Scaling up transmission, hydro policy in power ministry's 100-day plan

The power ministry is likely to focus on augmenting transmission lines, finalising the hydro policy, viability gap funding for battery storage systems and boosting pumped hydro storage projects in the first 100 days of the new government.

A senior government official told ET that the ministry will look at approving more capacity of transmission lines to strengthen the network.

"We will go for the final notification of the transmission plan. The government is working on sanctioining of projects. We need the system to evacuate the incremental power," the official said.


The ministry had earlier said a transmission plan for integration of 500 GW of renewable energy capacity by 2030 was being implemented in a phased manner commensurate with capacity addition.

While stakeholder consultation for the country's hydro policy is in the works, pumped hydro storage is expected to get a shot in the arm as well.

"We are hopeful that, going forward, PSP [pumped storage projects] will get a new shot of adrenaline," the official said.

The ministry had earlier said that pumped storage hydro projects may be supported through concessional climate finance, including sovereign green bonds issued by the government for green infrastructure.

The power ministry has been in talks with the finance ministry for a scheme for the northeastern states, under which they will get a fund for a stake in the projects on a first come, first served basis, ET had reported earlier.

The government will also soon issue a tender to avail of viability gap funding for 500-1,000 MWh battery energy storage system projects, according to the official.

For the power distribution sector, the government is planning to work on getting a cost reflective tariff.

"The bottom line is to get a cost reflective tariff and ensure recovery of cost. If that is not done, nothing else works well," the person said.