Revamp reforms-based result-linked power distribution sector scheme

 Revamped(renovate or reconstruct) Distribution Sector Scheme(RDSS):

DVVNL/RDSS Tender Opened

PuVVNL /RDSS tender Opened

The Scheme seeks to improve the operational efficiencies and financial sustainability of all DISCOMs/ Power Departments excluding Private Sector DISCOMs by providing conditional financial assistance to DISCOMs for strengthening of supply infrastructure.   

      The assistance will be  based on meeting pre-qualifying criteria as well as upon achievement of basic minimum benchmarks by the DISCOM evaluated on the basis of agreed evaluation framework tied to financial improvements. 

     Implementation of the Scheme would be based on the action plan worked out for each state rather than a “one-size-fits-all” approach.

   The Scheme will have an outlay of Rs.3,03,758 crore with an estimated GBS from Central Government of Rs.97,631 crore. It is proposed that the currently ongoing approved projects under the Schemes of IPDS, DDUGJY along with PMDP-2015 for the Union Territories of Jammu & Kashmir (J&K) and Ladakh would be subsumed in this Scheme, and the savings of their GBS (approx. Rs. 17000 crore) would be part of the total outlay of the Revamped Distribution Sector Scheme under the existing terms and conditions till their sunset on 31" March, 2022. The funds under these Schemes would be available for the identified projects under IPDS and for the approved ongoing projects under Prime Minister’s Development Program (PMDP) for the Union Territories of J&K and Ladakh under IPDS and DDUGJY till 31 March, 2023.

MVVNL Tender opened Click here to know

    The Revamped Distribution Sector Scheme aims to improve operational efficiencies and financial sustainability, by providing result-linked financial assistance to DISCOMs for strengthening of supply infrastructure based on meeting pre-qualifying criteria and achieving basic minimum benchmarks. The Scheme would be available till the year 2025-26. 

The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi has approved a Reforms-based and Results-linked, Revamped Distribution Sector Scheme. 

REC (Rural Electrification Corporation Ltd.)and PFC (Power Finance Corporation Ltd.)have been nominated as nodal agencies for facilitating implementation of the Scheme.

Scheme Objectives

1. Reduction of AT&C losses to pan-India levels of 12-15% by 2024-25.
2. Reduction of ACS-ARR gap to zero by 2024-25.
3. Developing Institutional Capabilities for Modern DISCOMs
4. Improvement in the quality, reliability, and affordability of power supply to consumers through a financially sustainable and operationally efficient Distribution Sector.

AT & C Losses?

AT&C Loss = (Energy input – Energy billed) * 100 / Energy input.

     Power generation, transmission and distribution are the three activities in power industry. Energy is consumed and loss is incurred in every step of the above  activities. Among the three activities, losses in power distribution is the maximum as it has grown up in an unplanned manner. It is around 35% in India. The figure varies widely in every state (varies from 9.13% in Pondicherry to 85.49% in Manipur: AT&C Loss, PFC Report 2012-13). Power utility company suffers for high loss. And some steps have been taken in some states to reduce losses. Further initiative and activities are required to improve in this area. Innovative idea and its implementation, R&D in this field are the prime requirements for reduction of loss. In this article, different losses and remedial activities thereupon have been stated. Some innovative ideas have been described as well. 

   Distribution loss consists of two parts: a. Technical loss and b. Commercial loss. It is also called AT&C loss.

    AT&C loss is nothing but the sum total of technical and commercial losses and shortage due to non-realization of billed amount.

Technical loss depends upon losses incurred from machinery (Transformers), lines and improper maintenance of plant and machinery etc. By taking care of these areas, we can reduce these technical losses.

   To reduce technical losses the following action can be taken:

1. Network reconfiguration: It gives an option to handle the increased demand – and increases system reliability. Construction of more numbers of high voltage distribution lines as and where they are techno-commercially feasible.
   2. Reduction of LT lines – so that current in the line reduces and hence copper loss of the line. Introduction of HT distribution system, where it is possible.
   3. Power factor improvement, close to 1, by automatic power factor controller, using at different places.
   4. Regulating voltage in distribution circuit by automatic voltage booster.
   5. Balancing load in three phase distribution, thus reducing losses and neutral current. Better management of distribution transformer, SCADA (Supervisory Control And Data Acquisition System) is an effective tool for load management.
   6. Improvement in transformer design to reduce iron loss and copper loss as well. Amorphous core transformer may be used for reduction of iron losses.
   7. Periodic audit may be introduced to know the scope of loss reduction.
   8. Load research is needed.
   9. Coating is necessary on bare conductor to reduce copper loss.
   10. Periodic maintenance of distribution system is needed for loss reduction.

Commercial loss reduction

Commercial loss in developed countries is negligible but the situation is opposite in many developing countries.

Theft is the one of the main causes of the high losses. Theft occurs in several ways, viz: by tapping power lines and tempering / by passing meter etc. The following points are important for reduction of these losses.

1. Replacement of defective meters by electronic meters / smart meters.
   2. Development of process and ways for theft detection and suitable correction of the same.
   3. Introduction of remote disconnection / reconnection and meter reading arrangement so that appropriate action may be taken as and when required.
   4. Law enforcing and stringent action to the theft of power.
   5. Introduction of several communication systems for load side management.
   6. Substation automation and distribution automation for loss detection and corrective action.
   7. Process reengineering for improvement of existing customer complaint, improvement in all sorts of delay in billing, arrangement for spot billing etc. Improved process with IT application may reduce this loss.
   8. Customer oriented management approach, like implementation of call centre for 24 hours, improving customer care, implementation of MIS.
   Some projects like integrated volt / VAR control (IVCC) involves near real time control of distribution and minimises losses by about 2% and
   Capacitor control algorithm for distribution capacitor Automation project to optimise regulation of voltage.
   Delayed distribution series reactors enable 2.5 to 5% change in impedance – ensures the flow on the line within allowable limit.

   Best practices of AT&C loss reduction

a. HVDS: Introduction of high voltage distribution system.
b. AB Cable. : Replacement of bare conductor by AB Cable for shielding of possibilities of power theft.
c. Metering: AMC / Smart metering to the consumer for reduction of commercial losses and billing and collection ease.

Pan-India?

If any company operates at one location at the start and has spread its branches to various cities of India, then that company can use the recognition to announce its company growth.

These make stem customers ensure that these branches or companies are trustable as spread across India and on other hands the company does get good bounds customers or servicemen with their country wide spread like the telecom companies BSNL, Jio, Airtel and others.

ACS-ARR gap?

Aggregate Cost of Service(ACS)-Aggregate Revenue Realised(ARR) Gap.Energy minister make plan to create road map to make this gap Zero.

Details of RDSS Scheme

The Scheme has a major focus on improving electricity supply for the farmers and for providing daytime electricity to them through solarization of agricultural feeders. 

Under the scheme, works of separation of 10,000 agriculture feeders would be taken up through an outlay of almost Rs 20,000 crore, which would be highly beneficial to the farmers who would get access to dedicated agriculture feeders providing them reliable and quality power. This Scheme converges with the Pradhan Mantri Kisan Urja Suraksha Evem Utthan Mahabhiyan (PM-KUSUM) Scheme, which aims to solarize all feeders, and provide avenues for additional income to farmers.

    The Scheme provides for annual appraisal of the DISCOM performance against predefined and agreed upon performance trajectories including AT&C losses, ACS-ARR gaps, infrastructure upgrade performance, consumer services, hours of supply, corporate governance, etc. DISCOMs have to score a minimum of 60% of marks and clear a minimum bar in respect to certain parameters to be able to be eligible for funding against the Scheme in that year.

  A key feature of the Scheme is to enable consumer empowerment by way of prepaid Smart metering to be implemented in Public-Private-Partnership (PPP) mode. Smart meters would allow consumers to monitor their electricity consumption on a routine basis instead of monthly basis, which can help them in usage of electricity as per their own needs and in terms of the resources available. While in all 25 crore Smart meters are planned to be installed during the Scheme period, priority would be given to install prepaid Smart Meters in a mission mode in the first phase in (i) all Electricity Divisions of 500 AMRUT cities, with AT&C Losses > 15% (ii) all Union Territories (iii) MSMEs and all other Industrial and Commercial consumers (iv) all Government offices at Block level and above (v) other areas with high losses. It is proposed to install approximately 10 crore prepaid Smart Meters by December, 2023 in the first phase. The progress of installation of prepaid Smart meters would be monitored closely, especially those in Government Offices, to enable their installation in a time-bound manner.

    Looking into the scattered nature of agricultural connections and their remoteness from the habitations, agricultural connections would be covered only through Feeder Meters.

 

Along with the time-bound implementation of prepaid Smart metering for consumers, it is also proposed to take up System metering at Feeder and Distribution Transformer (DT) level with communicating featuresimultaneously in PPP mode.

Artificial Intelligence would be leveraged to analyze data generated through IT/OT devices including System Meters, prepaid Smart meters to prepare system generated energy accounting reports every month to enable DISCOMs to take informed decisions on loss reduction, demand forecasting, Time of Day (ToD) tariff, Renewable Energy (RE) Integration and for other predictive analysis. This would contribute a great deal towards enhancing operational efficiency and financial sustainability of the DISCOMs. Funds under the scheme would also be used for development of applications related to the use of Artificial Intelligence in the Distribution sector. This would promote the development of Startups in the Distribution Sector across the country.

 

Major components:

1. Consumer Meters and System Meters
   1. Prepaid Smart Meters for all consumers except Agricultural consumers
   2. ~25 crore consumers to be covered under prepaid Smart metering
   3. Prioritizing the urban areas, UTs, AMRUT cities and High Loss areas for prepaid Smart metering i.e. ~10 crore prepaid Smart meter installation by 2023, the balance to be taken up in phases
   4. Communicable AMI meters proposed for all Feeders and Distribution Transformers to enable energy accounting, leading to better planning for loss reduction by DISCOMs
   5. Installing prepaid Smart Meters should help DISCOMs in improving of their operational efficiencies and strengthen DISCOMs to provide better service to consumers

 

2. Feeder Segregation
   1. Scheme also focuses on funding for feeder segregation for unsegregated feeders, which would enable solarization under KUSUM
   2. Solarization of feeders will lead to cheap/ free day time power for irrigation and additional income for the farmers.

 

3. Modernization of Distribution system in urban areas
   1. Supervisory Control and Data Acquisition (SCADA) in all urban areas
   2. DMS in 100 urban centers

 

4. Rural and Urban area System strengthening

 

Provision for Special Category States:

All Special Category States including North-Eastern States of Sikkim and States/Union Territories of Jammu & Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, Andaman & Nicobar Islands, and Lakshadweep will be treated as Special Category States.

 

For Prepaid Smart metering, grant of Rs 900 or 15% of the cost per consumer meter worked out for the whole project, whichever is lower, shall be available for “Other than Special Category” States. For “Special Category” States, the corresponding grant would be Rs 1350 or 22.5% of the cost per consumer, whichever is lower.

 

In addition, the DISCOMs can also avail of an additional special incentive of 50% of the aforementioned grants if they install the targeted number of Smart meters by December, 2023.

 

For works other than Smart metering, maximum financial assistance given to DISCOMs of “Other than Special Category” States will be 60% of the approved cost, while for the DISCOMs in Special Category States, the maximum financial assistance will be 90% of the approved cost.

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