Energetica India - June 2020

Mr. Arun Sharma COO-Infrastructure Business, Sterlite Power “Renewable energy holds the key to making the recovery post the pandemic sustainable. India’s climate promise of deploying 175 GW by 2022 is a step in the right direction and concerted efforts have been made by the government to ensure the energy goals are met”. E nergetica I ndia : Power demand in In- dia has been falling in the wake of the ongoing COVID-19 lockdown. What are the key measures that will ensure smooth sail for the power transmission sector? A run S harma : The power demand in In- dia, the world’s third-largest energy con- sumer, has been falling in the wake of the national lockdown announced on 25th- March. We have seen the peak demand dropping to 20-25% since the lockdown announcement which in energy terms translates to a reduction of 25-28%. In India, the fall in the energy demand is mainly due to commercial and industrial establishments which are shut owing to the lockdown. These establishments are the largest consumers of electricity con- sumption at 52% of the consumption mix. The fall in the power demand has led to a cascading impact on all stakeholders in the power value chain, from Discoms to Generators and Transmission Licens- ees. Due to the lockdown, Discoms sales have plummeted and they are unable to bill and collect bills from their con- sumers. The collection has dropped to around 40% for many, thus, significantly impacting their ability to pay generators and transmission licensees. The GoI is planning to support the Discoms with a financial package through PFC and REC, which should address this issue. CERC through a recent order has re - duced the late payment surcharge which Discoms have to pay for missing the bill payment due date of 45 days from 1.5% per month to 1% per month, this is a good measure in these times and ensures that there is no moratorium of payments and Discoms are obligated to make the pay- ment due to Gencos and Transcos. Energetica India catches up with Arun Sharma, COO-Infrastructure Business, Sterlite Power to discuss the way ahead for India’s renewable energy industry amidst COVID-19. 20 energetica INDIA- June_2020 INTERVIEW