India Power Sector Diagnostic Review : More Power to India - The Challenge of Distribution

This report reviews the evolution of the Indian power sector since the landmark Electricity Act of 2003 (EA 2003, or EA), with a focus on distribution as key to performance and viability of the sector. While all three segments of the power sector g...

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Bibliographic Details
Main Author: World Bank
Format: Energy Study
Language:English
en_US
Published: Washington, DC 2014
Subjects:
GDP
Online Access:http://documents.worldbank.org/curated/en/2014/06/19726521/more-power-india-challenge-distribution
http://hdl.handle.net/10986/18868
id okr-10986-18868
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
ACCOUNTABILITY
AFFORDABILITY
AGGREGATE DEMAND
AGRICULTURE
ALLIANCE MODEL
ALTERNATIVE ENERGY
ALTERNATIVE ENERGY PROGRAM
AMOUNT OF POWER
APPROACH
ASSETS
AUCTIONS
AUTHORITY
AVAILABILITY
BALANCE
BENCHMARKING
BENCHMARKS
BIDDING FOR CONCESSIONS
BILL COLLECTION
BLOCK TARIFFS
BORROWING
BUILDING POWER PLANTS
BULK POWER
CAPACITY BUILDING
CAPITAL ADEQUACY
CAPITAL COST
CAPITAL MARKETS
CAPITAL STRUCTURES
CASH FLOW
CASH-FLOW
CENTRAL GOVERNMENT
CLEAN ENERGY
COAL
COAL PRODUCTION
COLLECTION EFFICIENCY
COMMERCIAL BANKS
COMMERCIAL RISKS
COMPETITIVE BIDDING
COMPETITIVE POWER MARKETS
COMPETITIVE PROCUREMENT
COMPETITIVENESS
CONSTITUTION
CONSUMER GROUPS
CONSUMER WELFARE
CONSUMERS
CONSUMPTION LEVELS
CONVENTIONAL GENERATION
CORPORATE GOVERNANCE
COST OF POWER
COST OF SERVICE
COST RECOVERY
CREDITORS
CREDITWORTHINESS
CUSTOMER SATISFACTION
CUSTOMER SERVICE
DEBT
DECISION MAKING
DECISION-MAKING
DECISION-MAKING AUTHORITY
DEVELOPMENT FINANCE
DEVELOPMENT FINANCE COMPANY
DISTRIBUTION COMPANIES
DISTRIBUTION LOSSES
DOMESTIC COAL
DUE DILIGENCE
ECONOMETRIC ANALYSIS
ECONOMIC REFORMS
ELECTRICITY
ELECTRICITY CONSUMPTION
ELECTRICITY REGULATOR
ELECTRICITY SECTOR
ELECTRICITY SUPPLY
ELECTRIFICATION
EMPOWERMENT
ENERGY MARKETS
ENERGY MIX
EXCHANGE RATES
EXPANSION OF TRANSMISSION
EXPENDITURE
EXPLICIT SUBSIDY
FINANCES
FINANCIAL ASSISTANCE
FINANCIAL AUTONOMY
FINANCIAL BURDEN
FINANCIAL DIFFICULTIES
FINANCIAL INSTITUTIONS
FINANCIAL PERFORMANCE
FINANCIAL SECTOR
FINANCIAL SUPPORT
FINANCIAL VIABILITY
FISCAL BURDEN
FISCAL COSTS
FISCAL DEFICIT
FORECASTS
FRANCHISEES
FUEL
FUEL USE
GDP
GENERATING CAPACITY
GENERATION
GENERATION CAPACITY
GOVERNANCE REQUIREMENTS
GOVERNMENT POLICY
GRID EXTENSION
GRID RENEWABLE ENERGY
GROSS DOMESTIC PRODUCT
GROWTH RATE
HOUSEHOLDS
HYDROPOWER
INDEPENDENT POWER PRODUCERS
INDEPENDENT REGULATION
INEFFICIENCY
INFORMATION SYSTEM
INFORMATION TECHNOLOGY
INFRASTRUCTURE DEVELOPMENT
INSOLVENCY
INSOLVENT
INSTITUTIONAL FRAMEWORK
INTERNATIONAL BANK
INVESTMENT REQUIREMENTS
JOB CREATION
JOINT VENTURES
KEY CHALLENGES
KILOWATT-HOUR
LACK OF ACCOUNTABILITY
LEGISLATION
LEGISLATURES
LENDERS
LENDING DECISIONS
LIQUIDITY
LOW TARIFF
MAINTENANCE CONTRACTORS
MANAGEMENT CONTRACTS
MERCHANT
MICROFINANCE
MINE DEVELOPMENT
MINISTRY OF FINANCE
MONOPOLY
NET WORTH
OPEN ACCESS
OPPORTUNITY COST
OUTSTANDING LOANS
OWNERSHIP SHARE
PERFORMANCE TARGETS
POWER
POWER AVAILABILITY
POWER CONSUMPTION
POWER CORPORATION
POWER DISTRIBUTION
POWER GENERATION
POWER GRID
POWER PLANTS
POWER PROCUREMENT
POWER PRODUCERS
POWER PURCHASE
POWER PURCHASE AGREEMENTS
POWER PURCHASE COSTS
POWER PURCHASES
POWER SECTOR
POWER SECTOR REFORM
POWER SHORTAGES
POWER SUPPLIERS
PRIVATE INVESTMENT
PRIVATE INVESTORS
PRIVATE OPERATORS
PRIVATE SECTOR PARTICIPATION
PRIVATIZATION
PROTECTION OF CONSUMERS
PUBLIC FINANCE
PUBLIC INFORMATION
PUBLIC INVESTMENT
PUBLIC POWER
PUBLIC SECTOR
PUBLIC-PRIVATE PARTNERSHIP
RATES OF RETURN
REGULATORY FRAMEWORK
RENEWABLE ENERGY
RENEWABLE ENERGY CAPACITY
RENEWABLE ENERGY GENERATION
REPRESENTATIVES
REVENUE COLLECTION
REVENUE SHORTFALLS
RURAL ELECTRIFICATION
SOCIAL IMPACT ANALYSIS
SOLAR ENERGY
SOLAR POWER
SPOT MARKET
STATE BUDGET
STATE CONTROL
STATE FUNDS
STATE GOVERNMENT
STATE POWER
STATE SUBSIDIES
STATE SUPPORT
STATE UTILITIES
SUPPLY CHAIN
TARIFF BIDS
TARIFF BLOCK
TARIFF LEVELS
TARIFF STRUCTURES
TECHNICAL ASSISTANCE
TECHNICAL SUPPORT
THERMAL POWER
THERMAL POWER PLANT
THERMAL POWER PLANTS
TOTAL COSTS
TRANSACTION COSTS
TRANSMISSION GRID
TRANSMISSION LINES
TRANSMISSION OWNERS
TRANSMISSION SYSTEM
TRANSPARENCY
UNION
URBAN AREAS
UTILITIES
UTILITY OPERATIONS
VILLAGES
VOTERS
WIND
spellingShingle ACCESS TO ELECTRICITY
ACCOUNTABILITY
AFFORDABILITY
AGGREGATE DEMAND
AGRICULTURE
ALLIANCE MODEL
ALTERNATIVE ENERGY
ALTERNATIVE ENERGY PROGRAM
AMOUNT OF POWER
APPROACH
ASSETS
AUCTIONS
AUTHORITY
AVAILABILITY
BALANCE
BENCHMARKING
BENCHMARKS
BIDDING FOR CONCESSIONS
BILL COLLECTION
BLOCK TARIFFS
BORROWING
BUILDING POWER PLANTS
BULK POWER
CAPACITY BUILDING
CAPITAL ADEQUACY
CAPITAL COST
CAPITAL MARKETS
CAPITAL STRUCTURES
CASH FLOW
CASH-FLOW
CENTRAL GOVERNMENT
CLEAN ENERGY
COAL
COAL PRODUCTION
COLLECTION EFFICIENCY
COMMERCIAL BANKS
COMMERCIAL RISKS
COMPETITIVE BIDDING
COMPETITIVE POWER MARKETS
COMPETITIVE PROCUREMENT
COMPETITIVENESS
CONSTITUTION
CONSUMER GROUPS
CONSUMER WELFARE
CONSUMERS
CONSUMPTION LEVELS
CONVENTIONAL GENERATION
CORPORATE GOVERNANCE
COST OF POWER
COST OF SERVICE
COST RECOVERY
CREDITORS
CREDITWORTHINESS
CUSTOMER SATISFACTION
CUSTOMER SERVICE
DEBT
DECISION MAKING
DECISION-MAKING
DECISION-MAKING AUTHORITY
DEVELOPMENT FINANCE
DEVELOPMENT FINANCE COMPANY
DISTRIBUTION COMPANIES
DISTRIBUTION LOSSES
DOMESTIC COAL
DUE DILIGENCE
ECONOMETRIC ANALYSIS
ECONOMIC REFORMS
ELECTRICITY
ELECTRICITY CONSUMPTION
ELECTRICITY REGULATOR
ELECTRICITY SECTOR
ELECTRICITY SUPPLY
ELECTRIFICATION
EMPOWERMENT
ENERGY MARKETS
ENERGY MIX
EXCHANGE RATES
EXPANSION OF TRANSMISSION
EXPENDITURE
EXPLICIT SUBSIDY
FINANCES
FINANCIAL ASSISTANCE
FINANCIAL AUTONOMY
FINANCIAL BURDEN
FINANCIAL DIFFICULTIES
FINANCIAL INSTITUTIONS
FINANCIAL PERFORMANCE
FINANCIAL SECTOR
FINANCIAL SUPPORT
FINANCIAL VIABILITY
FISCAL BURDEN
FISCAL COSTS
FISCAL DEFICIT
FORECASTS
FRANCHISEES
FUEL
FUEL USE
GDP
GENERATING CAPACITY
GENERATION
GENERATION CAPACITY
GOVERNANCE REQUIREMENTS
GOVERNMENT POLICY
GRID EXTENSION
GRID RENEWABLE ENERGY
GROSS DOMESTIC PRODUCT
GROWTH RATE
HOUSEHOLDS
HYDROPOWER
INDEPENDENT POWER PRODUCERS
INDEPENDENT REGULATION
INEFFICIENCY
INFORMATION SYSTEM
INFORMATION TECHNOLOGY
INFRASTRUCTURE DEVELOPMENT
INSOLVENCY
INSOLVENT
INSTITUTIONAL FRAMEWORK
INTERNATIONAL BANK
INVESTMENT REQUIREMENTS
JOB CREATION
JOINT VENTURES
KEY CHALLENGES
KILOWATT-HOUR
LACK OF ACCOUNTABILITY
LEGISLATION
LEGISLATURES
LENDERS
LENDING DECISIONS
LIQUIDITY
LOW TARIFF
MAINTENANCE CONTRACTORS
MANAGEMENT CONTRACTS
MERCHANT
MICROFINANCE
MINE DEVELOPMENT
MINISTRY OF FINANCE
MONOPOLY
NET WORTH
OPEN ACCESS
OPPORTUNITY COST
OUTSTANDING LOANS
OWNERSHIP SHARE
PERFORMANCE TARGETS
POWER
POWER AVAILABILITY
POWER CONSUMPTION
POWER CORPORATION
POWER DISTRIBUTION
POWER GENERATION
POWER GRID
POWER PLANTS
POWER PROCUREMENT
POWER PRODUCERS
POWER PURCHASE
POWER PURCHASE AGREEMENTS
POWER PURCHASE COSTS
POWER PURCHASES
POWER SECTOR
POWER SECTOR REFORM
POWER SHORTAGES
POWER SUPPLIERS
PRIVATE INVESTMENT
PRIVATE INVESTORS
PRIVATE OPERATORS
PRIVATE SECTOR PARTICIPATION
PRIVATIZATION
PROTECTION OF CONSUMERS
PUBLIC FINANCE
PUBLIC INFORMATION
PUBLIC INVESTMENT
PUBLIC POWER
PUBLIC SECTOR
PUBLIC-PRIVATE PARTNERSHIP
RATES OF RETURN
REGULATORY FRAMEWORK
RENEWABLE ENERGY
RENEWABLE ENERGY CAPACITY
RENEWABLE ENERGY GENERATION
REPRESENTATIVES
REVENUE COLLECTION
REVENUE SHORTFALLS
RURAL ELECTRIFICATION
SOCIAL IMPACT ANALYSIS
SOLAR ENERGY
SOLAR POWER
SPOT MARKET
STATE BUDGET
STATE CONTROL
STATE FUNDS
STATE GOVERNMENT
STATE POWER
STATE SUBSIDIES
STATE SUPPORT
STATE UTILITIES
SUPPLY CHAIN
TARIFF BIDS
TARIFF BLOCK
TARIFF LEVELS
TARIFF STRUCTURES
TECHNICAL ASSISTANCE
TECHNICAL SUPPORT
THERMAL POWER
THERMAL POWER PLANT
THERMAL POWER PLANTS
TOTAL COSTS
TRANSACTION COSTS
TRANSMISSION GRID
TRANSMISSION LINES
TRANSMISSION OWNERS
TRANSMISSION SYSTEM
TRANSPARENCY
UNION
URBAN AREAS
UTILITIES
UTILITY OPERATIONS
VILLAGES
VOTERS
WIND
World Bank
India Power Sector Diagnostic Review : More Power to India - The Challenge of Distribution
geographic_facet South Asia
India
description This report reviews the evolution of the Indian power sector since the landmark Electricity Act of 2003 (EA 2003, or EA), with a focus on distribution as key to 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 1 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 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.
format Economic & Sector Work :: Energy Study
author World Bank
author_facet World Bank
author_sort World Bank
title India Power Sector Diagnostic Review : More Power to India - The Challenge of Distribution
title_short India Power Sector Diagnostic Review : More Power to India - The Challenge of Distribution
title_full India Power Sector Diagnostic Review : More Power to India - The Challenge of Distribution
title_fullStr India Power Sector Diagnostic Review : More Power to India - The Challenge of Distribution
title_full_unstemmed India Power Sector Diagnostic Review : More Power to India - The Challenge of Distribution
title_sort india power sector diagnostic review : more power to india - the challenge of distribution
publisher Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2014/06/19726521/more-power-india-challenge-distribution
http://hdl.handle.net/10986/18868
_version_ 1764443357147299840
spelling okr-10986-188682021-04-23T14:03:51Z India Power Sector Diagnostic Review : More Power to India - The Challenge of Distribution World Bank ACCESS TO ELECTRICITY ACCOUNTABILITY AFFORDABILITY AGGREGATE DEMAND AGRICULTURE ALLIANCE MODEL ALTERNATIVE ENERGY ALTERNATIVE ENERGY PROGRAM AMOUNT OF POWER APPROACH ASSETS AUCTIONS AUTHORITY AVAILABILITY BALANCE BENCHMARKING BENCHMARKS BIDDING FOR CONCESSIONS BILL COLLECTION BLOCK TARIFFS BORROWING BUILDING POWER PLANTS BULK POWER CAPACITY BUILDING CAPITAL ADEQUACY CAPITAL COST CAPITAL MARKETS CAPITAL STRUCTURES CASH FLOW CASH-FLOW CENTRAL GOVERNMENT CLEAN ENERGY COAL COAL PRODUCTION COLLECTION EFFICIENCY COMMERCIAL BANKS COMMERCIAL RISKS COMPETITIVE BIDDING COMPETITIVE POWER MARKETS COMPETITIVE PROCUREMENT COMPETITIVENESS CONSTITUTION CONSUMER GROUPS CONSUMER WELFARE CONSUMERS CONSUMPTION LEVELS CONVENTIONAL GENERATION CORPORATE GOVERNANCE COST OF POWER COST OF SERVICE COST RECOVERY CREDITORS CREDITWORTHINESS CUSTOMER SATISFACTION CUSTOMER SERVICE DEBT DECISION MAKING DECISION-MAKING DECISION-MAKING AUTHORITY DEVELOPMENT FINANCE DEVELOPMENT FINANCE COMPANY DISTRIBUTION COMPANIES DISTRIBUTION LOSSES DOMESTIC COAL DUE DILIGENCE ECONOMETRIC ANALYSIS ECONOMIC REFORMS ELECTRICITY ELECTRICITY CONSUMPTION ELECTRICITY REGULATOR ELECTRICITY SECTOR ELECTRICITY SUPPLY ELECTRIFICATION EMPOWERMENT ENERGY MARKETS ENERGY MIX EXCHANGE RATES EXPANSION OF TRANSMISSION EXPENDITURE EXPLICIT SUBSIDY FINANCES FINANCIAL ASSISTANCE FINANCIAL AUTONOMY FINANCIAL BURDEN FINANCIAL DIFFICULTIES FINANCIAL INSTITUTIONS FINANCIAL PERFORMANCE FINANCIAL SECTOR FINANCIAL SUPPORT FINANCIAL VIABILITY FISCAL BURDEN FISCAL COSTS FISCAL DEFICIT FORECASTS FRANCHISEES FUEL FUEL USE GDP GENERATING CAPACITY GENERATION GENERATION CAPACITY GOVERNANCE REQUIREMENTS GOVERNMENT POLICY GRID EXTENSION GRID RENEWABLE ENERGY GROSS DOMESTIC PRODUCT GROWTH RATE HOUSEHOLDS HYDROPOWER INDEPENDENT POWER PRODUCERS INDEPENDENT REGULATION INEFFICIENCY INFORMATION SYSTEM INFORMATION TECHNOLOGY INFRASTRUCTURE DEVELOPMENT INSOLVENCY INSOLVENT INSTITUTIONAL FRAMEWORK INTERNATIONAL BANK INVESTMENT REQUIREMENTS JOB CREATION JOINT VENTURES KEY CHALLENGES KILOWATT-HOUR LACK OF ACCOUNTABILITY LEGISLATION LEGISLATURES LENDERS LENDING DECISIONS LIQUIDITY LOW TARIFF MAINTENANCE CONTRACTORS MANAGEMENT CONTRACTS MERCHANT MICROFINANCE MINE DEVELOPMENT MINISTRY OF FINANCE MONOPOLY NET WORTH OPEN ACCESS OPPORTUNITY COST OUTSTANDING LOANS OWNERSHIP SHARE PERFORMANCE TARGETS POWER POWER AVAILABILITY POWER CONSUMPTION POWER CORPORATION POWER DISTRIBUTION POWER GENERATION POWER GRID POWER PLANTS POWER PROCUREMENT POWER PRODUCERS POWER PURCHASE POWER PURCHASE AGREEMENTS POWER PURCHASE COSTS POWER PURCHASES POWER SECTOR POWER SECTOR REFORM POWER SHORTAGES POWER SUPPLIERS PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE OPERATORS PRIVATE SECTOR PARTICIPATION PRIVATIZATION PROTECTION OF CONSUMERS PUBLIC FINANCE PUBLIC INFORMATION PUBLIC INVESTMENT PUBLIC POWER PUBLIC SECTOR PUBLIC-PRIVATE PARTNERSHIP RATES OF RETURN REGULATORY FRAMEWORK RENEWABLE ENERGY RENEWABLE ENERGY CAPACITY RENEWABLE ENERGY GENERATION REPRESENTATIVES REVENUE COLLECTION REVENUE SHORTFALLS RURAL ELECTRIFICATION SOCIAL IMPACT ANALYSIS SOLAR ENERGY SOLAR POWER SPOT MARKET STATE BUDGET STATE CONTROL STATE FUNDS STATE GOVERNMENT STATE POWER STATE SUBSIDIES STATE SUPPORT STATE UTILITIES SUPPLY CHAIN TARIFF BIDS TARIFF BLOCK TARIFF LEVELS TARIFF STRUCTURES TECHNICAL ASSISTANCE TECHNICAL SUPPORT THERMAL POWER THERMAL POWER PLANT THERMAL POWER PLANTS TOTAL COSTS TRANSACTION COSTS TRANSMISSION GRID TRANSMISSION LINES TRANSMISSION OWNERS TRANSMISSION SYSTEM TRANSPARENCY UNION URBAN AREAS UTILITIES UTILITY OPERATIONS VILLAGES VOTERS WIND This report reviews the evolution of the Indian power sector since the landmark Electricity Act of 2003 (EA 2003, or EA), with a focus on distribution as key to 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 1 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 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. 2014-07-09T16:17:39Z 2014-07-09T16:17:39Z 2014-06-12 http://documents.worldbank.org/curated/en/2014/06/19726521/more-power-india-challenge-distribution http://hdl.handle.net/10986/18868 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ Washington, DC Economic & Sector Work :: Energy Study South Asia India