanning
of the company. He has seen demand has provided fresh over 35 years, Sarma has accumulated
NEEPCO’s installed capacity impetus to capacity addition, vast experience. He began his career
grow from 150 MW to 2,057 multiple challenges, such as with the construction of the head race
MW, and is now planning the environmental concerns, long tunnel in Ranganadi (now Panyor Low-
company’s future growth tra- gestation periods, significant er) hydroelectric project (HEP), and has
jectory, in addition to overseeing its rev- investment requirements, and lack of since been involved in the design of
enue operations. With vast experience round-the-clock power availability and several HEPs. He was also a member of
in the construction and design of hydro grid stability, continue to shape our re- various sub committees of the Bureau
projects, Sarma is now leading NEEPCO sponse to the increased requirement of of Indian Standards. He has authored/
in its effort to double its installed capac- electrical power. co-authored several articles published
ity by constructing four hydroelectric Despite these challenges, Sarma is in various national and international
projects by 2035. very optimistic about the power indus- widow.
For Sarma, challenges open the try, particularly in the Northeast. With A tireless worker himself, Sarma be-
doors to opportunities. Conversly, ev- increased investment in infrastructure lieves that once you enjoy your work, it
ery opportunity brings with it unique development works, remote hilly ar- becomes leisure. He also believes that
challenges. The demand for electric- eas have become more accessible for every employee is unique, and that the
ity is likely to rise exponentially over setting up large hydropower stations. best results can be achieved by appro-
the next decade, driven by significant With new hydroelectric projects and priately channelling each individual’s
economic growth resulting from rap- pumped storage projects being taken strengths. n

90 POWER LINE l June 2025

 PEOPLE

Priya Kumar, Executive Director, Power Finance Corporation Limited

P
riya Kumar currently PFC was to resolve stressed ment is a core priority, ensuring envi-
serves as executive direc- assets, which were at all- ronmental responsibility, social impact
tor at Power Finance Corpo- time high levels. As the head and governance standards. “Through in-
ration (PFC) Limited, where of the stressed assets unit, novative financing, policy advocacy and
she leads the solar and wind I successfully spearheaded capacity building, I hope to contribute
projects vertical. An electrical the resolution of some of the meaningfully toward building a resilient,
engineering graduate from country’s largest power sector self-reliant and future-ready energy eco-
the Delhi College of Engineer- assets through new initiatives, system for India,” she states.
ing, Kumar also holds an MBA which led to a substantial in- Outside of work, Kumar enjoys read-
in Finance from the Faculty of Manage- crease in realisation for lenders,” she says. ing, unwinding through painting or
ment Studies, University of Delhi. Kumar adopts a largely democrat- simply relaxing by watching movies or
She joined PFC soon after completing ic and participative leadership style. “I series on over-the-top platforms.
her education and has since amassed find that a participative approach has “Looking ahead, I aim to play a cata-
over 27 years of experience in power helped us in achieving goals effectively lytic role in advancing India’s clean en-
sector financing. Her career spans a and efficiently. ergy ambitions by supporting emerging
wide spectrum of domains, including This has e nabled us to find inno- sectors such as offshore wind, promot-
conventional generation, transmission vative solutions and overcome challeng- ing domestic manufacturing across the
and distribution, as well as renewable es, especially given the dynamic nature entire solar value chain and advancing
energy projects. She has led PFC’s busi- of the sector and complexity of the work battery storage ecosystems for grid sta-
ness in the western and southern re- we handle,” she notes. bility and energy security. I also aim to
gions, managing clients across both the She believes integrating environmen- facilitate investments in green hydrogen
public and private sectors. tal, social and governance principles into and ammonia to decarbonise key indus-
“One of my most challenging roles in energy financing and project develop- tries,” says Kumar. n

Arjun Mehta, Director – Growth & Programs, GH2 India

A
rjun Mehta is a renewable ships and programmes. ulations, there is consensus that hydrogen
energy professional with Mehta actively engages with will play a pivotal role in a decarbonised
over 17 years of corporate ex- policymakers, energy develop- future. Despite a slowdown in progress
perience in India and the UK. ers, technology manufactur- across production and consumption, Me-
He has worked across diverse ers, consumers and financiers hta believes a hydrogen-driven future is
sectors including green hydro- to promote the holistic devel- inevitable. He encourages decentralised,
gen, renewable energy genera- opment of the green hydrogen empowered and democratic functioning
tion, electronics recycling and ecosystem. Previously, he has in any team he is part of. He enjoys men-
investment banking focused on worked with Fortescue Energy, toring younger professionals and guiding
European energy utilities. His core areas of KPMG Advisory and ReNew Power in the peers, while learning continuously from
expertise include business development, clean energy domain, as well as in the experienced professionals He strongly
strategy formulation, programme man- electronics recycling and energy invest- believes in “failing fast” as a key principle
agement and commercial negotiations. ment banking sectors. for career growth.
He currently operates as an inde- According to Mehta, the fossil-free A hands-on father to two toddlers,
pendent consultant in the solar power production of hydrogen and its deriva- Mehta is committed to instilling a sus-
and green hydrogen sectors, working on tives has significant potential to decarbo- tainable way of living to secure a green-
market assessments, commercial trans- nise crude refining, fertiliser production, er future for them. He is also passionate
actions advisory, business and people heavy industry, transportation and power about learning the art of coffee making
strategy development, and project fi- sector – all currently dependent on hydro- and is an aspiring chocolate connoisseur.
nancing. He also plays a leadership role carbons. While the industry recognises Mehta is an alumnus of the Indian In-
at GH2 India, a green hydrogen-focused key challenges including high capital out- stitute of Management, Ahmedabad,
industry association, where he drives the lay, production costs, gaps in institutional the London School of Economics, and
organisation’s growth strategy, member- knowledge, and evolving policies and reg- Loyola College, Chennai. n

POWER LINE l June 2025 91

 P O W E R D ATA

Key Statistics
Power supply position of states

State-wise anticipated power supply position during 2025-26

Energy Peak
State /UT/Region Requirement Availability Surplus/Deficit (-) Demand Availability Surplus/Deficit (-)
(MU) (MU) (MU) (%) (MW) (MW) (MW) (%)
Chandigarh 2,125 1,870 (255) (12.0) 481 430 (51) (10.6)
Delhi 39,497 41,430 1,933 4.9 9,284 9,910 626 6.7
Haryana 73,691 74,790 1,099 1.5 16,068 14,480 (1,588) (9.9)
Himachal Pradesh 14,284 16,890 2,606 18.2 2,505 3,980 1,475 58.9
UT of J&K and Ladakh 22,998 17,080 (5,9180) (25.7) 3,913 3,420 (493) (12.6)
Punjab 83,407 74,540 (8,8670) (10.6) 17,175 17,060 (115) (0.7)
Rajasthan 129,701 112,370 (17,3310) (13.4) 20,970 20,300 (670) (3.2)
Uttar Pradesh 175,170 200,890 25,720 14.7) 33,849 38,240 4,391 13.0
Uttarakhand 18,667 15,930 (2,7370) (14.7) 3,108 3,850 742 23.9
Northern Region 559,540 555,790 (3,75) (0.7) 99,574 100,140 566 0.6
Chhattisgarh 48,779 48,344 (435) (0.9) 7,396 6,311 (1,086) (14.7)
Gujarat 165,604 169,057 3,453 2.1 27,568 25,986 (1,582) (5.7)
Madhya Pradesh 114,363 113,531 (831) (0.7) 21,241 18,849 (2,392) (11.3)
Maharashtra 231,268 222,465 (8,803) (3.8) 35,081 33,423 (1,658) (4.7)
DDDNH 11,349 10,365 (984) (8.7) 1,461 1,394 (67) (4.6)
Goa 5,674 5,058 (616) (10.9) 888 763 (125) (14.0)
Western Region 577,037 568,821 (8,216) (1.4) 82,369 84,205 1,836 2.2
Andhra Pradesh 88,134 90,014 1,880 2.1 16,374 15,511 (863) (5.3)
Telangana 102,905 100,106 (2,800) (2.7) 20,403 17,390 (3,013) (14.8)
Karnataka 98,020 104,426 6,406 6.5 19,787 18,502 (1,285) (6.5)
Kerala 33,268 33,007 (261) (0.8) 6,256 5,965 (291) (4.7)
Tamil Nadu 141,697 136,635 (5,062) (3.6) 21,865 21,213 (652) (3.0)
Puducherry 3,804 4,357 553 14.5 595 602 6 1.0
Southern Region 467,906 469,562 1,656 0.4 79,391 72,902 (6,489) (8.2)
Bihar 49,068 73,403 24,335 49.6 9,056 8,660 (396) (4.4)
DVC 29,794 25,750 (4,044) (13.6) 4,146 4,235 89 2.1
Jharkhand 15,746 18,795 3,049 19.4 2,619 2,817 197 7.5
Odisha 51,399 50,018 (1,381) (2.7) 7,623 6,047 (1,576) (20.7)
West Bengal 74,430 76,828 2,398 3.2 13,541 10,579 (2,962) (21.9)
Sikkim 674 679 5 0.8 158 510 352 223.4
Eastern Region 221,568 245,473 23,905 10.8 35,781 31,830 (3,951) (11.0)
Arunachal Pradesh 1,232 2,418 1,186 96.2 233 478 245 105.5
Assam 14,881 15,182 302 2.0 3,082 2,371 (711) (23.1)
Manipur 1,300 1,411 111 8.6 318 249 (69) (21.7)
Meghalaya 2,709 3,059 350 12.9 526 594 69 13.1
Mizoram 867 1,150 283 32.6 207 172 (35) (16.8)
Nagaland 1,073 1,128 55 5.1 206 207 1 0.4
Tripura 2,098 2,014 (84) (4.0) 423 415 (8) (2.0)
Northeastern Region 24,159 26,361 2,202 9.1 4,396 4,470 74 1.7
All India 1,850,211 1,866,007 15,797 0.9 269,277 266,006 (3,271) (1.2)

Source: Central Electricity Authority’s Load Generation Balance Report 2025-26

92 POWER LINE l June 2025

 P O W E R D ATA

Trading Data
Day ahead market
The electricity traded in the day-ahead market in May 2025 was 3,461.21 MUs at the IEX. The average market clearing price range was
Rs 2.42 per unit to Rs 5.95 per unit at the IEX. The total volume traded in the real-time market was Rs 4,788.47 MUs at IEX.

Day-ahead market volumes and prices in May 2025

160.00 151.48 151.10 12.00
144.61141.27
140.00 138.78139.05
130.62
126.62 10.00
122.42 121.12
118.61 117.59
120.00 113.23
107.96 107.27 106.34 115.68
102.76 8.00
98.80 98.17 94.76 93.88 94.07 91.51 97.78 96.43
100.00 89.72 90.72

Rs per kWh
84.23 87.45 87.21
MUs

80.00 6.00

60.00
4.00
40.00
2.00
20.00

0.00 0.00
1/May 2/May 3/May 4/May 5/May 6/May 7/May 8/May 9/May 10/May 11/May 12/May 13/May 14/May 15/May 16/May 17/May 18/May 19/May 20/May 21/May 22/May 23/May 24/May 25/May 26/May 27/May 28/May 29/May 30/May 31/May

Note: Refer to the line graph on secondary axis for prices

Source: Indian Energy Exchange (IEX), Power Exchange India Limited (PXIL), Hindustan Power Exchange (HPX) IEX PXIL IEX PXIL

Real-time market volumes and price in May 2025

250.00 12.00

196.02 195.11 194.55 10.00

200.00 191.10 187.11
179.23
170.81 173.41
164.19 167.10 162.56
162.17
158.84 156.34
154.12 155.86 159.21 8.00
148.28 149.81 148.99
150.00 140.22 140.49 135.77 136.58
131.47 128.14 129.50
125.63 126.42

Rs per kWh
112.81 6.00
MUs

106.64
100.00
4.00

50.00
2.00

0.00 0.00
1/May 2/May 3/May 4/May 5/May 6/May 7/May 8/May 9/May 10/May 11/May 12/May 13/May 14/May 15/May 16/May 17/May 18/May 19/May 20/May 21/May 22/May 23/May 24/May 25/May 26/May 27/May 28/May 29/May 30/May 31/May

Note: Refer to the line graph on secondary axis for prices IEX PXIL HPX IEX PXIL HPX
Source: Indian Energy Exchange (IEX), Power Exchange India Limited (PXIL)

REC trading during May 2025

Exchange Buy bids (no. of Sell bids (no. of Cleared volume (no. of Average equilibrium
certificates) certificates) certificates) price (Rs per REC)
IEX 2,116,810 6,290,202 1,742,836 347
PXIL 801,023 2,646,117 478,092 347
HPX 222,217 1,420,000 70,000 349
Sources: IEX, PXIL, HPX

POWER LINE l June 2025 93

 P O W E R D ATA

Power Generation
State-wise generation (MUs)

State/UT
Andaman & Nicobar Islands 8.65
Andhra Pradesh 3,516.88
Total power generation in April 2025 Arunachal Pradesh -
Assam 173.52
Total power generation stood at 157.49 BUs in April 2025. At around 47.91 BUs and Bihar -
42.81 BUs, the central and private sectors, respectively, accounted for the major share Chhattisgarh 1,637.28
in conventional power generation. Meanwhile, renewable energy generation stood at Delhi 365.99
Gujarat 2,367.28
23,846.08 MUs. Haryana 887.24
Himachal Pradesh 213.49
165
Jammu & Kashmir 409.79
163
161
2025 Jharkhand 148.18
159 2024 Karnataka 3,438.71
157 Kerala 464.72
155
Lakshadweep 6.24
153
151 Madhya Pradesh 2,701.49
149 Maharashtra 5,852.48
147
Manipur -
145
Meghalaya 57.67
Power generation (BUs)

143

141 Mizoram -
139 Nagaland -
137 Odisha 1,498.30
135 Puducherry 8.25
133
Punjab 1,202.01
131
Rajasthan 3,786.11
129
127 Sikkim -
125 Tamil Nadu 1,707.19
123
Telangana 3,281.34
121
119
Tripura 13.12
117 Uttarakhand 299.42
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Uttar Pradesh 3,747.76
West Bengal 3,080.96
Total SEBs/EDs 40,874.07
Month Coal and Nuclear Gas (MUs) Hydro Renewables Central sector
lignite (MUs) (MUs) (MUs) (MUs) BBMB 555.55
DVC 3,484.83
April 2024 119,918.83 4,443.61 3,720.34 8,109.14 18,623.42 NEEPCO 429.43
NHDC 170.73
May 2024 122,665.72 4,447.05 5,163.85 12,595.42 22,501.56
NHPC 441.41
June 2024 116,218.61 4,217.61 4,612.32 14,173.68 23,052.27
NLC 2,047.45
July 2024 108,707.62 4,799.84 2,663.57 17,562.91 25,967.96 NPCIL 4,951.45
August 2024 101,645.49 5,492.07 2,518.73 18,885.93 22,705.24 NTPC 34,571.12
ONGC 339.09
September 2024 99,622.55 4,926.44 2,493.84 20,574.25 22,396.05
RGPPL 138.07
October 2024 111,736.54 4,768.92 2,330.48 14,455.88 17,702.37
SJVNL 566.28
November 2024 102,762.68 4,809.77 1,433.56 8,630.89 16,755.26 THDC 218.90
December 2024 106,604.48 5,124.70 1,599.60 7,753.43 19,773.47 Total central sector 47,914.31
January 2025 112,568.24 4,778.41 1,506.89 7,388.05 21,184.71 Private sector 42,810.51
Renewable generation 23,846.08
February 2025 108,706.86 4,153.34 1,659.05 6,970.89 20,193.67
Total generation 157,486.17
March 2025 1,20,834.24 4,719.07 1,785.82 8,763.28 24,141.27 Imports from Bhutan 162.01
April 2025 115,835.07 4,951.45 3,195.53 9,618.15 23,846.08 Total availability 157,648.18

94 POWER LINE l June 2025