Centre Aims To Provide 24X7 Power To All By 2019

For the regulated power sector, the government has ensured that tariffs do not go up due to auctions by choosing the reverse bidding route, with state miner Coal India's price providing the upper limit while the bidder with the lowest bid will be declared the winner.

The government has set a target of doubling electricity generation from one trillion units to two trillion units by 2019, giving a renewed focus on renewables with generation going up from the current 53 billion units to 300 billion units in five years. The target for solar power generation has been put at 100,000 MW by 2019.

The share of renewable energy is currently just over 5 percent of the total base made up of one trillion units of electricity.

Through the Electricity (Amendment) Bill, 2014 tabled last week, the central government proposes to introduce stricter penalties for failing to meet renewable purchase obligation (RPO) targets.

Under the RPO system, the state power distribution companies have to mandatorily purchase electricity generated through renewable energy sources during the year.

The proposed changes will also introduce the renewable generation obligation (RGO), which will make it compulsory for thermal power producers to generate electricity through renewables.

The salient changes proposed in the Electricity Act are aimed at enhancing grid safety, unbundling the distribution sector, promoting renewable energy and tariff rationalization.

Within a given area, multiple distribution companies would be licensed to operate and offer power to consumers.

State-miner Coal India is looking to double its production from the estimated 500 million tonnes this year to a billion tonne in 2019.

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