Research area: Energy Transitions
Prepaid power is not the silver bullet to solve problem of discom finances
The Disruptive Politics of Renewable Energy
Introduction
The expansion of renewable energy (RE) within India’s electricity system is not a technical question alone. It is also an inherently political struggle between powerful incumbents and disruptive challengers, with destabilising consequences for existing institutional forms and power structures. The existing system is held in place by a supporting configuration of technology, politics and institutions. If RE is to substantially displace fossil fuels, the existing configuration will have to give way to a new such configuration that supports RE. This article explains the existing political and institutional underpinnings of the current electricity system, and discusses the forces that hold them in place and what it will take to shake these loose. In doing so, it seeks to make two points to two discrete audiences. First, to electricity and energy practitioners, it suggests that looking at the spread of RE only through a technical lens is highly incomplete; the likelihood, speed and impact of RE will be determined by political and institutional factors as well. Second, to broader analysts of India’s economy and politics, it suggests that disruptions in Indian energy are highly likely to also imply disruptive politics and economics; any story of Indian political economy in the coming decade is incomplete without an exploration of shifts driven by changes in electricity politics.
Read moreThe Ecological Costs of Doing Business: Environment, Energy and Climate Change
Summary
What perspective did the BJP government bring to the link between environment, energy and climate change on the one hand and development on the other, and what consequent actions has it taken? In this essay published in ‘Re-forming India: The Nation Today’, Penguin India, the authors assess the government’s actions in areas of environment, energy and climate change with a view to interpreting its track record.
Focusing less on environmental outcomes and more on the changes in direction introduced by the government, Dubash and Ghosh explore four themes. First, they examine the government’s focus on the ‘cost of doing business’ and ask whether reducing this cost has come at an environmental price. Second, they analyse cases in which an environment and energy agenda was driven by political imperatives, such as around energy access or Ganga rejuvenation. Third, they explore whether and how the government has addressed the emergent big picture environment and energy questions that will shape India’s future, beyond immediate regulatory changes. Finally, they examine its diplomacy in the areas of climate change and energy, and reflect on what the accumulated record implies in terms of India’s environmental governance.
The Price of Power: The political economy of electricity trade and hydropower development in eastern South Asia
Summary
This article frames the political economy of electricity trade and hydropower development in eastern South Asia. It distils and analyzes four crucial variables in this regard: the health of distribution companies in India; the role of hydropower in India’s ambitious turn to renewable energy; Bangladesh’s power crisis and import dependency; and the governance of regional electricity trading arrangements. It argues that progress in both electricity trade and hydropower development in the region will be incremental in the next decade, hindered by mixed demand signals and the turbulence of geopolitics.
Read moreMore priorities, more problems? Decision-making with multiple energy, development and climate objectives
Summary
The Sustainable Development Goals and the Paris Agreement pose new conceptual challenges for energy decision makers by compelling them to consider the implications of their choices for development and climate mitigation objectives. This is a nontrivial exercise as it requires pragmatic consideration of the interconnections between energy systems and their social and environmental contexts and working with a plurality of actors and values. There are an increasing number of indices, frameworks and academic studies that capture these interconnections, yet policy makers have relatively few ex-ante tools to pragmatically aid decision-making. This paper, based on a collation of 167 studies, reviews how multi-criteria decision approaches (MCDA) are used in energy policy decisions to explicitly consider multiple social and environmental objectives, and the conceptual usefulness of doing so. First, MCDA can be used to distil a finite set of objectives from those of a large number of actors. This process is often political and objectives identified are aligned with vested interests or institutional incentives. Second, MCDA can be used to build evidence that is both qualitative and quantitative in nature to capture the implications of energy choices across economic, environmental, social and political metrics. Third, MCDA can be used to explore synergies and trade-offs between energy, social and environmental objectives, and in turn, make explicit the political implications of choices for actors. The studies reviewed in this paper demonstrate that the use of MCDA is so far mainly academic and for problems in the Global North. We argue for a mainstreaming of such a multi-criteria and deliberative approaches for energy policy decisions in developing countries where trade-offs between energy, development and climate mitigation are more contentious while recognizing the data, capacity and transparency requirements of the process.
Read moreMapping Power: The Political Economy of Electricity in India’s States
Introduction
Despite several decades of reform, India’s electricity sector remains marked by the twin problems of financial indebtedness and inability to provide universal, high quality electricity for all. Although political obstacles to reform are frequently invoked in electricity policy debates, Mapping Power provides the first thorough analysis of the political economy of electricity in Indian states. Through narratives of the electricity sectors in fifteen major states, this book argues that a historically rooted political economy analysis provides the most useful means to understand the past and identify reforms for the future. The book begins with an analytic framework to understand how the political economy of power both shapes and is shaped by a given state’s larger political economy. The book concludes with a synthetic account of the political economy of electricity that is animated by insights from the state-level empirical materials. The volume shows that attempts to depoliticize the sector are misplaced. Instead, successful reform efforts should aim at a positive dynamic between electricity reform and electoral success.
Read moreProtecting Power: The Politics of Partial Reforms in Punjab
Summary
Punjab’s power sector, known for its agricultural embeddedness and chronic subsidy challenges, was one of the least attractive and pragmatic choices for reform advocates. Considering a feeble external push and forceful internal resistance, the state has undertaken partial electricity reforms to comply with legislative mandates from the central government. Despite limited reforms, Punjab has made substantive progress on electricity access, quality of supply, and some operational efficiencies. This chapter in ‘Mapping Power: The Political Economy of Electricity in India’s States’ analyses how the power sector has evolved in Punjab, especially through institutional restructuring and policy reforms, with the objective to examine the policy choices, outcomes, winners, and losers at the state level. It analyses the political–economic drivers for these policy choices and how they deviate from or comply with signals from the central government. Building on these findings, it also discusses the implications of past experiences and prevailing power dynamics for ongoing and future reforms.
Read morePoverty in the Midst of Abundance: Repressive Populism, Bureaucratization, and Supply-side Bias in Madhya Pradesh’s Power Sector
Summary
Electricity reforms in Madhya Pradesh remain underreported, despite some atypical outcomes. This chapter in ‘Mapping Power: The Political Economy of Electricity in India’s States’ examines the political economy of transitions in MP’s power sector, with the objective of identifying drivers of policy choices and their outcomes. Drawing on the findings, it explains how intensive institutional restructuring has resulted in bureaucratization and consolidated state control over the sector, and discusses the resulting outcomes. It also analyses the implications of past experiences for ongoing and future reforms.
Read moreTransforming Reforms: Hype, Hostility, and Placation in Andhra Pradesh’s Power Sector Reforms
Summary
Andhra Pradesh’s experience with electricity reforms and their political ramifications has not only been fascinating a case for political analysts, but also have influenced reform approaches in other states. This chapter in ‘Mapping Power (‘Mapping Power: The Political Economy of Electricity in India’s States’ explores the political economy of AP’s electricity sector transitions over four periods, with the objective to explain the drivers of policy choices and their outcomes. Drawing on the findings, it discusses the transformations in electricity reform strategy over two phases of reforms and analyses the implications of past experiences for ongoing reforms in the sector.
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