Power transmission needs competition

India's progress on transmission will decide how fast renewables can scale. For it to succeed, every capable market participant should perform at peak efficiency

- SHRIRAM SUBRAMANIAN

INDIA'S AMBITION TO deploy 500 gigawatts (Gw) of non-fossil energy capacity by 2030 depends on a robust interstate transmission network.

While generation capacity can be built in 1824 months, transmission corridors often require about four years and multiple clearances. The current national grid has already achieved synchronous integration of all five regional grids. India's renewable energy ambition is among the loftiest globally. Meeting it will depend as much on the efficiency and inclusiveness of its transmission architecture as on the megawatts being built.A competitive transmission sector is therefore not just good economics-it is good grid governance.

A key reform-the Tariff-Based Competitive Bidding (TBCB) framework-was introduced to open up transmission to both public and private sector companies. Private sector companies bring value through faster execution, adoption of new technologies, like drone-based monitoring or advanced tower designs, and access to global finance. Yet, recent trends point to a shrinking competitive field and many projects being awarded to one company. In FY25, the state-owned Power Grid Corporation of India Ltd (PGCIL) secured 26 out of 45 interstate transmission projects. This accounts for nearly 60% of the projects by value. While PGCIL has had a history of building our national grid, such a high concentration of new project awards to a single company signals a market that is becoming less competitive.