CERC Given a New Office at World Trade Centre

  • The Central Electricity Regulatory Commission (CERC) has moved to a new office at the World Trade Centre, Nauroji Nagar, Safdarjung Enclave, and New Delhi. 
  • The Union Minister for Power and New & Renewable Energy, Shri R. K. Singh, inaugurated the new office space. 
  • The CERC and State Electricity Regulatory Commissions (SERCs) determine the viability of the power system. 
  • Regulatory commissions’ main challenge is balancing system viability and public interest protection. 
  • The power sector is expanding rapidly due to a projected double-digit demand. 
  • The expansion requires investment in generation, transmission, and distribution systems. 
  • Tariffs need to be decided quickly to prevent strain on the system. 
  • Companies involved in generating, distributing, and transmitting electricity need a fair margin to maintain the system. 
  • The government will continue to finance the expansion of older systems, which require further investment. 
  • The government will continue to fund the expansion, despite the financial instability of most state governments.

 

Power Sector Investment and Financial Viability 

 

  • The Minister emphasizes the need for financial viability in the power sector to attract private investment. 
  • Central power sector PSUs like NTPC and POWERGRID are on a solid footing, and the private sector has invested. 
  • The public sector alone cannot fund the significant investment required by the private sector. Changing Nature of Electricity 
  • The nature of electricity is evolving, leading to new market players, systems, and products. 
  • The increasing renewable capacity is posing challenges such as stability and storage. Updating Electricity Sector Regulations and Rules 
  • The Minister urges regulators to keep up-to-date with the changing landscape of the power sector. 
  • The landscape is changing, and existing systems need to be reassessed to meet modern requirements. Financing Energy Storage and Development 
  • The Minister stresses the need to ensure that power costs are fully covered and storage is financed.
Posted in Current Affairs.