ADB provides $759 million loans for Smart Grid development in India

The Asian Development Bank will invest $750 million in India for Smart Grid development. The project will enable bulk transfer of 3,000 MW of electricity from independent power producers of Chhatisgarh state to the areas of north India, including national capitol region Delhi, where the demand is high.  For this, 1300 km inter-regional transmission line will be established using 800 KV High Voltage Direct Current (HVDC) line, which is key driver for Smart Grid development. 

"Strengthening the inter-regional HVDC transmission network will promote open access to power supply, increase investment in both generation and distribution, help integrate the electricity market and encourage power trading and competitive electricity prices," said Kaoru Ogino, Senior Energy Specialist in ADB's South Asia Department. 

The ADB funds will be available to Government owned PowerGrid Corporation India Ltd (PGCIL), which is India's largest power transmission and distribution company. PowerGrid plans to invest $22 by 2017 to double its transmission network. The energy infrastructure is unable to match India's growing energy demands, according to 2010 data, in India there is 12% peak power shortage. Some state are able generate more power,however due to lack of inter-regional transmission link are unable to move electricity to power deficient regions. ADB is going to provide $500 million as sovereign-guaranteed  loans and $ 250 million as non-sovereign corporate loans. The total project cost is $2.25 billion and is expected to be completed by 2017. 

PowerGrid focusing towards Smart Grid Infrastructure

PowerGrid, a Government of India enterprise, is one of the largest transmission utility in the world. 45% power generated in India is transmitted through PowerGrid's transmission network. PowerGrid has close to 72 000 circuit kms transmission lines. The company is focusing its effort towards Smart Grid. One of the key component of Smart Grid is going to be BPL (Broadband over Power Lines) or Internet through electricity. One will not require separate connection for accessing internet, just plug the computer to a modem which is connected to power plug and you have access to Internet. With power plug available to most of the houses in developing world, the Internet will be available to most of the people on the earth. Imagine growth and sheer possibility for Innovation and the huge Internet market. The Navaratna, PowerGrid has given 100 crore contract to BGR energy for laying 4235 km fiber optics for five northern states viz. UP, Rajasthan, Delhi, Punjab, and Haryana. The plan is to lay Overhead power ground wires (OPGW) along the transmission lines. Unlike the underground wires which are occasionally disrupted, it won't be the case for OPGW lines. PowerGrid is already using the technology for communication between their units, however laying such network across the country is a long process and will take couple of years. Nonetheless, the baby step is the beginning and it is right step towards Smart Grid development. 

Facts about PowerGrid

Power Grid owns and operate 20, 000 km telecommunication network

PowerGrid has taken up consulting assignment at Middle East and Africa

PowerGrid has 55,000($ 5.5 billion) crore investment plan during the 11th plan (2007 - 2012).

PowerGrid has been assigned by the Government of India to carry out electrification for 3500 villages.

PowerGrid is planning for FPO in september.