Editorial June 2019

The transmission segment is expected to witness a significant growth momentum over the next few years. As per CEA estimates, based on the capacity addition required for the inter-state and intra-state transmission systems, a huge Rs 2.6 trillion market is available for industry players in the
Thirteenth Plan period.

The segment’s growth is expected to continue to be driven by government support. The government’s focus on last-mile connectivity under schemes such as 24×7 Power for All, with a large focus on upgrading the T&D infrastructure, is expected to drive investments.

Further, the significant expansion in renewable energy capacity, which is expected to reach 275 GW by 2027, will require large-scale development of the transmission segment. New tenders for renewable energy generation hold developers accountable for establishing grid-connected solar and wind farms.
Thus, the combined bidding for generation and transmission is expected to increase the transmission footprint. Also, the railways have set a 100 per cent electrification target by the next four years. EPC players’ order books are already surging with railway orders and are expected to increase further.

What would also help the industry is the strong growth in the transmission system at higher voltage levels and substation capacities (400 kV and above). This is the result of an increase in demand for transmission networks to carry bulk power over longer distances and at the same time, optimise right
of way, minimise losses and improve grid reliability.

All these initiatives are expected to result in a significant uptick in demand for towers, cables, conductors, transformers, substations, switchgear, reactive power equipment, etc.

Power Line’s Infocus section this month takes a closer look at the growth and outlook for the transmission infrastructure segment and its various sub-segments.