Future of the Indian electricity distribution company (DISCOM)

Collaborators: Santosh Noubade (Research Assistant in the Ministry of New and Renewable Energy funded project, Facilitating the Target of 100GW by 2022, National Institute of Advanced Studies)

The electric utility or electricity distribution company (DISCOM) is going through a rapid evolution in India. Currently, a DISCOM buys powers, both short term and long term, and sells to various customers at different rates depending on cost of supply, subsidies etc. In India, bulk customers like commercial and industrial customers cross-subsidize agricultural and poorer residential customers. The addition of cheap renewables, open access to power purchase on electricity markets and distributed behind-the-meter generation disrupts this business model.

This study models the business of a DISCOM (in this case, the Bangalore Electricty Supply Company or BESCOM) using regulatory commission tariff order submissions, annual reports and other financial documents. We analyse the impact of increased renewables, open access and rooftop solar PV generation in the next few years. Using the insights gained from this study we will simulate the impact of renewables integration on all the discoms in India.

This project is a part of the research being conducted for the project Facilitating the target of 100 GW Solar by 2022, funded by the Ministry of New and Renewable Energy.