More Power to India : The Challenge of Electricity Distribution

This report assesses progress in implementing the government of India's power sector reform agenda and examines the performance of the sector along different dimensions. India has emphasized that an efficient, resilient, and financially robust...

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Main Authors: Pargal, Sheoli, Banerjee, Sudeshna Ghosh
Format: Publication
Language:English
en_US
Published: Washington, DC: World Bank 2014
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2014/06/19703395/more-power-india-challenge-electricity-distribution
http://hdl.handle.net/10986/18726
id okr-10986-18726
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCESS TO ELECTRICITY
ACTION PLAN
ALTERNATIVE ENERGY
ALTERNATIVE ENERGY PROGRAM
AMOUNT OF POWER
APPROACH
AUCTIONS
AVAILABILITY
BACK UP
BACKUP
BACKUP POWER
BALANCE
BALANCE SHEETS
BEST PRACTICES
BIDDING FOR CONCESSIONS
BILL COLLECTION
BLOCK TARIFFS
BUILDING POWER PLANTS
BULK POWER
BUSINESS DEVELOPMENT
BUSINESS DEVELOPMENT SERVICES
BUSINESS OPERATION
BUYERS
CAPACITY BUILDING
CAPITAL MARKETS
CASH FLOW
CERTIFICATES
CHAMBERS OF COMMERCE
CLEAN ENERGY
CLIMATE CHANGE
COAL
COAL PRODUCTION
COLLECTION EFFICIENCY
COMMERCIAL BANKS
COMMERCIAL BUSINESS
COMMERCIAL RISKS
COMPETITIVE BIDDING
COMPETITIVE POWER MARKETS
COMPETITIVE PROCUREMENT
COMPETITIVENESS
CONSUMER WELFARE
CONVENTIONAL GENERATION
COORDINATION MECHANISMS
COPYRIGHT
COST OF POWER
COST OF SERVICE
COST RECOVERY
CUSTOMER SATISFACTION
CUSTOMER SERVICE
DATA INTEGRITY
DISTRIBUTION COMPANIES
DISTRIBUTION LOSSES
DISTRIBUTION NETWORKS
DISTRIBUTION OF ELECTRICITY
DOMAIN
DOMESTIC COAL
DUE DILIGENCE
E-AUCTIONS
E-MAIL
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC REFORMS
EFFICIENCY ISSUES
ELECTRICITY
ELECTRICITY CAPACITY
ELECTRICITY CONSUMPTION
ELECTRICITY DISTRIBUTION
ELECTRICITY REGULATOR
ELECTRICITY SECTOR
ELECTRICITY SUPPLY
ELECTRIFICATION
END-USERS
ENERGY CONSERVATION
ENERGY MARKETS
ENERGY MIX
ENTERPRISE SURVEY
EXPANSION OF TRANSMISSION
FINANCIAL INSTITUTIONS
FINANCIAL PERFORMANCE
FINANCIAL SUPPORT
FINANCIAL VIABILITY
FISCAL DEFICIT
FIXED CHARGE
FOREIGN EXCHANGE
FOREIGN INVESTORS
FRANCHISEES
FUEL
FUEL USE
GENERATING CAPACITY
GENERATION
GENERATION CAPACITY
GENERATORS
GLOBAL STANDARDS
GOVERNANCE REQUIREMENTS
GOVERNMENT BONDS
GOVERNMENT POLICY
GRID ELECTRICITY
GRID EXTENSION
GRID RENEWABLE ENERGY
GROSS DOMESTIC PRODUCT
GROWTH PATH
HARMONIZATION
HYDROPOWER
IMAGES
INDEPENDENT POWER PRODUCERS
INDEPENDENT REGULATION
INFORMATION SYSTEM
INFORMATION TECHNOLOGY
INFRASTRUCTURE DEVELOPMENT
INNOVATIONS
INSTITUTIONAL FRAMEWORK
INTERFACE
INTERNAL OPERATIONS
INTERNATIONAL BEST PRACTICE
INVESTMENT CLIMATE
INVESTMENT REQUIREMENTS
JOINT VENTURES
KILOWATT-HOUR
LICENSE
LICENSES
LOAD FACTOR
MANAGEMENT CONTRACTS
MANAGEMENT SYSTEMS
MANUFACTURING
MEDIUM ENTERPRISES
MINE DEVELOPMENT
MOBILE PHONES
OPEN ACCESS
OPERATING ENVIRONMENT
OWNERSHIP SHARE
PERFORMANCE MEASURES
PERFORMANCE TARGETS
PHOTO
PILOT PROJECT
POLICY FRAMEWORK
POLLUTION
POWER
POWER AVAILABILITY
POWER CONSUMPTION
POWER CORPORATION
POWER DISTRIBUTION
POWER GENERATION
POWER GENERATION CAPACITY
POWER GRID
POWER INDUSTRY
POWER PLANTS
POWER PROCUREMENT
POWER PRODUCER
POWER PRODUCERS
POWER PURCHASE
POWER PURCHASE AGREEMENTS
POWER PURCHASE COSTS
POWER PURCHASES
POWER SECTOR
POWER SECTOR DEVELOPMENT
POWER SECTOR REFORM
POWER SHORTAGES
POWER SUPPLIERS
PRIMARY ENERGY
PRIMARY ENERGY SUPPLY
PRIVATE INVESTMENT
PRIVATE OPERATORS
PRIVATE PARTNERSHIP
PRIVATE SECTOR
PRIVATE SECTOR PARTICIPATION
PROCUREMENT PROCESS
PROFESSIONAL STAFF
PUBLIC FINANCE
PUBLIC INVESTMENT
PUBLIC POWER
PUBLIC SECTOR
QUERIES
REGULATORY ENVIRONMENT
REGULATORY FRAMEWORK
RELIABILITY
RENEWABLE ENERGY
RENEWABLE ENERGY CAPACITY
RENEWABLE ENERGY GENERATION
RESULT
RESULTS
REVENUE COLLECTION
REVENUE SHORTFALLS
RURAL ELECTRIFICATION
SOLAR ENERGY
SOLAR POWER
SPOT MARKET
STATE UTILITIES
SUPPLY CHAIN
SUPPLY CONTRACTS
SUSTAINABLE ENERGY
TARIFF BIDS
TARIFF BLOCK
TARIFF LEVELS
TARIFF STRUCTURES
TECHNICAL ASSISTANCE
TECHNICAL SUPPORT
TELEPHONE
THERMAL POWER
THERMAL POWER PLANT
THERMAL POWER PLANTS
TRANSACTION
TRANSACTION COSTS
TRANSLATION
TRANSMISSION GRID
TRANSMISSION LINES
TRANSMISSION OWNERS
TRANSMISSION SYSTEM
UNIVERSAL SERVICE
USER
USERS
USES
UTILITIES
UTILITY OPERATIONS
VALUE CHAIN
VOLTAGE
WIND
spellingShingle ACCESS TO ELECTRICITY
ACTION PLAN
ALTERNATIVE ENERGY
ALTERNATIVE ENERGY PROGRAM
AMOUNT OF POWER
APPROACH
AUCTIONS
AVAILABILITY
BACK UP
BACKUP
BACKUP POWER
BALANCE
BALANCE SHEETS
BEST PRACTICES
BIDDING FOR CONCESSIONS
BILL COLLECTION
BLOCK TARIFFS
BUILDING POWER PLANTS
BULK POWER
BUSINESS DEVELOPMENT
BUSINESS DEVELOPMENT SERVICES
BUSINESS OPERATION
BUYERS
CAPACITY BUILDING
CAPITAL MARKETS
CASH FLOW
CERTIFICATES
CHAMBERS OF COMMERCE
CLEAN ENERGY
CLIMATE CHANGE
COAL
COAL PRODUCTION
COLLECTION EFFICIENCY
COMMERCIAL BANKS
COMMERCIAL BUSINESS
COMMERCIAL RISKS
COMPETITIVE BIDDING
COMPETITIVE POWER MARKETS
COMPETITIVE PROCUREMENT
COMPETITIVENESS
CONSUMER WELFARE
CONVENTIONAL GENERATION
COORDINATION MECHANISMS
COPYRIGHT
COST OF POWER
COST OF SERVICE
COST RECOVERY
CUSTOMER SATISFACTION
CUSTOMER SERVICE
DATA INTEGRITY
DISTRIBUTION COMPANIES
DISTRIBUTION LOSSES
DISTRIBUTION NETWORKS
DISTRIBUTION OF ELECTRICITY
DOMAIN
DOMESTIC COAL
DUE DILIGENCE
E-AUCTIONS
E-MAIL
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC REFORMS
EFFICIENCY ISSUES
ELECTRICITY
ELECTRICITY CAPACITY
ELECTRICITY CONSUMPTION
ELECTRICITY DISTRIBUTION
ELECTRICITY REGULATOR
ELECTRICITY SECTOR
ELECTRICITY SUPPLY
ELECTRIFICATION
END-USERS
ENERGY CONSERVATION
ENERGY MARKETS
ENERGY MIX
ENTERPRISE SURVEY
EXPANSION OF TRANSMISSION
FINANCIAL INSTITUTIONS
FINANCIAL PERFORMANCE
FINANCIAL SUPPORT
FINANCIAL VIABILITY
FISCAL DEFICIT
FIXED CHARGE
FOREIGN EXCHANGE
FOREIGN INVESTORS
FRANCHISEES
FUEL
FUEL USE
GENERATING CAPACITY
GENERATION
GENERATION CAPACITY
GENERATORS
GLOBAL STANDARDS
GOVERNANCE REQUIREMENTS
GOVERNMENT BONDS
GOVERNMENT POLICY
GRID ELECTRICITY
GRID EXTENSION
GRID RENEWABLE ENERGY
GROSS DOMESTIC PRODUCT
GROWTH PATH
HARMONIZATION
HYDROPOWER
IMAGES
INDEPENDENT POWER PRODUCERS
INDEPENDENT REGULATION
INFORMATION SYSTEM
INFORMATION TECHNOLOGY
INFRASTRUCTURE DEVELOPMENT
INNOVATIONS
INSTITUTIONAL FRAMEWORK
INTERFACE
INTERNAL OPERATIONS
INTERNATIONAL BEST PRACTICE
INVESTMENT CLIMATE
INVESTMENT REQUIREMENTS
JOINT VENTURES
KILOWATT-HOUR
LICENSE
LICENSES
LOAD FACTOR
MANAGEMENT CONTRACTS
MANAGEMENT SYSTEMS
MANUFACTURING
MEDIUM ENTERPRISES
MINE DEVELOPMENT
MOBILE PHONES
OPEN ACCESS
OPERATING ENVIRONMENT
OWNERSHIP SHARE
PERFORMANCE MEASURES
PERFORMANCE TARGETS
PHOTO
PILOT PROJECT
POLICY FRAMEWORK
POLLUTION
POWER
POWER AVAILABILITY
POWER CONSUMPTION
POWER CORPORATION
POWER DISTRIBUTION
POWER GENERATION
POWER GENERATION CAPACITY
POWER GRID
POWER INDUSTRY
POWER PLANTS
POWER PROCUREMENT
POWER PRODUCER
POWER PRODUCERS
POWER PURCHASE
POWER PURCHASE AGREEMENTS
POWER PURCHASE COSTS
POWER PURCHASES
POWER SECTOR
POWER SECTOR DEVELOPMENT
POWER SECTOR REFORM
POWER SHORTAGES
POWER SUPPLIERS
PRIMARY ENERGY
PRIMARY ENERGY SUPPLY
PRIVATE INVESTMENT
PRIVATE OPERATORS
PRIVATE PARTNERSHIP
PRIVATE SECTOR
PRIVATE SECTOR PARTICIPATION
PROCUREMENT PROCESS
PROFESSIONAL STAFF
PUBLIC FINANCE
PUBLIC INVESTMENT
PUBLIC POWER
PUBLIC SECTOR
QUERIES
REGULATORY ENVIRONMENT
REGULATORY FRAMEWORK
RELIABILITY
RENEWABLE ENERGY
RENEWABLE ENERGY CAPACITY
RENEWABLE ENERGY GENERATION
RESULT
RESULTS
REVENUE COLLECTION
REVENUE SHORTFALLS
RURAL ELECTRIFICATION
SOLAR ENERGY
SOLAR POWER
SPOT MARKET
STATE UTILITIES
SUPPLY CHAIN
SUPPLY CONTRACTS
SUSTAINABLE ENERGY
TARIFF BIDS
TARIFF BLOCK
TARIFF LEVELS
TARIFF STRUCTURES
TECHNICAL ASSISTANCE
TECHNICAL SUPPORT
TELEPHONE
THERMAL POWER
THERMAL POWER PLANT
THERMAL POWER PLANTS
TRANSACTION
TRANSACTION COSTS
TRANSLATION
TRANSMISSION GRID
TRANSMISSION LINES
TRANSMISSION OWNERS
TRANSMISSION SYSTEM
UNIVERSAL SERVICE
USER
USERS
USES
UTILITIES
UTILITY OPERATIONS
VALUE CHAIN
VOLTAGE
WIND
Pargal, Sheoli
Banerjee, Sudeshna Ghosh
More Power to India : The Challenge of Electricity Distribution
geographic_facet South Asia
India
relation Directions in Development--Energy and Mining;
description This report assesses progress in implementing the government of India's power sector reform agenda and examines the performance of the sector along different dimensions. India has emphasized that an efficient, resilient, and financially robust power sector is essential for growth and poverty reduction. Almost all investment-climate surveys point to poor availability and quality of power as critical constraints to commercial and manufacturing activity and national competitiveness. Further, more than 300 million Indians live without electricity, and those with power must cope with unreliable supply, pointing to huge unsatisfied demand and restricted consumer welfare. This report reviews the evolution of the Indian power sector since the landmark Electricity Act of 2003, with a focus on distribution as key to the performance and viability of the sector. While all three segments of the power sector (generation, transmission, and distribution) are important, revenues originate with the customer at distribution, so subpar performance there hurts the entire value chain. Persistent operational and financial shortcomings in distribution have repeatedly led to central bailouts for the whole sector, even though power is a concurrent subject under the Indian constitution and distribution is almost entirely under state control. Ominously, the recent sharp increase in private investment and market borrowing means power sector difficulties are more likely to spill over to lenders and affect the broader financial sector. Government-initiated reform efforts first focused on the generation and transmission segments, reflecting the urgent need for adding capacity and evacuating it and the complexity of issues to be addressed at the consumer interface. Consequently, distribution improvements have lagged, but it is now clear that they need to be a priority. This report thus analyzes the multiple sources of weakness in distribution and identifies the key challenges to improving performance in the short and medium term. The report is aimed at policy makers and government officials, academics, and civil society in the fields of energy, governance, and infrastructure economics and finance, as well as private investors and lenders in the energy arena.
format Publications & Research :: Publication
author Pargal, Sheoli
Banerjee, Sudeshna Ghosh
author_facet Pargal, Sheoli
Banerjee, Sudeshna Ghosh
author_sort Pargal, Sheoli
title More Power to India : The Challenge of Electricity Distribution
title_short More Power to India : The Challenge of Electricity Distribution
title_full More Power to India : The Challenge of Electricity Distribution
title_fullStr More Power to India : The Challenge of Electricity Distribution
title_full_unstemmed More Power to India : The Challenge of Electricity Distribution
title_sort more power to india : the challenge of electricity distribution
publisher Washington, DC: World Bank
publishDate 2014
url http://documents.worldbank.org/curated/en/2014/06/19703395/more-power-india-challenge-electricity-distribution
http://hdl.handle.net/10986/18726
_version_ 1764442537303474176
spelling okr-10986-187262021-04-23T14:03:49Z More Power to India : The Challenge of Electricity Distribution Pargal, Sheoli Banerjee, Sudeshna Ghosh ACCESS TO ELECTRICITY ACTION PLAN ALTERNATIVE ENERGY ALTERNATIVE ENERGY PROGRAM AMOUNT OF POWER APPROACH AUCTIONS AVAILABILITY BACK UP BACKUP BACKUP POWER BALANCE BALANCE SHEETS BEST PRACTICES BIDDING FOR CONCESSIONS BILL COLLECTION BLOCK TARIFFS BUILDING POWER PLANTS BULK POWER BUSINESS DEVELOPMENT BUSINESS DEVELOPMENT SERVICES BUSINESS OPERATION BUYERS CAPACITY BUILDING CAPITAL MARKETS CASH FLOW CERTIFICATES CHAMBERS OF COMMERCE CLEAN ENERGY CLIMATE CHANGE COAL COAL PRODUCTION COLLECTION EFFICIENCY COMMERCIAL BANKS COMMERCIAL BUSINESS COMMERCIAL RISKS COMPETITIVE BIDDING COMPETITIVE POWER MARKETS COMPETITIVE PROCUREMENT COMPETITIVENESS CONSUMER WELFARE CONVENTIONAL GENERATION COORDINATION MECHANISMS COPYRIGHT COST OF POWER COST OF SERVICE COST RECOVERY CUSTOMER SATISFACTION CUSTOMER SERVICE DATA INTEGRITY DISTRIBUTION COMPANIES DISTRIBUTION LOSSES DISTRIBUTION NETWORKS DISTRIBUTION OF ELECTRICITY DOMAIN DOMESTIC COAL DUE DILIGENCE E-AUCTIONS E-MAIL ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC REFORMS EFFICIENCY ISSUES ELECTRICITY ELECTRICITY CAPACITY ELECTRICITY CONSUMPTION ELECTRICITY DISTRIBUTION ELECTRICITY REGULATOR ELECTRICITY SECTOR ELECTRICITY SUPPLY ELECTRIFICATION END-USERS ENERGY CONSERVATION ENERGY MARKETS ENERGY MIX ENTERPRISE SURVEY EXPANSION OF TRANSMISSION FINANCIAL INSTITUTIONS FINANCIAL PERFORMANCE FINANCIAL SUPPORT FINANCIAL VIABILITY FISCAL DEFICIT FIXED CHARGE FOREIGN EXCHANGE FOREIGN INVESTORS FRANCHISEES FUEL FUEL USE GENERATING CAPACITY GENERATION GENERATION CAPACITY GENERATORS GLOBAL STANDARDS GOVERNANCE REQUIREMENTS GOVERNMENT BONDS GOVERNMENT POLICY GRID ELECTRICITY GRID EXTENSION GRID RENEWABLE ENERGY GROSS DOMESTIC PRODUCT GROWTH PATH HARMONIZATION HYDROPOWER IMAGES INDEPENDENT POWER PRODUCERS INDEPENDENT REGULATION INFORMATION SYSTEM INFORMATION TECHNOLOGY INFRASTRUCTURE DEVELOPMENT INNOVATIONS INSTITUTIONAL FRAMEWORK INTERFACE INTERNAL OPERATIONS INTERNATIONAL BEST PRACTICE INVESTMENT CLIMATE INVESTMENT REQUIREMENTS JOINT VENTURES KILOWATT-HOUR LICENSE LICENSES LOAD FACTOR MANAGEMENT CONTRACTS MANAGEMENT SYSTEMS MANUFACTURING MEDIUM ENTERPRISES MINE DEVELOPMENT MOBILE PHONES OPEN ACCESS OPERATING ENVIRONMENT OWNERSHIP SHARE PERFORMANCE MEASURES PERFORMANCE TARGETS PHOTO PILOT PROJECT POLICY FRAMEWORK POLLUTION POWER POWER AVAILABILITY POWER CONSUMPTION POWER CORPORATION POWER DISTRIBUTION POWER GENERATION POWER GENERATION CAPACITY POWER GRID POWER INDUSTRY POWER PLANTS POWER PROCUREMENT POWER PRODUCER POWER PRODUCERS POWER PURCHASE POWER PURCHASE AGREEMENTS POWER PURCHASE COSTS POWER PURCHASES POWER SECTOR POWER SECTOR DEVELOPMENT POWER SECTOR REFORM POWER SHORTAGES POWER SUPPLIERS PRIMARY ENERGY PRIMARY ENERGY SUPPLY PRIVATE INVESTMENT PRIVATE OPERATORS PRIVATE PARTNERSHIP PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PROCUREMENT PROCESS PROFESSIONAL STAFF PUBLIC FINANCE PUBLIC INVESTMENT PUBLIC POWER PUBLIC SECTOR QUERIES REGULATORY ENVIRONMENT REGULATORY FRAMEWORK RELIABILITY RENEWABLE ENERGY RENEWABLE ENERGY CAPACITY RENEWABLE ENERGY GENERATION RESULT RESULTS REVENUE COLLECTION REVENUE SHORTFALLS RURAL ELECTRIFICATION SOLAR ENERGY SOLAR POWER SPOT MARKET STATE UTILITIES SUPPLY CHAIN SUPPLY CONTRACTS SUSTAINABLE ENERGY TARIFF BIDS TARIFF BLOCK TARIFF LEVELS TARIFF STRUCTURES TECHNICAL ASSISTANCE TECHNICAL SUPPORT TELEPHONE THERMAL POWER THERMAL POWER PLANT THERMAL POWER PLANTS TRANSACTION TRANSACTION COSTS TRANSLATION TRANSMISSION GRID TRANSMISSION LINES TRANSMISSION OWNERS TRANSMISSION SYSTEM UNIVERSAL SERVICE USER USERS USES UTILITIES UTILITY OPERATIONS VALUE CHAIN VOLTAGE WIND This report assesses progress in implementing the government of India's power sector reform agenda and examines the performance of the sector along different dimensions. India has emphasized that an efficient, resilient, and financially robust power sector is essential for growth and poverty reduction. Almost all investment-climate surveys point to poor availability and quality of power as critical constraints to commercial and manufacturing activity and national competitiveness. Further, more than 300 million Indians live without electricity, and those with power must cope with unreliable supply, pointing to huge unsatisfied demand and restricted consumer welfare. This report reviews the evolution of the Indian power sector since the landmark Electricity Act of 2003, with a focus on distribution as key to the performance and viability of the sector. While all three segments of the power sector (generation, transmission, and distribution) are important, revenues originate with the customer at distribution, so subpar performance there hurts the entire value chain. Persistent operational and financial shortcomings in distribution have repeatedly led to central bailouts for the whole sector, even though power is a concurrent subject under the Indian constitution and distribution is almost entirely under state control. Ominously, the recent sharp increase in private investment and market borrowing means power sector difficulties are more likely to spill over to lenders and affect the broader financial sector. Government-initiated reform efforts first focused on the generation and transmission segments, reflecting the urgent need for adding capacity and evacuating it and the complexity of issues to be addressed at the consumer interface. Consequently, distribution improvements have lagged, but it is now clear that they need to be a priority. This report thus analyzes the multiple sources of weakness in distribution and identifies the key challenges to improving performance in the short and medium term. The report is aimed at policy makers and government officials, academics, and civil society in the fields of energy, governance, and infrastructure economics and finance, as well as private investors and lenders in the energy arena. 2014-06-23T21:50:25Z 2014-06-23T21:50:25Z 2014-06-18 http://documents.worldbank.org/curated/en/2014/06/19703395/more-power-india-challenge-electricity-distribution 978-1-4648-0233-1 10.1596/ 978-1-4648-0233-1 http://hdl.handle.net/10986/18726 English en_US Directions in Development--Energy and Mining; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ Washington, DC: World Bank Publications & Research :: Publication South Asia India