The Ministry of Power has announced revisions to the standard bidding documents for interstate transmission services.
These amendments, introduced under the tariff-based competitive bidding framework, are designed to address persistent challenges in land acquisition while improving the feasibility and flexibility of transmission infrastructure projects across the country. One of the most pivotal changes in the revised guidelines is the expansion of the permissible locational radius for load-serving substations. Previously, both generation pooling and load-serving substations were restricted to a 3 km radius from the designated survey point. The new amendments now allow load-serving substations to be located within a 5 km radius, offering greater flexibility to developers in identifying suitable land. This change is expected to streamline project execution, reduce delays, and lower costs associated with land procurement.
While the radius for load-serving substations has been relaxed, the locational constraints for intermediate substations remain unchanged at 10 km. Generation pooling substations, which aggregate power from various generation sources, will continue to adhere to the 3 km restriction. This distinction reflects the differing operational requirements and site-specific considerations for each type of substation. The move comes in response to mounting concerns from developers about the difficulties in acquiring land for transmission projects, especially in densely populated or environmentally sensitive areas. By offering a broader radius for load-serving substations, the government aims to strike a balance between maintaining the technical integrity of the power grid and facilitating smoother project rollouts.
The amendments are part of a broader strategy to accelerate the development of India’s transmission infrastructure, which is poised for substantial expansion in the coming years. According to the National Electricity Plan, the country’s transmission system is expected to witness an investment of ₹4.25 trillion (~$50.55 billion) between 2022 and 2027. This period will see the addition of 114,687 ckm of transmission lines and 776,330 MVA of transformation capacity at voltages of 220 kV and above. Additionally, a 1,000 MWHVDC bi-pole capacity is planned to enhance long-distance power transfer capabilities. Experts highlight that the revised guidelines will have a far-reaching impact on the energy sector, particularly in the context of India’s growing renewable energy capacity. The integration of solar, wind, and other renewables into the national grid requires robust and flexible transmission networks. By facilitating easier land acquisition for substations, the government is not only addressing immediate infrastructure challenges but also laying the groundwork for a more resilient and sustainable energy future.
Furthermore, the amendments align with the broader objectives of India’s energy transition goals, which include increasing the share of clean energy in the national grid and reducing carbon emissions. As the country moves towards a zero-net carbon future, the efficiency of transmission infrastructure will play a crucial role in ensuring the reliable delivery of renewable energy from generation points to consumers. The revised bidding documents also reflect a growing recognition of the need for more adaptable and developer-friendly policies in the power sector. By reducing bureaucratic hurdles and providing greater operational flexibility, the government is likely to attract more private investments in transmission projects, thereby fostering competition and driving innovation.
The expansion of the substation radius for load-serving substations from 3 km to 5 km marks a strategic shift in India’s power transmission policy. It not only addresses long-standing land acquisition challenges but also strengthens the country’s commitment to sustainable energy development. As transmission projects gain momentum, the impact of these policy changes will become increasingly evident in the enhanced efficiency, reliability, and sustainability of India’s power grid.
Transmission Projects Get a Boost with 5 Km Radius Shift
