India needs $60-80 billion investment in grid infrastructure over next 5 years: IEEFA
The Institute of Energy Economics and Financial Analysis (IEEFA) has published a note claiming that India will require $60-80 billion in investment over the next five years in order to accommodate growth in renewable energy capacity.
The note states that India’s growing renewable energy additions are outgrowing the grid capacity and blames structural limitations of the grid for the slowdown in wind power commissioning. India’s transmission network capacity grew at a compounded average growth rate (CAGR) of 12 percent between FY 2013-14 and 2017-18.
The IEEFA has examined the investment progress of three transmission companies – Power Grid Corporation of India, Adani Transmission, and Sterlite Power, over the last year.
It found that Power Grid Corporation has added 9,072 circuit km (ckm) of extra high voltage transmission lines, and 41,620 Mega Volt Ampere (MVA) transformation capacity with 15 new substations in the FY 2017-18.
Adani Transmission commissioned 3,150 ckm of transmission line in FY 2017-18, a growth of 58 percent.
Sterlite Power has won 30 percent of the total capacity awarded through bidding routes in recent year and commissioned a 414 ckm transmission line in Jammu and Kashmir two months in advance of deadline.
“Greater deployment of renewable energy is a key enhancement of Indian energy security. Given the best renewable energy resources are predominantly located in just eight states including Rajasthan, Jammu & Kashmir, Gujarat, Karnataka, Madhya Pradesh, Tamil Nadu, Maharashtra, and Andhra Pradesh, inter-regional transmission capacity for transmitting power from energy surplus states to deficit states will also be needed, as well as better load balancing capacity”, said Tim Buckley, Director of IEEFA.
Source: Mercom India