Power Secretary Pankaj Agarwal says PLI scheme for transmission gear

15 Oct 2024 CW Team

During the inaugural session of the Brainstorming Conclave on the Indian Power Sector Scenario 2047 in New Delhi, Agarwal pointed out that 1,650 gigawatts (GW) of renewable energy capacity worldwide is awaiting grid connection due to transmission bottlenecks.

He expressed the need to consider localizing the supply chain for transmission equipment, noting the current strain on global supply chains and indicating that these issues reflect constraints in the development of transmission capacities. According to Agarwal, these constraints arise from right of way (RoW) challenges and a limited supply of critical equipment.

He acknowledged that initiatives like the planned power corridors in Gujarat are helping to address RoW challenges. However, he stressed that India still needs to enhance its capacity for high-voltage direct current (HVDC) and alternating current (HVAC) systems, stating that HVDC is a crucial component and that some form of PLI may be necessary for specific HVAC equipment.

Agarwal also reaffirmed the government’s commitment to the power market coupling mechanism, which aims to standardize electricity pricing across all exchanges, though he did not specify a timeline for its implementation. He mentioned that progress is being made on the power coupling mechanism and that the government remains dedicated to it.

The Brainstorming Conclave, organized by the Central Electricity Authority (CEA) in collaboration with CBIP, FICCI, and other stakeholders, included discussions on India's long-term vision for the power sector, with a target of achieving a non-fossil power capacity of 500 GW by 2030, an increase from the current 154.5 GW.

Power Secretary Pankaj Agarwal emphasized the importance of exploring a production-linked incentive (PLI) scheme for critical transmission equipment to alleviate the pressure on global supply chains and enhance India's renewable energy infrastructure. During the inaugural session of the Brainstorming Conclave on the Indian Power Sector Scenario 2047 in New Delhi, Agarwal pointed out that 1,650 gigawatts (GW) of renewable energy capacity worldwide is awaiting grid connection due to transmission bottlenecks. He expressed the need to consider localizing the supply chain for transmission equipment, noting the current strain on global supply chains and indicating that these issues reflect constraints in the development of transmission capacities. According to Agarwal, these constraints arise from right of way (RoW) challenges and a limited supply of critical equipment. He acknowledged that initiatives like the planned power corridors in Gujarat are helping to address RoW challenges. However, he stressed that India still needs to enhance its capacity for high-voltage direct current (HVDC) and alternating current (HVAC) systems, stating that HVDC is a crucial component and that some form of PLI may be necessary for specific HVAC equipment. Agarwal also reaffirmed the government’s commitment to the power market coupling mechanism, which aims to standardize electricity pricing across all exchanges, though he did not specify a timeline for its implementation. He mentioned that progress is being made on the power coupling mechanism and that the government remains dedicated to it. The Brainstorming Conclave, organized by the Central Electricity Authority (CEA) in collaboration with CBIP, FICCI, and other stakeholders, included discussions on India's long-term vision for the power sector, with a target of achieving a non-fossil power capacity of 500 GW by 2030, an increase from the current 154.5 GW.

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