The transmission business is a natural monopoly and must be regulated to ensure fair access and prices for users, efficient and reliable operation and to encourage optimal investments. A strong and robust transmission system is key to reducing the overall cost of power and enhancing system reliability. This assumes even more importance in light of the inevitable transition to integrating high shares of renewables.

Along with strong regulatory oversight, effective Planning, Pricing and Participation models will be key elements within the Transmission sector reforms. This note focuses on potential solutions to address the challenges around optimal transmission capacity planning and additions and will thereby enable investment for faster development of transmission infrastructure in India. It has evolved through extensive deliberations and consultations with a Transmission Expert Group and captures priorities of the reform agenda and suggests potential actionable interventions.

This report is prepared by Idam Infrastructure Advisory Pvt. Ltd., and Prayas (Energy Group) for use of SSEF on the terms of engagement agreed between the parties.