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Interview: Private participation in power transmission

Manish Agarwal examines technology execution by private players in power transmission for achieving RE goals.

Interview: Private participation in power transmission

Even though the power generation segment has seen strong growth of private participation, the power transmission segment has lagged behind. Manish Agarwal, CEO, Infrastructure and Solutions Business, Sterlite Power, examines the role of power transmissionn in early achievement of RE goals, the technology interventions needed and the technologies that are being implemented in project executions.

While there’s a lot of emphasis on renewable energy generation, what role do you foresee power transmission playing in fast-tracking the RE goal? 

The transmission segment plays a key role in transmitting power continuously to various distribution entities across the country. Transmission and sub-transmission systems supply power to the distribution system, which, in turn, supply power to end consumers.

The Electricity Act, 2003 coupled with Tariff-Based Competitive Bidding (TBCB) for development of transmission infrastructure, encouraged private participation in the power transmission sector and has supported the growth of transmission lines in India.

However, according to CRISIL Research, private participation in the transmission segment still lags the generation segment, where private contribution has grown strongly from 39% in fiscal 2015 to 47% in fiscal 2021.To service a large power generation installed base, the estimated investment in the transmission sector is expected to be ~Rs 3.5-4 trillion over the next five years. Investments in the sector are expected to be driven by the need for a robust and reliable transmission system to support continued generation additions and the strong push to the renewable energy sector as well as rural electrification.

What kind of technological interventions are required in the power transmission space to enable seamless RE integration?

To meet the long-term power transfer requirement as well as for the optimal utilization of right of way, large power evacuation corridors are needed to be planned, which requires advancements in transmission voltage, conductor technology, substation equipment and infrastructure etc. Moreover, the faster pace of addition in grid of renewable energy has put additional pressure on reducing timelines for enhancing transmission infrastructure. Maximizing power carrying capacities of existing transmission corridors will help to meet the growing demand faster in an economical way.

The need to replace ageing and obsolete transmission and distribution infrastructure, high investments, right-of-way constraints and long gestation periods involved in building new networks have driven transmission utilities to focus on reconductoring. Upgradation of the existing infrastructure enables utilities to augment the quantum and quality of power transmitted through the existing corridors. It also ensures the timely completion of transmission projects and enable utilities to significantly scale down losses and prevent instances of power outage.

What are some of the new technologies being implemented for project execution?

Access to electricity is a fundamental driver for prosperity and human development. India has a target of setting up 450 GW of renewable energy by 2030 and 24×7 quality and affordable power for all. In this space, technology is solving some of the challenges of energy delivery.

1. Aerial technologies including helicrane based tower erection, helicopter & drone stringing is deployed to deliver projects in a timely manner.
2. Satellite imagery and Machine Learning driven software are being used to optimise transmission line routes.
3. Similarly, a 400/220 kV vertical GIS substation has been built in Gurgaon. A conventional GIS substation of similar capacity generally requires 12 acres of land, but this innovative solution is built only on 3.8 acres resulting in a 75% reduction in land size.
4. Uprate & Upgrade projects are aimed at helping the state governments to transform traditional energy delivery networks with the use of technologies such as MCMV towers, use of micropiles for tower foundations, monopoles instead of lattice and the usage of drones for conductor stringing.
5. 3D design and 4D construction methodologies, which provides the benefits of faster, data driven decision making, avoiding project delays, better safety planning and better planning for regulatory clearances.
6. Quality, Health Safety & Environment (QHSE) governance system with processes including regular process audits, a QHSE Health index scorecard and a QHSE Committee review.

What were the key business highlights for Sterlite Power in the recent past?

Sterlite Power has successfully developed & delivered transmission infrastructure projects in challenging geographies and concluded strategic asset sales in both India and Brazil. 
The recently commissioned NER transmission project is also a carrier of clean energy as it connects various hydro and gas-based sources of power to the national grid. With gas acting as a natural balancer for renewables, the evacuation of gas power through the substation at Tripura and its associated interconnections will play a vital role in reducing the intermittency of renewables. We sold this project to IndiGrid (which is India’s first listed power sector infrastructure investment trust and is sponsored by us)

We have also received investments from global investment managers including Standard Chartered Private Equity and AMP Capital on behalf of its Global Infrastructure Fund II. Such investments provide us with increased capital to bid for newer and larger transmissions projects.

Besides a strong financial performance, we have received a number of global and national accolades, including from from ET, IPMA and the Asset AAA Infrastructure Awards.

Towards the goal of bringing sustainable and clean power for all, in recent years, we have been awarded projects which will connect the national power grid to sources of clean and green energy.

For example, LVTPL will be used to evacuate power from renewable sources and supply it to the national grid, thereby contributing towards achieving India’s renewable energy goals. The VNLTL Projects aim at strengthening the transmission system in western and north-eastern regions of India. The projects will cover the Vapi area in Gujarat and Navi Mumbai in Maharashtra in the West, while in the North East, these intend to supply power from the Pare Hydro Electric Plant to areas of Arunachal Pradesh.

Further, once completed, the VNLTL project will help improve renewable power availability across western and north eastern India by connecting to solar, hydro and nuclear energy sources. The project will also help serve the growing power needs of Navi-Mumbai region

In relation to our MSI business, we developed a customised solution to restore a disrupted 400kV transmission line across 1.1km of the Ganga river. We also transformed the Kerala Interstate Corridor through a massive uprate and upgrade exercise which increased throughput in the inter-state transmission network by 15-24 times.

On the products side, we developed a product called the Ster-Eco conductor. This conductor has been specially designed for addressing the losses during renewable energy transmission. Also known as ‘low-loss conductor’, it contributes to lowering emission of greenhouse gases, has inherent strength and high concentration of aluminum in the define diameter. It can reduce I²R losses in the transmission line by up to 30% compared to a same size conductor. This product is environment friendly and helps in reducing carbon emissions.