As the share of renewable energy is progressively entering the energy mix, changes have to be made in the administration for affordable, accessible, reliable electricity. Elucidate (200 Words)
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IAS Parliament 6 years
KEY POINTS
· Competitiveness of renewables coupled with reducing costs of battery storage and rising costs of coal-based power means an increasing share of renewable energy in the supply mix.
· Currently, there is limited rigour within the government in critically evaluating and prioritising needs, anticipating changes and risks and preparing for them.
· Two steps are critical to avoid such problem. First, the gaps and discrepancies in public availability of crucial data should be addressed. Second, analytical capability within the government should be enhanced.
· In order to assist the government in policy and decision making, an analytical agency needs to be set up that is empowered to collect and reconcile data, analyse trends, publish reports and suggest policy interventions.
· This agency, tentatively called the Energy Analysis Office (EAO), should involve multiple ministries. Two important prerequisites for such an office to be effective are policy relevance and independence from political influence.
· This balance can be arrived at by placing the EAO under the administrative control of the Executive, but by having its budget approved and work reviewed by Parliament.
· There is an urgent need for fundamental changes in the way Discoms plan and operate. Increasingly, markets and competition would need to play a substantial role.
· Allowing large consumers to choose their suppliers for the long term helps them reduce costs, while also enabling rational capacity addition. Discoms should avoid adding new baseload capacity without rigorous demand-supply analysis.
· Solarising agricultural feeders can help in capping subsidy while providing day-time reliable supply to farmers. These measures can allow Discoms to focus on improving supply and service to small and rural consumers. This increases the affordability and accessibility.
