An Analysis of Microeconomic Factors Affecting Thermal Power Industry in India
Microeconomics
Analysis of microeconomic factors affecting thermal power industry in India
1. Power as a commodity
"The power network demands cooperation from all its members. It expects its beneficiaries to huddle together and hold on to one another’s arm to enhance reliability and security of the public utility service rendered by the network. All those hooked on to the synchronous system have to bear in mind that the efficient operation of electric networks is subject to the classical “commons” problem wherein one person’s abuse of the service influences the legitimate usage by the other."
* S.K.SOONEE
Electricity is not a fuel as coal or gas. Electricity is not a tangible article because it is a force of the Nature as it is the gravitational field force. Fuels are not natural forces, but material elements of the Nature. Electricity as product is a finely engineered product. Electricity is ‘conducted energy’ delivered to the consumer safely and reliable in pure state for its direct consumption without being precise to carry out any energy conversion process as it occurs in the case of coal, gas or other fuels. That's why to avoid wrong moves and contradictions, it is said very much that the electricity is a very peculiar commodity.
2. Indian power industry before 2003
The power sector is one of the most prominent sectors of an economy and a growth in this sector definitely fuels the growth of the economy. The power sector has received adequate importance ever since the process of planned development started after the Independence. The generation of Thermal power started with the construction of first thermal power unit (1MW) at Calcutta in the year 1898.Back then, generation and distribution of electric power was carried out by private entities like Calcutta electric which is still existent. Electric power was limited to few urban places and the rural places were devoid of any power till independence. But, after Independence the entire
Analysis of microeconomic factors affecting thermal power industry in India
1. Power as a commodity
"The power network demands cooperation from all its members. It expects its beneficiaries to huddle together and hold on to one another’s arm to enhance reliability and security of the public utility service rendered by the network. All those hooked on to the synchronous system have to bear in mind that the efficient operation of electric networks is subject to the classical “commons” problem wherein one person’s abuse of the service influences the legitimate usage by the other."
* S.K.SOONEE
Electricity is not a fuel as coal or gas. Electricity is not a tangible article because it is a force of the Nature as it is the gravitational field force. Fuels are not natural forces, but material elements of the Nature. Electricity as product is a finely engineered product. Electricity is ‘conducted energy’ delivered to the consumer safely and reliable in pure state for its direct consumption without being precise to carry out any energy conversion process as it occurs in the case of coal, gas or other fuels. That's why to avoid wrong moves and contradictions, it is said very much that the electricity is a very peculiar commodity.
2. Indian power industry before 2003
The power sector is one of the most prominent sectors of an economy and a growth in this sector definitely fuels the growth of the economy. The power sector has received adequate importance ever since the process of planned development started after the Independence. The generation of Thermal power started with the construction of first thermal power unit (1MW) at Calcutta in the year 1898.Back then, generation and distribution of electric power was carried out by private entities like Calcutta electric which is still existent. Electric power was limited to few urban places and the rural places were devoid of any power till independence. But, after Independence the entire