Power Sector in India

A dissertation submitted in part fulfilment of the requirement for the completion of an

undergraduate degree in Economics

(2020-23)

Course Code: ECB-607

by

Priyanka Chatterjee

Roll No.- 20227ECO038

Enrolment No.-432817

Under the supervision of

Dr. Padmini Ravindra Nath

Economics Section

Mahila Mahavidyalaya

Banaras Hindu University

Varanasi-221005

India

i
 DECLARATION

Power Sector in India”

I, PRIYANKA CHATTERJEE hereby declare that dissertation entitled “Power
submitted by me, under the guidance and supervision of Dr. Padmini Ravindra Nath. I also
declare that it has not been submitted previously in part or in full to this university or any
university or institution for the award of any degree or diploma.

Date: 08-05-2023 PRIYANKA CHATTERJEE

Signature of the student

Roll No. : 20227ECO038

Enrolment No:
No 432817

ii
 CERTIFICATE

sertation entitled “Power Sector in India” submitted by PRIYANKA

This is to certify that the dissertation
CHATTERJEE in part fulfilment of the requirement for the completion of an undergraduate
degree in ECONOMICS is carried out by her under my guidance.

Date: 08-05-2023 DR. PADMINI RAVINDRA NATH

(SUPERVISOR)

iii
 ACKNOWLEDGEMENT

I want to convey my special thanks of gratitude to my advisor, Dr. Padmini Ravindra Nath
ma’am, for her thorough advice and ongoing support. My greatest academic experience was
working with her, and I gained a lot of new knowledge. I couldn’t have asked for a finer advisor
and mentor for my study, and her advice kept me motivated throughout. I also want to express
my gratitude to Late Prof. Inu Mehta ma’am for her advice and inspiration. Last but not the
least; I want to express my gratitude to my family and friends for being a continuous source of
support throughout this process.

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 CONTENTS

Chapters Title Page No.

Acknowledgement iv
List of Figures vii
List of Tables viii
Abstract ix
Chapter 1: Introduction 1-5
1.1 Power Sector : Overview in India 1-3
1.2 Statement of problem 3
1.3 Objectives of the study 3-4
1.4 Research Questions 4
1.5 Chapter scheme 4-5

Chapter 2 Review of Literature and Conceptual Framework 6-14

2.1 Review of Literature 6-11

2.2 Conceptual Framework 11-14

2.2.1 Key terms and their definitions 11-13

2.2.2 Data Source 13

2.2.3 Tools and Techniques 13-14

Chapter 3 Result and Discussion 15-31

3.1.1 Share of different sources in Installed Capacities 15-16

3.1.2 Power Generation by different sectors 16-22

3.1.3 Plant Load Factor in the country 22-24

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 3.1.4 Energy Deficit and Pea Deficit in India 24-25

3.2 Power Consumption and Power Sales 25-27

3.2.1 Power Consumed by Essential Sectors 25-26

3.2.2 Power Sales contributed by different sectors 26-27

3.3 Growth of Transmission and Distribution Lines 28-29

Chapter 4 Conclusion and Suggestion 30-31

References 32-33

Annexure

vi
 List of Figures

Fig No. Description Page No.

1 Share of different sources in 16
All India Installed Capacities
(%)
2 Power Generation by State 17
Electricity Boards
3 Growth of Generation by 18
State Electricity Boards
4 Power Generation by 19
Central Sector

5 Growth of Generation by 20
Central Sector
6 Power Generation by 21
Private Licensees
7 Growth of Generation by 22
Private Licensees
8 Plant Load Factor 23
9 Power Supply Position In 25
India
10 All India Power 26
Consumption by various
sectors (%)
11 Contribution of various 27
sectors to Power Sales (%)
12 Growth of Transmission 28
and Distribution Line

vii
 List of Tables

1 Key terms and their 12-13

definitions
2 Sector wise Plant Load 23-24
Factor (%)

viii
Abstract

Electrical power is one of the most important enablers for any country's economic growth,
infrastructure development, and ultimately improved quality of life. Prior to 1990, Power sector
was financially not in a very desirable stage. As a result, three decades ago, India began power
sector reforms to make its power sector more efficient and sustainable. The main thirst of this
dissertation is to observe the changes which have occurred in Power Sector at All India Level
after the inception of economic reforms. The ability of reform to meet the
developmental challenges facing the reformers is explored. The paper aims to study about the
Overview of Generation, Installed Capacity, Power consumption & Sales and the length of
transmission and distribution line after the economic reforms. The result showed that the
generation by central sector and private licensees has significantly increased due to several
economic reforms. The findings are similar for power sales also. The power consumption by
agriculture sector has reduced whereas the power consumption by domestic and industrial sector
rose. The length of transmission and distribution line has also increased. This dissertation also
makes several crucial policy suggestions for effectiveness of Power Sector. There is a need to
adopt and improve appropriate technology for efficiency of Power Sector in India. Progressive
government intervention is needed to shift reform process towards a more responsible
development path.

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 CHAPTER 1

Introduction

A country's economic growth is entirely dependent on the availability of its infrastructure.

Infrastructure also contributes significantly to higher rates of economic growth as stated by
Rostow and many other economists. Economic infrastructure is divided into two broad
categories.

1. Social Infrastructure- Social infrastructures provide basic services to meet the basic needs
of a society such as education, health, training etc.
2. Physical Infrastructure- Physical infrastructure directly supports economic production
and distribution. These include irrigation, power, transportation, and banking.

In this dissertation focus is on Power Sector in India.

1.1 Power sector: Overview in India

The electricity industry of any country is essential to its economic and social progress. It without
a doubt improves the biotic and human quality of life in this area. The level of development in a
country can be evaluated by examining its use of electricity, which is a vital element of
infrastructure and necessary for the welfare of the nation. Power Generation is a globally
variable and India is a prime example of a country with diverse sources of energy.

Renewable
Nuclear
Energy
Power
Sources

Thermal Hydro
Power Power
Power
Sector

1
The nation’s demand for electricity has increased recently and is predicted to rise in the future
also. Massive additions to the installed producing capacity are necessary to keep up with the
electricity. As of 2020, India's installed capacity for renewable energy
nation's rising demand for electricity.
was fourth, followed by solar power in fifth place and wind power in fourth. Only India is on
track to meet the goals set forth in the Paris Agreement among the G20 countries.

y is a major driving force behind a country’s financial, agriculture, and

The power Industry
economic growth. In 1991, the Indian government initiated actions in the power sector by
gradually introducing policy initiatives and establishing an appropriate institutional framew
framework to
meet the continuously growing demand for electricity in an environmentally-friendly
environmentally manner. As
of May 2022, India had a total installed thermal capacity of 236.1 GW of which coal contributed
diesel. In India’s power sector, nearly half
58.6% and the rest was produced by lignite, gas and diesel.
of the country’s thermal electricity is produced by the power sector, with the remaining being
generated by the states and central government, accounting for 24.6% and 26.0% respectively.

Need for Power Sector Reforms

The Independent Power Producers (IPP) model was implemented in the first phase of reform in
1991. The government began the reform effort for the following reasons:

third-party
the State
the widening investment in the
Electricity Boards'
disparity between energy sector as a
low technical and
electricity supply result of
financial
and demand government
performance
failure.

The first step in this manner was the reform of power sector laws in 1991. The Indian power
po Act
of 1910 and the Electricity (Supply) Act of 1948 were changed to encourage private involvement

2
in power generating. In October 1991, the Government of India published its first policy
declaration, the Government of India Resolution.

Around the year 2003, the Electricity Act was enacted, which had been proposed in 2000. This
act replaced three existing laws that governed the power sector, namely the Indian Electricity Act
of 1910, the Electricity (supply) Act of 1948, and the Electricity Regulatory Commissions Act of
1998.It requires Regulatory Commissions to regulate prices and licenses, as well as the
restructuring of State Electricity Boards into separate bodies. It also requires licensee-free
thermal generation, non discriminatory transmission network open access, and the gradual
introduction of distribution system open access.

The Act intends to make the power sector more appealing to potential investors by reducing
administrative barriers and increasing incentive for distribution reform. It comprises thermal
generation de-licensing, open access and multiple licensing, no premium for captive generating,
and multi-year rates to stimulate performance improvement and lower regulatory risk.

As a result, all of these efforts were done to fill the substantial disparity between electrical
demand and supply.

1.2 Statement of problem

Prior to 1990, Power sector was financially not in a very desirable stage. Therefore after 1991
there was wide range of reforms which were brought in Power Sector. The main thirst of this
research work is to observe the changes which have occurred in Power Sector at All India Level
after the inception of economic reforms.

1.3 Objective of the study:

The objective is going to clarify what our study is going to accomplish and why we are
conducting it. This will also mention the size and complexity of our paper. The proposed study’s
objective would be as follows:

1. To study overall generation and installed capacity from various sources.

1.1. To study about the Installed Capacity from various sources.
1.2. To study about the Overall Generation in India by various sectors.

3
 1.3. To study the Plant Load Factor in India.
1.4. To see the Energy Deficit and Peak Deficit in India.
2. To study about the power consumption and Power Sales.
2.1. To study about the power consumed by essential sectors.
2.2. To study the power sales ownership wise.
3. To study the growth rate of length of transmission and distribution line

1.4 Research Questions:

A research question specifies precisely what we want to learn from our investigation.
The questions that follow have been developed so as to move forward with the study in
accordance with the stated objectives:

1. What is the scenario of overall power generation?

1.1. What is the total installed capacity from various sources?
1.2. What is the growth of power generation by various sectors?
1.3. What is the scenario of Plant Load Factor in India?
1.4. What is the status of Energy Deficit and Peak Deficit in India?
2. What is the amount of power consumption and Power Sales in India?
2.1. What is the amount of power consumed by essential sectors?
2.2. What is the amount of power sales by various sectors?
3. What is the growth of transmission and distribution line in India

1.5 Chapter Scheme

This dissertation has been divided into four chapters.

Chapter 1: Introduction

This chapter grounds the work and attempts to provide a glimpse into the study's key elements. It
comprises the overview of the study, statement of problem, objectives, research questions, and
chapter layout.

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Chapter 2: Review of Literature and conceptual framework

This chapter provides a critical assessment of several studies on the power sector in India and
power sector reforms. It has been arranged chronologically for clarity and easy understanding. It
discusses majorly about evolutions that took place after reforms and the effectiveness of the
reforms in power sector. The conceptual framework comprises essential key terms and their
definitions. It includes the source of data, time period of the study. It further states about the
tools and techniques and their relevance in the study.

Chapter 3: Results and discussions:

The results chapter or section reports what we discovered simply and objectively. The
discussion interprets the meaning of the data, contextualizes them, and explains why they are
important. Results and conversation are integrated in our study. This states about various trends
shown in Generation, transmission and distribution areas of power sector in India using the given
tools and techniques.

Chapter 4: Conclusion and Suggestions

This is the study's concluding excerpt, and it summarizes all of the concerns presented in prior
chapters.

5
 CHAPTER 2

2.1 Review of Literature

We will build the study on the basis of a thorough evaluation of the literature. A literature review
is a thorough summary of prior studies on a particular topic. It looks at articles, books, and other
sources that are relevant to a particular field of study.

The purpose of the literature review in this paper was not just to provide a general overview of
the literature. This will also serve as a goal to emphasize the main idea of the investigation. The
literature review is organized according to time.

Bhatt (2021) described a method for identifying and categorizing hurdles to LRT (Loss
Reduction Technologies) implementation in the Indian electricity sector. It is based on a
literature analysis and a survey of stakeholders, and it identifies and categorizes 13 barriers at
three levels of governance: sector, utility, and sector-consumer interaction. To rank the barriers,
the Analytical Hierarchy Process (AHP) is applied. The findings suggest that future changes
should prioritise enhancing utility-level governance over sector-level governance. Power sector
reforms were initiated to address high network losses, financial losses and escalating debt. This
study aimed to identify key barriers to LRT adoption and rank them using AHP. Organizational
inertia was found to be the most significant barrier. The paper concluded that the power sector
reforms should focus on improving utility-level governance and regulatory institutions can play
an important role in nudging this change.

Ghosh (2021) conducted a critical analysis of the impact of three decades of policy reform on the
State Owned Electricity Utilities commercial and technical performance in India. The study
utilized Data Envelopment Analysis enhanced by Shanon’s Entropy model to evaluate the
relative performance of SOEUs inefficiencies. For each inefficient SOEU, benchmark SOEUs
were identified, and corrective policy measures were proposed. The study examined the
evolution of power sector reform in India and its effect on SOEU’s commercial and technical
performance. The study concluded that the reform strategies implemented over the last three
decades have shown some promising results in some specific parts of the country but have been
ineffective in other parts. It was suggested that region and state-specific policies addressing

6
micro level issues could be the way forward to address energy accessibility and sustainability
challenges.

Dertinger (2020) looked at how power sector reforms affect efficiency and access to electricity.
Many developing countries have reformed their electric power industries since the 1990s in order
to increase efficiency and service quality. According to the findings, changes have a significant
and positive influence on energy availability, with a comprehensive reform programme raising
connection rates by 20 percentage points and per capita usage by 62 percent. There is, however,
no evidence to back up the claim that changes reduce network losses. This study examines the
influence of power sector reforms on two outcomes: industry efficiency and electricity access,
using data from over 100 nations spanning 32 years. It finds substantial evidence that changes
benefit energy access, with a full-fledged reform programme raising power connection rates by
20 percentage points and per capita home usage by up to 62 percent. The amount of the effect
varies significantly by region, with the positive influence being especially great in South Asia,
Sub-Saharan Africa, and East Asia and the Pacific. However, reform activity does not solve all
problems in the electric power business, and different difficulties may necessitate different
strategies.

Verma (2020) discussed the chronology of reforms and suggests measures to improve the quality
and reliability of supplied power. India initiated power sector reforms three decades ago, but still
suffers from systemic flaws such as cross-subsidies, inefficiency, technical and financial losses,
poor quality of power, low efficiency, outstanding debts, supply disruptions, inability of
expansion, sluggish privatization, poor customer satisfaction, political interference, and low
reliability. This article presents a comprehensive examination of the current state of the Indian
power sector. Even over three decades after the start of power sector reforms, it has been
discovered that power utilities are facing significant financial losses and hence. The various
reasons and policy gaps that are causing the power sector to become financially unsustainable are
examined. The distribution sector lags the most behind the predicted trajectory of improvement
when compared to generation and transmission. Various initiatives are proposed in the current
work to strengthen the sector, some of which are partially implemented by the government of
India but are ineffectual. Some improvements are suggested for such policies in order to
maximise their effectiveness.

7
Urpelainen (2019) found that the emergence of hybrid power markets is mostly limited to
impoverished, authoritarian, and low-capacity countries. If these features are lost, a trend of
strong competition may emerge. A panel data study reveals that GDP per capita and institutional
capability is strong predictors of electricity sector reforms. Electricity reliability is critical for
economic development, and developing countries have attempted reforms to improve the
performance of their power sectors. Privatisation and competition liberalisation trail behind other
changes in 142 developing countries from 1982 to 2013, however this gap is only substantial in
impoverished and authoritarian countries with low institutional capability. Economic growth and
democratisation have the potential to shift power sectors in emerging economies in a new
direction.

Suneel (2014) discussed about functioning and organizational structure of the power sector
before and after the reform period. It assessed the Andhra Pradesh power sector’s technical
performance and financial performance. It has been discovered that organizational structural
modifications have improved the electricity sector’s performance in terms of accountability and
transparency and a decrease in theft.

Bajaj (2007) examined the pre-reform era and outlines the fundamental concerns that prompted
the reforms to be implemented. In 1991, India experienced widespread electrical energy
shortages and a peak in the power sector. The Government of India launched the reform process
in 1991 in order to revitalize the industry and improve its techno-economic performance. It also
examines the possible consequences of important legislative and regulatory efforts since 1991,
such as the requirements of the Electricity Act of 2003. The Electricity Act of 2003 is projected
to overhaul the Indian power industry and serve as an example for other countries undergoing
development. It will pave the road for sector investment, open access availability, improved
supply quality, effective metering and cross-subsidization reduction, and consumer protection.
Furthermore, the Appellate Tribunal will expedite the resolution of appeals against Regulator
decisions.

Singh (2004) examines important legislative and regulatory reforms implemented since the early
1990s, as well as market structural changes. It also addresses two difficulties raised by the
recently passed Electricity Act 2003: open access and multi-year prices. The study also assesses
the reform process and addresses the challenges of introducing competition in the power sector.

8
Reforms in the electricity industry, such as functional separation of generating and transmission
and distribution, the establishment of federal and state regulatory commissions, and selective
privatization of distribution portions in a few states, are expected to help accomplish these aims.
The Electricity Act of 2003 makes numerous promises to the sector, including license-free
thermal generation, non-discriminatory access to the transmission system, and the progressive
implementation of open access to the distribution system. However, while attempting to
reconcile commercial prudence and social acceptability of the reform, transition management
may prove to be the most challenging assignment. This necessitates striking a balance between
commercial prudence on the one hand and the social acceptability of the reform on the other.

Godbole (2004) discussed in his paper about Several state governments, including Maharashtra,
pledged free power for farmers after Andhra Pradesh. Furthermore, subsidies for agricultural
consumption mostly favor wealthy individuals and large farmers. The Electricity Act, 2003 was
being reviewed to promote competition, protect consumers, rationalize tariffs, and ensure
transparent policies regarding subsidies. Andhra Pradesh has given free power for agriculture
and waived arrears to single-bulb households. The policies also stated that energy efficiency
should be promoted as a mass campaign in the rural areas to maximize benefits and reduce
subsidy burdens. The decision to give free power for agriculture in Andhra Pradesh has led to
widespread protests from small farmers, and the chief minister has called an all-party meeting to
find a way out.

Wamukonya (2003) investigates the effects of change by using claimed results as a foundation
for analysis. Reform of the power sector is fast spreading throughout the developing world,
although its model and approach are challenged. It says that reform has had some successes but
has not achieved many of its objectives. To shift the reform process towards a more responsible
growth path, progressive government action is required. The power sector in many developing
countries has been financially and administratively ailing, leading to calls for reform. However,
the processes adopted have neglected the crucial diversity across reformers and their
peculiarities, jeopardizing sustainable development. Rising electricity demand and unmet
electricity needs have necessitated increased investments in generation at a time when donor and
traditional financing agencies policy have shifted from pro-public sector to pro-private sector.
The private sector has been relying on government financial support, but has rarely met

9
electricity demands. To make utilities financially attractive to the private sector, downsizing has
been rampant. Reform has had some achievements, such as reduction of technical and other
losses, but performance indicators need to be redressed to integrate developing countries
circumstances.

Sharma (2002) looks at the creation of State Electricity Boards (SEBs) and central utilities as
well as how the Indian power sector has evolved under various Electricity Acts. The several
problems that prompted the adoption of changes are underlined, including huge losses, poor SEB
performance, theft, and corruption in the electricity sector. Finally, it is stated that since
depoliticizing tariffs and other significant steps towards financial and social discipline are
required, the success of the changes depends on cooperation between the federal and state
governments. The reforms could free up vast sums of money by reducing pervasive theft,
bribery, and corruption in the power sector. These funds could be utilized by the government to
fund health, education, and other poverty-reduction initiatives. They might provide poor farmers
and city inhabitants with reliable power, considerably improving the quality of their life.

Godbole (2002) discussed that since 1993, improvements to the power sector have been
explored, with conferences conducted in 1996, 1998, 2000, and 2001. However, there is no light
at the end of the tunnel, and the experience has taught us some valuable lessons. India is an
outlier, and the World Bank's reform model must be scrutinized. Privatization is not a cure for all
issues, as proven by the controversies surrounding Enron, Congentrix, and Spectrum generating
projects. It is critical to build and maintain investor confidence through viable and sensible
policies delivered in an open and transparent manner. State governments have an important role
in power sector changes, and unless difficulties are addressed, the Electricity Bill, 2001, may
become a dead letter.

Dubash (2001) analyzed the social and political context surrounding the electricity sector
reforms in India, with the aim of understanding how the public interest could be better served in
the ongoing efforts to transform the sector. According to the author, the Independent Power
Producer (IPP) and Bank-led privatization approaches have resulted in delayed consideration of
more fundamental reforms in the sector, leading to deep-rooted privatization efforts. The World
Bank played a pivotal role in driving the power sector towards a new organizational structure,
garnering political support for change and convincing key members of the power bureaucracy of

10
the need for reform. The author stressed that domestic policy-makers, intellectuals, and
technocrat must take responsibility for shaping the future of the power sector in a way that
preserves and promotes the public good. An informed public debate is required to address to
address issues such as increased access to electricity, social housing, and the promotion of
sustainable energy futures.

Upadhyay (2000) in his paper discussed about Distribution has been the weakest link in Indian
ESI, with losses of up to 40% being passed off as agricultural consumption and 'non-technical'.
Privatization is being started with distribution, which may have a positive impact on
performance. As the SEBs are the key players in the industry and their financial disease is the
main issue facing it, the ESI reforms will primarily fall under state responsibility under the
federal structure of India. Strong political leadership has been the driving force behind the
changes in the pioneer states. Long-term fundamental restructuring is necessary due to the
enormous subsidies and poor energy accounting and managerial efficiency in the sector.

Murthy (1999) discussed that despite the entry of the private sector, the importance of the state in
the electricity generation industry has not diminished. Although the Indian power sector was
allowed to private participation in 1991, generating at commercial plants with capacities less
than 2,000 MW did not begin until 1999. Independent power producers (IPPs) allege that
problems such as litigation, financial arrangements, and obtaining clearances have stymied their
expansion. Because of the long gestation period and minimal profits, infrastructure investment
has been a state duty. IPPs have not yet made significant contributions to closing the power
demand-supply gap, but public sector enterprises continue to be the key actors. A service-
oriented development-focused paradigm switches the emphasis from rising consumption to
greater energy services.

2.2 Conceptual Framework

The conceptual framework comprises essential key terms and their definitions. It includes the
source of data, time period of the study. It further states about the tools and techniques and
their relevance in the study.

2.2.1 Key terms and their definitions

The key terms and their definitions are summarized in the following table:

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 Table 1: Key Terms and their Definitions

Key terms Definitions Source

Thermal Power Plants “Thermal Power Plants Central Electricity Authority
(TPP)” means the ‘generating
station’ as defined in the Act
for generating electricity using
fossil fuels such as coal,
lignite, gas, liquid fuel or
combination of these as its
primary source of energy to
generate electric power;
Hydro Power Plants A hydro electric plant Central Electricity Authority
harnesses power from water
flowing under pressure
through the prime mover
known as water turbine.
Nuclear Power Plants Electricity generated by power Britannica
plants that derive their heat
from fission in nuclear reactor.
Renewable Energy Sources Renewable energy is energy U.S. Department of Energy
produced from sources like the
sun and wind that are naturally
replenished and do not run
out.
Peak Deficit Peak deficit Is the difference Hindustan times
between peak power in the
country in a particular year
and the demand that was met.

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 Energy Deficit This exists where energy Weebly
demand is greater than energy
met.
Transmission and Distribution A distribution line is a line or Collins Dictionary
Line system for distributing power
from a transmission system to
a consumer that operates at
less than 69,000 volts.
Private Distribution Licensees ‘Distribution Licensee’ means Central Electricity Authority
a Licensee defined under
Section 2 (17) of the
Electricity Act, 2003

2.2.2 Data Source

Secondary data has been gathered from variety of sources .Data collected from secondary
sources includes annual reports of Central Electricity Regulatory Commission and Central
Electricity Authority, EPW research foundation site, Ministry of power portal and National
Power Portal.

The ultimate and main source of data on ALL India Installed capacity utilities, All India
Generation, Power Consumption, Power supply position in India, Power sales, Transmission
lines is Central Electricity Authority.

The study utilizes data for the period 1990 to 2020.

2.2.3 Tools and Techniques

The tools and techniques that have been used in this dissertation are summarized below:

Log-Lin regression model

Trend line

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 Diagrammatic Representation(Stacked Column
Chart, Column Chart, Line Chart)

Log-Lin regression model is used to show relationship between growth of transmission lines
with time where a trend line is further used to establish a relationship. We have used Log of
length of transmission lines to because they are more accurate to see long term change and also
reduce skewness of the measurement variable and are easy and flexible to use.

Trend line between All India Generation by various sectors and time is shown with the help of
regression equation. The value of R2 showed how well the model fits the data.

The data includes all India Installed capacity (Utilities) wherein the percentage share of Thermal,
Hydro, Nuclear and renewable energy resources in total installed capacity is shown with the help
of stacked area chart.

The paper also used data of Power Consumption and aims to show the percentage share of
different essential sectors like agriculture, domestic, commercial, industrial (High Voltage &
Low and medium voltage) in total power consumption for different time period where we have
used stacked column chart.

The Peak Deficit and Energy Deficit data in different time periods from 1990-2020 is shown to
depict power supply position in India through column chart.

Further we have used a line chart to show contribution (share) of various sectors (ownership
wise) in total Power Sales (Utilities) and their trend with time. These sectors include State
Electricity Board, Municipality, Central Sector and Private Licensees.

14
 CHAPTER 3

Result and Discussion

This dissertation’s result and discussion part will present what we discovered, and it is here that
we will do our analysis. This will help us connect our findings to our study's core goal. The
discussion will examine the findings and place them within the context of the broader study. It
connects all of the previous sections and creates a link between each area of the research paper.

3.1 Power Generation and Installed Capacity

This part of result and discussion discusses about Generation of Power by various sectors and
share of different sectors in installed capacities in India. This section further discusses about
Energy Deficit and Peak Deficit in India and Status of Plant Load Factor in our nation.

3.1.1 Share of Different Sources in All India Installed Capacities (%)

During initial periods of power sector reforms thermal, hydro and nuclear sources of generation
together made up total share of All India installed capacity (Utilities), with thermal holding
maximum share because of ample availability of domestic coal, shorter gestation period, and
lower capital cost of coal-based facilities accounting for approximately 62.4% of total capacity in
2019-20, followed by Renewable Energy Source (RES) (23.4%), Hydro (12.3%), and Nuclear
(1.8%).

Mainly this variable has been observed for the period 1990 to 2020. We will witness different
patterns for different sources. The difference is mainly because of various regulatory reforms and
different electricity acts that were passed during these thirty years. In this objective we have
focused on the changes in all India Installed Capacities after the reform period. Stacked column
chart has been used here.

15
 Figure 1: Share of different sources in All India Installed Capacities (%)

Source: Author’s figure based on data from Central Electricity Authority

Share of different sources in All India installed capacities can be seen above from stacked area
chart in figure 1. The share of thermal generation fell from 69.25% in 1990-91
1990 to 62.4% in 2019-
20. Between 1990-91
91 and 2019-20,
2019 based generation capacity fell from 28.37% to 12.3%,
hydro-based
while renewable production capacity increased from 3.21% to 23.4%. This could be because
India, which has a lot of renewable energy, has lately added a lot of capacity to the renewable
energy sector. With environmental issues growing in importance, India has now vowed to
importance,
enhance renewable contribution in an unprecedented way.

3.1.2. Power Generation by Different Sectors

Power is generated by various sectors. These sectors include State Electricity Boards, Central
Sector and Private Licensees. In the research paper the thirst is to overview power generation by
State Electricity Boards, Central Sector and Private Licensees.

3.1.2.1 Power Generation by State Electricity Board

16
Prior to 1991, the Power Sector in India was controlled by a large integrat
integrated cooperation in each
state, responsible for generating, transmitting and distributing power and reporting to the
respective State Ministries of Power. However, due to the inefficiency and lack of cost
cost-
delivering services, there was a need to rethink
effectiveness of state owned enterprises in delivering
service delivery policies. This resulted into various regulatory reforms through Electricity
Regulatory Commissions Act, 1998 and enactment of Electricity Act of 2003.

Electricity Board
Figure 2: Power Generation by State Electricity

Source: Author’s figure based on data from Central Electricity Authority

As it can be examined from figure 2, the regression line depicts a negative relationship between
generation done by State Electricity Board and time. With time passing by, tthe power generation
by SEB has significantly declined. We have used here the linear trend model. The trend variable
used here is the time variable which is also the independent variable. These results actually show

17
the downward trend. It can be seen from figure
figure 3 that the negative value of slope coefficient
depicts a downward trend.

Figure 3: Power Generation (Growth) by State Electricity Board

Source: Author’s figure based on data from Central Electricity Authority

These results from figure 3 shows over the period 1990 to 2020 the power generation by State
Electricity Boards is decreasing per year. The value of R2 =0.694 tells that 69% of variation in
State Electricity Board Generation(Y axis) is explained by time component(X axis).

d suffered financial and commercial losses. Thus there has been decline in
State electricity board
total generation by State Electricity Board which generated about 157121.57 Gwh in 1990-91
1990 but
due to various reforms and financial and commercial losses it generated 9451.08 Gwh in 2012-
13.

Log lin or growth model has been used to to show the trend as
Both the linear trend model and Log-lin
well as growth of of the generation by State Electricity Board.

18
3.1.2.2 Power generation by Central sector

Power is generated by various sectors. Central sector generates power and also holds the
Central
maximum share in generation.

Figure 4: Power Generation by Central Sector

Source: Author’s figure on data from Central Electricity Authority

19
 Figure 5: Power Generation (Growth) by Central Sector

Author’s figure on data from Central Electricity Authority

Source: Author’s
As investigated from the figure 4 there has been a positive relationship between total generation
by central sector and time. As time is increasing the generation done by central sector is also
increasing.. Here a linear trend model is used to show the upward trend. The positive value of
slope coefficient suggests that there is a upward trend between power generated by central sector
and time.

Figure 5 shows the scatter diagram of the log of generation and time fitted the regression line.
These results from figure 5 shows over the period 1990 to 2020 the power generation by Central
Sector is increasing per year. The Log
Log-lin
lin model is used here to show the growth of power
generated by central sector with respect
respe to trend variable that is time.

The central sector continues to be largest owner with 61.83% share in total generation for the
2020. The generation by Central Sector has stretched from 92286.73 in 1990-91
year 2019-2020. 1990 Gwh
to 855456.04 Gwh in 2019-20
20 with Compound annual growth rate 7.98%.

3.1.2.3 Power Generation by Private Licensees

The Private Licensees contribution in Power has rose from 12946.86 in 1990-91
1990 Gwh to
20 with Compound annual growth rate of 13.64%.
527960.71 Gwh in 2019-20

20
This increase can be inferred by the fact that the Electricity Act of 2003 gave the Regulatory
Commissions more powers; it permitted for the unbundling of state-owned
state owned electricity boards and
several DISCOMs in a given area; it allowed for open access; and it prohibited cross-subsidies
cross in
the sector. The 1948 Act and the 1998 Act were both repealed. Under the Electricity Act of 2003
in India, distribution licensees are permitted to establish their own separate network in the same
geographical area, resulting in completion among
amon segment players.

The Private Licensees have also turned to be very efficient in generation of power. This was
indeed needed because of inefficiency of state electricity boards in generation of power. The
rising demand for power was met because of the generation by Central Sector and Private
generation
Licensees.

Figure 6: Power Generation by Private Licensees

Source: Author’s figure on data from Central Electricity Authority

21
 Figure 7: Power Generation (Growth) by Private Licensees

Source: Author’s figure on data from Central Electricity Authority

As depicted by figure 6 positive relationship between Total Generation by Private Licensees and
Time. The independent variable taken here is time and dependent variable is total generation by
private licensees. The linear trend model shows an upward trend here. With growing time, Total
generation of power by Private Licensees is also growing.

Figure 7 shows the scatter diagram of the log of generation and time and the fitted the regression
igure 7 shows over the period 1990 to 2020 the power generation by
line. These results from figure
Central Sector is increasing per year. The R2 value is 0.646 which suggests that 64% of the
variation in Total generation is explained by time.

3.1.3 Plant Load Factor in the country

A plantt load factor (PLF) is a measure of a thermal power unit's average capacity utilization. In
the electrical sector, load factor is a measure of a power plant's output in relation to its maximum
output.

22
 Figure 8: Plant Load factor (in %)

Source: Author’s Figure based on data from Central Electricity Authority

Figure

The graph above illustrates that the capacity utilization or Plant Load Factor of thermal power
plants has declined over the years. In 2009 10, the Plant Load Factor was 77.5%, while in 2019
2009-10, 2019-
pped to 54.51%. This is noteworthy since the generation capacity has been steadily
20, it dropped
increasing during this period.

The Plant Load Factor of private and state generators (in terms of ownership) is lower than that
of central generators. The Plant Load Factor of state sector has declined from 70.9% to 46.23%
and PLF of private sector has decreased from 83.9% to 56.64% during 2009
2009-10 to 2019-20.

Although the share of central sector has also decreased from 85.5% in 2009
2009-10 to 63.4% in
re and better than state or private sector (in terms of ownership).
2019-20, but its share is more

Table 2: Sector-wise PLF (in %)

Year Central PLF (%) State PLF (%) Private PLF (%)
2009-10 85.5 70.9 83.9
2010-11 85.1 66.7 80.7

23
2011-12 82.1 68 69.5
2012-13 79.2 65.6 64.1
2013-14 76.1 59.1 62.1
2014-15 73.96 59.83 60.58
2015-16 72.52 55.41 60.49
2016-17 71.98 54.35 55.73
2017-18 72.98 56.9 55.34
2018-19 72.64 57.81 55.24
2019-20 63.4 46.23 54.64
Source: Author’s table based on data from Central Electricity Authority

Table 1 displays Plant Load Factor details for various types of generators. As it can be seen from
the table, the plant load factor of all the sectors has declined from the period 2009-10 to 2019-20.
The plant load factor of central sector, state sector, private sector has declined from 85.5% to
63.4%, 70.9% to 46.23%, 83.9% to 54.64% during the period from 2009-10 to 2019-20
respectively.

3.1.4 Energy deficit and peak deficit in India

The gap between required energy and available energy is given by energy deficit and the
difference between the peak demand and demand met in a particular year is given by peak
deficit.

According to the CEA, the demand-supply gaps were caused by transmission and distribution
difficulties rather than a lack of power. It was noted that most governments had short-term
surpluses at some point in time, and that this surplus power was sold to deficit states or
neighboring countries via bilateral contracts, power exchanges, or merchants.

Since DISCOMs often use load-shedding to address rising demand, the actual peak deficit is
likely certainly larger. Peak demand has increased, which has caused the hourly prices in the
day-ahead market on the exchanges to be more volatile. Electricity demand is defined narrowly
since it only counts the quantity of electricity purchased by distribution utilities, rather than the
true demand of the millions of people in India who remain underserved.

24
 Figure 9: Power supply position in India

figure based on data from Central Electricity Authority

Source: Author’s figure
As it is illustrated in Figure 9, the given bar graph shows that the gap between energy demanded
and energy supplied has declined from 10.1% in 2009
2009-10 2019
10 to 0.5% in 2019-20. The difference
between peak demand 2009 10 to 0.7% in 2019-20.
and and peak met has declined from 12.7% in 2009-10 2019
2019 20, 1,283,690 MUs were supplied against the requirement of
For the financial year 2019-20,
1,290,247 MUs of energy. The amount of power supplied was 6,557 MUs lesser than the target
energy requirement, as per the data provided by the CEA.

3.2 Power Consumption and Power Sales

The consumption and sales form an essential part of Power Sector in India. Power is consumed
by various sectors. Some of the important sectors include agriculture, industry,
in commercial,
domestic. Power in India is sold by sectors like State Electricity Boards, Central Sector, Private
Licensees and Municipalities. In this dissertation our focus is to see the power sales by these
sectors.

3.2.1 Power Consumed by Essentia

Essential Sectors

25
The power consumption by various essential sectors includes domestic, commercial, agriculture,
High Voltage Industry and Low and Medium Voltage Industry. This shows share of various
sectors in total power consumption.

Figure 10: All India Power Consumption (utilities) by various sectors (%)

Source: Author’s figure based on data from Central Electricity Authority

The graph shows that the agriculture sector's proportion of power consumption increased from
26.43% in 1990-1991 1998 99 before declining to 20.07% in 2019
1991 to 31.97% in 1998-1999 2019-20. Domestic
power consumption increased from 16.80 percent in 1990
1990-91
91 to 29.33 percent in 2019-20.
2019 The
rising population and income level of people are mostly driving the increase. This industry is
an agriculture. During this time, the commercial sector's share of power
expanding faster than
consumption increased from 5.87% to 10.07%. From 1990-91
1990 2020, the High voltage
to 2019-2020,
industry fell from 35.06% to 25.63% and the Low and Medium voltage industries fell from
9.17% to 6.39%.

During this time, per capita power consumption in India increased at a 4.42% annual growth rate
from 227.47 Kwh in 1990-91 2019 20. Despite this significant development
91 to 796.87 Kwh in 2019-20.
consumption is modest when compared to the
and low electricity tariff, India's per capita energy consumption
global average per capita energy consumption.

3.2.2 Power Sales contributed by Different Sectors (%)

26
The power sector has undergone tremendous transformation as a result of the expansion of the
industrial and service sectors
ctors in the 1980s and 1990s. Regulations were changed during this time
period in an effort to boost private sector involvement, promote more competition and boost
efficiency.

The state owned electrical boards were reorganized as a result and thus the share
sha of SEB in
power sales has been considerably declining.

licensing, the segment steadily saw more private activity. The share of various sectors
After de-licensing,
in power sales have been shown with the help of this line chart. We can easily interpret here the
end of share of different sectors during the period 1990 to 2020. Power sector has undergone
trend
various reforms and transformations that has affected the share of power sales. The significant
trend can be seen among central sector and private sector.

Figure 11: Contribution of various sectors to Power sales (%)

Source: Author’s figure based on data from Central Electricity Authority

27
As can be seen and analyzed from figure 11, The State electricity board’s share in Power sales
has witnessed a considerable fall during this period from 1990-91
1990 91 to 2019-20.
2019 It has declined
from 84.49% to 3.48%.

We can see an increase in share of private sector from 7.40% in 1990 91 to 12.64% in 2007-08.
1990-91 2007
The Municipality sector’s share has declined from 91 to 0.58 % in 2019
fro 4.69 % in 1990-91 2019-2020.

1990-91 to 89.83% in 2019-

The central sector is contributing the maximum share from 3.4% in 1990-
20 with CAGR 18.74%.

3.3 Growth of Transmission and Distribution Line

Transmission lines have grown at a 4% annual rate on average since 2007. We have used Log
Log-
Lin regression or growth model to see the growth of transmission and distribution line from the
period 1990 to 2020.

Figure 12: Growth of transmission and distribution line

from Central Electricity Authority

Source: Author’s figure based on data from

28
In the figure 12 we can see that regression line has a positive slope which implies that as time is
increasing on the x-axis the length of transmission lines is also increasing. This is indicating a
direct relationship between length of transmission lines and time.

The independent variable taken here is time and dependent variable is log length of transmission
line. The log of length of transmission line is taken to stabilize the variance of response and are
flexible to use and easily interpretable. The regression equation is 0.0155x+6.62 and the value of
R2 is 0.974 which suggests that model fits the data very nicely and 97.4% of the variation in Y-
axis is explained by the x -axis.

The length of transmission lines(in ckt. kms) has increased from 4533374 ckt. kms to 13279315
ckt. Kms with compound annual growth rate of 3.78%. The open access principle is found on the
premise that, while it is uneconomical to build numerous transmission lines in the same region
due to the high sunk costs involved, it is still best to provide consumers the option of choosing
which firm's electricity they want to consume.

29
 CHAPTER 4

Conclusion and Suggestion

This chapter is divided into two parts conclusion and suggestion.

In a dissertation's conclusion, we tie up our arguments and provide the reader with a powerful
concluding impression. It has several primary objectives which include restating the issue at
stake from the study summarizes our main points or findings and provides significant takeaways
from our paper.

In this particular dissertation, three major dimensions have been observed. The three major
dimensions include Generation, Consumption, Transmission and Distribution of Power in India.
On the basis of that we can broadly enhance on Generation, Consumption, Transmission and
Distribution.

Power Generation is the method used to generate power from various fuels in generating
stations. In India, many energy sources are used for the production of electricity.

The country's electricity generation capacity was 1383416.75 GW as of 2020. This rise can be
linked to the de-licensing of electricity generation in 2003, which allowed for the unfettered
participation of private sector companies. The share of thermal power in total generation
stands at 62.4%. Renewable energy makes up approximately 23.4% of total generation capacity.
Hydropower accounts for 12.3% of total generation, while nuclear accounts for 1.8%.

The generation of power by various sectors has also seen a significant change. The power
generated by State Electricity Board has declined with time whereas the power generation by
Central Sector and Private Licensees has increased with time because of various regulatory
reforms and Electricity Act of 2003. Plant Load Factor is a ratio of a power plant's output to its
maximum output. The Plant Load Factor of private and state generators is lower than that of
central generators. The energy deficit and peak deficit has declined from 10.1% in 2009-10 to
0.5% in 2019-20. The power is consumed by various sectors in India and the per capita power
consumption has seen an increase because of rising population and income level of people. As of
2020, India's per capita power usage was 796.87 kWh. Since 1990, consumption has climbed at

30
an annual pace of 4.42% on average. However, it is significantly lower when compared to
several other countries. The Power Sales has undergone a tremendous transformation because of
de-licensing. This further resulted into decline in State electricity board’s share in Power Sales
but a significant increase in private and central sector’s share in Power Sales. The length of
transmission and distribution line has also grown over the period from 4533374 ckt. Kms in 1990
to 13279315 ckt. Kms. in 2020.

The current scenario after result and discussion above undervalues few critical suggestions.

In contrast to the current emphasis on sector-level governance, power sector reforms ought to
concentrate on improving utility-level governance. The regulatory agencies can influence this
development in a significant way. If reform's developmental aims are to be accomplished, the
government must play a greater role in the process. There is a need to develop appropriate
reserve capacity margin in order to fully fulfill both energy and peak demand demands. The
implementation of capacity increase plans should be regularly monitored, with modifications
made as needed. When developing new generation capacity, appropriate technology should be
considered in light of the likely increase in the gap between peak demand and base load. Capital
assets must be renewed and maintenance should be done from time to time. Various policies
should be adopted to encourage the utilization of natural gas in generation of power.

Limitations of the study

Keeping in mind the scope of this dissertation, the analysis has been limited to all India level in
post-reform period. A future dissertation of work could be to compare these parameter which
includes All India Installed Capacities, All India Power Generation, All India power
Consumption and length of transmission and distribution lines in the pre-reform and post-reform
period. In addition an inter-state comparison can also be done for these parameters.

31
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8. Godbole M. (2002). Power Sector Reforms: If Wishes Were Horses. Economic and Political
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Strategy Reviews, Volume 23, 2019, Pages 152-162, ISSN 2211-467X,
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33
Annexure

(Signature of the student)

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Entire Document
CHAPTER 1
Introduction A country's economic growth is entirely dependent on the availability of its infrastructure. Infrastructure
also contributes significantly to higher rates of economic growth as stated by Rostow and many other economists.
Economic infrastructure is divided into two broad categories. 1. Social Infrastructure
Infrastructure- Social infrastructures provide
basic services to meet the basic needs of a society such as education, health, training etc. 2. Physical Infrastructure
Infrastructure-
Physical infrastructure directly supports economic production and distribution. These include irrigation, power,
transportation, and banking. In this dissertation focus is on Power Sector in India.
1.1 Power sector: Overview in India The electricity industry of any country is essential to its economic and social
progress. It without a doubt improves the biotic and human quality of life in this area. The level of development in a
country can be evaluated by examining its use of electricity, which is a vital element of infrastructure and necessary for
the welfare of the nation. Power Generation is a globally variable and India is a prime example of a country with diverse
sources of energy.
The nation’s demand for electricity has increased recently and is predicted to rise in the future also. Massive additions
to the installed producing capacity are necessary to keep up with the nation's rising demand for electricity. As of 2020,
India's installed capacity for renewable energy was fourth, followed by solar power in fifth place and wind power in
fourth. Only India is on track to meet the goals set forth in the Paris Agreement among the G20 countries. The power
Industry is a major driving force behind a country’s financial, agriculture, and economic growth. In 1991, the Indian
government initiated actions in the

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power sector by gradually introducing policy initiatives and establishing an appropriate institutional framework to
meet the continuously growing demand for electricity in

an environmentally-friendly manner. As of May 2022, India had a total installed thermal capacity of 236.1 GW of which
coal contributed 58.6% and the rest was produced by lignite, gas and diesel. In India’s power sector, nearly half of the
country’s thermal electricity is produced by the power sector, with the remaining being generated by the states and
central government, accounting for 24.6% and 26.0% respectively. Need for Power Sector Reforms The Independent
Power Producers (IPP) model was implemented in the first phase of reform in 1991. The government began the reform
effort for the following reasons:
The first step in this manner was the reform of power sector laws in 1991. The Indian power Act of 1910 and the
Electricity (Supply) Act of 1948 were changed to encourage private involvement in power generating. In October 1991,
the Government of India published its first policy declaration, the Government of India Resolution. Around the year
2003, the Electricity Act was enacted, which had been proposed in 2000. This act replaced three existing laws that
governed
the power sector, namely
the Indian

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Electricity Act of 1910, the Electricity (supply) Act of 1948, and the Electricity Regulatory Commissions Act of 1998.

It requires Regulatory Commissions to regulate prices and licenses, as well as the restructuring of State Electricity
Boards into separate bodies. It also requires licensee-free thermal generation, non discriminatory transmission network
open access, and the gradual introduction of distribution system open access. The Act intends to make the power
sector more appealing to potential investors by reducing administrative barriers and increasing incentive for
distribution reform. It comprises thermal generation de-licensing, open access and multiple licensing, no premium for
captive generating, and multi-year rates to stimulate performance improvement and lower regulatory risk. As a result,
all of these efforts were done to fill the substantial disparity between electrical demand and supply. 1.2 Statement of
problem Prior to 1990, Power sector was financially not in a very desirable stage. Therefore after 1991 there was wide
range of reforms which were brought in Power Sector. The main thirst of this research work is to observe the changes
which have occurred in Power Sector at All India Level after the inception of economic reforms. 1.3 Objective of the
study: The objective is going to clarify what our study is going to accomplish and why we are conducting it. This will
also mention the size and complexity of our paper. The proposed study’s objective would be as follows: 1. To study
overall generation and installed capacity from various sources. 1.1. To study about the Installed Capacity from various
sources. 1.2. To study about the Overall Generation in India by various sectors. 1.3. To study the Plant Load Factor

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in India. 1.4. To see the Energy Deficit and Peak Deficit in India. 2. To

study about the power consumption and Power Sales. 2.1. To study about the power consumed by essential sectors.
2.2. To study the power sales ownership wise. 3. To study the growth rate of length of transmission and distribution line
 Research Questions:
A research question specifies precisely what we want to learn from our investigation. The questions that follow have
been developed so as to move forward with the study in accordance with the stated objectives:
1. What is the scenario of overall power generation? 1.1. What is the total installed capacity from various sources? 1.2.
What is the growth of power generation by various sectors? 1.3. What is the scenario of Plant Load Factor in India? 1.4.
What is the status of Energy Deficit and Peak Deficit in India? 2. What is the amount of power consumption and Power
Sales in India? 2.1. What is the amount of power consumed by essential sectors? 2.2. What is the amount of power
sales by various sectors? 3. What is the growth of transmission and distribution line in India
Chapter Scheme This dissertation has been divided into four chapters. Chapter 1: Introduction
This chapter grounds the work and attempts to provide a glimpse into the study's key elements. It comprises the
overview of the study, statement of problem, objectives, research questions, and chapter layout.
Chapter 2: Review of Literature and conceptual framework This chapter provides a critical assessment of several
studies on the power sector in India and power sector reforms. It has been arranged chronologically for clarity and
easy understanding. It discusses majorly about evolutions that took place after reforms and the effectiveness of the
reforms in power sector. The conceptual framework comprises essential key terms and their definitions. It includes the
source of data, time period of the study. It further states about the tools and techniques and their relevance in the
study. Chapter 3: Results and discussions: The results chapter or section reports what we discovered simply and
objectively. The discussion interprets the meaning of the data, contextualizes them, and explains why they are
important. Results and conversation are integrated in our study. This states about various trends shown in Generation,
transmission and distribution areas of power sector in India using the given tools and techniques. Chapter 4:
Conclusion and Suggestions This is the study's concluding excerpt, and it summarises all of the concerns presented in
prior chapters.
Chapter 2
2.1 Review of Literature We will build the study on the basis of a thorough evaluation of the literature. A literature review
is a thorough summary of prior studies on a particular topic. It looks at articles, books, and other sources that are
relevant to a particular field of study. The purpose of the literature review in this paper was not just to provide a general
overview of the literature. This will also serve as a goal to emphasise the main idea of the investigation. The literature
review is organised according to time. Bhatt (2021) described a method for identifying and categorising hurdles to LRT
(Loss Reduction Technologies) implementation in the Indian electricity sector. It is based on a literature analysis and a
survey of stakeholders, and it identifies and categorises 13 barriers at three levels of governance: sector, utility, and
sector-consumer interaction. To rank the barriers, the Analytical Hierarchy Process (AHP) is applied. The findings
suggest that future changes should prioritise enhancing utility-level governance over sector-level governance. Power
sector reforms were initiated to address high network losses, financial losses and escalating debt. This study aimed to
identify key barriers to LRT adoption and rank them using AHP. Organizational inertia was found to be the most
significant barrier. The paper concluded that the power sector reforms should focus on improving utility-level
governance and regulatory institutions can play an important role in nudging this change. Ghosh (2021) conducted a
critical analysis of the impact of three decades of policy reform on the State Owned Electricity Utilities commercial and
technical performance in India. The study utilized Data Envelopment Analysis enhanced by Shanon’s Entropy model to
evaluate the relative performance of SOEUs inefficiencies. For each inefficient SOEU, benchmark SOEUs were identified,
and corrective policy measures were proposed. The study examined the evolution of power sector reform in India and
its effect on SOEU’s commercial and technical performance. The study concluded that the reform strategies
implemented over the last three decades have shown some promising results in some specific parts of the countrybut
have been ineffective in other parts. It was suggested that region and state-specific policies addressing micro level
issues could be the way forward to address energy accessibility and sustainability challenges. Dertinger (2020) looked
at how power sector reforms affect efficiency and access to electricity. Many developing countries have reformed their
electric power industries since the 1990s in order to increase efficiency and service quality. According to the findings,
changes have a significant and positive influence on energy availability, with a comprehensive reform programme
raising connection rates by 20 percentage points and per capita usage by 62 percent. There is, however, no evidence
to back up the claim that changes reduce network losses. This study examines the influence of power sector reforms
on two outcomes: industry efficiency and electricity access, using data from over 100 nations spanning 32 years. It
finds substantial evidence that changes benefit energy access, with a full-fledged reform programme raising power
connection rates by 20 percentage points and per capita home usage by up to 62 percent. The amount of the effect
varies significantly by region, with the positive influence being especially great in South Asia, Sub-Saharan Africa, and
East Asia and the Pacific. However, reform activity does not solve all problems in the electric power business, and
different difficulties may necessitate different strategies. Verma (2020) discussed the chronology of reforms and
suggests measures to improve the quality and reliability of supplied power. India initiated power sector reforms three
decades ago, but still suffers from systemic flaws such as cross-subsidies, inefficiency, technical and financial losses,
poor quality of power, low efficiency, outstanding debts, supply disruptions, inability of expansion, sluggish
privatization, poor customer satisfaction, political interference, and low reliability. This article presents a comprehensive
examination of the current state of the Indian power sector. Even over three decades after the start of power sector
reforms, it has been discovered that power utilities are facing significant financial losses and hence. The various
reasons and policy gaps that are causing the power sector to become financially unsustainable are examined. The
distribution sector lags the most behind the predicted trajectory of improvement when compared to generation and
transmission. Various initiatives are proposed in the current work to strengthen the sector, some of which are partially
implemented by the government of India but are ineffectual. Some improvements are suggested for such policies in
order to maximise their effectiveness. Urpelainen (2019) found that the emergence of hybrid power markets is mostly
limited to impoverished, authoritarian, and low-capacity countries. If these features are lost, a trend of strong
competition may emerge. A panel data study reveals that GDP per capita and institutional capability is strong
predictors of electricity sector reforms. Electricity reliability is critical for economic development, and developing
countries have attempted reforms to improve the performance of their power sectors. Privatisation and competition
liberalisation trail behind other changes in 142 developing countries from 1982 to 2013, however this gap is only
substantial in impoverished and authoritarian countries with low institutional capability. Economic growth and
democratisation have the potential to shift power sectors in emerging economies in a new direction. Suneel (2014)
discussed about functioning and organizational structure of the power sector before and after the reform period. It
assessed the Andhra Pradesh power sector’s technical performance and financial performance. It has been discovered
that organizational structural modifications have improved the electricity sector’s performance in terms of
accountability and transparency and a decrease in theft. Bajaj (2007) examined the pre-reform era and outlines the
fundamental concerns that prompted the reforms to be implemented. In 1991, India experienced widespread electrical
energy shortages and a peak in the power sector. The Government of India launched the reform process in 1991 in
order to revitalize the industry and improve its techno-economic performance. It also examines the possible
consequences of important legislative and regulatory efforts since 1991, such as the requirements of the Electricity Act
of 2003. The Electricity Act of 2003 is projected to overhaul the Indian power industry and serve as an example for
other countries undergoing development. It will pave the road for sector investment, open access availability, improved
supply quality, effective metering and cross-subsidization reduction, and consumer protection. Furthermore, the
Appellate Tribunal will expedite the resolution of appeals against Regulator decisions. Singh (2004) examines important
legislative and regulatory reforms implemented since the early 1990s, as well as market structural changes. It also
addresses two difficulties raised by the recently passed Electricity Act 2003: open access and multi-year prices. The
study also assesses the reform process and addresses the challenges of introducing competition in the power sector.
Reforms in the electricity industry, such as functional separation of generating and transmission and distribution, the
establishment of federal and state regulatory commissions, and selective privatization of distribution portions in a few
states, are expected to help accomplish these aims. The Electricity Act of 2003 makes numerous promises to the
sector, including license-free thermal generation, non-discriminatory access to the transmission system, and the
progressive implementation of open access to the distribution system. However, while attempting to reconcile
commercial prudence and social acceptability of the reform, transition management may prove to be the most
challenging assignment. This necessitates striking a balance between commercial prudence on the one hand and the
social acceptability of the reform on the other. Godbole (2004) discussed in his paper about Several state
governments, including Maharashtra, pledged free power for farmers after Andhra Pradesh. Furthermore, subsidies for
agricultural consumption mostly favor wealthy individuals and large farmers. The Electricity Act, 2003 was being
reviewed to promote competition, protect consumers, rationalize tariffs, and ensure transparent policies regarding
subsidies. Andhra Pradesh has given free power for agriculture and waived arrears to single-bulb households. The
policies also stated that energy efficiency should be promoted as a mass campaign in the rural areas to maximize
benefits and reduce subsidy burdens. The decision to give free power for agriculture in Andhra Pradesh has led to
widespread protests from small farmers, and the chief minister has called an all-party meeting to find a way out.
Wamukonya (2003) investigates the effects of change by using claimed results as a foundation for analysis. Reform of
the power sector is fast spreading throughout the developing world, although its model and approach are challenged.
It says that reform has had some successes but has not achieved many of its objectives. To shift the reform process
towards a more responsible growth path, progressive government action is required. The power sector in many
developing countries has been financially and administratively ailing, leading to calls for reform. However, the
processes adopted have neglected the crucial diversity across reformers and their peculiarities, jeopardizing
sustainable development. Rising electricity demand and unmet electricity needs have necessitated increased
investments in generation at a time when donor and traditional financing agencies policy have shifted from pro-public
sector to pro-private sector. The private sector has been relying on government financial support, but has rarely met
electricity demands. To make utilities financially attractive to the private sector, downsizing has been rampant. Reform
has had some achievements, such as reduction of technical and other losses, but performance indicators need to be
redressed to integrate developing countries circumstances. Sharma (2002) looks at the creation of State Electricity
Boards (SEBs) and central utilities as well as how the Indian power sector has evolved under various Electricity Acts.
The several problems that prompted the adoption of changes are underlined, including huge losses, poor SEB
performance, theft, and corruption in the electricity sector. Finally, it is stated that since depoliticizing tariffs and other
significant steps towards financial and social discipline are required, the success of the changes depends on
cooperation between the federal and state governments. The reforms could free up vast sums of money by reducing
pervasive theft, bribery, and corruption in the power sector. These funds could be utilized by the government to fund
health, education, and other poverty-reduction initiatives. They might provide poor farmers and city inhabitants with
reliable power, considerably improving the quality of their life. Godbole (2002) discussed that since 1993,
improvements to the power sector have been explored, with conferences conducted in 1996, 1998, 2000, and 2001.
However, there is no light at the end of the tunnel, and the experience has taught us some valuable lessons. India is an
outlier, and the World Bank's reform model must be scrutinized. Privatization is not a cure for all issues, as proven by
the controversies surrounding Enron, Congentrix, and Spectrum generating projects. It is critical to build and maintain
investor confidence through viable and sensible policies delivered in an open and transparent manner. State
governments have an important role in power sector changes, and unless difficulties are addressed, the Electricity Bill,
2001, may become a dead letter. Dubash (2001) analyzed the social and political context surrounding the electricity
sector reforms in India, with the aim of understanding how the public interest could be better served in the ongoing
efforts to transform the sector. According to the author, the Independent Power Producer (IPP) and Bank-led
privatization approaches have resulted in delayed consideration of more fundamental reforms in the sector, leading to
deep-rooted privatization efforts. The World Bank played a pivotal role in driving the power sector towards a new
organizational structure, garnering political support for change and convincing key members of the power
bureaucracy of the need for reform. The author stressed that domestic policy-makers, intellectuals, and technocrat
must take responsibility for shaping the future of the power sector in a way that preserves and promotes the public
good. An informed public debate is required to address to address issues such as

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increased access to electricity, social housing, and the promotion of sustainable energy

futures. Upadhyay (2000) in his paper discussed about Distribution has been the weakest link in Indian ESI, with losses
of up to 40% being passed off as agricultural consumption and 'non-technical'. Privatization is being started with
distribution, which may have a positive impact on performance. As the SEBs are the key players in the industry and
their financial disease is the main issue facing it, the ESI reforms will primarily fall under state responsibility under the
federal structure of India. Strong political leadership has been the driving force behind the changes in the pioneer
states. Long-term fundamental restructuring is necessary due to the enormous subsidies and poor energy accounting
and managerial efficiency in the sector. Murthy (1999) discussed that despite the entry of the private sector, the
importance of the state in the electricity generation industry has not diminished. Although the Indian power sector was
allowed to private participation in 1991, generating at commercial plants with capacities less than 2,000 MW did not
begin until 1999.

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Independent power producers (IPPs) allege that problems such as litigation, financial arrangements, and obtaining
clearances

have stymied their expansion. Because of the long gestation period and minimal profits, infrastructure investment has
been a state duty. IPPs have not yet made significant contributions to closing the power demand-supply gap, but
public sector enterprises continue to be the key actors. A service-oriented development-focused paradigm switches
the emphasis from rising consumption to greater energy services. 2.2 Conceptual Framework The conceptual
framework comprises essential key terms and their definitions. It includes the source of data, time period of the study.
It further states about the tools and techniques and their relevance in the study. 2.2.1 Key terms and their definitions
The key terms and their definitions are summarized in the following table: Table 1: Key Terms and their Definitions Key
terms
Definitions Source Thermal Power Plants “Thermal Power Plants (TPP)” means the ‘generating station’ as defined in the
Act for generating electricity using fossil fuels such as coal, lignite, gas, liquid fuel or combination of these as its
primary source of energy to generate electric power; Central Electricity Authority Hydro Power Plants A hydro electric
plant harnesses power from water flowing under pressure through the prime mover known as water turbine. Central
Electricity Authority Nuclear Power Plants Electricity generated by power plants that derive their heat from fission in
nuclear reactor. Britannica Renewable Energy Sources Renewable energy is energy produced from sources like the sun
and wind that are naturally replenished and do not run out. U.S. Department of Energy Peak Deficit Peak deficit Is the
difference between peak power in the country in a particular year and the demand that was met. Hindustan times
Energy Deficit This exists where energy demand is greater than energy met. Weebly Transmission and Distribution Line
A distribution line is a line or system for distributing power from a transmission system to a consumer that operates at
less than 69,000 volts. Collins Dictionary Private Distribution Licensees ‘Distribution Licensee’ means a Licensee
defined under Section 2 (17) of the Electricity Act, 2003 Central Electricity Authority
2.2.2 Data Source Secondary data has been gathered from variety of sources .Data collected from secondary sources
includes annual reports of Central Electricity Regulatory Commission and Central Electricity Authority, EPW research
foundation site, Ministry of power portal and National Power Portal.
The ultimate and main source of data on ALL India Installed capacity utilities, All India Generation, Power
Consumption, Power supply position in India, Power sales, Transmission lines is Central Electricity Authority. The study
utilizes data for the period 1990 to 2020. 2.2.3 Tools and Techniques The tools and techniques that have been used in
this dissertation are summarized below: Log-Lin regression model Trend line Diagrammatic Representation(Stacked
Column Chart, Column Chart, Line Chart)
Log-Lin regression model is used to show relationship between growth of transmission lines with time where a trend
line is further used to establish a relationship. We have used Log of length of transmission lines to because they are
more accurate to see long term change and also reduce skewness of the measurement variable and are easy and
flexible to use. Trend line between All India Generation by various sectors and time is shown with the help of
regression equation. The value of R2 showed how well the model fits the data. The data includes all India Installed
capacity (Utilities) wherein the percentage share of Thermal, Hydro, Nuclear and renewable energy resources in total
installed capacity is shown with the help of stacked area chart. The paper also used data of Power Consumption and
aims to show the percentage share of different essential sectors like agriculture, domestic, commercial, industrial (High
Voltage & Low and medium voltage) in total power consumption for different time period where we have used stacked
column chart. The Peak Deficit and Energy Deficit data in different time periods from 1990-2020 is shown to depict
power supply position in India through column chart. Further we have used a line chart to show contribution (share)
of various sectors (ownership wise) in total Power Sales (Utilities) and their trend with time. These sectors include State
Electricity Board, Municipality, Central Sector and Private Licensees.
Chapter 3
Result and Discussion This dissertation’s result and discussion part will present what we discovered, and it is here that
we will do our analysis. This will help us connect our findings to our study's core goal. The discussion will examine the
findings and place them within the context of the broader study. It connects all of the previous sections and creates a
link between each area of the research paper. 3.1 Power Generation and Installed Capacity This part of result and
discussion discusses about Generation of Power by various sectors and share of different sectors in installed capacities
in India. This section further discusses about Energy Deficit and Peak Deficit in India and Status of Plant Load Factor in
our nation. 3.1.1 Share of Different Sources in All India Installed Capacities (%) During initial periods of power sector
reforms thermal, hydro and nuclear sources of generation together made up total share of All India installed capacity
(Utilities), with thermal holding maximum share because of ample availability of domestic coal, shorter gestation period,
and lower capital cost of coal-based facilities accounting for approximately 62.4%

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of total capacity in 2019-20, followed by Renewable Energy Source (RES) (23.4%), Hydro (12.3%), and Nuclear (1.8%).

Mainly this variable has been observed for the period 1990 to 2020. We will witness different patterns for different
sources. The difference is mainly because of various regulatory reforms and different electricity acts that were passed
during these thirty years. In this objective we have focused on the changes in all India Installed Capacities after the
reform period. Stacked column chart has been used here.
Figure 1: Share of different sources in All India Installed Capacities (%)
Source: Author’s figure based on data from Central Electricity Authority
Share of different sources in All India installed capacities can be seen above from stacked area chart in figure 1. The
share of thermal generation fell from 69.25% in 1990-91 to 62.4% in 2019-20. Between 1990-91 and 2019-20, hydro-
based generation capacity fell from 28.37% to 12.3%, while renewable production capacity increased from 3.21% to
23.4%. This could be because India, which has a lot of renewable energy, has lately added a lot of capacity to the
renewable energy sector. With environmental issues growing in importance, India has now vowed to enhance
renewable contribution in an unprecedented way. 3.1.2. Power Generation by Different Sectors Power is generated by
various sectors. These sectors include State Electricity Boards, Central Sector and Private Licensees. In the research
paper the thirst is to overview power generation by State Electricity Boards, Central Sector and Private Licensees. 3.1.2.1
Power Generation by State Electricity Board Prior to 1991, the Power Sector in India was controlled by a large
integrated cooperation in each state, responsible for generating, transmitting and distributing power and reporting to
the respective State Ministries of Power. However, due to the inefficiency and lack of cost-effectiveness of state owned
enterprises in delivering services, there was a need to rethink service delivery policies. This resulted into various
regulatory reforms through Electricity Regulatory Commissions Act, 1998 and enactment of Electricity Act of 2003.
Figure 2: Power Generation by State Electricity Board
Source: Author’s figure based on data from Central Electricity Authority
As it can be examined from figure 2, the regression line depicts a negative relationship between generation done by
State Electricity Board and time. With time passing by, the power generation by SEB has significantly declined. We have
used here the linear trend model. The trend variable used here is the time variable which is also the independent
variable. These results actually show the downward trend. It can be seen from figure 3 that the negative value of slope
coefficient depicts a downward trend.
Figure 3: Power Generation (Growth) by State Electricity Board
Source: Author’s figure based on data from Central Electricity Authority These results from figure 3 shows over the
period 1990 to 2020 the power generation by State Electricity Boards is decreasing per year. The value of R2 =0.694
tells that 69% of variation in State Electricity Board Generation(Y axis) is explained by time component(X axis). State
electricity board suffered financial and commercial losses. Thus there has been decline in total generation by State
Electricity Board which generated about 157121.57 Gwh in 1990-91 but due to various reforms and financial and
commercial losses it generated 9451.08 Gwh in 2012-13. Both the linear trend model and Log-lin or growth model has
been used to to show the trend as well as growth of of the generation by State Electricity Board.
3.1.2.2 Power generation by Central sector Power is generated by various sectors. Central sector generates power and
also holds the maximum share in generation. Figure 4: Power Generation by Central Sector
Source: Author’s figure on data from Central Electricity Authority Figure 5: Power Generation (Growth) by Central Sector
Source: Author’s figure on data from Central Electricity Authority As investigated from the figure 4 there has been a
positive relationship between total generation by central sector and time. As time is increasing the generation done by
central sector is also increasing. Here a linear trend model is used to show the upward trend. The positive value of
slope coefficient suggests that there is a upward trend between power generated by central sector and time. Figure 5
shows the scatter diagram of the log of generation and time fitted the regression line. These results from figure 5
shows over the period 1990 to 2020 the power generation by Central Sector is increasing per year. The Log- lin model
is used here to show the growth of power generated by central sector with respect to trend variable that is time. The
central sector continues to be largest owner with 61.83% share in total generation for the year 2019-2020. The
generation by Central Sector has stretched from 92286.73 in 1990-91 Gwh to 855456.04 Gwh in 2019-20 with
Compound annual growth rate 7.98%. 3.1.2.3 Power Generation by Private Licensees The Private Licensees contribution
in Power has rose from 12946.86 in 1990-91 Gwh to 527960.71 Gwh in 2019-20 with Compound annual growth rate
of 13.64%. This increase can be inferred by the fact that the Electricity Act of 2003 gave the Regulatory Commissions
more powers; it permitted for the unbundling of state-owned electricity boards and several DISCOMs in a given area; it
allowed for open access; and it prohibited cross-subsidies in the sector. The 1948 Act and the 1998 Act were both
repealed. Under the Electricity Act of 2003 in India, distribution licensees are permitted to establish their own separate
network in the same geographical area, resulting in completion among segment players. The Private Licensees have
also turned to be very efficient in generation of power. This was indeed needed because of inefficiency of state
electricity boards in generation of power. The rising demand for power was met because of the generation by Central
Sector and Private Licensees.
Figure 6: Power Generation by Private Licensees
Source: Author’s figure on data from Central Electricity Authority
Figure 7: Power Generation (Growth) by Private Licensees
Source: Author’s figure on data from Central Electricity Authority As depicted by figure 6 positive relationship between
Total Generation by Private Licensees and Time. The independent variable taken here is time and dependent variable is
total generation by private licensees. The linear trend model shows an upward trend here. With growing time, Total
generation of power by Private Licensees is also growing. Figure 7 shows the scatter diagram of the log of generation
and time and the fitted the regression line. These results from figure 7 shows over the period 1990 to 2020 the power
generation by Central Sector is increasing per year. The R2 value is 0.646 which suggests that 64% of the variation in
Total generation is explained by time. 3.1.3 Plant Load Factor in the country A plant load factor (PLF) is a measure of a
thermal power unit's average capacity utilization. In the electrical sector,

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load factor is a measure of a power plant's output in relation to its maximum output.

Figure 8: Plant Load factor (in %)

Source: Author’s Figure based on data from Central Electricity Authority The graph above illustrates that

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the capacity utilization or Plant Load Factor of thermal power plants has declined over the
years. In 2009-10, the Plant Load Factor was 77.5%, while in 2019-20, it dropped to 54.51%. This is noteworthy since the
generation capacity has been steadily increasing during this period. The Plant Load Factor of private and state
generators (in terms of ownership) is lower than that of central generators. The Plant Load Factor of state sector has
declined from 70.9% to 46.23% and PLF of private sector has decreased from 83.9% to 56.64% during 2009-10 to
2019-20. Although the share of central sector has also decreased from 85.5% in 2009-10 to 63.4% in 2019-20, but its
share is more and better than state or private sector (in terms of ownership). Table 1: Sector-wise PLF (in %) Year
Central PLF (%) State PLF (%) Private PLF (%) 2009-10 85.5 70.9 83.9 2010-11 85.1 66.7 80.7 2011-12 82.1 68 69.5 2012-
13 79.2 65.6 64.1 2013-14 76.1 59.1 62.1 2014-15 73.96 59.83 60.58 2015-16 72.52 55.41 60.49 2016-17 71.98 54.35
55.73 2017-18 72.98 56.9 55.34 2018-19 72.64 57.81 55.24 2019-20 63.4 46.23 54.64 Source: Author’s table based on
data from Central Electricity Authority Table 1 displays Plant Load Factor details for various types of generators. As it
can be seen from the table, the plant load factor of all the sectors has declined from the period 2009-10 to 2019-20.
The plant load factor of central sector, state sector, private sector has declined from 85.5% to 63.4%, 70.9% to 46.23%,
83.9% to 54.64% during the period from 2009-10 to 2019-20 respectively. 3.1.4 Energy deficit and peak deficit in India
The gap between required energy and available energy is given by energy deficit and the difference between the peak
demand and demand met in a particular year is given by peak deficit. According to the CEA, the demand-supply gaps
were caused by transmission and distribution difficulties rather than a lack of power. It was noted that most
governments had short-term surpluses at some point in time, and that this surplus power was sold to deficit states or
neighboring countries via bilateral contracts, power exchanges, or merchants.
Since DISCOMs often use load-shedding to address rising demand, the actual peak deficit is likely certainly larger.
Peak demand has increased, which has caused the hourly prices in the day-ahead market on the exchanges to be
more volatile. Electricity demand is defined narrowly since it only counts the quantity of electricity purchased by

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distribution utilities, rather than the true demand of the millions of people in India who remain

underserved.
Figure 9: Power supply position in India
Source: Author’s figure based on data from Central Electricity Authority As it is illustrated in Figure 9, the given bar
graph shows that the gap between energy demanded and energy supplied has declined from 10.1% in 2009-10 to
0.5% in 2019-20. The difference between peak demand and peak met has declined from 12.7% in 2009-10 to 0.7% in
2019-20. For the financial year 2019-20, 1,283,690 MUs were supplied against the requirement of 1,290,247 MUs of
energy. The amount of power supplied was 6,557 MUs lesser than the target energy requirement, as per the data
provided by the CEA. 3.2 Power Consumption and Power Sales The consumption and sales form an essential part of
Power Sector in India. Power is consumed by various sectors. Some of the important sectors include agriculture,
industry, commercial, domestic. Power in India is sold by sectors like State Electricity Boards, Central Sector, Private
Licensees and Municipalities. In this dissertation our focus is to see the power sales by these sectors. 3.2.1 Power
Consumed by Essential Sectors The power consumption by various essential sectors includes domestic, commercial,
agriculture, High Voltage Industry and Low and Medium Voltage Industry. This shows share of various sectors in total
power consumption.
Figure 10: All India Power Consumption (utilities) by various sectors (%)
Source: Author’s figure based on data from Central Electricity Authority The graph shows that the agriculture sector's
proportion of power consumption increased from 26.43% in 1990-1991 to 31.97% in 1998-1999 before declining to
20.07% in 2019-20. Domestic power consumption increased from 16.80 percent in 1990-91 to 29.33 percent in 2019-
20. The rising population and income level of people are mostly driving the increase. This industry is expanding faster
than agriculture. During this time, the commercial sector's share of power consumption increased from 5.87% to
10.07%. From 1990-91 to 2019-2020, the High voltage industry fell from 35.06% to 25.63% and the Low and Medium
voltage industries fell from 9.17% to 6.39%. During this time, per capita power consumption in India increased at a
4.42% annual growth rate from 227.47 Kwh in 1990-91 to 796.87 Kwh in 2019-20. Despite this significant development
and low electricity tariff, India's

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per capita energy consumption is modest when compared to the global average per capita energy consumption.
3.2.2
Power Sales contributed by Different Sectors (%) The power sector has undergone tremendous transformation as a
result of the expansion of the industrial and service sectors in the 1980s and 1990s. Regulations were changed during
this time period in an effort to boost private sector involvement, promote more competition and boost efficiency.
The state owned electrical boards were reorganized as a result and thus the share of SEB in power sales has been
considerably declining. After de-licensing, the segment steadily saw more private activity. The share of various sectors
in power sales have been shown with the help of this line chart. We can easily interpret here the trend of share of
different sectors during the period 1990 to 2020. Power sector has undergone various reforms and transformations
that has affected the share of power sales. The significant trend can be seen among central sector and private sector.
Figure 11: Contribution of various sectors to Power sales (%)
Source: Author’s figure based on data from Central Electricity Authority As can be seen and analyzed from figure 11,
The State electricity board’s share in Power sales has witnessed a considerable fall during this period from 1990-91 to
2019-20. It has declined from 84.49% to 3.48%. We can see an increase in share of private sector from 7.40% in 1990-
91 to 12.64% in 2007-08. The Municipality sector’s share has declined from 4.69 % in 1990-91 to 0.58 % in 2019-2020.
The central sector is contributing the maximum share from 3.4% in 1990-91 to 89.83% in 2019-20 with CAGR 18.74%.
3.3 Growth of Transmission and Distribution Line Transmission lines have grown at a 4% annual rate on average since
2007. We have used Log-Lin regression or growth model to see the growth of transmission and distribution line from
the period 1990 to 2020.
Figure 12: Growth of transmission and distribution line
Source: Author’s figure based on data from Central Electricity Authority In the figure 12 we can see that regression line
has a positive slope which implies that as time is increasing on the x-axis the length of transmission lines is also
increasing. This is indicating a direct relationship between length of transmission lines and time. The independent
variable taken here is time and dependent variable is log length of transmission line. The log of length of transmission
line is taken to stabilize the variance of response and are flexible to use and easily interpretable. The regression
equation is 0.0155x+6.62 and the value of R2 is 0.974 which suggests that model fits the data very nicely and 97.4% of
the variation in Y-axis is explained by the x -axis. The length of transmission lines(in ckt. kms) has increased from
4533374 ckt. kms to 13279315 ckt. Kms with compound annual growth rate of 3.78%. The

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open access principle is found on the premise that, while it is uneconomical to build numerous transmission lines in
the same region

due to the high sunk costs involved, it is still best to provide consumers the option of choosing which firm's electricity
they want to consume.
Chapter 4
Conclusion and Suggestion This chapter is divided into two parts conclusion and suggestion. In a dissertation's
conclusion, we tie up our arguments and provide the reader with a powerful concluding impression. It has several
primary objectives which include restating the issue at stake from the study summarizes our main points or findings
and provides significant takeaways from our paper. In this particular dissertation, three major dimensions have been
observed. The three major dimensions include Generation, Consumption, Transmission and Distribution of Power in
India. On the basis of that we can broadly enhance on Generation, Consumption, Transmission and Distribution.
Power Generation is the method used to generate power from various fuels in generating stations. In India, many
energy sources are used for the production of electricity. The country's electricity generation capacity was 1383416.75
GW as of 2020. This rise can be linked to the de-licensing of electricity generation in 2003, which allowed for the
unfettered participation of private sector companies. The share of thermal power in total generation stands at 62.4%.
Renewable energy makes up approximately 23.4% of total generation capacity. Hydropower accounts for 12.3% of total
generation, while nuclear accounts for 1.8%. The generation of power by various sectors has also seen a significant
change. The power generated by State Electricity Board has declined with time whereas the power generation by
Central Sector and Private Licensees has increased with time because of various regulatory reforms and Electricity Act
of 2003.

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Plant Load Factor is a ratio of a power plant's output to its maximum output.
The Plant Load Factor of private and state generators is lower than that of central generators. The energy deficit and
peak deficit has declined from 10.1% in 2009-10 to 0.5% in 2019-20. The power is consumed by various sectors in
India and the per capita power consumption has seen an increase because of rising population and income level of
people. As of 2020, India's per capita power usage was 796.87 kWh. Since 1990, consumption has climbed at an
annual pace of 4.42% on average. However, it is significantly lower when compared to several other countries. The
Power Sales has undergone a tremendous transformation because of de-licensing. This further resulted into decline in
State electricity board’s share in Power Sales but a significant increase in private and central sector’s share in Power
Sales. The length of transmission and distribution line has also grown over the period from 4533374 ckt. Kms in 1990
to 13279315 ckt. Kms. in 2020. The current scenario after result and discussion above undervalues few critical
suggestions. In contrast to the current emphasis on sector-level governance, power sector reforms ought to
concentrate on improving utility-level governance. The regulatory agencies can influence this development in a
significant way. If reform's developmental aims are to be accomplished, the government must play a greater role in the
process. There is a need to develop appropriate reserve capacity margin in order to fully fulfill both energy and peak
demand demands. The implementation of capacity increase plans should be regularly monitored, with modifications
made as needed. When developing new generation capacity, appropriate technology should be considered in light of
the likely increase in the gap between peak demand and base load. Capital assets must be renewed and maintenance
should be done from time to time. Various policies should be adopted to encourage the utilization of natural gas in
generation of power. Limitations of the study Keeping in mind the scope of this dissertation, the analysis has been
limited to all India level in post-reform period. A future dissertation of work could be to compare these parameter
which includes All India Installed Capacities, All India Power Generation, All India power Consumption and length of
transmission and distribution lines in the pre-reform and post-reform period. In addition an inter-state comparison
can also be done for these parameters.

Hit and source - focused comparison, Side by Side

Submitted text As student entered the text in the submitted document.
Matching text As the text appears in the source.

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power sector by gradually introducing policy initiatives power-sector reform initiatives in 1991, by introducing
and establishing an appropriate institutional framework several policy initiatives in a phased manner and setting
to meet the continuously growing demand for electricity up an adequate institutional framework, to meet the
in ever-growing demand for electricity in

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in India. 1.4. To see the Energy Deficit and Peak Deficit in in India (%), 2008-09 to 2019-20 4 Figure-4 Energy
India. 2. To Deficit and Peak Deficit in India, 2008-09 to 2019-20 6

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Independent power producers (IPPs) allege that Independent power producers (IPPs) claim that their
problems such as litigation, financial arrangements, and progress has been hindered by problems such as
obtaining clearances litigation, financial arrangements, and obtaining
clearances

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of total capacity in 2019-20, followed by Renewable of the total installed generation capacity in 2019-20,
Energy Source (RES) (23.4%), Hydro (12.3%), and Nuclear followed by Renewable Energy Source (RES) (23.4%),
(1.8%). Hydro (12.3%), and Nuclear (1.8%). 2.

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Electricity Act of 1910, the Electricity (supply) Act of 1948,

and the Electricity Regulatory Commissions Act of 1998.

thesis document_ MUKESH.docx (D141860756)

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the capacity utilization or Plant Load Factor of thermal the capacity utilization or the plant load factor (PLF) of
power plants has declined over the thermal power plants has declined in 2019-20. The

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increased access to electricity, social housing, and the

promotion of sustainable energy

Final_Thesis__4_ (1).doc (D16115044)

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distribution utilities, rather than the true demand of the distribution utilities buy, but not the actual demand of
millions of people in India who remain the millions of people in India who remain

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per capita energy consumption is modest when per capita energy consumption in India is low when
compared to the global average per capita energy compared to the international average per capita energy
consumption. 3.2.2 consumption.

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open access principle is found on the premise that, open access is based on the premise that while it is
while it is uneconomical to build numerous transmission uneconomical to lay down multiple transmission lines in
lines in the same region the same region

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load factor is a measure of a power plant's output in

relation to its maximum output.

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Plant Load Factor is a ratio of a power plant's output to

its maximum output.

Consumer Complaint CIACONSUMER PROTECTION ACT COMPONENT 2 22113118 22113124 22113130 -

ARCHITA 22 ... (D160172420)