Competition Issues in the Indian Electricity Sector

The global transition towards sustainable, secure, and affordable electricity supply is driving changes in the consumption, production, and transportation of electricity. This chapter provides an overview of three main causes of political–economic tensions with smart grids in the United States, Europe, and China, namely industry structure, regulatory models, and the impact of energy policy. In all cases, the developments are motivated by the possible improvements in reliability and affordability yielded by smart grids, while sustainability of the electricity sector is not a central motivation. A holistic smart grid vision would open up possibilities for better integration of distributed energy resources. The authors recommend that smart grid investments should remain outside of the regulatory framework for utilities and distribution service operators in order to allow for such developments.

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Mapping Power

10.1093/oso/9780199487820.001.0001 ◽

2018 ◽

Cited By ~ 3

Keyword(s):

Political Economy ◽

Comprehensive Analysis ◽

Electricity Sector ◽

Operational Performance ◽

The Political ◽

Government Reform ◽

High Quality ◽

The Past ◽

Economic Forces ◽

Political Economy Analysis

Electricity is critical to enabling India’s economic growth and providing a better future for its citizens. In spite of several decades of reform, the Indian electricity sector is unable to provide high-quality and affordable electricity for all, and grapples with the challenge of poor financial and operational performance. To understand why, Mapping Power provides the most comprehensive analysis of the political economy of electricity in India’s states. With chapters on fifteen states by scholars of state politics and electricity, this volume maps the political and economic forces that constrain and shape decisions in electricity distribute on. Contrary to conventional wisdom, it concludes that attempts to depoliticize the sector are misplaced and could worsen outcomes. Instead, it suggests that a historically grounded political economy analysis helps understand the past and devise reforms to simultaneously improve sectoral outcomes and generate political rewards. These arguments have implications for the challenges facing India’s electricity future, including providing electricity to all, implementing government reform schemes, and successfully managing the rise of renewable energy.

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