India’s Power Transmission Plan: Rs. 9.12 Lakh Crore Investment to Boost Capacity by 2032
Team Finance Saathi
28/Nov/2024

What's covered in the article:
- India’s ambitious power transmission plan allocates Rs. 9.12 lakh crore to boost capacity and infrastructure by 2032.
- Inter-regional transmission capacity will rise from 119 GW to 168 GW by 2032, along with cross-border interconnections.
- Renewable energy expansion includes 127,050 MW under development, enhancing India’s energy diversity.
The Indian government has set an ambitious course for the future of the country’s energy sector, with a massive plan to enhance its power transmission infrastructure. Over the next decade, the government has earmarked an investment of Rs. 9.12 lakh crore (US$ 107.89 billion) to augment the transmission capacity, reflecting its commitment to bolstering the power grid and meeting future energy demands. This investment will be focused on key areas such as increasing inter-regional transmission capacity, expanding the network of transmission lines, and incorporating cutting-edge technologies like High Voltage Direct Current (HVDC).
Key Goals of the National Electricity Plan (Transmission)
The National Electricity Plan (Transmission) lays out clear targets to strengthen India's power transmission infrastructure, focusing on a series of ambitious milestones:
Inter-regional transmission capacity will be expanded from 119 GW in 2024 to 143 GW by 2026-27, and further to 168 GW by 2031-32. This will enhance the country’s ability to distribute power more efficiently across regions, ensuring that demand and supply are balanced even as energy consumption rises.
A total of 191,474 circuit kilometres of transmission lines will be added, which will extend the grid and improve connectivity. This expansion is expected to ease power distribution, enhance grid stability, and provide greater access to electricity in remote areas.
Additionally, the government plans to increase transformation capacity by adding 1,274 GVA (Giga Volt Ampere) at voltage levels of 220 kV and above. This addition is crucial for handling the increased power supply and facilitating smooth electricity transmission across the country.
The integration of High Voltage Direct Current (HVDC) technology is a significant part of this plan. 33.25 GW of HVDC bi-pole links will be established, enabling more efficient long-distance transmission and enhancing the power sector's resilience.
Cross-Border Interconnections
Another crucial component of the plan is the expansion of cross-border interconnections, particularly with neighboring countries. India is looking to enhance its energy trading capabilities with countries like Nepal, Bhutan, Myanmar, Bangladesh, and Sri Lanka. These interconnections will help diversify energy sources, facilitate power exchange, and ensure energy security in the region. The vision for cross-border connectivity also aligns with India’s broader goal of increasing its share in the global energy market and improving diplomatic relations through energy cooperation.
Renewable Energy Integration
In addition to upgrading the power transmission infrastructure, the Indian government is also focusing heavily on renewable energy development. By October 31, 2024, a remarkable 127,050 MW of renewable energy capacity was under implementation, reflecting India’s robust transition towards clean energy sources. This includes a combination of solar, wind, and hydroelectric projects, designed to significantly reduce the country’s reliance on fossil fuels and contribute to its commitment to Net Zero by 2070.
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Furthermore, 28 hydroelectric projects, totaling 13,997.5 MW, and five pumped storage projects aggregating 6,050 MW, are currently under construction. These projects, once operational, will play a critical role in meeting peak power demand and stabilizing the grid. Hydroelectric power generation offers the benefit of pumped storage technology, which allows energy to be stored and used during high-demand periods, further strengthening the grid.
Impact on Stakeholders
The scale of India’s energy transition provides ample opportunities for a wide range of stakeholders, from electricity generators and equipment manufacturers to investors and private sector players. According to Mr. Shripad Yesso Naik, the Minister of State for the Ministry of New and Renewable Energy (MNRE), the ambitious plans laid out in the National Electricity Plan (Transmission) will offer enhanced visibility into growth opportunities for all involved. The increased focus on infrastructure development, renewable energy, and technology integration is expected to attract substantial investment, creating jobs and fostering long-term economic growth.
Conclusion
India’s ambitious Rs. 9.12 lakh crore power transmission plan is a significant step forward in strengthening the country’s energy infrastructure. With an emphasis on inter-regional transmission, renewable energy integration, and technological advancements such as HVDC links and cross-border interconnections, this initiative will transform India’s power sector, ensuring reliable energy access for all. By 2032, these developments are expected to position India as a leader in sustainable energy, helping meet the nation’s growing demand while supporting global climate goals. The combination of private sector participation, technological innovation, and international collaborations will ensure the success of this bold vision.
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