The feasibility of any proposal instead of being examined summarily by ROI, return on Investment or BAU (Business as Usual) upfront must follow a three-step process. Understanding the scientific principle behind the proposed concept.
Proof of the concept in a scaled down version
The third step of financial analysis has to be applied only after the first steps have been satisfied. The financial modelling of any proposal can be altered through viability gap funding, rebates, altering the debt equity ratio etc.
Thus, the decisions for energy transition require careful techno-economic analysis, transmission infrastructure is capital intensive and is not an exception to this principle stated above.
India Electricity Act, 2003, governs the transmission, distribution, and generation of electricity. It mandates non-discriminatory open access to transmission and distribution networks, promotes competition, and ensures electricity supply to all regions.
- National Electricity Policy (NEP): Provides guidelines for the development of transmission infrastructure to ensure reliable, secure, and economical supply.
- Tariff Policy: Regulates transmission charges and sets guidelines for pricing electricity transmission.
- Central Transmission Utility (CTU): Power Grid Corporation of India Limited (PGCIL) is the designated CTU, responsible for developing and managing the interstate transmission network.
- State Transmission Utilities (STUs): Handle intrastate transmission planning and operations Private Sector Participation: Encouraged for competitive bidding and public-private partnerships (PPP).
Transmission system planning follows long-term, medium-term, and short-term plans, coordinated by:
- CEA: Prepares transmission plans at the central level.
- Regional Power Committees (RPCs): Coordinate interstate planning.
- National Committee on Transmission (NCT): Approves and prioritizes interstate projects.
Current emphasis is on renewable energy integration (e.g., Green Energy Corridor projects).
To streamline access to the interstate transmission system General Network Access (GNA) was Introduced in 2023, replacing the earlier Long-Term Access (LTA) framework.
Green Energy Corridor
Aims to evacuate renewable power from high-generation states to load canters. By integrating regional grids into the National Grid, One Nation, One Grid, One Frequency is achieved. Initiatives have been taken to strengthen transmission links with neighbouring countries like Nepal, Bhutan, and Bangladesh to enhance regional energy trade.
India has envisaged to increase the non-fossil fuel based installed electricity generation capacity to 500 GW by 2030. For enabling growth of Renewable Energy (RE) capacity, areas which have high solar and wind energy potential, needs to be connected to Inter-State Transmission System (ISTS), so that the power generated could be evacuated to the load centres. The gestation period of wind and solar based generation projects being much less than the gestation period of associated transmission system, hence the transmission system must be planned well in advance. As a significant step towards successfully achieving the planned RE capacity by 2030, transmission system has been planned for about 537 GW of RE capacity.
Areas for exploration include leveraging Artificial Intelligence (AI) and Machine Learning (ML) for predictive maintenance and energy forecasting, expansion of underground and underwater cables, especially in dense urban and cyclone prone coastal areas, Integration of micro grids and localized renewable generation systems to reduce load on central transmission systems. Development of real-time markets and ancillary services markets to optimize grid operation and minimize transmission congestion costs.
Economic Aspects
Capital Cost: Transmission projects account for ~30% of the total cost of electricity infrastructure. Major cost components include land acquisition, construction of towers and substations, and installation of advanced monitoring systems.
Operational Costs
Includes maintenance of transmission lines, substations, and addressing system losses (~20% of India’s power system losses are from transmission and distribution).
Loss Reduction
India’s transmission losses (~2-3%) are low compared to global benchmarks, thanks to HVDC systems and UHV lines. Energy efficiency measures and upgrading aging infrastructure are critical to reducing further losses.
Renewable Energy Zones (REZs)
Developing dedicated transmission corridors for REZs ensures cost-effective evacuation of renewable energy. The Green Energy Corridor project is a significant step in this direction.
Challenges in Transmission
The challenges include Transmission bottlenecks due to rapid renewable capacity addition, Land acquisition and right-of-way (RoW) in a thickly populated country and maintaining grid stability with a high share of intermittent renewables. The rise in distributed generation (rooftop solar, microgrids) requires significant upgrades to transmission systems for bidirectional energy flow. Open access and tariff rationalization remain critical for efficient utilization of transmission infrastructure. Transitioning to digital substations and deploying advanced grid technologies requires substantial investment.
Technical Aspects of Transmission
India operates a synchronized national grid divided into five regions: Northern, Western, Southern, Eastern, and North-Eastern. The grid supports the integration of renewable energy, requiring advanced technologies such as HVDC (High Voltage Direct Current) and FACTS (Flexible AC Transmission Systems). Ultra High Voltage (UHV) transmission lines (765 kV AC and ±800 kV DC) are widely deployed to reduce line losses and improve efficiency. Transmission systems are being upgraded to accommodate the variability of renewable energy sources (solar, wind, etc.). Technologies like Dynamic Line Rating (DLR) and Energy Storage Systems (ESS) are being explored for grid stability. Implementation of Supervisory Control and Data Acquisition (SCADA), Wide Area Monitoring Systems (WAMS), and IoT-based predictive maintenance systems.
Large Grid
Best for urban centers, industrial hubs, and regions with dense populations and consistent demand. Economically viable for integrating utility-scale renewable energy projects (solar parks, wind farms).
Microgrids
More viable for rural and remote regions where grid extension is prohibitively expensive. Ideal for disaster-prone areas or regions with unreliable grid supply.
Key for decentralizing energy generation and meeting localized energy needs sustainably. India’s energy landscape requires a hybrid model:
- Large grid for national and industrial-scale supply.
- Microgrids for last-mile connectivity, rural electrification, and resilience.
- Technologies like smart grids and virtual power plants (VPPs) can integrate microgrids with the central grid for optimal energy sharing.
Dr. Bibhu Prasad Rath, an Additional General Manager at NTPC Limited, holds an M.Tech from IIT Delhi and a Ph.D. in Business Administration from Aligarh Muslim University. With nearly 35 years of experience in the power sector, he specializes in energy, environment, economics, and sustainability, with extensive expertise in operations, design, procurement, feasibility studies, policy formulation, investment decisions, and carbon credits. He recently completed a 13-month tenure at the Ministry of Power’s Fuel Supply Coordination, focusing on coal supply chain improvements. He currently oversees NTPC’s 20,000 MW coal-based capacity addition project and has published numerous papers on climate change, sustainability, decision-making, and leadership.
