{"id":27343,"date":"2018-10-23T13:21:25","date_gmt":"2018-10-23T07:51:25","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=27343"},"modified":"2018-10-23T13:21:25","modified_gmt":"2018-10-23T07:51:25","slug":"powering-up-the-transmission-sector","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/powering-up-the-transmission-sector\/","title":{"rendered":"Powering up the transmission sector"},"content":{"rendered":"<p><a href=\"https:\/\/www.thehindubusinessline.com\/opinion\/powering-up-the-transmission-sector\/article24997671.ece\"><strong>Powering up the transmission sector<\/strong><\/a><\/p>\n<p><strong>Article<\/strong>:<\/p>\n<ol>\n<li>Writer has talked about rising cost of power transmission by giving preferential treatment to incumbent public entity.<\/li>\n<\/ol>\n<p><strong>Important Analysis:<\/strong><\/p>\n<ol start=\"2\">\n<li>The Central Electricity Regulatory Commission (CERC), in its recent Tariff Approach Paper, has mentioned that the cost of inter-State transmission has increased by 69 per cent in the last seven years.<\/li>\n<li><strong><u>Why the cost of transmission has increased:<\/u><\/strong><\/li>\n<\/ol>\n<ul>\n<li>RBI has cited, preferential treatment to public entity is the main cause.<\/li>\n<li>Government policies to favor public sector undertakings and dissuade competition and investments.<\/li>\n<li>Due to a significant share of power transmission projects being executed under <strong>Regulated-Tariff<\/strong> <strong>mechanism<\/strong> instead of <strong>Competitive Bidding<\/strong>.<\/li>\n<\/ul>\n<ol start=\"4\">\n<li><strong><u>About Competitive Bidding: <\/u><\/strong><\/li>\n<\/ol>\n<ul>\n<li>Competitive bidding was opened in Transmission sector in 2010.<\/li>\n<li>It allowed all companies (Public, Private, National, International etc.) to compete with each other and offer lowest possible transmission tariffs.<\/li>\n<li>It has resulted in a 30-40 percent reduction in transmission tariffs and about 30 percent reduction in construction schedules.<\/li>\n<\/ul>\n<ol start=\"5\">\n<li><strong><u>Why Regulated Tariffs mechanism is bad<\/u><\/strong>:<\/li>\n<\/ol>\n<ul>\n<li>In this mechanism the developer has little incentive to optimize cost and reduce tariffs.<\/li>\n<li>Higher approved costs of bidding, leads to high tariffs.<\/li>\n<\/ul>\n<ol start=\"6\">\n<li><strong><u>Concern with Power transmission sector:<\/u><\/strong><\/li>\n<\/ol>\n<ul>\n<li>Recently Empowered Committee (now renamed National Committee on Transmission) recommended only one out of a total of 19 projects through the competitive bidding route.<\/li>\n<li>Power transmission sector is mostly controlled by Central Government and leaves very less scope for state.<\/li>\n<\/ul>\n<ol start=\"7\">\n<li><strong><u>Impact of higher cost of transmission:<\/u><\/strong><\/li>\n<\/ol>\n<ul>\n<li>Due to increase in power transmission expense, electricity tariffs will increase and burden will have to be borne by public<\/li>\n<li>It may negate all the good work done in reducing the price of wind and solar power.<\/li>\n<li>It will adversely impact plans of achieving global leadership in clean energy and affordable power for all.<\/li>\n<\/ul>\n<ol start=\"8\">\n<li><strong><u>Best Practices:<\/u><\/strong><\/li>\n<\/ol>\n<ul>\n<li>Brazil has reaped the fruits of innovation, cost reduction, and FDI by opening its key sectors like transmission to global competition by putting complete stop to regulated tariff mechanism.<\/li>\n<\/ul>\n<ol start=\"9\">\n<li>A robust cost-effective transmission network is need of the hour to achieve ambitious vision of 225 GW renewable energy and achieving 24&#215;7 power for all.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Powering up the transmission sector Article: Writer has talked about rising cost of power transmission by giving preferential treatment to incumbent public entity. Important Analysis: The Central Electricity Regulatory Commission (CERC), in its recent Tariff Approach Paper, has mentioned that the cost of inter-State transmission has increased by 69 per cent in the last seven&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/powering-up-the-transmission-sector\/\">Continue reading <span class=\"screen-reader-text\">Powering up the transmission sector<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-27343","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704846549},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/27343","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=27343"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/27343\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=27343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=27343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=27343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}