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

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

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.

Suggested Citation

  • Kabir Malik & Maureen Cropper & Alexander Limonov & Anoop Singh, 2016. "The Impact of Electricity Sector Restructuring on Coal-fired Power Plants in India," The Energy Journal, , vol. 37(2), pages 1-27, April.
    • Handle: RePEc:sae:enejou:v:37:y:2016:i:2:p:1-27
    DOI: 10.5547/01956574.37.2.kmal
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    References listed on IDEAS

    as
    1. Anupama Sen and Tooraj Jamasb, 2012. "Diversity in Unity: An Empirical Analysis of Electricity Deregulation in Indian States," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    2. Christopher R. Knittel, 2002. "Alternative Regulatory Methods And Firm Efficiency: Stochastic Frontier Evidence From The U.S. Electricity Industry," The Review of Economics and Statistics, MIT Press, vol. 84(3), pages 530-540, August.
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