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Estimating the Impact of Restructuring on Electricity Generation Efficiency: The Case of the Indian Thermal Power Sector

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  • Kabir Malik
  • Maureen Cropper
  • Alexander Limonov
  • Anoop Singh

Abstract

We examine the impact of electricity sector restructuring on the operating efficiency of coal-fired power plants in India. 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 restructuring. We find no evidence of improvements in thermal efficiency at state-owned power plants due to reform.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 17383.

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Date of creation: Sep 2011
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Handle: RePEc:nbr:nberwo:17383

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Cited by:
  1. Hunt Allcott & Allan Collard-Wexler & Stephen D. O'Connell, 2014. "How Do Electricity Shortages Affect Productivity? Evidence from India," NBER Working Papers 19977, National Bureau of Economic Research, Inc.
  2. Cropper, Maureen & Gamkhar, Shama & Malik, Kabir & Limonov, Alex & Partridge, Ian, 2013. "The Health Effects of Coal Electricity Generation in India," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150290, Agricultural and Applied Economics Association.
  3. H. Ron Chan & Harrison Fell & Ian A. Lange & Shanjun Li, 2013. "Efficiency and Environmental Impacts of Electricity Restructuring on Coal-Fired Power Plants," CESifo Working Paper Series 4160, CESifo Group Munich.

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