Collaboration and innovation are key to building a resilient power ecosystem

Decentralised energy systems, microgrids and hybrid energy models are gaining traction, ensuring energy access for remote areas.

India’s power sector is transforming, driven by rapid economic growth and the imperative to adopt sustainable energy solutions. As the backbone of the nation’s development, the sector spans generation, transmission, and distribution, with remarkable advancements but persistent challenges. Capacity constraints, transformer shortages, and delays in creating new evacuation corridors hinder progress on the generation and transmission front. Simultaneously, smart meter rollouts and renewable energy initiatives like PM Surya Ghar Yojana are reshaping the distribution landscape.

Despite substantial potential, the rollout of smart meters, though revolutionary, has faced slow implementation, primarily due to misconceptions and a lack of effective consumer engagement. Success stories, such as the deployment of 2.6 million smart meters in Bihar, highlight the importance of awareness campaigns and proactive utility participation.

Renewable energy integration, particularly solar, reshapes energy dynamics, but balancing intermittent renewable sources with conventional power remains challenging. The evolving role of Public-Private Partnerships (PPP) is crucial in addressing financial constraints, while innovations in storage and energy efficiency signal the sector’s future direction. For India to realise its energy security and economic growth vision, a collective focus on quality, collaboration, and technological adaptation is paramount, ensuring a resilient and sustainable power ecosystem.

EPR recently engaged with industry experts at the Distribution Utility Meet 2024 in Lucknow to gain insights into their perspectives. Let us delve into the story to know more.

Adapting to the changing scenario 

The Indian power grid infrastructure is transforming, driven by the growing adoption of renewable energy, digitalisation, and energy storage technologies. With the country’s commitment to achieving 500 GW of non-fossil fuel capacity by 2030, the grid is evolving to accommodate intermittent renewable sources like solar and wind. This requires robust integration through advanced grid management systems, flexible transmission networks, and scalable energy storage solutions.

Digitalisation plays a key role, with smart meters, AI-driven demand forecasting, and real-time monitoring enhancing efficiency and reliability. Decentralised energy systems, microgrids, and hybrid energy models are gaining traction, ensuring energy access for remote areas.

Additionally, grid resilience against climate impacts and cybersecurity threats is a priority. Initiatives like Green Energy Corridors and Ultra High Voltage (UHV) transmission projects underline the government’s focus on sustainable growth. The Indian power grid is pivoting toward a future-ready, inclusive, and resilient energy ecosystem.

This growth, however, is accompanied by challenges that require strategic solutions and collaborative efforts across the public and private sectors. Stakeholders are increasingly focused on enhancing efficiency, integrating renewable energy, and fostering innovation to secure sustainable energy for India’s future.

Despite remarkable advancements in renewable energy, the generation and transmission sectors are grappling with capacity constraints. Transformer shortages and delays in establishing new evacuation corridors pose significant bottlenecks. S.R Pandey, a Member of the Gujarat Electricity Regulatory Commission (GERC), highlighted that balancing power remains a critical challenge. “The increasing penetration of renewables necessitates robust backup power solutions through hydro, gas, or coal-based plants. Reliable and stable power delivery is contingent on these measures, especially when renewables are unavailable,” he said.

Transmission infrastructure also requires substantial upgrades to accommodate reverse power flows, and distributed generation is becoming a reality. Addressing these challenges demands investment in modern transmission networks and ancillary markets to stabilise power delivery while effectively balancing the grid.

The distribution segment is experiencing notable transformations with initiatives like the PM SuryaGhar Yojana and the rollout of smart meters. While these programmes signify a leap toward modernisation, their implementation has been slower than anticipated. Sanjeev Kumar Dhal, CEO-APAC, remarked, “The smart meter initiative is not just a hardware upgrade but a socio-economic and technological transformation. Its effective execution requires coordinated efforts from utilities, service providers, and customers.”

An exemplary success story comes from northern Bihar, where a project deploying 2.6 million smart meters prioritised consumer engagement. Over 1.7 million prepaid meters are operational in rural areas, proving that customer awareness campaigns can drive adoption and ensure effective utilisation.

However, resistance persists due to the need for clarification. Shiv Prakash Shukla, Director of Projects at Polaris, noted, “Educating linemen, junior engineers, and even consumers is crucial. People often adopt a diplomatic approach in urban areas or rely on ‘jugaad.’ Without addressing these mindsets, we can’t achieve ground-level implementation.”

The renewable energy landscape of India, particularly solar, has seen phenomenal growth. The initial resistance to solar adoption is giving way to widespread acceptance. Vipul K. Joisher, Director of Aditya Green Energy, shared, “Earlier, there was a denial mode toward solar energy. But now, DISCOMs are showing intent by making infrastructure changes and accepting renewables as the future.”

Storage solutions are poised to be the next frontier in renewable energy. Joisher emphasised the potential, “The last decade was about solar. The next big play will be energy storage. As costs decline, storage will enable consumers to store energy at ₹3–4 per unit, making it an economically viable option for residential, commercial, and industrial users.”

This convergence of solar and storage technologies will drive grid reliability, offering a pathway to energy security and sustainability.

The role of PPP in power sector development

Public-Private Partnerships (PPPs) play a pivotal role in power sector development by combining the strengths of public oversight with private sector efficiency. In the energy domain, PPPs enable the mobilisation of private capital, technical expertise, and innovative solutions to address infrastructure deficits and improve energy access. Governments benefit from reduced fiscal pressure, while private players gain opportunities for sustainable investments.

PPPs are instrumental in advancing renewable energy projects, modernising transmission and distribution systems, and enhancing energy efficiency. They foster risk-sharing, ensuring better project execution and timely delivery. Moreover, PPP frameworks often promote policy-driven goals like rural electrification and renewable integration, aligning with national energy strategies.

Notable success stories include solar parks, hydropower projects, and smart grid initiatives where PPPs have accelerated progress. By balancing profit motives with public welfare, PPPs can catalyse the transition to a resilient, sustainable, and inclusive power sector, essential for economic growth and energy security.

The Public-Private Partnership (PPP) model is increasingly viewed as a viable solution for addressing funding gaps and expediting infrastructure development. Vipul K. Joisher, representing Aditya Green Energy, asserted, “The government alone cannot shoulder the financial burden. PPP is the only solution. Private investment and changing roles and scopes will drive future projects.”

SR Pandey from GERC underscored the importance of balancing cost-benefit dynamics for all stakeholders. “Success hinges on ensuring guaranteed returns and benefits for participants, especially through competitive bidding mechanisms,” he said.

Educating stakeholders, from consumers to policymakers, remains central to achieving the sector’s goals. Shiv Prakash Shukla from Polaris stressed the need for comprehensive awareness campaigns; he said, “Connecting with people at all levels, village heads, linemen, JE officers, and district panchayat members is critical. Without their support, implementing new technologies becomes an uphill battle.”

Misinformation and fear of change are among the primary barriers. Concerns about privatisation and smart meters replacing existing roles fuel resistance. Addressing these fears through transparent communication and trust-building is imperative for successfully implementing the projects.

Innovations and prospects

The Indian power sector is at the cusp of transformative innovations. Automation, AI, and IoT are reshaping energy consumption and management. Polaris envisions a future where automated systems reduce human effort and enhance efficiency. “When technology reduces manual intervention, people experience tangible benefits. For example, sensor-based lighting systems that activate only when needed reduce energy waste,” Shiv Prakash Shukla noted.

Moreover, pioneers like Secure have been at the forefront of metering innovations. Having introduced electronic metering in India, Secure has expanded globally with smart meter installations in the UK and Australia. Their focus on energy efficiency solutions empowers industries with actionable insights for optimised energy use.

Secure’s vision for the future emphasises quality and innovation. “The market is vast, but quality is paramount. Elevating standards is not just a responsibility but a service to the nation. It fosters trust and drives progress,” Sanjeev Dhal mentioned.

Balancing challenges with opportunities

The power grid faces challenges like ageing infrastructure, transmission bottlenecks, and balancing supply-demand dynamics. However, these challenges offer immense opportunities. Government initiatives like Green Energy Corridors and investments in digitalisation and automation are pivotal. Strengthening transmission and distribution (T&D) infrastructure, fostering private sector participation, and building workforce capacity will further unlock the potential to achieve a sustainable, resilient, and future-ready power grid.

The rapid growth of renewables presents challenges, particularly in ensuring grid stability. As SR Pandey pointed out, ancillary markets and hybrid solutions involving conventional power are necessary to balance power. Distributed generation adds another layer of complexity, requiring upgrades to transmission networks and addressing voltage and frequency fluctuations.

Despite these challenges, the opportunities are immense. The power sector is the backbone of the economy, and its growth will shape the nation’s journey toward becoming the third-largest economy in the world. To achieve sustainable development, stakeholders must prioritise high-quality materials, adherence to standards, and a commitment to excellence.

The discussion with the industrialists at the DUM 24 proved to be enlightening. We learned more about the real insights of the nation’s power sector infrastructure. Also, now we know that realising the full potential of the Indian power industry requires addressing capacity constraints, fostering public-private collaborations, and investing in awareness and education. The future is bright, with energy storage, smart technologies, and PPP models paving the way for a sustainable and efficient energy ecosystem. And EPR is leaving here with the remark that India’s power sector will continue to thrive as a cornerstone of economic progress.