India’s Power Transmission Lines Doubled In A Decade, More Growth Ahead: Avener Capital

Avener Capital, a leading investment banking advisory firm, sees India’s power transmission sector as a hotspot for infrastructure growth, fuelled by a surge in renewable energy, rising electricity demand, and robust policy reforms. “India’s power transmission infrastructure has made significant progress, driven by policy reforms, increasing electricity demand, and the rapid expansion of renewable energy,” says Rohin Agarwal, Vice President at Avener Capital, in an exclusive interaction with Bizz Buzz.

He highlights the doubling of transmission lines in the past decade and rapid digitalization transforming grid operations. Agarwal also emphasizes private capital’s crucial role, citing Rs 10 trillion in investment opportunities by 2030, particularly in HVDC lines, green energy corridors, and smart grids—key to enabling India’s energy transition and climate resilience

How do you assess the current state of India’s power and transmission infrastructure?

India’s power transmission infrastructure has made significant progress, driven by policy reforms, increasing electricity demand, and the rapid expansion of renewable energy. The transmission network has expanded considerably, ensuring better interregional connectivity and facilitating the evacuation of power from generation hubs to consumption centres. Investments in high-capacity transmission lines, advanced grid management systems, and smart technologies are strengthening the network, addressing traditional challenges such as congestion and system losses. Over the decade, India’s transmission lines increased from 2,50,000 ckms to 4,92,000 ckms as of Feb’25. Substation capacity in the same period grew from 4,00,000 MVA/ MW to 13,00,000 MVA/ MW.

The integration of high-voltage direct current (HVDC) technology is enhancing long-distance transmission efficiency, reducing losses, and improving grid stability. Green energy corridors are facilitating seamless renewable energy evacuation, ensuring a smooth transition toward a cleaner energy mix. Digitalization and automation are revolutionizing grid operations, enabling real-time monitoring, predictive maintenance, and better demand-supply management.

Private sector participation through tariff-based competitive bidding has accelerated project execution and introduced greater efficiency. Policy initiatives focused on network expansion, infrastructure modernization, and cross-border electricity trade are further strengthening India’s transmission backbone. With a proactive approach to innovation and investment, the sector is well-positioned to meet future energy demands while supporting economic growth and sustainability.

India’s power transmission sector is exceptionally attractive for investors and lending institutions alike, with an estimated investment need of around Rs 10 trillion by 2030. The sector offers long-term, stable projects backed by supportive government policies and fixed tariff-based revenue models. Additionally, the push to integrate 500 GW of renewable energy ensures a continuous demand for upgraded and expanded transmission networks.

What role does private capital play in addressing the infrastructure gap in India’s power and transmission sector?

Private capital is playing a transformative role in strengthening India’s power transmission sector by driving efficiency, accelerating project execution, and optimizing costs. While state-owned entities remain key players, the expansion of tariff-based competitive bidding (TBCB) has opened the market to private investment, enhancing network expansion and operational performance.

Private investors bring technological innovation, advanced project management, and financial discipline, reducing delays and improving asset utilization. Government initiatives and policy reforms have further boosted investor confidence by providing regulatory clarity and unlocking value in existing transmission assets.

Why do you believe that substantial investment is needed in grid modernization, digitalization, and green energy corridors?

As electricity demand rises and renewable energy integration accelerates, substantial investment is needed in grid modernization, digitalization, and green energy corridors. Private capital is spearheading the development of high-voltage direct current (HVDC) transmission lines and smart grid solutions, ensuring a more resilient and future-ready network.

With evolving regulatory mechanisms, long-term revenue visibility, and transparent bidding processes, the investment climate remains favourable for private participation. This collaborative approach between public and private stakeholders is essential for bridging infrastructure gaps and building a more efficient, sustainable transmission backbone.

Are there specific areas within power transmission that present the most promising investment opportunities right now?

High-voltage direct current (HVDC) transmission is a major focus, enabling efficient long-distance power transfer with lower losses and improved grid stability. As India expands its renewable energy capacity, HVDC lines will play a critical role in connecting remote generation hubs to demand centers.

The development of green energy corridors is another promising area, ensuring dedicated transmission infrastructure for wind and solar power evacuation. These corridors are essential for balancing variable renewable energy generation and strengthening grid resilience.

Advanced transmission components such as high-performance conductors, gas-insulated substations (GIS), and flexible AC transmission systems (FACTS) are enhancing efficiency and reliability. These technologies help reduce transmission losses, optimize grid operations, and improve right-of-way utilization.

Digitalization in transmission infrastructure, including real-time grid monitoring, automated substations, and predictive maintenance, is transforming operational efficiency. With the expansion of interstate and intrastate transmission networks, investments in these areas are expected to grow.

The tariff-based competitive bidding (TBCB) mechanism continues to offer attractive opportunities, ensuring cost efficiency and long-term revenue visibility for investors. As transmission demand rises alongside India’s energy transition, these segments remain crucial for future investment.

How have recent policy changes impacted investment in the power and transmission sector?

Recent policy changes have significantly improved the investment outlook for India’s power transmission sector, fostering efficiency, competition, and private sector participation.

The government’s continued push for tariff-based competitive bidding (TBCB) has expanded private investment, ensuring cost-efficient project execution and reducing reliance on state-owned entities. Recent approvals for larger TBCB-based projects, including high-capacity corridors for renewable energy integration, have further strengthened investor confidence. In the last 4 years, projects awarded through TBCB route were around 80-90% of the new projects approved by the National Committee on Transmission (NCT). Effectively, all new projects being awarded now are through TBCB route, except for augmentations works or projects with high strategic importance.

The implementation of General Network Access (GNA) regulations by the Central Electricity Regulatory Commission (CERC) is a major reform, enhancing transmission planning and optimizing grid utilization. By allowing more flexible access to transmission capacity, these regulations improve efficiency and streamline the process for integrating new generation projects.

The emphasis on renewable energy evacuation has led to policy-driven investments in green energy corridors and high-voltage direct current (HVDC) transmission lines. The government’s recent initiatives, such as the push for transmission infrastructure to support offshore wind projects and round-the-clock renewable power supply, have created new investment opportunities.

With clearer regulatory frameworks, a pipeline of transmission projects, and a strong push for grid modernization, recent policy changes have positioned the sector for sustained private investment and long-term growth

What role do smart grids and digitalization play in modernizing India’s power infrastructure?

Smart grids and digitalization are transforming India’s power transmission sector, improving efficiency, reliability, and grid resilience. Advanced digital technologies enable real-time monitoring, predictive maintenance, and automated grid management, reducing operational inefficiencies and minimizing downtime.

The deployment of smart sensors, Internet of Things (IoT)-enabled devices, and artificial intelligence (AI)-driven analytics allows utilities to detect and address grid imbalances proactively. Automation in substations and remote grid control systems enhances transmission efficiency and reduces manual intervention.

Wide-area monitoring systems (WAMS) and phasor measurement units (PMUs) are strengthening grid stability by providing real-time data on power flows, enabling faster decision-making during fluctuations. These technologies are especially critical for integrating renewable energy, ensuring smooth transmission despite variable generation patterns.

Blockchain-based energy trading and digital twin technology are emerging trends that further optimize transmission network operations. With a strong policy push toward digital infrastructure, smart grids are set to play a crucial role in modernizing India’s power transmission, enhancing reliability, and supporting the transition to a more resilient and flexible energy system.

What steps are being taken to make power transmission infrastructure more sustainable and resilient in the face of climate change?

India is taking several steps to make power transmission infrastructure more sustainable and resilient in the face of climate change.

The development of green energy corridors is a key initiative, ensuring dedicated transmission networks for renewable energy, reducing dependence on fossil fuels, and enhancing grid stability. High-voltage direct current (HVDC) transmission systems are being deployed to improve efficiency and minimize energy losses over long distances.

To enhance climate resilience, transmission infrastructure is being designed to withstand extreme weather events. This includes the use of elevated substations in flood-prone areas, advanced conductors that reduce transmission losses, and grid hardening measures to protect against storms and heat stress.

Flexible AC transmission systems (FACTS) and real-time grid monitoring technologies are improving operational efficiency and enabling faster responses to grid fluctuations. Digitalization, predictive maintenance, and automation are further strengthening the reliability of transmission networks, reducing downtime and optimizing performance.

With policy support for sustainable infrastructure, including mandates for energy-efficient equipment and smart grid deployment, India is actively building a transmission network that is not only more robust but also better equipped to support long-term climate goals.

How can India strike a balance between rapid infrastructure growth and long-term sustainability in the power sector?

India is expanding its power transmission infrastructure to meet rising electricity demand while ensuring long-term sustainability. The focus is on integrating renewable energy, improving grid efficiency, and adopting environmentally friendly technologies. Green energy corridors and high-voltage direct current (HVDC) transmission lines are enabling large-scale renewable energy evacuation with minimal losses. Smart grids, automation, and digitalization are optimizing grid operations, reducing inefficiencies, and enhancing resilience.

Sustainability is being addressed through the use of advanced conductors, energy-efficient substations, and grid-hardening measures to withstand extreme weather conditions. Policies promoting competitive bidding and private sector participation ensure cost-effective expansion while maintaining high reliability. By aligning rapid infrastructure development with innovative and sustainable solutions, India is building a power transmission network that is both scalable and future ready.

How does Avener Capital approach risk assessment and mitigation in large-scale infrastructure investments like power transmission?

Avener Capital follows a structured approach to risk assessment in large-scale power transmission investments, focusing on regulatory, financial, operational, and environmental risks. Thorough due diligence ensures that projects align with policy frameworks and benefit from long-term revenue stability.

Risk mitigation strategies include evaluating the financial health of counterparties, assessing project feasibility under various regulatory scenarios, and incorporating contractual safeguards to minimize exposure. Technological risks are addressed by investing in proven, efficient transmission solutions, while environmental and climate-related risks are managed by prioritizing resilient infrastructure and sustainable practices.

By leveraging industry expertise, data-driven analysis, and strategic partnerships, Avener Capital ensures that investments are secure, scalable, and aligned with India’s evolving power sector dynamics.