Power from Sri Lanka outprices offshore wind

Context: The recently released National Electricity Plan document of the Central Electricity Authority (CEA) notes that India and Sri Lanka have agreed on the detailed project report (DPR) for building a transmission line between the two countries. This marks a significant milestone in a journey that traces back to 2002.

Key Facts

  • The project seeks to build a transmission link between New Habarana in Sri Lanka and New Madurai in India, crossing a 120 km stretch of sea.
  • A detailed project report (DPR) has been agreed upon for the India-Sri Lanka grid interconnection. This will involve a 1000 MW VSC HVDC bipole line connecting New Madurai in India to Mannar in Sri Lanka, built in two phases of 500 MW each, with HVDC terminals at both ends.
  • Wind industry sources believe the island nation has potential of 65 GW onshore — most of it can be transmitted to India, as Sri Lanka needs very little. This, sources said, is cheaper than offshore wind in India.

National Electricity Plan (Transmission) Highlights

  • Aim for renewable energy:
  • Launched by
    • Union Minister Shri Manohar Lal on October 14-15, 2024, during a CEA conclave in New Delhi.
  • Planned Storage Systems:
  • Green Hydrogen/Ammonia:
    • Transmission system designed to support power delivery to manufacturing hubs at coastal locations (e.g., Mundra, Kandla, Gopalpur).
  • Planned Transmission 
    • Over 1,91,000 ckm of transmission lines to be added from 2022-23 to 2031-32 (220 kV and above).
    • 1270 GVA of transformation capacity planned.
    • 33 GW of HVDC bipole links proposed.
    • Inter-regional transmission capacity to increase from 119 GW to:
      • 143 GW by 2027.
      • 168 GW by 2032.
  • International Interconnections:
    • Plans include interconnections with Nepal, Bhutan, Myanmar, Bangladesh, Sri Lanka, and potential links with Saudi Arabia and UAE.
  • Technology Innovations:
    • Emphasis on new technology options such as:
      • Hybrid Substations.
      • Monopole Structures.
      • Insulated Cross Arms.
      • Dynamic Line Rating.
      • High-Performance Conductors.
      • Upgrading operating voltage to 1200 kV AC.
    • Focus on skill development in the transmission sector.
  • Investment Opportunities:
    • The plan outlines investment opportunities exceeding INR 9,15,000 Crores in the transmission sector by 2032.
    • Several transmission schemes are under construction, bidding, or in the pipeline.
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