Transmission sector set for Rs 2.4 lakh crore expansion as part of green power push

India's transmission sector is gearing up for an expansion worth Rs 2.4 lakh crore to connect 371 GW of renewable energy capacity to the grid by FY2032, Kotak Institutional Equities said in a recent note to investors.

In addition to this, the ongoing investment of around Rs 1.2 lakh crore is estimated for strengthening the system by FY27, the report said.

Kotak has pointed out that among the additional 371 GW of renewable energy capacity, the current transmission infrastructure is capable of supporting 33.6 GW, work is underway to implement 139 GW, but progress needs to accelerate for the remaining 181 GW, which includes 58 GW of wind and 123 GW of solar energy.

In the fourth quarter of FY23, the domestic transmission and distribution (T&D) segment witnessed a significant increase in awards, with PowerGrid Corp winning eight projects compared to four in nine months ended FY23 on tariff-based competitive bidding (TBCB).  In FY2023, 16 projects have been awarded so far, surpassing the previous best of 14 awarded in FY2020, with PowerGrid winning 12 of them. It is worth noting that the government aims to achieve 537 GW of renewable energy capacity (including hydro) by FY2030, up from the current 166 GW.