Question

Mention the key factors driving reforms and change in the power distribution sector in India referring to the current peak and energy shortages.

06 Dec 2017
Answer :
Word Count : 819

The energy sector in India has seen a transformational change with progressive policy-level changes and effective implementation of directives. These changes promise enormous opportunities for various stakeholders and market players.

However, deep thinking on various aspects of policy and regulatory interventions and their long-term implications will help in taking informed decisions and contribute in developing the sector.

"Energy is one of the key enablers for the country’s economic development," remarks PwC Power & Utilities partner Yogesh Daruka. "With the certainty in policy-level interventions, the economy is bound to propagate and the demand for energy will inevitably surge."

Other than economic growth, human developmental aspects like poverty reduction, employment generation are also considerably dependent on secure energy supply. It has been noted that the power sector is a major consumer of energy and it has a significant impact on economic developments and social welfare. Per-capita electricity consumption of the country has now crossed 1,000 kilowatt-hour (kWh), but still, it is far below the average global consumption.

Stimulating the energy sector

Despite the efforts to generate more electrical energy by using multiple energy sources, the country has recorded a shortage of 3.6% of demand in FY15, according to PwC research. As per the Central Electricity Authority’s (CEA) Load Generation Balance Report 2015-16, in spite of

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