Resource information
This paper has been prepared in
accordance with the terms of reference for a study on power
system planning in India: incorporating externality costs
and benefits. It reviews estimates of the external costs of
power in international studies as well as in India and
compares the figures available. It also comments on the
validity of the external cost estimates available and the
use made of them in power system planning and regulation
both outside and inside India. The structure is as follows.
Section two reviews the external cost estimates of
electricity generation in the European Union (EU), and other
countries. It also reports some recent work on the external
costs associated with transmission. Some comments for the
range of estimates are offered. Section three reviews a few
studies on external costs for India and compares those with
the international estimates. Section four discusses the
use made of external cost data in power system planning and
regulation both internationally and in India and makes some
recommendations for possible reforms in the Indian case.
Section five reviews the Indian and international estimates
of external costs of hydro and section six does the same for
resettlement and rehabilitation (RR) costs. Section seven
offers some conclusions.
