The Union government is looking to connect all upcoming green energy units with the national grid at an estimated investment of Rs 4.9 lakh crore between 2027 and 2032, according to the National Electricity Plan (Volume II: Transmission) notified on March 20.
According to the NEP, India’s peak power demand is expected to hit 388 GW by 2031-32, for which the country would need a power generation capacity of 997 GW. This will require the transmission and distribution (T&D) network to be connected from the source to the grid to the consumer.
“An estimated Rs 4,90,920 crore would be required for the implementation of additional transmission system in the country during 2027-32… The same for 2022-27 was projected at Rs 4,25,222 crore,” says the NEP, prepared by the Central Electricity Authority.
The NEP, which is a medium to long-term plan for India's power sector, is prepared and notified every five years. The last NEP (Volume I: Generation) was notified in May 2023. A draft for the latest NEP (Volume II: Transmission), seeking comments was published in October 2024 and the final version was issued through a gazette notification on March 20, 2025.
Electricity from clean sources
Of the 997 GW, electricity from clean sources is expected to contribute at least 500 GW. However, to avoid contingencies, the NEP stated that transmission networks will be built to feed a capacity of 600 GW of renewable power by 2032.
“Considering the planned generation capacity addition and projected electricity demand, about 76,787 circuit kilometres (ckm) of transmission lines and 4,97,855 MVA (Mega Volt-Amperes) of transformation capacity in the substations (220 kV and above voltage level) are planned to be added during 2027-32,” the report said.
In addition, 32,250 MW of High Voltage Direct Current (HVDC) bi-pole capacity is planned to be added during 2027-32. With the planned addition, the length of transmission lines and transformation capacity in sub-stations would become 6,48,190 ckm and 23,45,135 MVA respectively, it stated.
Battery storage, power trading with other countries
The NEP has projected that, during 2027-32, India’s battery energy storage capacity will be about 47 GW, against the current capacity of nearly 300 MW (megawatt).
The steep increase is attributed to the government’s latest decision to make battery energy storage systems (BESS) mandatory in all renewable energy tenders. It is expected that the commercial and industrial segment will also install BESS, to a large extent, for the captive use of renewable power.
The problem with renewable energy is that it is intermittent. BESS can solve this problem as it stores surplus energy generated during periods of peak production and releases it during periods of low generation. It helps balance the grid and enhance reliability.
Besides, the government plans to increase its transmission network outside India. At present, the country exchanges power with Nepal, Bangladesh, Bhutan and Myanmar. At present, about 4,100 MW of power is being exchanged with the neighbouring countries through cross-border links and the same is likely to increase to about 7,000 MW by the end of 2026-27.
“Interconnection between India and Sri Lanka is in advanced stage of discussions. Under the One Sun One World One Grid (OSOWOG) initiative, interconnection of the Indian grid with Singapore, UAE and Saudi Arabia are under discussion,” the report stated.
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