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

Working paper

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.

Authors: Hansen, C

• Publication status: Published
• Peer review status: Reviewed (other)
• Publisher: Oxford Institute for Energy Studies
• Series: OIES paper
• Publication date: 2008-01-01
• Edition: Publisher's version
• Paper number: EL07
• ISBN: 9781901795684
• Language: English
• Keywords: electricity markets; OIES; SEB; CPP; GEB; distribution; transmission; Gujarat; power reform; India; capacity; captive power; generation