Ongoing reforms coupled with budgetary allocations will give rise to new technologies in the power distribution value chain, according to Sandeep Zanzaria, Chairman of DistribuELEC 2021, an upcoming event for power distribution stakeholders, being organized by apex industry body IEEMA.
Interacting with the media in a recent digital conference, Zanzaria observed that a major reform planned in the power distribution space is the separation of the “wire” and “supply” business. Accordingly, there will be a multiplicity of players on the retail supply side while the “wire” side (the physical distribution network) will be handled by the distribution utility.
Supply Side
Retail electricity suppliers would be inclined to imbibe superior technologies for the benefit of end consumers. For instance, there could be “time of day” metering whereby users will be charged different electricity tariffs during peak and off-peak hours. Suppliers would be keenly looking at the consumption patterns of consumers. “This is going to bring in a lot of analytics,” Zanzaria observed. With variable tariffs coming in, we could also see more meaningful interaction between the distribution and generation side of the power value chain, he felt. All this will create the need for advanced technologies, especially on the data analytics side.
DistribuELEC 2021 will be held virtually from February 16 to February 20, 2021. To visit event site, click here.
Wire Side
Once the “wire” and “supply” businesses are separated, utilities (wire business) will not have to deal with recoveries from customers as this would be taken care of by the suppliers. Utilities can then focus on upgrading their network. Utilities will keenly look at replacing their hardware (transformers, cables, etc) with a view to minimizing their losses. Reduction in losses would necessarily mean improved profitability, in the long run.
The Union Budget 2021, it may be recalled, has proposed an outlay of around Rs.3 trillion to make state government-owned power utilities technically and commercially efficient. A large portion of this would find its way in upgrade of ageing power distribution networks of cash-strapped state government-owned utilities.
In summary, Sandeep Zanzaria asserted that separation of “wire” and “supply” (also referred to as “carriage” and “content”) will usher in new technologies with respect to both software and hardware deployed in the power distribution value chain.
Leveraging DistribuELEC
Zanzaria also expressed confidence that events like DistribuELEC can help visitors, typically private and government power utilities that are potential buyers, come closer to new domestic and global technologies. It also works in favour of exhibitors, which are typically equipment manufacturers and equipment suppliers. Interaction with potential buyers, and incorporation of their feedback, can go a long way in product development.
(Featured photograph (source: Siemens) has been used for illustration only)
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