Power trading set to get a boost as India gets a national grid

Written by fe Bureau | New Delhi | Updated: Jan 2 2014, 18:00pm hrs
In what may give a big boost to power trading business in the country, India has finally connected the southern region with rest of the country for unhindered electricity flow, achieving the goal of a national grid after a long wait.

The central transmission utility, Power Grid, has successfully commissioned the Raichur-Solapur 765-KV single-circuit transmission line on Tuesday evening, interconnecting the southern grid synchronously with the rest of the national power grid - a move that would facilitate bulk transfer of power across regional boundaries. With this, the mission of One Nation One Grid One Frequency has been successfully accomplished, the power ministry said on Wednesday.

The national grid will help southern states, especially Andhra Pradesh, Tamil Nadu and Kerala, which are facing huge shortages, lift surplus power from other regions. In the absence of a national grid, these states were paying exorbitantly high prices for buying electricity from the open market because of uncertainty about power evacuation due to congestion in the transmission network.

The Indian power system is operating through five regional grids and a Pan-India synchronous grid was envisaged for optimal utilisation of the generation resources in the country. Till now, four regional grids -- northern, eastern, western and north-eastern -- were connected synchronously and the southern region was connected to the other four grids via HVDC links.

The 208-circuit-km-long transmission line and 765- and 400-KV substations at Raichur and Sholapur have been commissioned five months ahead of the contracted schedule. The project has been completed at the cost of Rs 815 crore, Power Grid said.

"Synchronous integration of the southern grid with the rest will not only augment the inter-regional power transfer capacity of the southern region, but also relieve congestion seen in a few transmission corridors. This will be a boost for growth of the country," Power Grid added.