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BR Research

Power: look beyond generation

The Minister of Water and Power (and Defence) was seen (on Twitter) patting himself back on the record high daily po
Published June 7, 2017

The Minister of Water and Power (and Defence) was seen (on Twitter) patting himself back on the record high daily power generation in excess of 19,200 MW. Well done indeed. Vast improvements from when he took office in 2013. Quite some achievement too, considering a 16 percent drop in power generation reported in the recently released Economic Survey 2016-17.

It is quite a turnaround in little over two months. Surely, more megawatts have been added in the period, hence the record power generation. Or so we are told. Load shedding of late has been quite merciless in some parts of the country, but let us blame it on transmission and technical issues. Power generation is increasing by the clock. And don’t doubt the numbers please, even if you cannot access them anymore.

Don’t get too excited yet. Hydel generation will not forever be in excess of 6,000 MW, as that is around where the generation has been reliant on. More hydel is definitely good, more so, if it is dependable, and in absence of which, you can back up similar numbers from other fuel sources. That is sadly not the case. Or at least not just yet, as the Economic Survey too, put the 16 percent reduction in power generation down to reduced hydel generation.

To cut it short, megawatts are coming in. More will come this fiscal year, mostly backed by the Chinese. There may even be a power surplus in a year’s time. Surely, 2018 it is then for the energy crisis to go away once and for all? Yes, only if you consider adding more megawatts as the only solution, when it is, in fact only a part of it.

The problems were structural and remain so. Solutions thereby should be structural too. Common sense? Or is it too much to ask from the honourable minister who was lecturing on common sense the other day – on how solar generation can drop with the sunset. Addressing the energy crisis, or at least, realizing the core of it, is no less simpler.

Multiple studies and good ones at that have been prepared, presented, and eaten dust. Recall that the government, upon assuming power in 2013, took the easiest route towards reforms, and that was tariff rationalization. No doubt, it was needed. But that was never recommended as the first step, or was at least supposed to be followed up with the right reform measures.

This column has repeatedly maintained that while more power generation is important too, there are other areas such as governance, transmission, energy mix, tariffs and distribution, all of whom carry equally high importance. The system could cripple if tariff considerations are ignored, or transmission keeps lagging behind, and discos keep leaking. The threat of circular debt will only grow by the day as more power enters the grid.

So once again, well done for record generation. An eye or two at the state of any ‘non-generation’ affairs would be very welcome and timely. We hope to soon celebrate new milestones of crossing 20,000 MW. Also, can we please have the numbers too?

Copyright Business Recorder, 2017

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