NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Estimating the Impact of Restructuring on Electricity Generation Efficiency: The Case of the Indian Thermal Power Sector

Kabir Malik, Maureen Cropper, Alexander Limonov, Anoop Singh

NBER Working Paper No. 17383
Issued in September 2011
NBER Program(s):   EEE

We examine the impact of electricity sector restructuring on the operating efficiency of coal-fired power plants in India. Between 1995 and 2009, 85 percent of coal-based generation capacity owned by state governments was unbundled from vertically integrated State Electricity Boards into state generating companies. We find that generating units in states that unbundled before the Electricity Act of 2003 experienced reductions in forced outages of about 25% and improvements in availability of about 10%, with the largest results occurring 3-5 years after restructuring. We find no evidence of improvements in thermal efficiency at state-owned power plants due to reform.

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This paper was revised on July 1, 2013

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Document Object Identifier (DOI): 10.3386/w17383

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