Role of Deregulation in Power Sector and Its Status in India

Deregulation is engendering the change in power system structure by including the private participants and by increasing the customer role in pool electricity market. The transition of power sector from regulated to deregulated structure includes many positive and negative outcomes. This paper presents various key aspects of deregulation, pre and post scenarios of deregulated power system, identifying different reasons that led to transition from regulated electricity market to deregulate one, and various impacts of deregulation on the operation of power system. Further, this paper discusses different phases of Indian deregulated power sector and it is exemplified. Also, a brief study of the status of Indian power sector using different parameters such as plant load factor, share of private sectors, Transmission and Distribution losses, average tariff and status of State Electricity boards is performed.