The power value chain in India has seen significant reforms, especially after the dawn of the Electricity Act, 2003 seeking renewed focus on efficiency, encouraging competition and transparency to ensure availability of power at reasonable prices. Generation being a delicensed activity, has seen robust competition adding to lower cost of generation and galloping growth.
Currently, the country enjoys the installed capacity of about 360 GW against a peak power demand of about 175 GW. Wider competition has seen the power prices plummeting at generation end, making it more accessible commodity. The second part of value chain is a work in progress as the country is adding a lot in terms of availability of power transmission infrastructure to make it a plug and play enabler of power flow for upcoming large renewable energy (RE) pipeline. Competition hasalready played a miraculous role in reducing the power delivery cost by making it go down by as much as 50% and government is well on its way to encourage competition further for all transmission projects in the country.
Read more: ET Energy