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India eyes lower power bills with expanded AI use in electricity distribution: Power Ministry

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India eyes lower power bills with expanded AI use in electricity distribution Power Ministry
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New Delhi : India is preparing to significantly reduce consumer electricity bills and improve energy efficiency by expanding the use of artificial intelligence across the country’s power distribution networks, said Shashank Misra, Joint Secretary in the Ministry of Power.

Speaking on the sidelines of the National Conference on the Use of AI/ML in the Power Distribution Sector in New Delhi, Misra said the government is accelerating the deployment of AI-driven tools to help distribution companies (discoms) identify theft-prone zones, detect irregular consumption, and respond to outages more quickly.

“The aim is to reduce consumer bills and better utilise energy,” he noted, pointing to the role of AI in monitoring daily usage and identifying issues such as earth leakages inside households.

Misra explained that advanced analytics will allow discoms to spot abnormal consumption trends, prioritise field inspections, and curb technical and commercial losses—key factors that contribute to high costs for both utilities and consumers. He added that the ministry is also exploring the integration of large language models, including GPT-based systems, to enhance decision-making, automate internal processes, and strengthen real-time monitoring in the distribution ecosystem.

“These technologies will allow us to act quicker and improve overall efficiency,” he said.

At the conference, energy experts emphasized that India is well-positioned to leverage its surplus generation capacity, especially as the rapid growth of data centres is driving unprecedented energy demand. They noted that India could emerge as a global leader by treating electricity as a tradable commodity and showcasing its ability to meet rising domestic and international energy requirements.

The push for AI adoption comes as the government continues reforms under the Electricity (Amendment) Bill, 2025, released in draft form this October. The Bill aims to rationalise electricity costs, reduce hidden cross-subsidies, and make Indian industry and logistics more competitive. It proposes cost-reflective tariffs to improve the sector’s financial health while safeguarding subsidised rates for farmers and low-income households.

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The reforms seek to build a future-ready electricity sector that delivers reliable, affordable, and high-quality power to all consumers—from households and farmers to shops and industries. The Bill also shifts away from the traditional monopoly-based supply model toward a performance-driven system, encouraging fair competition between public and private utilities. It further stresses transparency, accountability, and optimal use of existing networks to ensure that consumers receive better value for every rupee spent.

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