One Nation – One Grid – One Price for a strong, integrated power network

The interregional transfer capacity stands at 112 gigawatts, showcasing the nation’s commitment to enhance this capability continually.

In a transformative initiative, India is propelling its power systems towards integration through the vision of ‘One Nation, One Grid, One Price.’ The overarching objective is to create a seamless and efficient electricity network, ensuring a reliable power supply nationwide. This integration holds the key to optimal resource utilisation, grid stability, and the facilitation of smooth power exchange between regions, ultimately fostering improved energy security and economic growth.

Renewable energy sources

In the contemporary era, reliance on conventional fuels is no longer sustainable. The focus has shifted towards renewable energy sources, presenting unique challenges. The ‘One Nation, One Grid’ system facilitates the seamless integration of diverse renewable sources such as solar and wind power. This integration is crucial for efficiently utilising these resources across different regions, contributing significantly to a sustainable energy future. A critical aspect addressed by this unified grid system is rural electrification. The initiative empowers communities by extending reliable electricity access to remote areas, fostering improved power scenarios and contributing to the nation’s overall growth.

Smart grid technology

Fortunately, the implementation of smart grid technology within the ‘One Nation, One Grid, One Price’ framework is underway. This technology enables real-time monitoring, control, and optimisation of the power network, enhancing overall efficiency and reliability.

Examining the power system network in India reveals a journey from power generation in plants to transmission through a network to reach load centres. However, the transmission incurs losses, impacting tariffs directly.

Moreover, the geographical distance between power sources and load centres necessitates fuel transportation, adding additional costs and influencing tariffs.

Diving into the specifics, India’s power generation comprises various sources, including renewable (wind, solar, hydro, biomass, geothermal) and non-renewable (nuclear, fossil fuels). Each source has unique challenges, such as fuel transportation costs and environmental impacts directly influencing tariffs.

When the tariff structure is dissected, it becomes evident that power purchase costs dominate, contributing 80 percent , followed by operation and maintenance expenses, depreciation, return on capital employed, and income tax. Regulatory commissions are crucial in determining tariffs, ensuring a balanced approach.

Regional disparities

Regional disparities are addressed by categorising five major regions: Northern, Southern, Eastern, Western, and Northeastern. The latest data indicates a total installed capacity of 425 gigawatts, with thermal power contributing 59 percent, nuclear 1.65 percent, hydro 11.5 percent, and renewable energy sources 28.3 percent .

Within the renewable energy sector, wind power, biomass, and solar collectively contribute to a sustainable future, with solar alone accounting for 7.5 percent of the total installed capacity. The journey towards ‘One Nation, One Grid’ started in 1991 and reached a significant milestone in 2013 with the creation of the National Grid. This interconnected grid system enhances inter-regional transfer capabilities, promoting national uniform tariffs.

Currently, the interregional transfer capacity stands at 112 gigawatts, showcasing the nation’s commitment to continually enhancing this capability. Looking ahead, integrating energy storage technology becomes imperative to accommodate the growing energy demands and ensure the resilience and flexibility of the power system.

The ‘One Nation, One Grid, One Price’ initiative represents a transformative step towards a robust, interconnected power system. It addresses energy security and sustainability and fosters equitable development across India. Every state’s constructive participation is pivotal in achieving inclusive growth, and uniform electricity rates play a crucial role in this collective journey towards a brighter and sustainable future.

Spokesperson: Rajesh Arora, Senior Manager (Technical) – Delhi Transco Ltd.