Institutional reforms, governance structures and technology adoption

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This dissertation examines the relationship between technology adoption, institutions, and governance structures in the context of India's electricity distribution sector. The sector faces significant challenges due to high electricity losses and environmental sustainability concerns. Reforms have altered the industry landscape, introducing independent regulatory commissions tasked with enhancing distribution performance. Despite these efforts, high distribution losses persist, threatening the sector's viability. Drawing on New Institutional Economics, the study posits that the effectiveness of formal rules and their enforcement is influenced by entrenched political and social institutions, which shape actor interactions and reinforce reliance on conventional technologies. This reliance affects decisions regarding technology upgrades. The introduction of new technology alters the physical environment, transaction characteristics, and actor interdependencies, necessitating changes in institutions and governance structures. An analysis of regulatory commission operations reveals that existing incentives, such as multi-year tariff frameworks, are not sufficient to drive utility investments in loss reduction technologies (LRT). Ultimately, the study characterizes India's electricity distribution networks as complex sociotechnical systems significantly impacted by informal political dynamics.