Powell, Stephen2012-06-132012-06-132007-04https://hdl.handle.net/10986/7931The 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.CC BY 3.0 IGOABATEMENT COSTSAFFORESTATIONAIRAIR EMISSIONSAIR POLLUTANTSAIR POLLUTIONAIR QUALITYALLOWANCEALLOWANCE PRICEALLOWANCE TRADINGAMBIENT AIRAMBIENT AIR QUALITYAMBIENT AIR QUALITY STANDARDSAPPROACHASHASH CONTENTASH DISPOSALBALANCEBENEFIT STREAMSBURNERSCALCULATIONCARBONCARBON CONTENTCARBON MARKETCENTRAL PLANNINGCLEAN COALCLIMATECLIMATE CHANGECOCO2COALCOAL GASCOAL PLANTCOAL PRICESCOALSCOMBUSTIONCOMPLIANCE COSTSCONTINUOUS MONITORINGCONVENTIONAL COALCOST ESTIMATESCOSTS OF ELECTRICITYDEMAND FOR ENERGYDEMAND FOR POWERDEVELOPED COUNTRIESDIESELDIESEL GENERATORSDOMESTIC COALDROUGHTECONOMIC COSTSECONOMIC DEVELOPMENTECONOMIC FACTORSECONOMIC GROWTHECONOMIC INSTRUMENTSECONOMISTSELECTRIC GENERATIONELECTRIC POWER INDUSTRYELECTRICITYELECTRICITY DEMANDELECTRICITY GENERATIONELECTRICITY SECTORELECTRICITY SYSTEMELECTROSTATIC PRECIPITATORSEMISSIONEMISSION CAPEMISSION FEESEMISSION RATEEMISSION REDUCTIONSEMISSION STANDARDSEMISSIONSEMISSIONS ABATEMENTEMISSIONS ALLOWANCESEMISSIONS CONTROLEMISSIONS STANDARDSEMPIRICAL EVIDENCEEMPLOYMENTEND-USER PRICEENERGY NEEDSENERGY POLICYENERGY PRODUCTIONENVIRONMENTALENVIRONMENTAL BENEFITSENVIRONMENTAL CONSEQUENCESENVIRONMENTAL COSTSENVIRONMENTAL DEGRADATIONENVIRONMENTAL ISSUESENVIRONMENTAL MANAGEMENTENVIRONMENTAL POLICYENVIRONMENTAL PROTECTIONENVIRONMENTAL QUALITYENVIRONMENTAL REGULATIONENVIRONMENTAL REGULATIONSENVIRONMENTAL RESOURCESENVIRONMENTAL TAXENVIRONMENTAL TAXESEXPENDITURESEXTERNAL COSTSEXTERNALITIESFEASIBILITYFEEDSTOCKFINANCIAL COMPENSATIONFINANCIAL CONDITIONFINANCIAL COSTSFINANCIAL INCENTIVESFINANCIAL RESOURCESFISHERIESFLUE GASFORESTFOREST CONSERVATIONFOREST LANDFOREST RESOURCESFOREST TYPEFORESTRYFORESTSFOSSILFOSSIL FUELFREE RIDER PROBLEMSFUEL PRICESFUEL TYPEFUELSGASGAS PRICESGENERATING CAPACITYGENERATION CAPACITYGENERATION MIXGENERATION OF ELECTRICITYGLOBAL WARMINGGOVERNMENT REGULATIONSGROWTH IN DEMANDGROWTH IN DEMAND FOR ELECTRICITYHARMFUL EMISSIONSHEATHEAVY FUEL OILHIGH ASH CONTENTHYDRO PLANTHYDROELECTRIC POWERHYDROELECTRIC POWER STATIONSHYDROPOWERINCOMELEACHINGLIQUEFIED NATURAL GASLNGLOAD SHEDDINGLOSS OF FORESTMARGINAL ABATEMENTMARGINAL ABATEMENT COSTMARGINAL ABATEMENT COSTSMARGINAL COSTMARKET POWERMONETARY TERMSNATURAL GASNATURAL GAS PRICESNATURAL GAS TRANSMISSIONNEGATIVE EXTERNALITIESNEGATIVE IMPACTSNOXOILPARTICULATEPARTICULATE EMISSIONSPARTICULATE MATTERPARTICULATESPENALTIESPETROCHEMICALSPETROLEUMPETROLEUM PRODUCTSPOLICY INSTRUMENTSPOLICY MAKERSPOLLUTERSPOLLUTIONPOLLUTION ABATEMENTPOLLUTION CONTROLPOSITIVE EXTERNALITIESPOWER CORPORATIONPOWER GENERATIONPOWER GENERATION CAPACITYPOWER GENERATORSPOWER PLANTPOWER PLANTSPOWER PRODUCERSPOWER SECTORPOWER SECTOR PLANNINGPOWER STATIONPOWER STATIONSPOWER SUPPLYPOWER SYSTEMPOWER SYSTEM PLANNINGPRESENT VALUEPRICE OF ELECTRICITYPRICE OF EMISSION ALLOWANCESPRIVATE COSTSPRODUCERSPROPERTY RIGHTSPUBLIC HEARINGSQUALITY STANDARDSREDUCING EMISSIONSREGULATORY FRAMEWORKRENEWABLE RESOURCESRETAIL COMPETITIONRISK MANAGEMENTSHADOW PRICESHADOW PRICESSO2SULPHURSULPHUR CONTENTSULPHUR DIOXIDESULPHUR EMISSIONSSUPPLY OF ELECTRICITYTAX RATETAX REFORMSTEMPERATURETHERMAL CAPACITYTHERMAL PLANTTHERMAL PLANTSTHERMAL POWERTRADABLE ALLOWANCESTRADABLE EMISSIONTRADABLE EMISSIONSTRADABLE PERMITTRADABLE PERMIT MARKETSTRADABLE PERMITSTRANSMISSION CAPACITYTRANSMISSION LINESTRANSMISSION SYSTEMUNINTENDED CONSEQUENCESUTILITIESWASTE MANAGEMENTWHOLESALE PRICEWorld Bank10.1596/7931