India Power sector –Macro view

Sector News –Transmission

Power Transmission – Macro dynamics

The private transmission initiative began in November 2006 with nodal agency Rural Electrification Corporation (under Ministry of Power) inviting expressions of interest for two transmission lines costing Rs 5,000 crore, to be developed on BOO basis on the lines of the Centre's ultra mega power project series. The projects concerned evacuation facilities associated with NTPC's 1,980 mw North Karanpura project in Bihar and the Talcher extension project in the state of Orissa. Sources reveal that Power Grid Corporation of India (PGCIL) would implement the transmission line since there was no forward movement in the private-sector proposal.

The fast-track Maithon power project, now in implementation stage, is scheduled for completion before the Commonwealth Games in India in 2010.The Ministry of Power proposes to construct 14 large transmission lines through private sector participation in the ongoing 11th Plan period. Analysts opine that the imbroglio associated with the Sasan ultra mega power project, where Power Finance Corporation was the nodal agency, is responsible for the overall slowdown in the private transmission initiative. With the ultra mega power project initiative now quite back on track, the power transmission endeavor will also accelerate, some analysts said expressing optimism.

Overall, India's success with private sector participation in power transmission projects is moderate. So far there is no power transmission project that is being developed entirely by the private sector.  Power Links Transmission, a 49:51 a joint venture between PGCIL and Tata Power, has developed the evacuation system for the Tala hydropower project in Bhutan. PGCIL, in joint venture with majority partner Reliance Energy, will also develop transmission systems associated with the Parbati and Koldam hydropower projects. Meanwhile, by current thinking, the first fully-private power transmission project will be the Western Grid Strengthening Scheme (Phase-II) that will be developed by Reliance Energy on BOO basis. The project was cleared in late 2007 by the Centre's Public Private Partnership Appraisal Committee and also by Power Grid Corporation of India Ltd.

Power Plants to sell power under open access without investing in new lines proposed

All thermal power plants of 500 mw and above and hydro power plants of 250 MW and above will be allowed to connect to inter-state transmission lines so that they can sell power under ‘open access’ without investing in new transmission lines, says a proposal by the Power Regulatory Commission of India. This comes even as the Centre is working towards building an incentive-driven mechanism to usher in open access into the Indian power sector. The proposal seems designed to promote higher capacity plants and would benefit new power projects more than the old ones. While India does not have the requisite transmission infrastructure to cater to smaller plants, open access cannot be blocked on the pretext of lack of transmission capacity. The commission has also defined the timeframe for open access — as medium-term (three months to three years) and long term (12 years to 25 years). Long-term open access plans may require new transmission lines. Meanwhile, a Planning Commission task force on open access has recommended that NTPC and NHPC should set aside a fraction of their power for those states that have good policies of open access. These regulatory measures would indirectly imply that all of NTPC/NHPC’s plants can utilise the transmission networks to sell power through open access. The ball is now in the states’ court to facilitate open access or lag behind the rest of the nation in reforming the power sector.

Power grid corporations flexible transmission system

It has long been recognized that a more reliable and efficient power supply is required to support India’s rapid development. Recently, this growing demand for electricity, particularly in the country’s vast sprawling urban metropolises such as Mumbai and Calcutta, prompted the utility company Power Grid Corporation of India to launch a stringent transmission enhancement plan – the largest of its type yet – which includes strengthening its networks with a technology known as ‘flexible AC transmission system’, or FACTS.

At the heart of Power Grid’s transmission enhancement plan is an integrated national grid that services more than 10 million people who are demanding more and different uses of power. Today’s programme of 9,500MW inter-regional power transfer capacity is expected to be increased to 30,000MW by 2012.