Last decade is marked with a number of important reforms and large private investment in power generation, resulting huge capacity addition, rise of merchant power, and development of a national transmission grid. Since the beginning of this decade there are concerns over fuel availability, financial strength of distribution companies,

increasing cost of new projects including cost of land acquisition, and environmental issues.

This will result in three distinctive trends to redefine industry structure through systematic changes. There will be significant reforms including reduced subsidy. Secondly, renewable energy (particularly