India’s Power Transmission Sector Faces Regulatory and Supply Challenges Threatening Renewable Energy Goals – EQ
In Short : India’s power transmission sector faces delays due to regulatory hurdles and supply issues in procuring key HVDC equipment. The Electric Power Transmission Association (EPTA) has urged policy reforms and exemptions to ensure timely project execution. The Power Ministry is considering a PLI scheme to boost domestic manufacturing, vital for achieving India’s 500 GW non-fossil energy target by 2030.
In Detail : India’s power transmission sector is currently facing significant challenges that are impacting the timely completion of critical infrastructure projects. Regulatory hurdles, especially around equipment procurement, have created delays and raised concerns over meeting the nation’s ambitious renewable energy targets. These issues primarily revolve around the acquisition of High Voltage Direct Current (HVDC) equipment essential for efficient power transmission.
The Electric Power Transmission Association (EPTA) has pointed out a regulatory imbalance affecting transmission companies. Unlike renewable energy developers, which have the freedom to subcontract, transmission firms face restrictions when sourcing equipment from countries that share land borders with India, such as China. This uneven policy is causing procurement difficulties and hampering project progress.
EPTA has requested the Power Ministry to create a level playing field in procurement rules. They have also advocated for a temporary exemption from these restrictions until December 2030 to help secure timely access to quality HVDC equipment. This move is seen as crucial for avoiding further delays in key transmission projects.
In addition to regulatory challenges, the sector is grappling with supply-side constraints. Limited availability of HVDC equipment from domestic manufacturers and global supply chain disruptions have caused increased costs and extended project timelines. These factors threaten the reliability and efficiency of the power transmission network.
To overcome these issues, the Power Ministry is exploring a production-linked incentive (PLI) scheme. This initiative aims to encourage domestic manufacturing of transmission equipment, reduce dependence on foreign suppliers, and strengthen India’s renewable energy transmission capacity. Localizing the supply chain is expected to boost infrastructure growth and support the country’s energy goals.
India’s target to reach 500 GW of non-fossil power capacity by 2030 depends heavily on resolving these procurement and supply bottlenecks. Streamlining regulations and enhancing local production are essential steps to accelerate infrastructure development, ensuring a stable and continuous power supply across the country in the coming years.
