Government To Make Investment of ₹9.15 Lakh Crore For Power Transmission

The Indian government is poised to invest a substantial ₹9.15 lakh crore in bolstering its central and state transmission systems by 2032, as outlined in the revised National Electricity Plan (NEP). This significant investment is part of a broader strategy to meet the nation’s growing energy demands and facilitate the integration of renewable energy sources.

The NEP, which is expected to be released within the next two weeks, aims to increase peak demand capacity from 240 GW in 2023 to 458 GW by 2032. To achieve this ambitious target, the government plans to expand the country’s transmission network to 6.48 lakh circuit kilometers (ckm) by 2032, up from 4.85 lakh ckm in 2024. Additionally, the transformation capacity is projected to increase to 2,342 GVA (gigavolt amperes) from 1,251 GVA during the same period.

Key highlights of the revised NEP include:

• Expansion of transmission network: The government will invest heavily in expanding the country’s transmission infrastructure to accommodate the growing demand for electricity and facilitate the integration of renewable energy sources.
• Increased transformation capacity: The transformation capacity will be significantly enhanced to ensure the efficient distribution of electricity across the country.
• Addition of HVDC lines: Nine High Voltage Direct Current (HVDC) lines with a total capacity of 33.25 GW will be added to the existing network, further strengthening the grid.
• Enhanced inter-regional transfer capacity: The plan aims to increase inter-regional transfer capacity to 168 GW from 119 GW, enabling more efficient power sharing between different regions.

The revised NEP is expected to play a crucial role in meeting India’s increasing electricity demand, promoting renewable energy adoption, and supporting the development of green hydrogen technologies. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.