By Sarthak Takyar
In 2012, Power Grid Corporation of India Limited (Powergrid) conducted a study in which it found that power evacuation and transmission infrastructure near potential renewable energy project sites was insufficient. To solve this, it planned to develop dedicated transmission infrastructure for large-scale solar and wind power plants. This led to the development of green energy corridors (GECs), for which the implementation work started in 2015. GECs were divided into interstate transmission system (ISTS) GEC Phase I, intra-state transmission system (InSTS) GEC Phase I, and intra-state GEC Phase II.
Under ISTS GEC Phase I, a total of 3,200 ckt km of ISTS lines and 17,000 MVA substations were commissioned in March 2020. The total project cost was Rs 113.69 billion. Powergrid provided 30 per cent equity, while KfW and the Asian Development Bank provided 70 per cent funding through a loan of Euro 500 million and Rs 28 billion respectively. The project aimed to evacuate approximately 6 GW of renewable energy. Furthermore, renewable energy management centres were set up across 11 locations.
Under InSTS GEC Phase I, 9,700 ckt km of transmission lines and 22,600 MVA of substations were approved. The scheme is still under implementation in eight states – Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan and Tamil Nadu. The total project cost is Rs 101.417 billion. Of this, 40 per cent is from the Ministry of New and Renewable Energy’s (MNRE’s) central grant (Rs 40,566.7 million), 40 per cent from a KfW loan (Euro 500 million), and 20 per cent is equity from state transmission utilities. Projects under this phase are being set up for evacuating approximately 24 GW of renewables, of which about 16.6 GW has been commissioned and connected to the grid. As of May 31, 2023, 8,917 ckt km of transmission lines and 21,293 MVA of substations have been constructed. Of the eight states covered in this phase, four (Rajasthan, Madhya Pradesh, Karnataka and Tamil Nadu) have completed all the projects. The remaining four have requested deadline extensions until December 2023.
The InSTS GEC Phase II scheme, approved by the cabinet in January 2022, envisages an InSTS line length of 10,750 ckt km and a substation capacity of 27,500 MVA, scheduled for commissioning by March 2026. The scheme is currently under implementation by the transmission utilities of seven states – Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu and Uttar Pradesh – for evacuating approximately 20 GW of renewable power. The total project cost is Rs 120.313 billion, with 33 per cent (Rs 39.703 billion) as central financial assistance (CFA) from the MNRE. The remaining 67 per cent is in the form of loans from KfW/REC Limited/PFC Limited.
Recent key developments
In October 2023, the Cabinet Committee on Economic Affairs approved the ISTS GEC Phase II project for a 13 GW renewable energy project in Ladakh. The project is expected to be set up by financial year 2029-30, with a total estimated cost of Rs 207.737 billion, including 40 per cent (Rs 83.095 billion) as CFA.
According to a government statement, considering the complex terrain, adverse climatic conditions and defence sensitivities of the Ladakh region, Powergrid will be the implementing agency for this project. The transmission line for evacuating renewable power will pass through Himachal Pradesh and Punjab to Kaithal in Haryana, where it will be integrated into the national grid. An interconnection is also planned in Leh to connect to the existing Ladakh grid, ensuring reliable power supply. It will also be connected to the Leh-Alusteng-Srinagar line to provide power to Jammu & Kashmir. The project involves setting up 713 km of transmission lines (including 480 km of HVDC lines) and 5 GW capacity of HVDC terminals at Pang (Ladakh) and Kaithal (Haryana). This project is in addition to InSTS GEC Phase II, which is already under implementation.
In August 2023, in a written reply to a question in the Rajya Sabha, R.K. Singh, Union Minister for Power and MNRE, informed that under GEC Phase II, a project has been approved for setting up 624 ckt km of transmission lines and 2,200 MVA substation capacity by financial year 2025-26. It aims to evacuate approximately 4,000 MW of renewable energy power in Tamil Nadu. The MNRE has approved the project at an estimated cost of Rs 7,197.6 million, with a central government grant of Rs 2,375.2 million (33 per cent of the project cost). The project is under implementation by Tamil Nadu Transmission Corporation Limited.
Key challenges and outlook
The power transmission sector in India faces a multitude of issues and challenges. The sector continues to grapple with right-of-way (RoW) and land acquisition hurdles, leading to project delays and cost escalations. Land acquisition for transmission corridors is a complex and time-consuming process, often encountering resistance from local communities and raising environmental concerns. Additionally, the inadequate and outdated infrastructure often leads to transmission losses, reducing the overall efficiency of the grid. These losses result from factors such as technical inefficiencies, theft and subpar maintenance, resulting in financial burdens for utilities. Further, cybersecurity threats pose a growing risk to the segment. As the grid becomes more digitalised, it becomes susceptible to cyberattacks, which could disrupt power supply and compromise grid security. Addressing these challenges is vital to ensure a reliable and efficient transmission network, crucial for India’s transition to clean energy sources.
GECs also face these challenges. According to the 33rd report of the Standing Committee on Energy (2022-23), the intra-state portion of the GEC project, in particular, has experienced delays due to various reasons such as RoW issues, court cases, forest clearances, delays in issuing tenders due to delays in substation land acquisition, and delays in awarding works due to low bid turnout in various projects, which resulted in retendering several times. Another key hurdle is the gap in the commissioning timeline of transmission and renewable generation projects – the former taking a longer time (around 5 years) than the latter (around 1.5-2 years). Thus, several industry stakeholders have strongly advocated for improved planning of transmission infrastructure for renewables.
To the government’s credit, it has worked proactively in this space. The Central Electricity Authority (CEA) released a report titled “Transmission System for Integration of over 500 GW Renewable Energy Capacity by 2030”. As per the report, transmission systems have been planned for major renewable energy potential zones such as the Leh renewable energy park in Ladakh; Fatehgarh, Bhadla and Bikaner in Rajasthan; the Khavda renewable energy park in Gujarat; the Anantapur and Kurnool renewable energy zones in Andhra Pradesh; and offshore wind farms in Tamil Nadu and Gujarat. According to the CEA, there will be an additional 50,890 ckt km of transmission lines and 433,575 MVA of substation capacity developed under the ISTS for additional solar and wind capacity, entailing an investment of about Rs 2.44 trillion.
Following these additions to the ISTS, the cumulative interregional transmission capacity is likely to reach 150,000 MW in 2030. Several HVDC transmission corridors have also been planned for evacuating power from large renewable energy potential zones. In addition to solar and wind energy integration, transmission system planning has also been done for about 16,673 MW of additional hydro capacity, likely to be commissioned by 2030. The report also contains plans for connecting 10 GW of offshore wind capacity (5 GW each for Gujarat and Tamil Nadu) through submarine cables with an estimated cost of Rs 281 billion.
The transmission of electricity from offshore wind projects and the transmission of renewable power for green hydrogen and green ammonia projects will be key highlights in the coming years. India plans to develop over 30 GW of offshore wind energy by 2030, primarily off the coasts of Gujarat (Gulf of Khambhat) and Tamil Nadu (Gulf of Mannar). Meanwhile, by 2030, the government has a target of producing at least 5 mmt per annum of green hydrogen (scalable to 10 mtpa). According to the government’s calculations, the associated renewable energy and electrolyser capacity needed for this is 125 GW and 60-100 GW respectively. For both offshore wind and green hydrogen/green ammonia segments, the government has provided ISTS charges waiver (different percentages for different commissioning dates) for incentivising the evacuation of renewables for such projects.
While the planned transmission system will be sufficient for early green hydrogen production initiatives, as production increases and more prospective areas for renewable energy become visible, more transmission systems will be designed and prioritised for deployment. Further, to fast-track transmission development, the Ministry of Power has set a target of completing the development of 27,000 ckt km of ISTS lines under the PM Gati Shakti National Master Plan (NMP) by 2024-25. The proposed transmission projects under the NMP are expected to further facilitate the evacuation of power from generation projects, improving the reliability of the country’s power system network.
All in all, it is positive that the government foresaw the industry’s concerns regarding the proper evacuation of renewables almost a decade ago and planned for GECs. However, the timely implementation of GECs remains a key concern that should be addressed going forward.
