The Impact of Electricity Sector Restructuring on Coal-Fired Power Plants in India

International Association for Energy Economics, 2015

2 Pages Posted: 23 Aug 2019

See all articles by Kabir Malik

Kabir Malik

World Bank

Maureen Cropper

University of Maryland - Department of Economics; Resources for the Future

Alexander Limonov

Resources for the Future

Anoop Singh

Department of Industrial & Management Engineering; Centre for Energy Regulation (CER) & Energy Analytics Lab (EAL)

Date Written: 2015

Abstract

We examine whether the unbundling of generation from transmission and distribution services at state-owned power plants in India improved operating efficiency at these power plants. Between 1995 and 2009, 85 percent of coal-based generation capacity owned by state governments was unbundled from vertically integrated State Electricity Boards into state generating companies. We find that generating units in states that unbundled before the Electricity Act of 2003 experienced reductions in forced outages of about 25% and improvements in availability of about 10%, with the largest results occurring 3-5 years after unbundling. We find no evidence of improvements in thermal efficiency at state-owned power plants due to unbundling.

Keywords: Indian Electricity Sector, Electricity Sector Restructuring

JEL Classification: Q40, Q41, Q35, L94, Q54, C51

Suggested Citation

Malik, Kabir and Cropper, Maureen L. and Limonov, Alexander and Singh, Anoop, The Impact of Electricity Sector Restructuring on Coal-Fired Power Plants in India (2015). International Association for Energy Economics, 2015, Available at SSRN: https://ssrn.com/abstract=3440435 or http://dx.doi.org/10.2139/ssrn.3440435

Kabir Malik

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Maureen L. Cropper

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States

Resources for the Future ( email )

1616 P Street, NW
Washington, DC 20036
United States

Alexander Limonov

Resources for the Future

1616 P Street, NW
Washington, DC 20036
United States

Anoop Singh (Contact Author)

Department of Industrial & Management Engineering ( email )

Room No. 324
Indian Institute of Technology (IIT), Kanpur
Kanpur, Uttar Pradesh 208016
India

HOME PAGE: http://www.iitk.ac.in/ime/anoops/

Centre for Energy Regulation (CER) & Energy Analytics Lab (EAL) ( email )

Department of Industrial & Management Engineering
Indian Institute of Technology Kanpur
Kanpur, 208016
India
(+91) 512 2597679 (Phone)

HOME PAGE: http://cer.iitk.ac.in/

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