Supply Constraints Hamper India's HVDC Projects

India's power transmission sector is currently facing significant delays due to supply-side constraints, particularly in the acquisition of High Voltage Direct Current (HVDC) equipment, a cornerstone for long-distance renewable energy transmission. These issues, according to industry officials, are largely a result of India's restrictions on suppliers from countries sharing a border with it.

The Electric Power Transmission Association has voiced concerns specific to the procurement policy discrepancies. While renewable energy developers are allowed to subcontract with neighboring countries, transmission projects adhering to the Tariff-Based Competitive Bidding (TBCB) framework are bound by strict restrictions, which industry experts say, are inflating project costs and extending timelines considerably.

In seeking a level-playing field, industry leaders have urged for exemptions until December 2030, reflecting a systemic gap between power generation and transmission infrastructure timelines. This adjustment is pivotal to meeting India's renewable energy targets efficiently, ensuring synchronized development that aligns with national goals.

(With inputs from agencies.)