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Emergence of distribution system operator in the Indian power sector and possible way ahead

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  • Jadhav, Ashok M.
  • Abhyankar, Abhijit R.

Abstract

The rapid integration of renewable energy sources and demand-side participation has changed how electrical energy is being purchased, transmitted, distributed, or even consumed. It has opened new opportunities for the Indian power sector to redefine its existing operational and business models to cope with the unique challenges and follow an approach that maximizes social welfare across all energy supply chain segments. This journey will have significant impacts on the Distribution companies (DISCOMs). The anticipated segregation of wire and supply business would bring more operational efficiency in the distribution sector. The subsequent entry of retailers will handle the supply business of electricity. A new entity is likely to emerge as Distribution System Operator (DSO), providing network access, grid services and enabling consumer market participation. The emergence of DSO is decisive in achieving better socioeconomic and environmental benefits. The idea of DSO is still at the conceptual level in India. In this paper, an attempt has been made to present the DSO definition, highlight its need, enlist various DSO functions, and suggest possible DSO creation options. DSO's few competitive market models are examined from the Indian perspective, which will engage all stakeholders actively and ensure the reliable and efficient operation of the overall Indian power grid.

Suggested Citation

  • Jadhav, Ashok M. & Abhyankar, Abhijit R., 2022. "Emergence of distribution system operator in the Indian power sector and possible way ahead," Energy Policy, Elsevier, vol. 160(C).
    • Handle: RePEc:eee:enepol:v:160:y:2022:i:c:s0301421521005152
    DOI: 10.1016/j.enpol.2021.112650
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    References listed on IDEAS

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    1. Willems, Bert & Mulder, M., 2016. "Competition in Retail Electricity Markets : An Assessment of Ten Years Dutch Experience," Discussion Paper 2016-011, Tilburg University, Tilburg Law and Economic Center.
    2. Heinrich, Carsten & Ziras, Charalampos & Jensen, Tue V. & Bindner, Henrik W. & Kazempour, Jalal, 2021. "A local flexibility market mechanism with capacity limitation services," Energy Policy, Elsevier, vol. 156(C).
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    Cited by:

    1. Harilal Krishna & Yash Kashyap & Dwarkeshwar Dutt & Ambuj D. Sagar & Abhishek Malhotra, 2023. "Understanding India’s low-carbon energy technology startup landscape," Nature Energy, Nature, vol. 8(1), pages 94-105, January.
    2. Pornthep Chiraprawattrakun & Nopbhorn Leeprechanon, 2023. "Distribution System Management Model Based on the Cooperative Concept of Unifying the Multi-Owned Networks," Energies, MDPI, vol. 16(5), pages 1-30, February.

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