Competition in transmission sector will drive Indian renewables

Intra-state transmission infrastructure is the weakest link in the Indian grid. However, the introduction of competition from private players could help to drive down construction costs and promote timely completion of projects.

From pv magazine India

A new Institute for Energy Economics and Financial Analysis (Ieefa) report calls for greater competition in the development of intra-state transmission infrastructure, in order to speed up the deployment of renewable energy in India.

 “As the share of increasingly low-cost but variable renewable energy grows, development of transmission systems must keep pace to meet demand and ensure efficient, reliable delivery of power to consumers,” said Vibhuti Garg, an energy economist at Ieefa.  “Intra-state transmission networks will be key for the evacuation of power as we transition to a sustainable energy economy. Yet, the intra-state transmission is the weakest link in the grid.”

The efficiency and reliability of intra-state transmission networks would be critical for power evacuation as most of India’s renewable energy generation capacity is connected to state transmission utilities (STUs). However, the intra-state network development is lagging due to development based on a cost-plus regime.

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