Measuring Marginal Abatement Costs in the Indian Thermal Power Sector: A By-production Approach

2021 ◽  
Vol 5 (2) ◽  
pp. 413-454
Author(s):  
Sushama Murty ◽  
Resham Nagpal
Mapping Power ◽  
2018 ◽  
pp. 296-318
Author(s):  
Jonathan Balls

Uttarakhand was created out of Uttar Pradesh and endowed with a substantial benefit: sole access to cheap hydro power. Low-cost power allowed the state to attract industry by cutting tariffs, providing a stable financial base, and enabling a well-functioning sector. With low tariffs, the power sector has not become an arena for populist policies despite frequent electoral shifts. However, this comfortable situation also limited the pressure to use the breathing room created by low cost power coupled with high share of industrial consumption to address long-standing loss levels in other parts of the state. As the limits of low-cost power are reached, the threat to Uttarakhand’s high-level equilibrium comes from having to turn to high-cost thermal power and stagnating industrial consumption.


2020 ◽  
Vol 86 ◽  
pp. 104653 ◽  
Author(s):  
Surender Kumar ◽  
Shunsuke Managi ◽  
Rakesh Kumar Jain

2019 ◽  
Vol 13 (1) ◽  
pp. 175-206 ◽  
Author(s):  
Sushama Murty ◽  
Resham Nagpal

Purpose The purpose of this paper is to measure technical efficiency of Indian thermal power sector employing the recent by-production approach. Design/methodology/approach The by-production approach is used in conjunction with data from the Central Electricity Authority (CEA) of India to compute the output-based Färe, Grosskopf, Lovell (FGL) efficiency index and its decomposition into productive and environmental efficiency indexes for the ITPPs Findings The authors show that given the aggregated nature of data on coal reported by CEA, CEA’s computation of CO2 emissions through a deterministic linear formula that does not distinguish between different coal types and the tiny share of oil in coal-based power plants, the computed output-based environmental efficiency indexes are no longer informative. Meaningful measurement of environmental efficiency using CEA data is possible only along the dimension of the coal input. Productive efficiency is positively associated with the engineering concept of thermodynamic/energy efficiency and is also high for power plants with high operating availabilities reflecting better management and O&M practices. Both these factors are high for private and centrally owned as opposed to state-owned power-generating companies. The example of Sipat demonstrates the importance of (ultra)supercritical technologies in increasing productive and thermodynamic efficiencies of the ITPPs, while also reducing CO2 emitted per unit of the net electricity generated. Originality/value This paper uses the by-production approach for the first time to measure technical efficiency of ITPPs and highlights how the nature of the Indian data impacts on efficiency measurement.


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