Anoop Singh

Indian Institute of Technology Kanpur | IIT Kanpur · Department of Industrial and Management Engineering (IME)

Power sector reforms in India were initiated at a juncture when the sector was plagued with commercial losses and burgeoning subsidy burden. Investment in the sector was not able to keep pace with growing demand for electricity. This paper takes stock of pre-reform situation in Indian power sector and identifies key concerns that led to initiation...

The initial phase of reforms in the Indian power sector was primarily aimed at bringing regulatory reforms and unbundling of the vertically integrated State Electricity Boards (SEBs). Enactment of the Electricity Act 2003 led to deepening of the reform process by dismantling this monopoly in the power sector. Primary issues emerging on account of t...

Electricity generation from renewable energy sources in India has been promoted through a host of fiscal policies and preferential tariff for electricity produced from the same. The fiscal policies include tax incentives and purchase of electricity generated through renewable energy sources. The enactment of the Electricity Act 2003 (the Act) has l...

This paper examines the impact of unbundling of generation from transmission and distribution on the operating efficiency of state-owned thermal power plantsin India. Using information collected by India’s Central Electricity Authority we construct a panel dataset for thermal power plants for the years 1994-2008. We take advantage of variation acro...

The Indian electricity sector offers the possibility for efficiency improvements across power generation, transmission and end-use of electricity. Three specific climate co-benefit policy options are identified which have significant potential to mitigate CO2 emissions in the Indian power sector: (1) the adoption of clean and efficient coal-based g...

We examine whether the unbundling of generation from transmission and distribution services at state-owned power plants in India improved operating efficiency at these power plants. Between 1995 and 2009, 85 percent of coal-based generation capacity owned by state governments was unbundled from vertically integrated State Electricity Boards into st...

This paper presents a theoretical framework for evolving architecture of the power grid, energy market, and energy users. A smart grid-led power market has been established as a result of the evolving structure of the power system to support the global drive towards net-zero carbon emissions. This has led the system architecture of the energy marke...

In a smart grid, with the emergence of behind-the-meter distributed energy resources (DER) integration, multiple consumers are emerging as prosumers. A prosumer’s chance of maximizing the payoff through peer-to-peer (P2P) trading is bringing a prolific change in the existing energy market. However, for any successful P2P trading, it requires a mutu...

The prevailing knowledge-value-intention-action gaps on personal and societal benefits of electric vehicle (EV), challenges an energy user’s ability from its wider adoption. This work presents a model to empower an energy user to emerge as an EV-prosumer using vehicle-to-grid(V2G)/ vehicle-to-home(V2H) integration. The proposed algorithm uses an en...

The infrastructure sector is one of the major pillars for economic growth and development of a country. The responsibility to develop this crucial sector is shifting away from the public to the private sector. After the economic liberalization in 1991, India opened the infrastructure sector, among many others, to private domestic and foreign invest...

Demand and supply characteristics of electricity differ not only in the physical context but also in the associated costs and prices thereof. The Electricity Act, 2003, aims to promote efficiency and incentivise the same through measures to be designed by the respective SERCs. The supply code, as well as the standards of performance for an electric...

The cost of equity capital is a key input used by regulators to fix permissible rates of return and determine regulated tariffs. Investors also need an appropriate hurdle rate to make investment decisions. Regulators worldwide often use a single-factor model to estimate the cost of equity. The empirical literature shows that such a model has limite...

Purpose This paper aims to investigate the explanatory power of the Fama-French five-factor model and compares it to the other asset pricing models. In addition, the paper examines the contributions of two additional factors: profitability and investment factor. The authors test the alternative four-factor models. Design/methodology/approach The a...

Editorial The power market has observed increased competition in short-term transactions, while long-term market remains mixed with continued reliance on regulated tariffs for conventional capacity and reliance on RE competitive bidding. A vacuum in the mid-term market exists that discover price through competitive bidding. The DEEP platform offers...

The ability of a distribution utility to absorb an increasing share of Renewable Energy (RE) sources is significantly influenced by grid flexibility and, its financial as well as operational implications. While the nation may have a single target to decarbonise the Indian power sector through greater RE penetration, sufficient room should be availa...

The peak electricity demand across the country scaled a new high due to hot summer and economic recovery across most of the sectors. Rising share of Renewable Energy (RE) sources, aimed at decarbonising the power sector, is now being reflected in high share of RE in the overall electricity supply. The high peak RE generation exceeding 40 GW is now...

The Indian power sector has witnessed significant development in rural electricity access, growth of renewables as well as development of various market segments, since the enactment of the Electricity Act 2003. The experience with developing and implementing regulatory framework, particularly those related to multi-year ARR and tariff framework, e...

Increasing share of variable renewable energy (VRE) raises an additional challenge for the system operator to address imbalances on account of uncertainty of VRE generation and electricity demand. The proposed framework by CERC for introducing the secondary reserves ancillary services (SRAS) and tertiary reserve ancillary services (TRAS) aims to ad...

The Indian power sector continues to remain on remand policy and regulatory oversight to bring it out of the financial stress. Even though the sector has witnessed improvement, particularly since the enactment of the Electricity Act 2003, poor operational and financial performance across some states remains a concern. The sector also aims to furthe...

Editorial Markets behave in response to newly discovered information, and the pace of that response reflects market efficiency. EAL's analysis (PC: Vol.3, Issue.2) highlighted a consistent behavioural observation that RTM prices were found to be proportionally higher than the DAM discovered price for the same time block across more days in a month,...

Power sector investment is subject to several risks – operational, financial, environmental, political, etc. The sector witnessed a temporary policy and regulatory uncertainty with the change in law encountered in another country. The proposed rules of the ministry address the key concerns from the investors' perspective. However, such provisions s...

Driven by the recovery of industrial activity, particularly in the western region, electricity demand is on a path to growth as peak demand during the previous quarter surged beyond that recorded last year. While the pace of capacity addition in the renewable energy sector has temporarily slowed down, the RE peak generation witnessed a small reduct...

The renewable energy generation is often encouraged with policies like subsidies, fiscal incentives, renewable purchase obligation (RPO) and feed-in tariffs (FiTs). The impact of these policies on harnessing renewable energy sources is influenced by resource endowments, access to technology, grid connectivity, cost and taxation structure, as well a...

Reliable and secure operation of a power system depends on the ability of system operation to address system imbalances on account of demand-supply imbalances and that an account of change in availability of transmission network elements. The impact of a power plant or transmission line failures causes a short-term imbalance between generation and...

This paper proposes a strategic framework of prosumers' optimal decision making to optimize their expected return stimulated by their choice of participation for the three given distributed electricity market (DEM) segments as, = 1) P2P price-based real-time market, = 2) distribution ancillary services (AS) market, and = 3) FIT. A two-stage optimiz...

Post COVID-19 lockdown, electricity demand has been witnessing a gradual recovery, with the western region contributing most of this recovery, followed by the northern region. Given the growing generation from renewable energy sources and subdued electricity demand, the plant load factor (PLF) of thermal generation plants witnessed a downward trend...

More than two decades since the reforms process was introduced in the Indian power sector, distribution losses, are still higher than the desirable levels, and continue to pose challenges for the viability of the entire sector. Adoption of loss reduction technologies (LRTs) is crucial to address high distribution losses and, improve quality and rel...

Emergence of the short-term electricity market, particularly Day-ahead Market speaks about the ability of the generators as well as utilities and consumers in rebalancing their portfolio leading to improved availability of electricity at competitive prices. Short-term market also helped in addressing frequency deviations as short-term changes in d...

The Indian power sector is witnessing transformation due to dynamic policy and regulatory environment, and the evolving market structure. This influences the underlying risk of the projects and, returns thereof. Regulatory benchmarking of financial parameters needs to respond to dynamism in the macroeconomic environment and capital markets. Return...

Reliable and stable power system operation requires flexibility, in addition to capacity adequacy. Traditional system components either have limited flexibility to suppress extensive system variation, or their role is limited due to lack of proper regulatory provisions and inefficient market design. Large-scale integration of renewable energy (RE)...

Electric distribution utilities in India procure power through long term, medium term, as well as short term power purchase agreements (PPAs), most of which have been discovered through non-competitive route with regulatory approval. Optimisation of state/specific power procurement portfolio is undertaken by the Distribution Companies (DISCOMs) and...

Expected to further broaden and deepen the short-term electricity market in India, rollout of Security Constrained Economic Despatch (SCED) and the upcoming introduction of Real Time Market (RTM) are steps in that direction. The SCED optimises power procurement across ISGS plants, once state entities have finalised their respective schedule. The be...

Reduction of distribution losses is the key to sustainability of entire Indian power sector. Although sufficient emphasis has been placed on adoption of distribution loss reduction technologies (LRT) such as high voltage distribution system, it has not made significant inroads. Building on new institutional economics and sociological approaches, we...

The guidelines for implementation of solar PV based agriculture pumps, under the PM-KUSUM scheme, aims to promote deployment of RE resources across the rural grid, and implementation of grid-connected as well as off-grid irrigation pumps. The provisions related to land acquisition should not encourage large-scale conversion of the arable land thus...

The Indian power market has largely been dominated by long-term power agreements which lock-in the quantum as well as the fixed and the variable cost of power procurement (with escalation factors). Post Electricity Act 2003 and subsequent setting up over of the power exchanges, development of the short-term power market has brought in a competitive...

CER would like to highlight the growing complexity of the ARR determination and tariff making process as ERCs adopt different terminologies, definitions and classification of cost heads. There is a need for regulatory harmonisation in the context of data templates and definitions to make them amenable for efficiency benchmarking across distribution...

SCED framework, rolled out on 1st April 2019 on a pilot basis, is expected to enhance the spirit of competition and efficiency, as enshrined in the Electricity Act 2003, with measurable gains in terms of savings due to optimisation of power procurement portfolio for ISGS plants. EAL estimates daily savings to range between Rs. 0.5 to 10.5 crores fo...

CER would like to highlight the growing complexity of the ARR determination and tariff making process as ERCs adopt different terminologies, definitions and classification of cost heads. There is a need for regulatory harmonisation in the context of data templates and definitions to make them amenable for efficiency benchmarking across distribution...

Design of electricity markets should continuously strive for economic efficiency, addressing market power and ensuring fairness in distribution of costs. The pilot phase of Security Constrained Economic Dispatch (SCED) of electricity would assist regulators as well as policymakers in informed decisionmaking for market design, keeping long-term obje...

Regulated tariff for interstate generating stations as well as transmission licensees has evolved since CERC issued the first Terms and Conditions of Tariff in 2001. The discussion paper floated on the subject of terms and conditions of tariff for the period beginning in 2019 proposed a number of changes in the regulatory framework. Centre for Ener...

EAL's analysis as presented in this issue shows significant variations in the regional demand profiles (except Southern Region) over the months October to December, although the national level load profiles were relatively consistent. Based on inputs from readers, the analysis of URS at national level, as presented in this issue, excludes gas-based...

Regulated tariff structure not only influences the overall return to investors but also impacts the final tariff payable by the consumers. Introduction of time-of-day (ToD) based capacity charges for generators may present implementation challenges and lead to higher consumer tariff. It should hence be ensured that the proposed structure does not g...

Energy Analytics Lab (EAL) is an initiative to empower decision-making in the Indian power sector. EAL has put concerted efforts over the last two years to bring forth data analyses and visualisation of the power system and the power market data. Through this newsletter, we provide a glimpse of EAL's analytics that can provide deeper insights into...

It gives me immense pleasure to present the first issue of Regulatory Insights, the quarterly newsletter of Centre for Energy Regulation (CER). Each issue aims to bring insights into key regulatory and policy developments in the power sector, accompanied with analysis based on CER's Regulatory Database. ERC Tracker, comprising regulatory updates an...

It gives me immense pleasure to present the first issue of Regulatory Insights, the quarterly newsletter of Centre for Energy Regulation (CER). Each issue aims to bring insights into key regulatory and policy developments in the power sector, accompanied with analysis based on CER's Regulatory Database. ERC Tracker, comprising regulatory updates an...

Aim: Propose a Data Envelopment Analysis (DEA) based approach to set energy efficiency targets under the Perform, Achieve and Trade (PAT) framework of the Bureau of Energy Efficiency (BEE) Design / Research methods: We adopt input-oriented non-controllable DEA model with variable return to scale DEA Conclusions / findings: Due to the implication of...

The development of nuclear power generation in India is proposed to be enhanced with international cooperation, for sourcing fuel and setting up commercial nuclear power plants. The cost of power produced at such plants is examined. The levelised cost of electricity for light water reactor technology in India is estimated for once-through cycle and...

The South Asia Region (SAR) continues to face electricity shortages, underinvestment and challenges to improve energy access. Strengthening cooperation for cross-border electricity trade in South Asia makes it possible for the region to take advantage of significant benefits from greater regional coordination in capacity investments. Trade can comp...

The paper formulates a unit commitment problem with the objective to minimize the overall cost of system operation while fulfilling the system constraints for a power system characterizing, thermal, pumped hydro and PV generation plants along with demand. The model is applied with and without the presence of the pumping capability of the PHES unit...

Unscheduled Interchange (UI) mechanism has emerged as a powerful tool for maintaining grid discipline, penalizing the market players, causing deviations in the system. A buyer pays UI penalty for over-withdrawal of power more than the scheduled one based on the grid condition. Such buyers having demand fluctuations may end up paying UI penalty at t...

This work presents a self scheduling problem of a thermal GenCo, trading electricity in a daily spot and subsequent adjustment market, to secure maximum feasible profit under the uncertainties of both the markets. The work proposes an Information Gap Decision Theory (IGDT) based framework that enables GenCo to make robust decisions for self-schedul...

We examine whether the unbundling of generation from transmission and distribution services at state-owned power plants in India improved operating efficiency at these power plants. Between 1995 and 2009, 85 percent of coal-based generation capacity owned by state governments was unbundled from vertically integrated State Electricity Boards into st...

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. South Asian countries, facing challenges in efficiently meeting growing electricity...

The renewable energy generation is often encouraged with the policies like subsidies, fiscal incentives and mandatory purchase obligation (RPO) with feed-in-tariffs (FiT). The impact of these policies on deployment of renewable energy sources for electricity generation is governed by the resource adequacy, access to technology, grid connectivity, c...

Most of the studies focusing at power plant construction cost, power plant O&M cost, and power plant decommissioning cost particularly, a primary objective is to consider all major power plant costs. Usually, minuscule costs and sometimes major cost factors are also not the issue of discussion. There are many elementary factors which determine the...

Economic and environmental aspects of energy use continue to hold the attention of the industry as well as policy makers. Relative energy prices are often used as a policy tool to influence energy demand, inter-fuel substitution and energy efficiency, thus also addressing climate change. This book presents an analysis of the inter-fuel substitution...

Economic and environmental aspects of energy use continue to hold the attention of the industry as well as policy makers. Relative energy prices are often used as a policy tool to influence energy demand, inter-fuel substitution and energy efficiency, thus also addressing climate change. This book presents an analysis of the inter-fuel substitution...

Purpose The purpose of this paper is to investigate the economics of supplying energy needs for illumination requirements by hawkers using alternatives like compact fluorescent lamps battery lamps, liquefied petroleum gas mantle lamps or supply from mini‐grids supported by local diesel generators. Further, the prevailing business models like the la...

This article was submitted without an abstract, please refer to the full-text PDF file.

This article was submitted without an abstract, please refer to the full-text PDF file.

The Indian power sector provides significant opportunities for reducing energy consumption by addressing existing inefficiencies of technical, operational and economic nature. Replacement of inefficient agricultural pump sets has been identified as one of the key policy initiatives, which to date, has been limited to a few pilot projects. The polic...

The paper assesses the demand for rural electricity services and contrasts it with the technology options available for rural electrification. Decentralised Distributed Generation can be economically viable as reflected by case studies reported in literature and analysed in our field study. Project success is driven by economically viable technolog...

This paper examines the economics of the landed price of natural gas in India through the Iran-Pakistan-India pipeline in comparison with the existing agreements for the import of liquefied natural gas. It reviews the natural gas demand and supply scenario in India, and assesses the efficacy of the pipeline in the context of energy security. The pa...

The paper assesses the demand for rural electricity services and contrasts it with the technology options available for rural electrification. Decentralised Distributed Generation can be economically viable as reflected by case studies reported in literature and analysed in our field study. Project success is driven by economically viable technolog...

Private investors respond to risk return tradeoffs. The policy environment and regulatory framework significantly influence risk as well as return in the power sector. Power sector reform and policy initiatives for enhanced private participation have been undertaken in a number of developing countries. The economic crisis faced by India in the earl...