RENEWABLE ENERGY

Budget 2020: Focus on measures for distribution network strengthening & renewables to continue

Focus on the measures to improve the viability of electricity distribution segment as well as the to strengthen T&D network would continue to remain the main areas of concentration.

The Government of India (GoI) has recently released the National Infrastructure Plan (NIP) with an outlay of Rs 102 lakh crore for the period from FY2020 to FY2025. Within the various sectors, the energy vertical accounts for the bulk of the investments i.e. about 24% of the overall investment outlay.

And in the energy vertical, the investments in the power sector remain the largest at Rs 22.6 lakh crore. The NIP envisages to increase the installed power generation capacity to 619 GW by March 2025 from the current level of 369 GW, with the share of renewables targeted to increase to 39% as of March 2025 from 22% as of March 2019.

Also Read: UDAY was not a failure, successive scheme might be announced in Budget: RK Singh

Given the critical importance of power sector to economic growth and the policy’s emphasis on renewables, focus on the measures to improve the viability of electricity distribution segment as well as the to strengthen transmission & distribution (T&D) network would continue to remain the main areas of concentration.

The progress in improving the financial profile of the discoms as envisaged under the earlier UDAY scheme has remained slow, given that the reduction in AT&C losses is lower-than-expected in some of the key states and as the tariff revisions across majority of the states remained inadequate, thereby not reflecting the movement in the cost structure.

Source
ET Energy World
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