The Indian government has launched the National Electricity Plan (NEP) 2023-2032, aiming to revolutionize the country’s power infrastructure over the next nine years. The plan, which has a budget of Rs 9.15 lakh crore, focuses on expanding India’s transmission network and integrating more renewable energy into the system. This expansion will be critical in meeting the growing electricity demand, which is expected to peak at 458 GW by 2032.
Transmission Network Expansion: A Key Focus
Under the NEP, the transmission network will be expanded by 33%, growing from 4.85 lakh circuit kilometers (KM) to 6.48 lakh circuit KM by 2032. This massive expansion is necessary to handle the anticipated surge in electricity demand and ensure reliable power delivery across the country. In addition to increasing capacity, the government will prioritize renewable energy integration, which is becoming increasingly crucial in India’s energy mix.
The plan also includes a special focus on green hydrogen, with provisions for its integration into the power grid. Renewable energy sources such as solar and wind will play a significant role in ensuring clean energy reaches various parts of the country.
Union Minister’s Announcement on NEP 2023-2032
During a press conference in New Delhi on September 23, Union Minister of Power, Manohar Lal Khattar, outlined the NEP’s objectives. He highlighted the government’s efforts to strengthen energy infrastructure, enhance capacity, and improve connectivity. These initiatives are part of the Ministry’s 100-day action plan, which reflects Prime Minister Narendra Modi’s vision for transforming India’s energy sector.
Khattar emphasized the importance of expanding both central and state transmission systems under the new plan. He also shared that the plan is designed to meet India’s future energy needs by facilitating the integration of renewable energy into the national grid.
High Voltage Direct Current (HVDC) Lines to be Expanded
One of the significant highlights of the NEP is the addition of nine high voltage direct current (HVDC) lines with a combined capacity of 33.25 GW. These new lines will supplement the existing 33.5 GW capacity of HVDC lines currently in operation. This expansion will improve the inter-regional transfer capacity, which will increase from 119 GW to 168 GW by 2032, ensuring better connectivity and power flow across different regions of the country.
Boost to Renewable Energy and Green Hydrogen
The NEP also aims to facilitate the growth of renewable energy. A total of 335 GW of transmission capacity is being planned to manage 280 GW of variable renewable energy (VRE) by 2030. Of this, 42 GW has already been completed, 85 GW is currently under construction, and 75 GW is in the tendering phase. The remaining 82 GW will be approved soon.
In addition to VRE integration, the plan also supports green hydrogen initiatives. This inclusion is part of India’s commitment to adopting cleaner energy solutions and reducing its carbon footprint.
Positive Market Reaction: Power Grid and CESC Stocks Rise
News of the NEP 2023-2032 had an immediate impact on the stock market, with shares of companies in the power sector showing significant growth. Power Grid Corporation of India saw its stock rise by 3.91%, closing at Rs 363.75. During the day, its stock even touched a high of Rs 366.25. Similarly, CESC’s stock climbed 2.58%, closing at Rs 206. Both companies stand to benefit from the upcoming investments in the transmission sector.
Future Prospects of the National Electricity Plan
The National Electricity Plan 2023-2032 sets an ambitious goal for India’s power sector, focusing on both infrastructure expansion and renewable energy integration. With an increased emphasis on green hydrogen and the construction of HVDC lines, the government aims to meet future electricity demand while supporting the shift to sustainable energy. The Rs 9.15 lakh crore investment will not only strengthen India’s energy infrastructure but also support the country’s goal of becoming a global leader in renewable energy.
