Massive grid upgrade in India wins $750m in bank loans
A $2.25 billion project to bring electricity to parts of India that need it most has won a $750 million loan package from the Asian Development Bank (ADB).
The project is aimed at spurring growth, reducing poverty and helping energy supplies keep up with rising demand in the fast-developing country.
POWERGRID, India’s government-owned transmission utility, plans to establish a 1,300-kilometer-long transmission link enabling the bulk transfer of 3,000 megawatts (MW) of electricity from the western state of Chhattisgarh to areas of high demand in the north, including the national capital territory of Delhi. The link will use 800-kilovolt (kV) high-voltage direct current (HVDC) technology, a key driver of smart-grid development.
Fueled by rapid economic growth, India’s demand for electricity has sharply exceeded supply in recent years, with a peak power deficit of over 12 percent in 2010. The generating capacity has been increasing over the years in India but expansion of the transmission network has not kept pace. Some states have the capacity to generate more power than they need, and creating interregional transmission “corridors” will allow them to move surplus electricity to areas short of supply.
Between now and 2017, POWERGRID plans to invest some $22 billion to more than double the size of its transmission network.
“Strengthening the interregional HVDC transmission network will promote open access to power supply, increase investment in both generation and distribution, help integrate the electricity market and encourage power trading and competitive electricity prices,” said Kaoru Ogino, senior energy specialist in ADB’s South Asia Department.
