Capacity addition in power transmission has slowed considerably in 2019, with 13,200 circuit kilometres (ckm) of new lines having been built in January-November, 31.6% lower than in the corresponding period in 2018. The sudden decline is being attributed to uncertainties faced by upcoming renewable energy projects, as well as the rapid pace of transmission capacity addition in recent years.
Several states, including Andhra Pradesh, began exhibiting reluctance in procuring power from renewable energy sources in 2019. Experts pointed that this uncertainty at the state-level has taken the pressure off the need for transmission connectivity, leading to deceleration in transmission capacity addition. “Also, with tepid growth in per-capita power consumption (2.8%) and low utilisation levels of power plants, there is no burning platform for this (transmission capacity addition),” Kameswara Rao, leader, PwC India, told FE.
