India Power Transmission & Distribution Sector chance Outlook 2025

21 Feb 2020

Power transmission is an integral a part of the ability sector and is as very important as power generation; there's no worth for generating power till the ability reaches to the destination for final shopper. The large quantity of power generated in power plant is to be transported over an extended distance to the load centers to cater to the shoppers with the assistance of transmission lines and transmission towers. Although India has adequate power generation capability, it's a considerable proportion of population having restricted access to electricity principally due to lack of correct transmission infrastructure. So as to realize target of cheap electricity for all by 2019 or maybe by 2022, India serious must have sturdy power transmission network.

Evacuating power safely was the most focus of India's power transmission sector throughout the initial years. However because they want for electrification of a lot of areas were complete for economic process, the role of transmission sector modified a great deal. Like the ever-changing state of affairs, the transmission sector began to move towards integrated system coming up with as a result of generation capacities area unit distributed erratically in several regions. Whereas thermal capability is within the coal wealthy Japanese region, hydro capability is focused within the cragged regions of North and North-Eastern regions whereas renewable sources like wind or star area unit focused in west and south regions.

Building on huge power transmission sector therefore addressed this issue and helped providing power to regions across the country. Therefore power transmission in India is within the integrated system coming up with of power sector and in last one decade this sector has been obtaining substantial investments to rescale the infrastructure. Currently power transmission is taken into account as vital as power generation.

India's power transmission sector is usually controlled by government – each the central and varied state governments and varied establishments to figure within the transmission sector. Till now, with regard to the dimensions of the world, presence of personal sector is negligible although the private sector participation in power transmission is growing step by step with recent policy reforms. within the central sector, the central transmission utility (CTU), called the ability Grid Corporation of India Ltd (PGCIL), is answerable for national and regional transmission coming up with whereas the state sectors have separate State Transmission Utilities (STU).

Power transmission was displayed to the personal sector in 2010 with the award of the western regional system strengthening to Reliance below and also the east-north interconnection line to Sterlite Energy. The CERC in 2011 dominated power transmission comes ought to be awarded through competitive bidding like generation comes. Installation was the sole company operational during this space until then. The recently amended National Tariff Policy needs comes excluding those of strategic importance, that area unit to be appointive to installation, be auctioned. Till now, Western Samoan monetary unit Transmission Project has been the largest entry of personal sector in power transmission although supported public-private partnership.

Power distribution system is that the last stage of electricity sector worth chain because it provides power generated within the power generating plants to the ultimate shoppers. The most perform of a wattage distribution system is to produce power to individual shopper premises. Distribution of electrical power to completely different shoppers is finished with abundant low voltage level. Power distribution in India has a lot of presence of personal sector than the transmission sector. Till it slow back, the State Electricity Boards (SEBs) accustomed handle the distribution phase utterly. however in last 20 years power distribution during a few regions/areas, significantly in giant cities has been privatized, but the SEBs or the state DISCOMs area unit still handling an outsized a part of power distribution.

The sector has started receiving bigger attention and investment with the restructuring of the state electricity boards (SEBs). Many new initiatives are introduced to cut back mixture technical and business (AT&C) losses together with a definitive regulative framework. Electricity Act 2003, National Electricity Policy 2005 and National Tariff Policy 2006 area unit vital rules governing the world these days with an aim to bring competition within the sector and improve the services to the top shoppers.

Indian government has conjointly created significant investments within the distribution sector through the Rajiv Gandhi Grameen Vidyutikaran Yojna (RGGVY)(now replaced by Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and Accelerated Power Development and Reforms Programme (APDRP) throughout the 10th arrange and has continued  to increase an equivalent within the Eleventh arrange furthermore.

The aim of those programs is to produce access of electricity to all or any and convey down the AT&C losses to tier of around V-J Day across the country. The varied policies and rules introduced by the govt. area unit set to extend competition and convey regarding business viability. Participation of personal players into the Distribution Sector has conjointly been inspired through varied models like Public personal Participation as just in case of Old Delhi and Orissa and a lot of recently through input based mostly distribution franchisee models in geographical region, Madhya Pradesh and province.

The transition that Indian power sector has seen over the past 4-5 years narrates its growth story quite well. From witnessing an escalated growth in thermal power installation – to- building blocks for inexperienced energy development , from taking daring steps of all times within the sort of UDAY –to- setting goals of power for all etc. is what has modified the dynamics of Indian electricity sector in recent times. With such transformation in image, a makeover within the existing came upon of power transmission phase is way required.

Transmission sector works as a stone powerfully holding the event of power generation & distribution segments. It goes unvoiced that the expansion of power sector is contingent to development of a strong and a non foldable transmission network. Over the past decades, the entire power capability has witnessed commendable growth, with quite 330 GW of generation capability presently put in India. However, India’s peak load offer is getting ready to 150 GW solely, and intensifying this example more is that a number of India’s power surplus regions don't have adequate power evacuation infrastructure that might alleviate the revenant offer shortages in alternative components of the state. Although important efforts in terms of providing sleek policy and regulative framework together with huge investments are planned within the past for strengthening the ability transmission infrastructure in country.

Better pace of project implementation and stable attention from the govt. has created power transmission a brand new business zone and promising investment destination

But, continuous cases of congestion within the transmission lines witnessed within the recent past may be a testimony of way more efforts area unit still needed to tug up the transmission phase in India. The problems associated with Generation and Distribution sectors, rightfully, got due focus from policy manufacturers and business stakeholders. Transmission that is that the crucial link of power offer with no fall back possibility got down vies because of multiple reasons. Despite of all the autumn back, India was able to come through “One Grid”.

Commensurate with the generation capability addition plans, want for a robust power transmission and distribution sector too exists. However, the govt. looks to be positive in terms of labour in large investments for creating the event of an equivalent to be in adjust with the ability generation phase. In 13th FYP, investment of USD 40 Billion is planned for power transmission sector WITH a lot of focus is probably going to stay on intra state transmission infrastructure that was lagged in last FYPs.

An extensive network of transmission lines has been developed in Indian over the years for evacuating power created by completely different power generating stations and distributing an equivalent to the purchasers. Relying upon the quantum of power to be transmitted and distance concerned, transmission lines of acceptable voltage levels area unit planned and ordered.

Presently, India boasts an influence transmission network of 381761 circuit kilometers (ckt. kms) as per the newest estimates (as on Nov 2017). Of this total network, the share of central transmission utility (CTU) stands to be 146005 ckt. kms whereas the state transmission utilities (STUs) contributes some 2019144 ckt. kms. However, the share of personal transmission utilities (PTUs) is kind of less in comparison with STU’s and CTU’s however not insignificant.

The programme to produce 24×7 power availableness across the country by 2019 undoubtedly wants robust transmission network and grid stability

Key Statistics and Growth Story of Power Transmission Sector in India

During 12th FYP the entire transmission capability of India stands to be 367851 ckt. Kms that witnessed a growth of getting ready to 43% from the network length ascertained throughout 11th FYP. Of this total capability most growth was seen within the network additions at the voltage level of 400 potential units. As, from a transmission capability of 106819 ckt. kms throughout 11th FYP, an equivalent redoubled to tier of 157787 ckt.kms throughout 12th FYP, that indicates an increase of 50968 ckt. kms. Further, from an amount April 2017 to Nov 2017, the capability addition of transmission network at 400 potential units remains the very best – indicating a rise of 9160 ckt.kms. At a voltage level of 200 potential units, an honest addition of 27288 ckt. kms was seen from 11th FYP to 12th FYP, that more redoubled to 2614 ckt. kms throughout April 2017 to Nov 2017.

Talking regarding the transformation capability, it ought to be noted that an equivalent was ascertained to be 740765 MVA throughout twelfth FYP that grew 8th of what seen throughout 11th FYP. Of this total transformation capability ascertained in 12th FYP, contribution of intra region networks stands to be 437762 MVA and accounts 59 of the additive transformation capability of the country. Further, an addition of 50,805 MVA was seen within the transformation capability throughout an amount from April 2017 to Nov 2017, creating the entire capability to succeed in 791570 MVA as on Nov 2017.

Coming onto the contributions of Indian states in increase transmission network of the country, it ought to be noted that the northern region states holds a network of roughly 98106 ckt.kms as on Dec 2017, that witnessed a growth of getting ready to four-dimensional from that ascertained throughout March 2017. Within the north, province and Rajasthan drive the transmission capability holding a share of one year and 37% severally into an equivalent. Further, the northern states boasts a metamorphosis capability of getting ready to 253737 MVA as on Dec 2017 within which the additive share of province and Rajasthan stand to be some 65%. Also, in terms of substation’s count, it's important to notice that regarding 1651 substations existed within the northern region as on Dec 2017 that witnessed a growth of 2% from the count ascertained throughout March 2017. Moving towards the west, it are often seen that the transmission network in western region states stands to be 154426.9 ckt. kms as on Dec 2017. Of this capability, regarding 65232 ckt.kms of the network length exists in Gujarat, whereas Madhya Pradesh contributes getting ready to 36535.1 ckt.kms of the network length. Geographical region too holds a big share of 41512.4 ckt. kms. Within the total transmission capability. Whereas Chattisgarh accounts regarding 11147.4 ckt. kms of network length as on Dec 2017. Further, the western states boasts a metamorphosis capability of getting ready to 281387.5 MVA as on Dec 2017 within which the additive share of Gujarat and geographical region stand to be some 76%. Also, in terms of transformer’s count, it's important to notice that regarding 2831 transformers existed within the western region as on Dec 2017 that witnessed a growth of 0.46% from the count ascertained throughout March 2017. Within the japanese region, it are often seen that the transmission network in western region states stands to be 42594.8 ckt. kms as on Dec 2017 .

Of this capability, regarding 13294.5 ckt.kms of the network length exists in province, whereas province contributes getting ready to 12877.8 ckt.kms of the network length. Jharkhand too hold a big share of 3348 ckt. kms. Within the total transmission capability. Whereas Odisha accounts regarding 13074.4 ckt. kms of network length as on Dec 2017. Further, the Japanese states boast a metamorphosis capability of getting ready to 65967.5 MVA as on Dec 2017. Throughout twelfth FYP the entire transmission capability of India stands to be 367851 ckt. Kms that witnessed a growth of getting ready to 43% from the network length ascertained throughout 11th FYP. Of this total capability most growth was seen within the network additions at the voltage level of 400 potential units. As, from a transmission capability of 106819 ckt. kms throughout 11th FYP, an equivalent redoubled to tier of 157787 ckt.kms throughout 12th FYP, that indicates an increase of 50968 ckt. kms. Further, from an amount April 2017 to Nov 2017, the capability addition of transmission network at 400 potential units remains the very best – indicating a rise of 9160 ckt.kms. At a voltage level of two hundred potential units, an honest addition of 27288 ckt. kms was seen from 11th FYP to 12th FYP, that more redoubled to 2614 ckt. kms throughout April 2017 to Nov 2017.

Key Facts

States down within the south plans to extend the grid fed power capability by 12.5 GW from 2017 to 2020. States from west to north plans to extend the grid fed power capability to 20 GW by 2020. As per the draft document of NEP the inter-regional transmission links area unit projected to fulfill the height demand of 226 GW by 2022.

The Outlook

However, the ability transmission sector in India has witnessed a big growth over the tenure of past 3-4 years; however this can be not it. The recent reformations witnessed within the power sector has undoubtedly force up the performance of the ability transmission sector within the country however has conjointly raised the pressures for delivering high in future years. Varied schemes declared by the govt. like Deendayal Upadhaya Gram Jyoti Yojana, Integrated Power Development theme, Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya Scheme) – crux of all lies into higher and uninterrupted offer of power within the country that in turns need a robust transmission network. Further, the push for inexperienced energy passageway, plans for developing energy storage market, targeting 100% electrification of rural – remote areas and also the anticipated increase within the power demand intimates the requirement for a stable grid and higher transmission below came upon within the country. Infact, to cater all this it's been calculable that there would a demand of further 100000 ckt. Kms of transmission lines by FY 2022. Also, it's anticipated that by FY 2022 a further power transformation capability of 200000 MVA shall be required at the voltage of 220 potential units, attracting an investment to the tune of roughly USD 5 Billion. Further, it's vital to notice that an overall quantity of INR 2.6 lakhs large integer is projected to form an entry into the account books of power transmission business from the government’s facet with contribution of state transmission utilities hovering around 62%. Although, with to date planning’s and achievements the projected developments within the power transmission sector looks quite well placed. Having said that, encouraging more PPP into the sector shall be vital to meet the huge investment & capacity enhancement target in India’s transmission segment. Therefore, more initiatives should be taken by the government to saddle the pace of private participation into the same.