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Economic impact of power outage on GDP of India


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Power outage in India has become a norm and not exception as in most of developed nations due to large demand of power and yet larger denominator of population. Per capita income that translates prosperity of nation has caught up the same curve as per capita consumption of electricity for any country. Therefore it is established that any alleviation in per capita consumption will affect the per capita income of the individual and GDP of the nation. In this paper we have deciphered linkage between these two trends. Data of top 5 power consuming areas of 7 states are taken as a reference and extrapolation method is used to calculate its effect on national level. We conclude that power outage is directly affecting the GDP of India to approximately 5% and minimizing the profit from Indian industries due to backup arrangements. Keywords-per capita generation, per capita income, GDP, Indian economy.
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... etc. makes long-term interruption in electricity supply equivalent to a disaster in modern life. Therefore, any interruption to electricity supply for long hours significantly affects social economic life, causes financial loss, negatively affects a nation's economy, decrease the Gross Domestic Product (GDP), retards development and daily life activities [2][3][4]. ...
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Electrical energy is one of the most important daily needs. Shortage of energy can be very dangerous for any society. This can affect the standard of living and quality of life of the people and even endanger the lives of those in hospitals, and so forth. Developed countries do not face such risks in general because they have well organized electrical systems and high energy security. The developing countries are faced daily with electric system collapses, especially in the case of wars, where many parts of the electrical grid in the country can be damaged and fuel transmission lines for generators cut off. Urban areas in developing countries should have a strategic plan to deal with any unexpected occurrence of energy shortages using any available renewable energy sources. City of Latakia is located in the region which has been suffering from the consequences of war for more than six years. The fact that a high number of migrants from other cities have come to Latakia along with a lack of fuel makes the energy shortage in the city worse. An emergency system could use the cheapest available renewable energy sources in addition to few big portable generators to provide an acceptable energy supply for the most needed requirements of daily life.
As the power industry moves towards open competition, there has been a need for methodology to evaluate distribution power system reliability by using customer interruption costs, particularly in power supply zones under the competitive electricity market. This paper presents an algorithm to evaluate system average interruption duration index, expected energy not supplied, and system outage cost taking into consideration failure rate of the distribution facility and industrial customer interruption cost. Also, to apply this algorithm to evaluate system outage cost presented in this paper, the distribution arrangement of a dual supply system consisting of mostly high voltage customers in an industrial complex in Korea is used as a sample case study. Finally, evaluation results of system interruption cost, system average interruption duration index, and expected energy not supplied in the sample industrial complex area are shown in detail.
Reliability worth assessment is an important factor in power system planning and operation. An equally important issue is how to use customer costs of electric supply interruptions as surrogates to appropriately quantify reliability worth. Postal or in-person surveys of electric customers are often used to determine interruption costs. The results obtained from the surveys are transformed into customer damage functions which are applicable to individual customer classes and sectors. Standard customer damage functions use aggregate or average customer costs for selected outage durations. This paper develops a practical alternative to the customer damage function method of describing the interruption cost data. The alternate technique, which is designated as the probability distribution approach, is capable of recognizing the dispersed nature of the data. The proposed probability distribution method is illustrated in this paper using the interruption cost data collected in a 1991 survey of the Canadian residential sector
Costs to Industrial and Commercial Consumers of Electricity
  • P Sulivan
Sulivan P. 1997. "Costs to Industrial and Commercial Consumers of Electricity" IEEE transactions on industry applications VOL. 33,No. 6