India’s power transmission and distribution (T&D) sector is undergoing an unprecedented transformation, driven by rising energy demand, technological advancements, and the government’s commitment to achieving a sustainable and resilient grid. The January 2025 issue of the IEEMA Journal presents a detailed analysis of this evolving landscape, covering investment trends, technological shifts, policy frameworks, and key challenges shaping the sector’s future.
From massive investments in transmission infrastructure to integrating renewables and digitalizing the grid, India’s T&D network is moving towards a more robust and efficient future. This article distills the cover story of the IEEMA Journal, highlighting crucial projections, industry expert opinions, and strategies for the years ahead.
The global transmission and distribution (T&D) market was valued at US$ 330.3 billion in 2023 and is projected to grow at a 3.9% CAGR from 2024 to 2030. The sector is the backbone of India’s electricity supply chain. It ensures the seamless flow of power from generation units to end consumers. Hence, the it is set for major expansion, with a ₹9.1 trillion capex planned between FY25 and FY32 (India Ratings and Research). Even The National Electricity Plan (NEP) - Volume II (October 2024) highlights significant investments, creating opportunities for EPC companies.
Key sectoral growth metrics:
* Substation capacity: 1,251,080 MVA (FY24), up from 1,104,450 (FY22) and 409,551 (FY12)
* Transmission lines (220 kV and above): Exceeds 488,000 ckm, with further expansion planned
* Peak demand projections: 296 GW by FY27, 388 GW by FY32 (20th Electric Power Survey)
* 2022-2027 targets: +114,687 ckm transmission lines, +776,330 MVA capacity, +1,000 MW HVDC bi-pole,
+30,690 MW inter-regional capacity (raising it to 142,940 MW by 2027)
* FY25 target: +16,667 ckm transmission lines, +116,490 MVA capacity (220 kV and above)
According to Mr. Nilesh Kane, Chief of Distribution (Mumbai Operations) at Tata Power, “The draft NEP estimates an addition of approximately 105,000 ckm of transmission lines and 595,000 MVA of transformation capacity from 2027 to 2032.”
India's T&D sector faces several challenges: land acquisition delays from right-of-way issues demand land reforms and compact solutions (GIS, high-capacity conductors, underground lines); high capital costs and delayed discom payments amid AT&C losses call for PPPs, green bonds, and RDSS reforms; overloaded corridors need dynamic line ratings and HVDC systems; renewable integration requires grid-stabilizing measures like BESS, pumped hydro, FACTS, STATCOMs, and green corridors; high AT&C losses from theft and outdated infrastructure point to smart grids with AMI; workforce shortages necessitate modern training and digital learning; and long project timelines must be shortened with digital management, AI planning, and modular components.
To tackle these issues, India’s transition to a digitalised and automated power grid is being driven by cutting-edge technologies aimed at enhancing reliability, reducing outages, and improving efficiency. Here’s what is in store:
1. SCADA & Advanced Metering Infrastructure (AMI) improve real-time grid monitoring and operational control.
2. Grid automation enables utilities to predict demand fluctuations and optimise energy load distribution.
Further cementing the importance of these technologies, Gajanan Kale, CEO of Tata Power-DDL, stated, “The future grid ought to be equipped with advanced grid automation systems to enable real-time monitoring, control, and optimization of energy flows.”
Case study: Cities like New Delhi and Bengaluru are implementing smart metering and grid automation to improve energy efficiency and optimise power distribution. The Power Grid Corporation of India uses digital twin technology to simulate grid behaviour and optimise network expansion plans.
1. HVDC corridors facilitate bulk power transmission over long distances with minimal losses.
2. India is investing in multi-terminal HVDC systems to support seamless renewable energy integration.
1. Battery Energy Storage Systems (BESS) and pumped hydro storage stabilise renewable energy variability.
2. Flexible AC Transmission Systems (FACTS) enhance grid stability and efficiency.
1. AI-driven algorithms optimise grid operations, reducing losses and improving efficiency.
2. Predictive analytics aids in asset health monitoring, ensuring proactive maintenance and reliability.
Highlighting the importance of AI, Nilesh Kane, Chief Distribution, Mumbai Operation, The TATA Power Company Limited said "Using AI and digitalization in T&D projects can enhance operational efficiency, facilitate RE integration, and improve grid resilience.
1. Hybrid energy systems (solar, wind, and storage) provide consistent power output.
2. Virtual Power Plants (VPPs) aggregate distributed energy resources (DERs) like rooftop solar and storage, enabling them to function as a single entity.
Case study: AI-powered weather forecasting helps predict solar and wind power generation, aiding grid stability in RE-rich states like Tamil Nadu and Rajasthan
Real-time grid monitoring enhances situational awareness and enables faster fault detection, improving grid stability.
With increasing digitisation, robust cybersecurity solutions are critical to safeguard grid infrastructure from cyber threats.
Dedicated RE transmission infrastructure and hybrid AC-DC transmission lines improve efficiency and flexibility.
Electric Vehicles (EVs) can act as distributed energy resources, supplying stored energy back to the grid during peak demand.
Subsea cables and HVDC links enable efficient evacuation of power from offshore wind farms.
India’s grid modernization is crucial for achieving a resilient, sustainable, and high-efficiency power system, ensuring seamless integration of renewables and meeting rising energy demands.
By 2030, India’s T&D sector is expected to evolve into a robust framework capable of supporting a diverse energy mix while ensuring reliability and efficiency. Nilesh Kane, Chief-Distribution (Mumbai Operations) at Tata Power, outlines key expectations for the sector:
* Transmission capacity expansion: From 1,251 GVA to approximately 2,342 GVA
* Enhanced interconnectivity: Strengthened inter-regional transfer capacity for optimized power distribution
* Sustainability goals: Increasing the share of non-fossil fuel energy sources in total installed capacity
The roadmap also emphasizes:
* Public-private partnerships (PPPs): Encouraging private investments for grid expansion.
* Infrastructure upgrades: Expanding transmission corridors, integrating digital substations, and increasing mechanization
* Policy support & regulatory enhancements: Strengthening DISCOM reforms and facilitating tariff-based competitive bidding (TBCB)
India’s T&D sector is at a defining moment. There is indeed an optimistic perspective on the sector's future. Emphasizing that with continued investments, technological adoption, and policy support, India's T&D sector is poised to meet the evolving energy demands of its population while contributing to global sustainability goals.
For a deeper dive into India’s evolving T&D sector and its role in the country’s energy future, be sure to read the complete article.
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