By Vivek Pattanayak* in Bhubaneswar, September 30, 2016 : Structural change in the monolithic system by creating different institutions for generation, transmission and distribution under a regulator with government maintaining arms length distance was the novelty of the reform approach then.

Since the reform commenced in Odisha, sector has seen many technological changes and gained tremendous experience in implementing reform process. Now there is emphasis on green energy and use of digital technology. At the same time commercial and technical loss has been the biggest challenge facing the sector.

For the next ten years ending in 2025 -2026 what should be the approach in the sector, government, regulator, financial institutions, both national and global, the concerned corporate power sector, both private and public, associations, chambers of commerce and all stakeholders should apply their mind and bring to bear their experiences.

While priority on the solar energy, wind energy, and hydel energy would continue to be the focus, realistically speaking thermal power cannot be ignored, firstly, due to abundance of coal in the State and secondly, as technology in solar and wind energy has not so far developed to make the power available to consumer at cheap tariff.

Thirdly, big sized hydel projects including multipurpose irrigation projects like Hirakud, Rengali, and Indravati would continue to face stiff resistance from the vibrant civil society as well as cannot escape penetrating attention of ever vigilant media, and would invite judicial activism with unpredictable consequences as land acquisition, rehabilitation, and resettlement are humanitarian issues.

For thermal power as a viable proposition dedicated mine would continue to be a festering problem as long as auction route would continue as a mode of allocation of coal block. Use of flue gas as a source power generation, surplus power from sugar factories during season, and off-season using bagasse, harnessing methane gas emanating from distillery effluent, and municipal waste can be attempted to augment generation which will be environmentally friendly. A plan of action should be drawn up after identification of projects which can be offered to both public and private sector.

Idea of making a consumer totally autonomous through self-generation harnessing solar energy in both rural and urban areas is exciting provided there is political will and bureaucratic commitment accompanied by demonstrative enthusiasm of the prospective beneficiaries. Element of incentive may have to be introduced to prime the novel experiment.

Distribution attempted by public limited companies through private-public participation (NESCO, SOUTHCO, NORTHCO) and autonomous entity (CESU) under regulator have shown varying degrees of success over monolithic entity (OSEB) of pre-reform era. To overcome the present doldrums (DISCOMS under GRIDCO), possibly an attempt can be made to reduce the geographic areas of distribution entities being made coterminous with district boundaries to have more effective administration with corporate body being owned by consumers, employees, suppliers, transmission entities, generating units, whether thermal, hydel, green, or any other type of generation encouraging involvement of Panchayat Raj institutions like Gram Panchayats taking up franchisee where possible. How to ensure maximum governance with minimum government should be at the top of the agenda.

Trend of consumption of electricity countrywide has dampened enthusiasm on generation. Much would depend upon how exactly the industrial load would increase and how agriculture can generate consumption will depend on many considerations which need to be addressed separately including load promotion.

In changing times, the government should take leadership role to dovetail all the programmes like “Make in India”,” Swatch Bharat”,” Digital India”, and “Start up India and Stand up India” to make power sector economically viable and financially sustainable.

(*Former member of the Indian Administrative Service and also International Civil Service)