Government Strengthens Global Partnerships to Boost India’s Power Sector

Union Minister of State for New and Renewable Energy Shri Shripad Yesso Naik submitted a written report in Rajya Sabha stating that the Ministry of Power is actively engaging with foreign governments and industry representatives to strengthen international partnerships in power generation, transmission and distribution.

The Ministry is also participating in several multilateral platforms including the G20, BRICS, Clean Energy Ministerial (CEM) and the International Solar Alliance (ISA). In addition, regional cooperation in the power sector is being advanced through forums such as SCO, SASEC, SAARC, BIMSTEC, ASEAN and the One Sun One World One Grid (OSOWOG) initiative. Public Sector Undertakings (PSUs) under the Ministry are also entering into commercial agreements with foreign entities based on their business needs, with details of executed MoUs and agreements provided in an annexure.

Alongside international engagement, the government has undertaken wide-ranging reforms to modernise the power sector, improve service delivery, strengthen governance and enhance digitalisation, green energy integration and innovation including:

• Electricity (Late Payment Surcharge and Related Matters) Rules have been notified to ensure timely payment by the utilities, and a structured framework for liquidation of past dues.
• Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules provide Green Open Access for consumers with load above 100 kW, with time-bound approvals, and uniform and reasonable charges.
• Frameworks for Renewable Consumption Obligations, waiver of Inter-state transmission charges, energy storage deployment has been notified to facilitate renewable integration.
• Framed Rules and Guidelines for Resource Adequacy Framework to promote energy security through a time-bound and structured approach for future demand assessment and advance capacity procurement.
• Monthly automatic pass-through of Fuel & Power Purchase Adjustment Surcharge (FPPAS) is enabled for timely recovery of power purchase costs.
• Electricity (Rights of Consumers) Rules, 2020 notified to ensure 24×7 supply, reliable services, and consumer-centric protection measures.
• STELLAR Model (State-of-the-art Totally Indigenously Developed Resource Adequacy Model) has been launched by the Central Electricity Authority (CEA) in April 2025, for enabling states to undertake integrated planning of generation, transmission, storage, and demand response, thereby improving long-term resource adequacy and grid reliability.
• Under Revamped Distribution Sector Scheme (RDSS) infrastructure works including smart metering works worth Rs 2,83,525 Cr with Gross Budgetary Support (GBS) of Rs. 1,21,637 Cr from Government of India have been sanctioned.
• Installation of Smart Meters is promoted through the RDSS scheme, which enables automated energy accounting, real-time monitoring, improved billing accuracy, and reduced commercial losses.
• Use and development of Artificial Intelligence (AI) and Machine Learning (ML) based solutions is encouraged and supported under the scheme of RDSS for demand forecasting, predictive maintenance, asset management, and consumer analytics etc. through initiatives like Powerthon.
• Energy Storage Systems (ESS) have been defined under Rule 18 of Electricity (Amendment) Rules 2022 notified in December 2022. ESS can now be owned, developed, leased or operated by consumers along with other power sector entities.
•  Inter-State Transmission (ISTS) charges for co-located BESS projects commissioned by June 2028 have been waived for 12 years. For non-co-located BESS, 100% waiver for projects which are commissioned by June 2025, and thereafter graded reduction in waiver at the rate of 25% annually.
• Viability Gap funding (VGF) scheme for the development of ~43.2 GWh of BESS capacity in the country has been launched.
• Under Green Energy Corridor scheme, 12 number of Renewable Energy Management Centre (REMCs) and one EMC at South Andaman were established in different parts of the country mainly to forecast, schedule and monitor the wind and solar Variable Renewable Energy (VRE) resources. These REMCs are co-located with the existing RLDCs/SLDCs.
• Guidelines have been issued for installation of Automatic Weather Station (AWS) in RE Plants for using the recorded weather data for data assimilation and validation for further improving the weather forecast.
• Central Financial Assistance (CFA) is provided to the States for setting up Transmission infrastructure for RE integration within their State under the Green Energy Corridor Scheme.
•  Flexibilization of Thermal generation is mandated to address the variability of RE generation.
• CEA (Technical Standards for Connectivity to the Grid) Regulations lay down the minimum technical requirements for the RE generating plants to ensure the safe, secure and reliable operation of the grid.
•  Indian Electricity Grid Code mandates that RE plants participate in the primary and secondary frequency control in case of contingencies.

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