Consumer Dilemma: Facing High Tariffs or Rising Temperatures
The political economy of power pricing discourages the utility to purchase high-cost power, even if that results in load shedding. Heat waves make load shedding unpopular. The alternative is to bite the bullet and raise tariffs
“Outrage over outages” — headlines like these strafe even the election-reinforced cocoon of citizen comfort in city after city, as unusually severe temperatures scorch India. At the same time, much of the installed gas-based generation capacity lies idle in the country. Blame the political economy. By aggressively pursuing the current strategy of adding ever more renewable energy capacity, without any complementary investment in storage, India will face ever-rising shortages of power, even as precious generation capacity lies idle.