Time-of-day pricing can de-stress India's electricity sector: Study

The report faulted India's current flat tariff system as it offered little incentive for network or consumer efficiency through load smoothing

With $100 billion of existing and proposed thermal power plants facing financial distress, India needs to introduce time-of-day pricing for both producers and consumers, a study said.

In its latest report, US-based Institute for Energy Economics & Financial Analysis (IEEFA) has faulted India's current flat tariff system as it offered little incentive for network or consumer efficiency through load smoothing.

Tim Buckley, co-author of the report and director of energy finance studies (Australasia) said, “The pricing system also does not incentivise the ramping up of flexible, peaking power generation capacity to meet peaks in demand”.

“India’s electricity generation and demand profiles have become