PA Consulting Group is leading an innovative joint initiative sponsored by the US Agency for International Development (USAID) and India’s Ministry of Power to provide technical advice and project management support to four of India’s most progressive electricity distribution companies (discoms) in the states of Delhi, Karnataka, Gujarat and Maharashtra in creating ‘centres of excellence’. The overarching goal is to help accelerate the pace of reforms in India’s power sector by demonstrating breakthroughs in business process, practices and technology.
PA defined a model electric distribution company then worked with the discoms to identify best practices, develop capital investment plans and implement a KPI measurement system to monitor results. The project is still underway and PA is supporting the discoms’ implementation efforts.
The companies will fund the $50 million in capital investment required. The target is to reduce electricity losses by 20 to 25 percentage points with a resultant reduction in wholesale power purchases valued at $17 million per year, not including the incremental value of saved electricity that can be resold at a profit. Against that target, the pilot sites have already reduced loss levels by 10 percentage points and achieved annual savings of 300 million MWH valued at $7.5 million per year.
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