Northern States Convene in Chandigarh to Plan Future-Ready Power Sector

In a significant move to strengthen India’s power sector and align with the national goal of Viksit Bharat by 2047, the Regional Conference for Northern Region States and Union Territories was held in Chandigarh under the chairmanship of Shri Manohar Lal, Hon’ble Union Minister of Power and Housing & Urban Affairs.

The high-level meeting brought together ministers and officials from Haryana, Punjab, Uttarakhand, Uttar Pradesh, Delhi, Rajasthan, and Jammu & Kashmir, alongside CMDs of power utilities, senior officers from the Ministry of Power, and State Secretaries (Power/Energy). The aim was to evaluate ongoing power reforms, review regional challenges, and map out a collaborative strategy for addressing rising electricity demands while ensuring sustainability, financial health, and infrastructure readiness.

Key Attendees and Stakeholder Representation

Among the dignitaries present were:

• Shri Anil Vij (Energy Minister, Haryana)

• Shri Harbhajan Singh (Power Minister, Punjab)

• Shri Subodh Uniyal (Forest Minister, Uttarakhand)

• Shri A. K. Sharma (Energy Minister, Uttar Pradesh)

• Shri Ashish Sood (Power Minister, Delhi)

• Shri Javed Ahmad Rana (Minister, Jal Shakti & Tribal Affairs, Jammu & Kashmir)

• Shri Heeralal Nagar (Energy Minister of State, Rajasthan)

‘One Nation, One Grid’ Realized, But Future Challenges Loom

In his keynote address, Shri Manohar Lal applauded the nation’s achievement in realizing the ‘One Nation, One Grid’ vision. India has not only achieved zero peak demand shortage but also successfully met a record 250 GW peak power demand in May 2024. However, with projections estimating a steep rise in demand—446 GW by FY2034-35—the Minister urged proactive planning, resource adequacy, and a balanced energy mix, including nuclear power and renewable integration.

“A future-ready, modern and financially viable power sector is vital to India’s journey towards Viksit Bharat by 2047,” he said.

Transmission Infrastructure: Funding, Coordination, and Execution

To strengthen intra-state transmission capabilities, States were advised to resolve Right of Way (RoW) issues and leverage funding from multilateral institutions. Shri Manohar Lal highlighted the ₹1.5 lakh crore allocation in the Union Budget 2025–26 under 50-year interest-free loans as a unique opportunity for States to upgrade their transmission networks.

The Centre encouraged the adoption of Tariff-Based Competitive Bidding (TBCB) and Regulated Tariff Mechanism (RTM) for project execution, alongside exploring asset monetization.

Renewables & Energy Storage: Pillars of India’s Energy Transition

The Minister strongly advocated for an accelerated transition to renewables, supported by storage solutions for grid reliability. Noting the rise in renewable share from 32% in 2014 to 49% in April 2025, he emphasized that States must:

• Comply with Renewable Purchase Obligation (RPO) guidelines

• Form dedicated teams for renewable planning

• Encourage solar, wind, and hybrid projects with battery storage

He added that grid resilience measures, such as power islanding schemes, are critical to protecting national infrastructure from cyber threats and natural disasters.

Reforming the Distribution Sector: Addressing the Weakest Link

Recognizing that distribution remains the most fragile part of the power value chain, Shri Manohar Lal pointed to serious challenges:

• AT&C (Aggregate Technical & Commercial) losses

• Delayed subsidy releases and Government department dues

• Poor tariff structures and billing inefficiencies

He called on States to work with Electricity Regulatory Commissions (ERCs) to ensure cost-reflective tariffs and timely issuance of true-up orders to restore financial health.

“Continued losses burden consumers and degrade service delivery,” he warned.

Smart Metering: From Accountability to Consumer Empowerment

The Minister highlighted the transformative potential of prepaid smart meters, especially in Government offices, colonies, and high-load commercial users.

Key timelines announced:

• Saturation of smart meters in Government establishments by August 2025

• Completion of installations for commercial/industrial consumers by November 2025

Smart meters, he said, will not only improve billing efficiency but also enable data-driven analytics using AI/ML tools, helping consumers manage their consumption and ensuring timely release of Government dues.

Cybersecurity and Grid Protection: New Frontiers of Power Security

With increasing digital integration, the need for robust cybersecurity protocols has become urgent. The Ministry directed States to:

• Implement cyber hygiene frameworks for utilities

• Deploy islanding schemes to protect strategic grid segments

• Regularly audit critical IT infrastructure and conduct simulation exercises

The Power Secretary reiterated that resilience planning must be embedded in generation, transmission, and distribution strategies.

Centre’s Assurances and Way Forward

Concluding the session, Shri Manohar Lal assured States of full support from the Central Government in every aspect of power sector reform—from funding and policy guidance to technical capacity building. He emphasized a unified goal:

“Power for All, at All Times—this is our shared commitment. Together, we must energize India’s growth story.”

The conference concluded with consensus on forming inter-agency task forces, establishing renewable roadmaps, and improving coordination across State and Central entities to ensure energy security, affordability, and sustainability.