The convoluted path of power sector reforms: underutilised generation capacity - a new challenge for Indian thermal power generators

Brijesh Bhatt, A.K. Tripathi and G.C. Tripathi

International Journal of Global Energy Issues, 2022, vol. 44, issue 4, 328-362

Abstract: India embarked upon the path of power sector reforms in 1991. With subsequent steps like opening up of private investment in generation, unbundling, open access, power trading and many other structural % policy initiatives for generation, transmission and distribution, it aimed to promote competition in the sector. In a country facing chronic power shortages, one of the key objectives of these reform initiatives has been to ensure an optimal investment in generation capacity as well as optimal capacity utilisation for the generation sector. Against this backdrop, we studied the evolution of generation capacity in the country, with focus on three aspects, namely, fuel-source wise, ownership wise, and region wise capacity addition. We also analysed how effectively the capacities are being utilised. The analysis revealed two significant results: (1) there is considerable stranded capacity which does not get through to the grid and (2) there is also significant capacity which is grid connected and commercially available, but is producing at very low Plant Load Factor (PLF). In a country which faces power deficit, such a situation is a matter of great concern. To ensure sustainable energy supply system, these issues need to be addressed through appropriate interventions.

Keywords: Indian power sector; reform; generation; capacity; private investment; regulation. (search for similar items in EconPapers)
Date: 2022
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