India’s AT&C losses are one of the highest in the world, worse than even Bangladesh, posing a major challenge to the financial viability of the entire power sector. The technology service providers will use artificial intelligence, machine learning, blockchain and Internet of Things in the power distribution sector to analyse data to be available via implementation of metering of consumers, transformers and feeders in distribution areas.
With the use of advanced technologies, discoms will be well-equipped to make decisions across loss reduction, demand forecasting, differential tariff in a day and renewable energy integration. “Increased technology interventions will aid in facilitating operational and financial sustainability of the distribution companies,” a senior government official said.
About 14 discoms of nine states, including Tamil Nadu and Madhya Pradesh, have evinced interest in AI solutions.
For each problem area in the identified discoms, 4-5 technology service providers, 2-3 established players and 1- 2 startups will be shortlisted based on their proposals. Startup TSPs would be provided with a grant of up to Rs 40 lakh, while no financial assistance will be provided to non-startups.
REC Ltd,, the designated agency for the programme, has signed a MoU with SINE under IIT Bombay as incubator-cum-technology partner. SINE Mumbai is soon expected to announce the challenge for identifying technology service providers.
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The plan is part of the Rs 3.03 lakh crore reform-based and result-linked scheme, and the power ministry has approved a corpus of Rs 4 crore for the first year.
“Huge data will be thrown up when we implement smart meters in a time-bound manner. We are conscious that this data should be analysed intelligently in a way that it leads to good actionable points for the utility managers and for the policy makers,” Power Secretary Alok Kumar said. He said once the AI models mature, they will be replicated across the country.
Kumar said that India’s average distribution losses are 20%, but for many utilities it is in the range of 40-45%, while a few utilities lose more than 50%. As per data available, in 2018-19 distribution losses in neighbouring Bangladesh, which started power reforms much later, were at 11.96%. “Leave apart the other developed countries where the T&D losses are 4-6%. So, India has a big lesson to learn and a big challenge to beat,” he said.
