In recent years, Delhi’s power sector has made notable strides across multiple fronts, showcasing improvements in reliability, AT&C loss reduction, renewable energy integration, consumer satisfaction and financial viability. Investments in infrastructure upgrades, coupled with policy initiatives promoting renewable energy adoption and consumer-centric services, have contributed to enhancing the overall efficiency and sustainability of the electricity ecosystem. However, amidst these advancements, significant challenges persist. Rajesh Dangi, Secretary, Delhi Electricity Regulatory Commission (DERC), shares his views on the current state of Delhi’s power sector, the key challenges, and the future outlook. Excerpts…
What is your assessment of the performance of Delhi’s power sector in the past one year?
Despite challenges, Delhi’s power sector has demonstrated notable progress in various areas in the past years:
Reliability and infrastructure: The reliability of the power supply has shown improvement, with fewer instances of outages and enhanced grid stability. Investments in infrastructure, including upgrades to transmission and distribution networks, have contributed to this positive trend. The AT&C loss reduction has been quite considerable in the past two decades.
Renewable energy integration: Delhi continues to make strides in integrating renewable energy sources, including solar power, into its energy mix. Regulations promoting rooftop solar installations and grid-connected solar projects have bolstered renewable energy capacity and reduced reliance on conventional sources.
Consumer satisfaction: Consumer satisfaction remains a priority, with efforts to improve billing accuracy and enhance customer service responsiveness.
Financial viability: Power distribution companies have made efforts to improve financial viability through efficient revenue collection and operational cost management.
Regulatory compliance: Compliance with regulatory standards and obligations is a focal point, ensuring transparency and accountability within the sector. Continued adherence to regulatory directives, licensing requirements and environmental regulations is imperative for sustaining industry standards.
Innovations and initiatives: The sector has witnessed innovative initiatives aimed at enhancing the efficiency, sustainability and affordability of electricity services. Pilot projects and collaborations with private entities have yielded promising results, indicating a willingness to embrace new technologies and practices.
What are the biggest challenges facing the state’s power sector?
Delhi’s power sector faces several significant challenges that require strategic planning and concerted efforts to overcome, such as:
Supply-demand gap: Rapid urbanisation and population growth in Delhi have led to escalating electricity consumption, exacerbating the strain on the existing infrastructure and necessitating additional capacity augmentation.
Financial sustainability: Power distribution companies in Delhi grapple with financial sustainability issues, stemming from factors such as huge regulatory assets, tariff rationalisation pressures and subsidy dependence.
Renewable energy integration: Although Delhi has made commendable progress in promoting renewable energy adoption, integrating intermittent sources such as solar and wind power into the grid presents technical and operational hurdles. Addressing grid stability, implementing storage solutions and managing intermittency is crucial for maximising the benefits of renewable energy deployment.
Environmental concerns: Transitioning towards cleaner energy sources and implementing stringent environmental regulations are essential to mitigate environmental impacts and improve the air quality in Delhi.
Policy and regulatory framework: Streamlining regulatory processes further, enhancing transparency and fostering a conducive policy environment are vital for promoting investments, innovation and sustainable growth within the sector. Compliance with performance standards and compensation mechanisms is imperative.
Grid resilience and cybersecurity: Ensuring the resilience of the grid against physical and cyber threats is crucial for safeguarding the reliability and security of electricity supply. Strengthening grid infrastructure, implementing robust cybersecurity measures and enhancing disaster preparedness is imperative to mitigate risks associated with potential disruptions.
Addressing these challenges requires a holistic approach encompassing policy reforms, infrastructure investments, technological advancements and stakeholder collaboration.
What is your outlook for Delhi’s power sector for the next few years?
The outlook for Delhi’s power sector in the coming years is characterised by both opportunities and challenges, shaped by evolving trends, technological advancements and policy imperatives. The following outlines the key aspects of the sector’s outlook:
Renewable energy expansion: Delhi is set to witness significant expansion in renewable energy capacity, particularly solar power, driven by favourable policies such as group net metering, virtual net metering, declining costs and environmental imperatives.
Grid modernisation and smart technologies: Investments in grid modernisation and the deployment of smart technologies will play a pivotal role in enhancing the efficiency, reliability, and resilience of Delhi’s power infrastructure. The integration of advanced metering infrastructure, distribution automation and energy storage solutions will facilitate demand-side management, optimise grid operations and empower consumers to make informed energy choices.
Energy storage and flexibility: The proliferation of energy storage technologies, such as batteries and pumped hydro storage, will enable greater flexibility in managing intermittent renewable energy generation and meeting peak demand. Energy storage deployment, coupled with demand response programmes and flexible grid management strategies, will enhance grid stability, mitigate supply-demand imbalances, and support the transition towards a more decentralised and resilient energy system.
Electric mobility and infrastructure: The adoption of electric vehicles (EVs) is poised to accelerate in Delhi, driven by supportive policies, technological advances and growing consumer awareness of environmental sustainability.
Policy and regulatory reforms: Continued efforts to streamline regulatory frameworks, promote market competition and facilitate private sector participation will be crucial for fostering a conducive business environment and attracting investments in the power sector.
Resilience and risk management: Strengthening the resilience of the power grid against physical and cyber threats will remain a priority, given the increasing complexity and interconnectedness of the energy landscape. Investments in grid infrastructure hardening, cybersecurity measures and disaster preparedness will be essential to mitigate risks and ensure the reliability and security of electricity supply in Delhi.
What are your topmost priorities currently?
In my current role, my top priorities revolve around fostering a sustainable, reliable and consumer-centric electricity ecosystem that meets the evolving needs and aspirations of the residents of Delhi. The following outlines my key priorities:
Consumer empowerment and protection: Since the interests of electricity consumers are paramount, I am committed to promoting transparency, accountability and responsiveness among utility providers. This includes streamlining grievance redressal mechanisms, enhancing consumer education and awareness, and enforcing regulatory measures to safeguard the interests of consumers and address grievances effectively.
Promoting renewable energy and energy efficiency: Recognising the imperative of transitioning towards cleaner and more sustainable energy sources, I am dedicated to promoting the adoption of renewable energy technologies and enhancing energy efficiency measures across the electricity value chain.
Ensuring regulatory stability: I am dedicated to upholding regulatory compliance and ensuring the effective implementation of green tariff structures, net metering options, open access charges and banking provisions alongside regulatory compliance.
Grid modernisation and infrastructure development: Recognising the importance of modernising the electricity grid and enhancing infrastructure resilience, I prioritise investments in grid modernisation initiatives, smart technologies and resilient infrastructure solutions.
Enhancing stakeholder engagement and collaboration: Collaboration and engagement with stakeholders are integral to driving inclusive decision-making processes and fostering trust and cooperation within the electricity sector.
Promoting innovation and best practices: Embracing innovation and best practices is key to unlocking the full potential of the electricity sector and driving continual improvement. I prioritise initiatives aimed at fostering innovation, knowledge sharing and capacity building, including pilot projects, research and development collaborations and international partnerships, to catalyse technological advancements, promote best practices and enhance sector resilience and sustainability.
The views expressed herein are those of the author and do not necessarily reflect the views of the commission. Any opinions or statements made are solely the author’s and do not necessarily represent the opinions or views of DERC.