From the Seminar Annual Issue. Originally published here Thanks for reading Second Opinion! Subscribe for free to receive new posts and support my work. AKSHAY JAITLY India is moving towards the creation of a centralized national electricity market, particularly for renewal energy. This is a consequence of steps taken by the Union government on the one hand and a growing market for power sales excluding the state government owned power distribution companies (Discoms) on the other. The Discoms’ poor financial position incentivizes them to try and protect every rupee of revenue, even at the cost of breaching contracts with private power producers. Their expensive and unreliable power supply is driving their best source of revenue – commercial and industrial (C&I) consumers out of their networks. This will worsen their financial condition. They have a way out – reforming their power sectors. This is not an easy option but international climate finance and privatization of state assets provide solutions.
A fork in the road for state electricity reforms
A fork in the road for state electricity…
A fork in the road for state electricity reforms
From the Seminar Annual Issue. Originally published here Thanks for reading Second Opinion! Subscribe for free to receive new posts and support my work. AKSHAY JAITLY India is moving towards the creation of a centralized national electricity market, particularly for renewal energy. This is a consequence of steps taken by the Union government on the one hand and a growing market for power sales excluding the state government owned power distribution companies (Discoms) on the other. The Discoms’ poor financial position incentivizes them to try and protect every rupee of revenue, even at the cost of breaching contracts with private power producers. Their expensive and unreliable power supply is driving their best source of revenue – commercial and industrial (C&I) consumers out of their networks. This will worsen their financial condition. They have a way out – reforming their power sectors. This is not an easy option but international climate finance and privatization of state assets provide solutions.