Smart Contracts are going to be vital
There is a huge opportunity for investment in renewable energy and transmission business in Gujarat, but regulators need to enforce contracts to safeguard investments in the sector, according to Anand Kumar, Chairman, Gujarat Electricity Regulatory Commission (GERC).
Addressing the webinar on ‘Ensuring Power Sector Viability & Reviving Investment Outlook’ organized by FICCI on 26 Mar 2021, Kumar pointed out that Gujarat has taken care of payment issues and always maintained a balanced position for utilities and investors.
But he also mentioned that one of the vital responsibilities of the Regulators is to intervene to enforce contracts to safeguard investments in the sector.
“Timely revision of tariffs is also very essential for ensuring the sound financial health of the Discoms and the Generators,” said the Chairman GERC.
There is a need to find a way to get the regulatory systems to act faster, added Vipul Tuli, Chairman, FICCI Power Committee and CEO, South Asia – Sembcorp Industries.
“The transition that we are going through in the Indian power sector is a significant transition in terms of moving towards renewables, growth and new environmental norms,” Tuli said.
Smart Contracts are going to be vital for the integration of REpower into the system, according to Gorityala Veera Mahendar, Member (Economic & Commercial), Central Electricity Authority (CEA).
“Minimizing of entry and exit barriers for investments will be important for maintaining private sector interest in the sector,” he said.
Anjuli Chandra, Member, Punjab State Electricity Regulatory Commission, emphasized the need for cost-reflective tariffs and called for reduction of cross-subsidy is one of the prime responsibilities of the Regulator.
She further mentioned that Regulatory Commissions should allow legitimate expenses for technological advancements, however, Regulatory Assets are not sustainable in the long term, only banks make profit from these assets.
Chandra added that power purchase cost can be optimised by taking advantage of markets.
The regulatory intervention has a major role in making the distribution sector viable, stressed Prabir Neogi, Mentor, FICCI Power Committee & Chief Adviser, Corporate Affairs, RP-Sanjiv Goenka Group.
The effectiveness of the reform measures depends on the adaptability of the Government policies and their proper implementation, he said. #investment #energy #projects #tenders /fiinews.com
