India’s transmission sector has achieved remarkable progress over the years, evolving from a fragmented network into a cohesive and interconnected grid. The segment has seen advancements in the form of both expanding physical infrastructure and technological innovations, establishing the country’s electricity grid as one of the largest synchronous grids in the world. With India’s huge ambitions in energy transition and plans to have an installed capacity of 500 GW of non-fossil fuel-based electricity by 2030, a robust transmission system is being put in place, as unveiled by the CEA’s transmission road map for 2030.
Indian Infrastructure takes a look at the key trends and developments shaping the power transmission segment….
Segment size and growth
As of May 2024, the total length of transmission lines at the 220 kV level and above stood at 485,935 ckt km, comprising 54,797 ckt km at the 765 kV level, 203,890 ckt km at the 400 kV level and 207,873 ckt km at the 230/220 kV level. For high voltage direct current (HVDC), line length stood at 9,655 ckt km at the ±800 kV level, 9,432 ckt km at the ±500 kV level and 288 ckt km at the ±320 kV level. The total transmission line capacity addition during 2023-24 was 14,203 ckt km. In 2024-25 (as of May 2024), the segment has added 391 ckt km of line length. The country’s total inter regional capacity stands at 118,740 MW.
The total transformation capacity stood at 1,257,305 MVA as of May 2024, comprising 294,700 MVA at the 765 kV level, 460,448 MVA at the 400 kV level and 468,657 at the 230/220 kV level. The HVDC capacity stood at 18,000 MVA at the ±800 kV level, 13,500 MVA at the ±500 kV HVDC level and 2,000 MVA at the ±320 kV level as of May 2024.
The total transformation capacity addition during 2023-24 was 70,728 MVA. During 2024-25, the total transformation capacity added stood at 6,225 MVA (as of May 2024).
Policy and regulatory developments
One of the key policy developments last year was the release of the draft National Electricity Plan (Volume II) for transmission by the CEA. The tentative transmission line and capacity addition as per the draft NEP is expected to be 105,000 ckt km and 595,000 MVA respectively during 2027-32. The plan outlines a substantial investment of Rs 4.75 trillion by 2027 for developing transmission infrastructure, including lines, substations and reactive compensation at 220 kV and above voltage levels. This includes 170 transmission schemes with a total estimated cost exceeding Rs 3.13 trillion for interstate transmission systems (ISTS), and around Rs 1.61 trillion for intra-state systems.
Further, the Ministry of Power (MoP) notified the Electricity (Amendment) Rules, 2024, in January 2024, amending the existing Electricity Rules, 2005. These amendments aim to address two key challenges: promoting the development of dedicated transmission lines, and facilitating open access to the electricity grid. The rules now allow consumers with specified energy loads and energy storage systems to establish, operate and maintain their own dedicated transmission lines without the requirement of a licence. The rule covers companies/entities with loads over 25 MW and 10 MW on the inter state and intra-state transmission networks respectively. The new Rule 21 exempts these entities from obtaining a licence, provided they comply with the relevant regulations, technical standards and guidelines.
In May 2024, the Central Electricity Regulatory Commission (CERC) notified the CERC (Procedure, Terms and Conditions for Grant of Transmission Licence and Other Related Matters) Regulations, 2024. As per these regulations, no person shall be eligible for grant of licence for interstate transmission of electricity unless they are selected through the process under the competitive bidding guidelines issued under Section 63 of the Act; or they are an entity selected by the central government or its authorised agency to implement a project under the regulated tariff mechanism. Further, the transmission licence shall, unless revoked earlier, continue to be in force for a period of 25 years from the date of issue. The transmission licence for transmission assets whose tariff is determined by the commission under Section 62 of the Act shall, on completion of 25 years from the date of issue of licence, stand automatically renewed for another period of 25 years, unless revoked earlier.
Private sector participation trends
Since the power transmission segment was opened up to private players in 2006, their involvement has been steadily increasing. This trend has been especially noticeable in the past four to five years, with more projects being awarded through the tariff-based competitive bidding (TBCB) route.
From 2009 to March 2024, a total of 102 ISTS schemes have been bid out to both public and private players. Of these, various private entities have won 60 projects. So far, 35 TBCB projects have been commissioned, at an estimated cost of Rs 441 billion, while another 25 projects, valued at Rs 293 billion, are under construction by the private sector.
Plans for renewable energy integration
As a crucial step towards achieving the targeted renewable energy capacity by 2030, the transmission system is expected to evacuate approximately 537 GW of renewable energy. The CEA’s “Transmission System for Integration of over 500 GW Renewable Energy Capacity by 2030” suggests that 50,890 ckt km of ISTS transmission lines and 433,575 MVA of substation capacity will be needed to integrate additional wind and solar capacities by 2030. The planned additional transmission systems required include 8,120 ckt km of HVDC transmission corridors (+800 kV and +350 kV), 25,960 ckm of 765 kV AC lines, 15,758 ckt km of 400 kV lines and 1,052 ckt km of 220 kV lines. This requires an estimated investment of Rs 2,442 billion. The transmission plan also includes a transmission system required for evacuation of 10 GW of off-shore wind located in Gujarat and Tamil Nadu, at an estimated cost of Rs 0.28 lakh crore.
Various transmission schemes are at different stages of implementation, with some projects already commissioned, some under construction and others at the bidding stage. So far, under the MoP’s green energy corridors (GEC) scheme, projects to facilitate the evacuation of green energy from renewable-rich states such as Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Maharashtra, Madhya Pradesh, Rajasthan and Tamil Nadu are being progressively commissioned. The inter-state component under GEC-I has been completed, while at the intra-state level, 92 per cent of transmission lines and 94 per cent of transformation capacity have been added, as of July 2023.
Furthermore, approximately 19.4 GW of renewable energy capacity is planned to be integrated into the interstate system under the GEC-II scheme, which has a total estimated cost of Rs 120.31 billion. States are preparing packages and issuing tenders for implementing these transmission schemes. Under GEC-II, an addition of 10,753 ckt km of transmission lines and 27,546 MVA of substation capacity is targeted. State transmission utilities are currently tendering projects under this scheme, which is scheduled for completion by 2025-26.
Cross-border interconnections
At present, India is connected with Nepal, Bhutan, Bangladesh and Myanmar. Currently, exchange of power between India and its neighbouring countries is taking place in both synchronous and asynchronous modes. Transmission links (at the 11 kV, 33 kV, 132 kV and 400 kV levels) have been established along the border states of Bihar, Uttar Pradesh, Uttarakhand, Tripura, West Bengal and Assam. Some interconnections are under construction, and several cross-border interconnections are planned.
There are interconnections between India and Bhutan at the 400 kV, 220 kV and 132 kV levels. The major 400 kV interconnection is from Tala in Bhutan to Siliguri in India. Nepal has fewer interconnections at present, but it is rapidly evolving and planning to build 10,000 MW of hydropower, with a significant portion intended for export. At present, over 4 GW of power is being exchanged with the neighbouring countries through cross-border links. This is likely to increase to about 7,000 MW by the end of 2026-27.
Discussions regarding interconnections between India and Sri Lanka are at an advanced stage. Further, towards building a transnational grid under the One Sun One World One Grid (OSOWOG) initiative, discussions on connectivity with Southeast Asia and the Middle East, to enable trade in renewable energy, are in the early stages. Interconnection of the Indian grid with the grids of Maldives, Singapore, UAE, Saudi Arabia, etc., under the OSOWOG initiative, is being discussed.
Challenges and outlook
Large-scale integration of solar and wind power requires significant investment in both inter- and intra-state connectivity, to manage fluctuating availability and prevent cascading grid failures. Additionally, right-of-way and land acquisition issues delay projects and increase costs, with land procurement often facing local and environmental resistance. Transmission planning has become a critical and challenging aspect, particularly with the integration of large-scale renewable capacity from solar parks and wind farms and energy storage. A robust transmission network enables the import of power from economical sources outside the state or region, facilitating wider access to affordable power across the grid.
To manage variable and bidirectional power flows, HVDC and Flexible Alternating Current Transmission System devices are being adopted. Other new technologies, such as synchronous condensers, static synchronous compensators and grid-forming inverters, are being deployed in projects to maintain inertia, handle short-circuit power and reactive power, and provide black start facilities, helping the sustainable evolution of India’s power grid.
Aastha Sharma
