Trade-offs and synergies in power sector policy mixes: The case of Uttar Pradesh, India


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Author / Producer

Date

2022-05

Publication Type

Journal Article

ETH Bibliography

yes

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Abstract

Policymakers in the electricity sector in several developing countries must perform a balancing act between ensuring financial viability of utilities, extending electricity access and minimizing the environmental impact of electricity supply. However, it is often not clear how multiple policy goals and instruments in an electricity sector policy mix interact with each other in a dynamic manner. This study uses a mixed-method approach to analyze synergies and trade-offs between policies for financial reform of utilities, extending electricity access, and solar PV deployment in the case of Uttar Pradesh in India. First, it uses qualitative methods to trace the evolution of Uttar Pradesh's electricity sector policy mix from 2012 to 2018 and to highlight key interactions therein. Second, it uses financial modeling to analyze the impact of the identified key interactions on utilities' financial performance from 2019 to 2022. The study finds that the policies often do not consider their mutual interactions, even though policy design and sequencing can have a major role in determining policy outcomes. Thus, this study provides recommendations on how to develop a more integrated approach to policy mix design in the electricity sector. Ex-ante assessments of policy mixes that take into account multiple policy goals, instruments as well as their sequencing could prove to be particularly fruitful.

Publication status

published

Editor

Book title

Journal / series

Volume

164

Pages / Article No.

112936

Publisher

Elsevier

Event

Edition / version

Methods

Software

Geographic location

Date collected

Date created

Subject

Policy mix; Financial reform; Electricity access; Solar PV deployment; Policy design; Policy sequencing

Organisational unit

02045 - Dep. Geistes-, Sozial- u. Staatswiss. / Dep. of Humanities, Social and Pol.Sc.

Notes

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