IN STEP WITH AN
EVOLVING ENERGY SECTOR
India's power sector is transforming rapidly. From the days of state utilities grappling with high debts, the country has entered a phase where the financial health of distribution companies (DISCOMs) is gradually improving and capacity expansion is on the rise. On the other hand, industrial demand is still uninspiring, owing to a largely volatile global business scenario.
At JSW Energy, we believe that there is a significant latent power demand in the country, which needs to be addressed with urgency. The present method of calculating demand takes into consideration the population that is connected to the grid and has access to electricity. A substantial part of the nation's population today has no access to power, thereby understating India's power demand.
Considering the above scenario, if the Government's 'Power for All' programme were to be fast-tracked, the country would need significant additional base load power capacity. This requirement provides a steady growth path for energy producers, because of the following reasons:
- The required increase in base load power can be serviced either through the thermal or nuclear sector. However, nuclear energy is still a difficult choice for India considering its long gestation, high capital cost and greater safety concerns. Therefore, our dependence on thermal energy will continue in the near and medium-term, subject to any significant breakthrough or disruptive technology in the power sector.
- This task can be supported substantially if Ujwal Discom Assurance Yojana's (UDAY) impact spreads to more states through enhanced investments and relevant infrastructure development. There is an urgent need to augment the operational parameters of DISCOMs, improve their financial health and incentivise power producers with viable tariffs through long-term PPAs. When translated into business rationale, the Government's 'Power for All' programme, if combined with relevant infrastructure development, tariff rationalisation and remonetisation of DISCOMs, can improve the demand cycle substantially.
- At JSW Energy, we believe that electricity demand mapping should take into consideration factors like economic growth, household connectivity, energy efficiency, and so on. Given the ground realities, there is a tremendous growth opportunity in the power sector, and we are geared to play a larger role in the entire power landscap
