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India's $30 Billion Plan To Upgrade Grid

In a new move towards clean power capacity, India recently unveiled a 2.44 trillion rupee plan to build transmission lines to connect renewable generation.

What is happening: aiming to nearly triple its clean-power capacity by 2030, the power ministery unveiled the $30 billion plan.

  • The project will connect solar plants in the sun-drenched deserts of Rajasthan and Gujarat and wind farms in Tamil Nadu to the national network.


Why does it matter: It will help boost India’s inter-regional transmission capacity from 112 gigawatts to 150 gigawatts by the end of the decade ending 2030.

  • The transmission plan includes building transformers and high voltage lines to carry power over very long distances, whilst also laying submarine cables to ship electricity from offshore wind projects.


Backdrop: The lack of adequate transmission lines has contributed significantly to the under utilisation of renewable energy in the country's power requirements.

  • Addressing this shortfall would enable clean power flow to urban and industrial hubs that are often far from generation sources.


Numbers: Having a generation capacity of 173 gigawatts from just non-fossil fuel sources, India plans to almost triple its power generation capacity to 500 gigawatts by 2030.


Possible hurdles: Private transmission companies have been lobbying New Delhi to allocate all projects through competitive bids, rather than the current practice of giving some to state-run Power Grid Corp. of India Ltd. without competition.

  • At the moment there is caution over how the contracts will be awarded, whether private company lobbyists would get preference over the initially established system.


Conclusion: In a move to increase power generation, transmission lines promoting renewable energy has been proposed by the ministry of power. Agreements issual remains unclear so far.





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