The publication of a new systematic review on India’s electricity market marks a timely contribution to understanding one of the world’s fastest-growing energy systems. Authored by Satyabrata Sahoo, Sambeet Mishra, and Dillip Kumar Mishra, the study titled “Analyzing the evolution of India’s electricity market: A systematic review of drivers, barriers, and regulatory instruments” appears in the journal Energy Policy. It is available at https://www.sciencedirect.com/science/article/abs/pii/S0957178726001256.
Core findings from the review
The authors examine how policy reforms, technological advances, and economic pressures have reshaped India’s power sector since the early 1990s. Their analysis draws on peer-reviewed literature, government reports, and regulatory documents to identify the main forces behind market liberalisation, the obstacles that remain, and the regulatory tools deployed to address them.
Key drivers of change
Rapid economic growth, rising electricity demand, and the need for greater supply reliability have pushed successive governments to open the sector to private participation. The introduction of the Electricity Act 2003 created the legal framework for unbundling state utilities, establishing independent regulators, and promoting competition in generation and distribution. International climate commitments and the falling cost of renewable technologies have further accelerated the shift toward cleaner sources.
Photo by Suraj Tomer on Unsplash
Persistent barriers
Despite progress, the review highlights ongoing challenges. Financial distress among distribution companies, weak enforcement of payment discipline, and inadequate transmission infrastructure continue to constrain market efficiency. Political resistance to tariff reforms and the complexity of integrating large volumes of variable renewable energy add further layers of difficulty.
Regulatory instruments in focus
The authors catalogue a range of policy tools, from competitive bidding for renewable capacity to time-of-day tariffs and open-access regulations. They assess how these instruments have performed in practice and where design gaps remain. The study emphasises the importance of coordinated federal-state action and transparent regulatory processes.
Implications for researchers and policymakers
By synthesising evidence across more than two decades, the review offers a clear baseline for future work. It identifies areas where data remain scarce and calls for more rigorous impact evaluations of recent reforms. Policymakers can draw on the findings when designing the next phase of market development, particularly as India targets net-zero emissions by 2070.
Photo by Debabrata Hazra on Unsplash
Looking ahead
The electricity market will remain central to India’s development trajectory. Continued monitoring of regulatory effectiveness and timely adjustment of instruments will be essential. The systematic review provides a valuable reference point for tracking progress and refining strategies in the years ahead.