Incorporating Energy Cycle Externality Costs and Benefits in India's Power System Planning Mechanisms

Incorporating Energy Cycle Externality Costs and Benefits in India's Power System Planning Mechanisms

The power sector in India plays a fundamental role in the economic development process. The country faces formidable challenges in meeting its energy needs in an environmentally sustainable manner and at reasonable costs. The planning and operati...

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Bibliographic Details
Main Author:	Powell, Stephen
Format:	Energy Study
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ABATEMENT COSTS AFFORESTATION AIR AIR EMISSIONS AIR POLLUTANTS AIR POLLUTION AIR QUALITY ALLOWANCE ALLOWANCE PRICE ALLOWANCE TRADING AMBIENT AIR AMBIENT AIR QUALITY AMBIENT AIR QUALITY STANDARDS APPROACH ASH ASH CONTENT ASH DISPOSAL BALANCE BENEFIT STREAMS BURNERS CALCULATION CARBON CARBON CONTENT CARBON MARKET CENTRAL PLANNING CLEAN COAL CLIMATE CLIMATE CHANGE CO CO2 COAL COAL GAS COAL PLANT COAL PRICES COALS COMBUSTION COMPLIANCE COSTS CONTINUOUS MONITORING CONVENTIONAL COAL COST ESTIMATES COSTS OF ELECTRICITY DEMAND FOR ENERGY DEMAND FOR POWER DEVELOPED COUNTRIES DIESEL DIESEL GENERATORS DOMESTIC COAL DROUGHT ECONOMIC COSTS ECONOMIC DEVELOPMENT ECONOMIC FACTORS ECONOMIC GROWTH ECONOMIC INSTRUMENTS ECONOMISTS ELECTRIC GENERATION ELECTRIC POWER INDUSTRY ELECTRICITY ELECTRICITY DEMAND ELECTRICITY GENERATION ELECTRICITY SECTOR ELECTRICITY SYSTEM ELECTROSTATIC PRECIPITATORS EMISSION EMISSION CAP EMISSION FEES EMISSION RATE EMISSION REDUCTIONS EMISSION STANDARDS EMISSIONS EMISSIONS ABATEMENT EMISSIONS ALLOWANCES EMISSIONS CONTROL EMISSIONS STANDARDS EMPIRICAL EVIDENCE EMPLOYMENT END-USER PRICE ENERGY NEEDS ENERGY POLICY ENERGY PRODUCTION ENVIRONMENTAL ENVIRONMENTAL BENEFITS ENVIRONMENTAL CONSEQUENCES ENVIRONMENTAL COSTS ENVIRONMENTAL DEGRADATION ENVIRONMENTAL ISSUES ENVIRONMENTAL MANAGEMENT ENVIRONMENTAL POLICY ENVIRONMENTAL PROTECTION ENVIRONMENTAL QUALITY ENVIRONMENTAL REGULATION ENVIRONMENTAL REGULATIONS ENVIRONMENTAL RESOURCES ENVIRONMENTAL TAX ENVIRONMENTAL TAXES EXPENDITURES EXTERNAL COSTS EXTERNALITIES FEASIBILITY FEEDSTOCK FINANCIAL COMPENSATION FINANCIAL CONDITION FINANCIAL COSTS FINANCIAL INCENTIVES FINANCIAL RESOURCES FISHERIES FLUE GAS FOREST FOREST CONSERVATION FOREST LAND FOREST RESOURCES FOREST TYPE FORESTRY FORESTS FOSSIL FOSSIL FUEL FREE RIDER PROBLEMS FUEL PRICES FUEL TYPE FUELS GAS GAS PRICES GENERATING CAPACITY GENERATION CAPACITY GENERATION MIX GENERATION OF ELECTRICITY GLOBAL WARMING GOVERNMENT REGULATIONS GROWTH IN DEMAND GROWTH IN DEMAND FOR ELECTRICITY HARMFUL EMISSIONS HEAT HEAVY FUEL OIL HIGH ASH CONTENT HYDRO PLANT HYDROELECTRIC POWER HYDROELECTRIC POWER STATIONS HYDROPOWER INCOME LEACHING LIQUEFIED NATURAL GAS LNG LOAD SHEDDING LOSS OF FOREST MARGINAL ABATEMENT MARGINAL ABATEMENT COST MARGINAL ABATEMENT COSTS MARGINAL COST MARKET POWER MONETARY TERMS NATURAL GAS NATURAL GAS PRICES NATURAL GAS TRANSMISSION NEGATIVE EXTERNALITIES NEGATIVE IMPACTS NOX OIL PARTICULATE PARTICULATE EMISSIONS PARTICULATE MATTER PARTICULATES PENALTIES PETROCHEMICALS PETROLEUM PETROLEUM PRODUCTS POLICY INSTRUMENTS POLICY MAKERS POLLUTERS POLLUTION POLLUTION ABATEMENT POLLUTION CONTROL POSITIVE EXTERNALITIES POWER CORPORATION POWER GENERATION POWER GENERATION CAPACITY POWER GENERATORS POWER PLANT POWER PLANTS POWER PRODUCERS POWER SECTOR POWER SECTOR PLANNING POWER STATION POWER STATIONS POWER SUPPLY POWER SYSTEM POWER SYSTEM PLANNING PRESENT VALUE PRICE OF ELECTRICITY PRICE OF EMISSION ALLOWANCES PRIVATE COSTS PRODUCERS PROPERTY RIGHTS PUBLIC HEARINGS QUALITY STANDARDS REDUCING EMISSIONS REGULATORY FRAMEWORK RENEWABLE RESOURCES RETAIL COMPETITION RISK MANAGEMENT SHADOW PRICE SHADOW PRICES SO2 SULPHUR SULPHUR CONTENT SULPHUR DIOXIDE SULPHUR EMISSIONS SUPPLY OF ELECTRICITY TAX RATE TAX REFORMS TEMPERATURE THERMAL CAPACITY THERMAL PLANT THERMAL PLANTS THERMAL POWER TRADABLE ALLOWANCES TRADABLE EMISSION TRADABLE EMISSIONS TRADABLE PERMIT TRADABLE PERMIT MARKETS TRADABLE PERMITS TRANSMISSION CAPACITY TRANSMISSION LINES TRANSMISSION SYSTEM UNINTENDED CONSEQUENCES UTILITIES WASTE MANAGEMENT WHOLESALE PRICE
Online Access:	http://documents.worldbank.org/curated/en/2007/04/16232431/incorporating-energy-cycle-externality-costs-benefits-indias-power-system-planning-mechanisms http://hdl.handle.net/10986/7931

Description
Summary:	The power sector in India plays a fundamental role in the economic development process. The country faces formidable challenges in meeting its energy needs in an environmentally sustainable manner and at reasonable costs. The planning and operation of the sector has hitherto been conducted without due regard to the environmental consequences. As a result, additions to capacity in recent years have been sub-optimal. Moreover different types of capacity are treated differently. Hydropower is required directly to bear more of its external environmental costs than other sources. The recent Supreme Court ruling has reinforced this tendency. Looking forward, much of the large capacity additions required over the next few years are likely to be coal-fired, with concomitant effects on the country's environment. Against that background, the paper looks at India's power generation planning process; whether and how it might adapt in the light of increased attention to environmental costs and benefits; and if there are other, better ways of internalizing environment externalities. It takes as its starting point the conclusions of the companion paper by Anil Markandya. These are that the external environmental costs of fossil fuel generation are as high or higher than estimates derived for developed countries; that estimates of the external costs of both fossil-fuelled and hydro for India should now be determined more precisely and used at the strategic level in planning, at the regulatory level in setting standards, in designing economic instruments and in plant sitting decisions; and that the polluter pays principle, which currently applies in the case of hydro, should also be applied in other power sector developments.

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