Management investment and risks in Indian electricity generation markets (CD)

Shukla, P. R. (Guide) Thesis advisory committee: Prof. P. R. Shukla (Chairperson), Prof. Bakul H. Dholakia, Prof. Prem Pangotra

Electricity and energy market reforms are the two key challenges before policymakers under the broad goals of climate change mitigation and energy security. The central policy challenge in managing investment and risks in electricity generation market is to delineate long-term responses that deliver competitive equilibrium, taking into account dynamics of energy and electricity markets, environmental externalities, geopolitical risks, and socioeconomic and technological uncertainties. In this context, the research addresses the following questions: 1. What are various risks and long term uncertainties in electricity generation markets? 2. What are the impacts of these uncertainties on investment decisions in electricity generation markets against the backdrop of reforms? 3. How do these uncertainties propagate among the primary energy, generation, and environmental markets? 4. What policy options are required for supporting electricity generation investment choices? A modeling framework is developed to address these questions by soft-linking i) bottom-up and top-down models representing energy, environment, and electricity generation market dynamics; ii) Monte-Carlo simulation to assess implications of uncertainties on investments, iii) index modeling for diversity assessment, and iv) a decomposition model formulation for assessing the future drivers of emissions.