Regulation of transmission, distribution and retail in India

Anupama Sen and Tooraj Jamasb

Chapter Chapter 21 in Handbook on Electricity Regulation, 2025, pp 473-503 from Edward Elgar Publishing

Abstract: To meet its decarbonisation targets, India needs to add electric installed capacity equivalent to that of the EU by 2040. Since 2015, it has quadrupled renewable capacity and is targeting 50% from renewables by 2030, roughly the current share from coal. The system will need to integrate 35% of intermittent renewables in generation by 2030 (from 10% currently), including growing distributed energy sources. Legacy problems persist: non-cost-reflective tariffs, chronic distribution losses, and inadequate consumer engagement. India’s states continue to retain considerable influence in electricity and net zero policy. Against this context, we review India’s electricity regulation, highlighting the tension between the ‘top-down’ approach of central targets and granular challenges around regulating the network and retail segments. We evaluate whether an update of the Electricity Act and new rules to empower retail consumers could alter the balance of federal versus state influence on regulation. Finally, we evaluate potential future distribution models.

Keywords: Electricity; Markets; Networks; Regulation; India; Decarbonisation (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035314348
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