National power grid sync: What it means for the South

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26 Aug, 2025 12:21

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The Power Grid Corporation on Tuesday connected the southern power grid to the National Electricity Grid.

The move will facilitate easier transmit of power from surplus states in other regions to several power-deficient southern states.

“Synchronous integration of the Southern grid with rest of the national grid shall not only augment the inter-regional power transfer capacity of Southern region but also relieve the congestion being experienced in a few transmission corridors,” a statement released by the Power Ministry said.

“This would be a boost for further economic growth of the country. It is likely to take a few months before power flow over this line is stabilised.”

The country has five power grids: northern, southern, eastern, western and north-eastern and the southern was the last grid to be connected to the national system.

Here is a quick FAQ on what this means for the southern states in particular and India as as a whole:

How does this help?

Earlier, several power-deficient states in the south faced a problem in buying power from surplus states elsewhere as they were on a different transmission setup. They found it difficult to sell power too, in situations of excess production.

Also, being in the same transmission corridor would help prevent regular outages and trip-ups that took place earlier.

Will prices in the south come down?

There used to be a substantial difference in merchant power rates in the southern states where prices sometimes reached as high as Rs 15-20 per unit even as they stood at about Rs 5 per unit in other states. This differential is now expected to narrow.

Where does India stand now?

With this, the Indian power system becomes on the largest synchronized grids in the world with nearly 232,000 MW of installed capacity.

Which southern states will benefit the most?

States like Tamil Nadu, Andhra Pradesh and Karnataka had been the hardest-hit. Tamil Nadu Chief Minister J Jayalalitha had earlier written to the prime minister on this issue.

How much did it cost?

It cost Power Grid Rs 815 crore to set up the uniform transmission system.

Why was the southern grid the last to be connected?

It was expected that the south would be able produce adequate power from thermal and the nuclear plant coming up at Kudankulam, projects that later got delayed, Power Grid Director IS Jha told a publication. As a result, the corporation focused last on the southern grid.