With the urgent imperative of adopting greener solutions, one thing becomes increasingly clear: climate action, economic growth, and energy systems are fundamentally interlinked. At the centre of this nexus is the power sector, determining how we align low-carbon development models with economic prosperity.
As energy systems evolve, so do the challenges they face. In India, estimates from the National Load Despatch Centre indicate that the peak power demand could exceed 273GW this year.
Our power infrastructure must now accommodate a growing share of renewables and decentralised sources while keeping pace with rising consumption borne out of economic growth. Strengthening the resilience of the power sector becomes essential for ensuring energy security and sustaining India’s development trajectory.
This transformation must begin with the most vital yet vulnerable link in the power chain—Distribution Companies (DISCOMs). As the prime interface between Energy Generation and end-users, DISCOMs are pivotal to ensuring a reliable power supply and advancing clean energy integration.
To build a truly resilient, future-ready grid, DISCOMs must undergo strategic reforms anchored in financial discipline, operational efficiency and digital innovation.
Distribution remains a weak link
DISCOMs continue to grapple with longstanding challenges such as inadequate revenue, accumulated debt, subsidy disbursal, non-cost-reflective tariffs, and Aggregate Technical and Commercial (AT&C) losses. While India’s energy demand continues to grow—a 46 per cent increase in the per-capita energy consumption between 2014 and 2024—AT&C losses also increased from 15.3 per cent to 16.3 per cent over the past year.
AT&C losses are emblematic of deeper infrastructural and operational inefficiencies—from outdated metering systems and billing gaps to aging distribution lines. These losses not only place an undue burden on the grid but also affect DISCOM profitability, disrupt reliable power supply, and lead to higher electricity tariffs for consumers. Without addressing these root-level inefficiencies, India’s clean energy transition risks being undermined at the very point of delivery.
Modernising distribution infrastructure is no longer optional—it is essential for addressing demand growth, minimising losses, and ensuring equitable, uninterrupted access to electricity. The focus must now shift from short-term fixes to long-term structural reforms that address systemic inefficiencies and prepare DISCOMs for future demands.
Reforming the grid: Technology as an enabler
Strengthening DISCOMs requires more than financial restructuring—it calls for innovation-driven reforms. These include re-looking at tariff structures, scaling smart metering, targeting loss-reduction initiatives, and investing in predictive maintenance. Emerging tools such as GIS mapping and machine learning are already redefining how utilities plan and manage demand by opening new avenues for capturing, digitising, and aggregating grid asset data.
Simultaneously, enhancing workforce capabilities through continuous training in data analysis and grid management is equally critical. This will enable faster, more informed responses to outages and peak-load events. These reforms must be supported by a robust regulatory ecosystem and strengthened through greater collaboration across sectors and stakeholders to ensure accountability and sustained progress.
Unlocking momentum with a collaborative approach
The Government of India’s Revamped Distribution Sector Scheme (RDSS), with a provision of ₹3 trillion, dedicated to improving DISCOM efficiency, reducing losses, and ensuring their long-term sustainability, is an exemplary initiative in this direction.
Another compelling example comes from Jaipur Vidyut Vitran Nigam Ltd (JVVNL) ’s collaboration with the Global Energy Alliance for People and Planet (GEAPP) to digitalise the Jaipur DISCOMs through network mapping and load flow analysis (LFA) tools as part of GEAPP’s broader Digitalization of Utilities for Energy Transition (DUET) programme. Currently focused on five substations, the goal is to extend these efforts to the entire state grid of Rajasthan, creating a first-of-a-kind’ digital twin’. This digital transformation—enabling real-time monitoring, automated control, and optimised grid operations—offers a replicable model for utilities across India and other emerging economies.
Along with this intervention, DISCOMs in Rajasthan have begun a new era of decentralised solar power generation by leveraging the PM KUSUM Scheme. Since the start of the scheme, over 648 decentralised solar plants have been set up across the State under components A & C of the programme. These decentralised solar plants have significantly altered the way DISCOMs approach power supply for agriculture by providing cheap, low-cost solar power to the farmers. This, in turn, has significantly helped to reduce distribution losses, mark a shift towards a reduction in average cost of supply and create an ecosystem where agriculture is powered through solar energy. 1210.71MW of solar energy has supported 76898 farmers for agriculture consumption.
Such interventions are necessary to accredit DISCOMs as active enablers in India’s energy transition. Beyond power delivery, they are uniquely positioned to drive last-mile transformation, engage consumers, manage demand, and incentivise behavioural change.
Reforming and revitalising DISCOMs, therefore, becomes more than a technical priority—it is a strategic imperative. With robust financial planning, empowered workforces, and scalable technology, India can reimagine DISCOMs as agile, customer-centric institutions at the heart of a resilient, inclusive power system.
The author, Arti Dogra, is the chairperson of the DISCOMs, Rajasthan, and Managing Director of Jaipur Vidyut Vitran Nigam Ltd (JVVNL)
The opinions expressed in this article are those of the author and do not purport to reflect the opinions or views of THE WEEK.
