The government plans to line in artificial intelligence through IT companies and start-ups to resolve high distribution losses.

India's Aggregate Technical and Commercial (AT&C) losses are one of the highest in the world, worse than even Bangladesh, posing a major challenge to the financial viability of the entire power sector. The technology service providers will use artificial intelligence, machine learning, blockchain and Internet of Things in the power distribution sector to analyze data to be available through implementation of metering of consumers, transformers and feeders in distribution areas.

Reports suggest that with the use of advanced technologies, discoms will be well-equipped to make decisions across loss reduction, demand forecasting, differential tariff in day and renewable energy integration. Increased technology interventions will aid in facilitating operational and financial sustainability of the distribution companies.

About 14 discoms of nine states, including Tamil Nadu and Madhya Pradesh, have showed interest in AI solutions.

For each problem area identified in discoms, four to five technology service providers, two to three established players and one or two startups will be shortlisted based on their proposals. Startup TSPs would be provided with a grant of up to Rs. 40 lakh, while no financial assistance will be provided to non-startups.

Alok Kumar, Power Secretary says, “huge data will be thrown up when we implement smart meters in a time-bound manner. We are conscious that this data should be analyzed intelligently in a way that it leads to good actionable points for the utility managers and for the policy makers.”

“India’s average distribution losses are 20 percent, but for many utilities it is in the range of 40-45 percent, while a few utilities lose more than 50 percent. As per data available, in 2018-19 distribution losses in neighboring Bangladesh, which started power reforms much later, were at 11.96 percent. Leave apart the other developed countries where the T&D losses are 4-6 percent. So, India has a big lesson to learn and a big challenge to beat,” Kumar adds.