PLI Scheme Could Be Applicable to Transmission Equipment: Pankaj Agarwal

16 Oct 2024

Power Secretary Pankaj Agarwal stressed the importance of developing a production-linked incentive (PLI) scheme for essential transmission equipment. This initiative aims to alleviate pressure on global supply chains and promote renewable energy infrastructure.

During the inaugural session of the Brainstorming Conclave on the Indian Power Sector Scenario 2047 in New Delhi, Agarwal said that there are 1650 GW of renewable energy capacity globally that is currently unable to connect to the grid due to transmission constraints.

"We need to consider how to localise the supply chain for transmission equipment. Currently global supply chains are facing significant pressure, highlighting constraints in the expansion of transmission capacities," Agarwal noted. He added that these limitations arise from right of way (RoW) challenges and a restricted supply of essential equipment.

He pointed out that initiatives such as the planned power corridors in Gujarat are tackling right-of-way (RoW) challenges. However, he stressed the importance of enhancing India's capacity for high-voltage direct current (HVDC) and high-voltage alternating current (HVAC) systems. "HVDC is essential, and for HVAC, we might require a production-linked incentive (PLI) for certain equipment," he remarked.