Inverter Cities ; Crippling Power Shortages Are Driving Consumers to Spend More On Expensive Storage Devices. This Summer, It Will Only Be Worse, Thanks to the Unforgiving Weather As Well As the Booming Economic Growth. What Does It Cost the Economy and When Will the Situation Improve?

Summary

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Last summer, Indrani Mukherjee, a resident of Dum Dum Park, Kolkata, decided to make do with an inverter that would power a few lights and fans when the local power distribution utility switches off. This summer, her faith in the utility's services has not improved. Rather, she is shopping for more storage devices. "I stay in a top floor apartment, where I operate an air-conditioner to beat the heat. But, what's the point, if I cannot run it, thanks to frequent power supply disruptions?" says Mukherjee. "I am now scouting the market for an inverter that can operate the ACs during the power cuts."

This tale can perhaps be heard echoing in several cities across the country, thanks to the crippling shortages that get accentuated during the summer months. But what makes this summer different from the earlier ones? The economic boom witnessed during the recent past has fuelled the buying power of consumers in the domestic and commercial segment in several power-starved cities. Ironically, the very same reason is also fuelling demand for power that the sector is unable to deliver. The play out of this vicious cycle in the domestic and commercial segment of consumers is interesting.

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Inverter Cities ; Crippling Power Shortages Are Driving Consumers to Spend More On Expensive Storage Devices. This Summer, It Will Only Be Worse, Thanks to the Unforgiving Weather As Well As the Booming Economic Growth. What Does It Cost the Economy and When Will the Situation Improve?

First, power-deficit states (like Maharashtra and Andhra Pradesh) are resorting to purchase of expensive power from power-surplus states (Orissa and Jharkhand, for example). Secondly, growth in the power storage and micro-generation business is on the rise (See Taking Advantage of the Shortages). Thirdly, the power shortages bring out the stark rural-urban divide. ...

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