Bottom-up electricity reform using industrial captive generation : a case study of Gujarat, India

Financing new electricity generation capacity has been a persistent problem in developing countries. The conventional response has been to create competitive electricity markets by encouraging new entry into the generation sector and by breaking up vertically integrated monopolies power companies. T...

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Main Author: Hansen, C
Format: Working paper
Language:English
Published: Oxford Institute for Energy Studies 2008
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author Hansen, C
author_facet Hansen, C
author_sort Hansen, C
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description Financing new electricity generation capacity has been a persistent problem in developing countries. The conventional response has been to create competitive electricity markets by encouraging new entry into the generation sector and by breaking up vertically integrated monopolies power companies. This paper argues using a case study from Gujarat, India, for an alternative approach – leverage the captive power capacity (self-generation) of industry to reshape the generation and distribution sectors from the bottom up. Captive power is well positioned to both add capacity to systems struggling to meet demand and increase competition in the power market. A bottom-up method of power reform enables capacity from independent and industrial sources, which will best harness the financial and engineering resources of the Indian electricity supply industry. The solution proposed is not put forward as an optimised policy prescription, but instead represents the best of the feasible options available within current political and economic constraints.
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spelling oxford-uuid:df354667-e08e-4e74-935a-c522f1a1fc5d2022-03-27T09:37:51ZBottom-up electricity reform using industrial captive generation : a case study of Gujarat, IndiaWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:df354667-e08e-4e74-935a-c522f1a1fc5dEnglishOxford University Research Archive - ValetOxford Institute for Energy Studies2008Hansen, CFinancing new electricity generation capacity has been a persistent problem in developing countries. The conventional response has been to create competitive electricity markets by encouraging new entry into the generation sector and by breaking up vertically integrated monopolies power companies. This paper argues using a case study from Gujarat, India, for an alternative approach – leverage the captive power capacity (self-generation) of industry to reshape the generation and distribution sectors from the bottom up. Captive power is well positioned to both add capacity to systems struggling to meet demand and increase competition in the power market. A bottom-up method of power reform enables capacity from independent and industrial sources, which will best harness the financial and engineering resources of the Indian electricity supply industry. The solution proposed is not put forward as an optimised policy prescription, but instead represents the best of the feasible options available within current political and economic constraints.
spellingShingle Hansen, C
Bottom-up electricity reform using industrial captive generation : a case study of Gujarat, India
title Bottom-up electricity reform using industrial captive generation : a case study of Gujarat, India
title_full Bottom-up electricity reform using industrial captive generation : a case study of Gujarat, India
title_fullStr Bottom-up electricity reform using industrial captive generation : a case study of Gujarat, India
title_full_unstemmed Bottom-up electricity reform using industrial captive generation : a case study of Gujarat, India
title_short Bottom-up electricity reform using industrial captive generation : a case study of Gujarat, India
title_sort bottom up electricity reform using industrial captive generation a case study of gujarat india
work_keys_str_mv AT hansenc bottomupelectricityreformusingindustrialcaptivegenerationacasestudyofgujaratindia