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Viability of power distribution in India – Challenges and Way Forward

Das, SD and Srikanth, R (2020) Viability of power distribution in India – Challenges and Way Forward. In: Energy Policy, 147 .

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Official URL: https://doi.org/10.1016/j.enpol.2020.111882

Abstract

Energy is a key component for economic growth as well as for human development. India is the third-ranking electricity generator in the world but ranks 106th in terms of per capita consumption. Specifically, the distribution of power is the most important link in the value chain of the power sector since it is the cash register for the entire sector. In India, electricity is a concurrent subject shared between the Central and State Governments. While the generation of power has been deregulated since 2003, the supply of power to the consumers is generally carried out by Government-owned power Distribution Companies (DISCOMs). In this paper, the authors analyze the financial distress of DISCOMs in India, and explain how the supply-demand mismatch due to over-ambitious demand projections, the fixed and energy charges of thermal power plants, and the excess procurement of “must-run” renewable sources together contribute to the high cost of power procurement that drives the financial stress faced by DISCOMs. The authors support their assertion with a study of nine DISCOMs supplying electricity to 155 million people in three States and propose policy recommendations for a turnaround of such DISCOMs which can be rolled out with suitable modifications across India. © 2020 Elsevier Ltd

Item Type: Journal Article
Publication: Energy Policy
Publisher: Elsevier Ltd
Additional Information: The copyright for this article belongs to The Authors.
Keywords: Thermoelectric power plants, Electricity generators; Financial distress; Human development; Percapita consumption; Policy recommendations; Power distribution company; Power distributions; Thermal power plants, Economics, demand analysis; distribution system; electricity supply; energy policy; power plant; reform process; Sustainable Development Goal; thermal power, India
Department/Centre: Division of Interdisciplinary Sciences > Interdisciplinary Centre for Energy Research
Date Deposited: 10 Jan 2023 05:47
Last Modified: 10 Jan 2023 05:47
URI: https://eprints.iisc.ac.in/id/eprint/78980

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