Looking at the power sector reforms across the states, Karnataka is clearly one that has done better than most others but with an installed generation capacity of less than 8000 MW, the state is lagging, even when compared to some of its immediate neighbours. Based on the fast growing demand forecast, capacity addition is an imperative and we will need to do this on a fast track and it is heartening to know that the state government has planned to enhance the total installed capacity to12,800 MW by 2012.

One of the key focus areas for Karnataka is that of fuel mix. The state is highly dependant on hydel power making it extremely vulnerable to erratic rainfall patterns. Therefore it is imperative to look at alternate fuel sources like thermal power and even nuclear based plants.

At the same time, the state should also welcome private sector participation in the form of captive power plants or IPPs (Independent Power Producers), where industrialists may want to generate power for their own plants and wheel the extra power onto the grid, to serve the needs of towns and cities around them. Also with the cost of power production coming down, we should consider the financial viability of evacuating power from sources across the state borders, based on long term tie-ups.

Transmission and distribution (T&D) holds the key to the profitability of the network. The average T&D losses incurred by the state are around 23 per cent, against a global average of less than 10 per cent. This clearly suggests that a great deal still remains to be done in terms of improving efficiencies and stemming techno-commercial losses. In order to do so, it is important that we focus on improving grid efficiency and reliability by replenishing T&D equipment long past its best before date !

We also need to look at greater automation and with the help of modern IT based technologies, aim for integration across the power value chain, from generation all the way to the billing and collection process. We also need to take a leaf from global best practices in reducing human intervention and bringing down operating costs by leveraging technologies such as SCADA (Supervisory Control And Data Acquisition). KPTCL (Karnataka Power Transmission Corporation Limited ) is presently implementing an integrated Network Manager SCADA/ EMS/DMS (Supervisory Control and Data Acquisition, Energy Management System, Distribution Management System) solution with the help of ABB.

The system will monitor and control 830 main transmission and distribution substations spread across the state of Karnataka, including the city of Bangalore. This initiative will significantly help strengthen the transmission and distribution network for KPTCL and its constituent distribution utilities.

It is a well established fact that focus on billing and collections helps bring financial viability. Bangalore as a city has already demonstrated that T&D can be managed profitably by streamlining the network and improving collections. Similar models should be adopted by other utilities across the state. All loads should be metered and larger loads should be closely monitored to prevent “leakage” of power. While focusing on billing and collections, punitive measures should also be deployed for any exploitation or pilferage.

When incurring capital expenditure and installing new or replacement equipment, it must be ensured that we do not compromise quality by installing sub-standard equipment which needs high maintenance and has a short lifespan, needing frequent replacement. We must install quality equipment, be it high-end technologies, compact substations, Ring Main Units (RMUs), distribution transformers or even cabling. This will also help improve power availability and enhance grid reliability. We should also consider outsourcing maintenance and asset management services to domain experts and professional companies, thereby keeping the power utilities' overheads to a minimum and lowering fixed costs.

Another proactive step that can be taken is in the area of demand management. We should adopt suitable technologies based on load patterns. For instance, when it comes to interiors and agricultural needs we have to serve wider areas with peaking loads and smaller base demands. Technology solutions like RLMS (Rural Load Management Systems), while addressing farmers’ irrigation needs should also serve to encourage agro-based industries.

The state utilities also need to examine carefully the different types of consumption loads and tariff structures and ensure availability of quality power supply to focused customer groups so that they do not lose industrial and commercial consumers, who offer bulk loads at a single point with lucrative tariffs.
It is evident that the state of Karnataka has taken many positive steps, but a lot still needs to be accomplished if we are to realise the goal of “Power to all by 2012”.

(The writer is Country Manager and Managing Director, ABB India.)