Context:
- The Centre has set an ambitious target of installing 250 million smart meters nationwide by 2025. Currently, 7 million smart-meters are installed across the country.
A Closer Look at the RDSS Scheme – Latest Update
- After experiencing sluggish growth, the smart meter network is set to grow significantly this year, with around 150 million meters in various stages of the bidding process.
- The Revamped Distribution Sector Scheme (RDSS) allocates Rs 10,000 crore for smart prepaid metering infrastructure across the country.
- Government estimates indicate the deployment of 250 million smart-meters for domestic consumers under this.
What is a Smart Meter?
- A smart meter measures and records energy consumption data. It differs from the regular meter as it is a digital device communicating remotely with the utility.
- It will send consumption information to the concerned utility every 15 minutes to an hour and eliminate the need for a meter reader.
What is net metering?
- Net metering means that consumers can act as prosumers by producing power through Solar rooftops, pushing power to the grid, and making some financial gains in the process while saving energy bills along with adding to carbon savings.
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What is the RDSS Scheme?
- It aims to improve the operational efficiencies and financial sustainability of state-owned distribution companies (discoms)/power departments by providing conditional financial assistance.
- RDSS envisions smart metering in operational expenditure mode and provides financial support to discoms opting for prepaid smart-metering.
- The scheme requires the projects to be executed on Totex mode which means execution through a combination of Capex and Opex mode.
- Capital expenditure is a company’s major, long-term expense while operating expenses is its day-to-day expense.
- Nodal Agencies: Rural Electrification Corporation and Power Finance Corporation
- Implementation cost: The scheme’s cost is borne by the Centre and state governments in a 3:2 ratio.
Objectives of the RDSS Scheme
- Reduction of Aggregate Technical and commercial (AT&C) losses to pan-India levels of 12-15% by 2024-25.
- Reduction of Average Cost of Supply (ACS)-Average Revenue Realised (ARR) gap to zero by 2024-25.
- Improve the quality, reliability and affordability of power supply to consumers through a financially sustainable and operationally efficient distribution sector.
Components of the RDSS Scheme:
- Part A: Financial support for Prepaid Smart Metering & System Metering and up-gradation of the Distribution Infrastructure.
- Part B: Training & Capacity Building and other Enabling & Supporting
Eligibility Criteria for RDSS:
- All State-owned Distribution companies and State /UT Power Departments (referred to as DISCOMS collectively) excluding private Sector power companies will be eligible for financial assistance under the revamped scheme.
- The scheme would be optional to DISCOMs and will be implemented in urban and rural areas of all States/UTs except private DISCOMS.
News Source: Business Standard
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November 2, 2023