An overview of Indian power sector and its Energy Management

Abstract

India’s power sector has undergone significant changes in recent years, driven by various policy initiatives aimed at promoting competition, improving efficiency, and increasing the share of renewable energy sources in the country’s energy mix. This manuscript provides an overview of the current state of the Indian power sector and their recent developments. The manuscript discusses the structure of India’s power sector, including the role of various players such as generation companies, transmission companies, and distribution companies. The manuscript then analyzes policy initiatives aimed at reforming the sector, these include the Electricity Act of 2003, which introduced competition in the generation and retail segments, the Ujwal DISCOM Assurance Yojana program, which aimed at improving the financial health of distribution companies, and, the Revamped Distribution Sector Scheme which has been approved by the Government of India to assist DISCOMs in improving their operational efficiencies and financial sustainability. The manuscript also discusses recent developments in the renewable energy sector in India, including the growth of solar and wind power, the implementation of renewable purchase obligations, and the introduction of competitive bidding for renewable energy projects. Finally, the manuscript examines the impact of recent developments on the performance of India’s power sector and the power exchange. It finds that while significant progress has been made in promoting competition and increasing the share of renewable energy, challenges such as the high cost of electricity and the financial health of distribution companies persist. The paper concludes by discussing potential areas for further reform and improvement in the sector.