The recent blackout in India highlights problems in the electricity sector, including ineffective distribution networks, loss-making providers and low capacity utilization of utilities. Despite improvements in recent years, as supply generation capacity has risen relative to demand, distribution losses have fallen, and the supply shortfall has shrunk, the Indian government’s production targets for the coming five years appear overly ambitious. The electricity shortfall is likely to remain due to coal shortages and lack of incentives for loss-making providers. Read More..