What are the systematic issues faced by the Power Sector in India i Power Generation Issues ii ...........

Economic and social issues(Phase-I/II) Sustainable Development and Envirnmental Issues

Recently, various states have been working to renegotiate the Power Purchase Agreements (PPAs) with the renewable energy companies. A Power Purchase Agreement (PPA) is a contract between two parties, one who generates electricity and one who is looking to purchase electricity.These define all of the commercial terms for the sale of electricity between the two parties, including when the project will begin commercial operation, schedule for delivery of electricity, penalties for under delivery, payment terms, and termination.In India, the state governments have entered into such agreements with private renewable energy companies to establish the power plant and sell the power back to the government.Many states including Andhra Pradesh & Tamil Nadu have sought to renegotiate power purchase agreements (PPAs) which were signed a couple of years ago with producers of wind & solar power.

What are the systematic issues faced by the Power Sector in India?

i Power Generation Issues

ii Transmission and Distribution Issues

iii Financial Issues

Select the correct answer using the code given below

i and ii only

i and iii only

ii and iii only

all of the above

none of these

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Explanation:

Systemic Issues Faced by Power Sector in India

Power Generation Issues

-Fossil fuel derived energy generation: Thermal power based on fossil fuel such as coal, natural gas and diesel accounts for 80% of the country's generation.
Moreover, the majority of plants in India are old and inefficient.
-Higher Cost of Fuel: Coal extraction from state-run Coal India (a near-monopoly), has stagnated due to delayed environmental clearances, land acquisition troubles and little investment in advanced technologies.
Many power companies have to look for coal mines overseas and source more expensive imports (despite having abundant coal reserves).

Transmission and Distribution Issues

Tariffs haven't risen enough for years to cover costs for subsidies in the agriculture sector. Also, high aggregate technical and commercial (AT&C) losses, has forced electricity distributors (discoms) into losses as high as 40% in some states, while the country-wide average is 27%.