Substation capacity addition target up 17 per cent in FY23

 

The targeted substation capacity addition for ongoing FY23 is up 17 per cent compared with that for FY22.

According to the latest report released by Central Electricity Authority (CEA), the overall target for substation (transformation) capacity addition for FY23 (April 1, 2022 to March 31, 2023) has been set at 95,659 MVA. This is 17.3 per cent higher than the comparable target of 81,545 MVA for FY22.

Of the planned addition of 95,659 MVA in FY23, Central utilities (mainly Power Grid Corporation of India) will account for 38.2 per cent. State government utilities are expected to fulfil 54.5 per cent of the targeted addition while private entities (including joint ventures) will constitute the remaining 7.3 per cent.

In terms of voltage class, the bulk of the target (44.5 per cent) will come from 400kV substations. The 765kV class will account for 28.2 per cent of the target while the 220kV category will make up the remaining 27.3 per cent.

Interestingly, no HVDC lines have been envisaged for completion in FY23.

 

Target achievement

In recent years, the country has not been able to meet the targeted substation capacity addition. However, there has been a gradual improvement in the target achievement ratio. For instance, in FY20, the target of substation capacity addition was achieved to the extent of 83.5 per cent. This metric improved to 91.3 per cent in FY21 and further to 96.9 per cent in FY22.

It may however be noted that in FY21 – owing to pandemic-related disruptions – the substation capacity addition target was set lower (by 22 per cent) over that for FY20. In fact, the target for FY21 was also lower than the actual achievement in FY20.

 

Performance in April 2022

In April 2022, the opening month of FY23, actual substation capacity addition was 7,318 MVA as against the planned addition of 9,488 MVA. In a very positive development, state utilities accounted for most of this addition. At 4,003 MVA, the achievement by state utilities was in fact higher than the planned 3,173 MVA. Central agencies contributed 1,315 MVA while the private sector chipped in with 2,000 MVA.

 

CTU vs CEA

The planned addition of 95,659 MVA worth of substation capacity in FY23 is a metric set by Central Electricity Authority (CEA). In an independent report, Central Transmission Utility of India (CTUIL) has projected that the interstate transmission system (ISTS) network will see the addition of 49,365 MVA of substation capacity in FY23. This of course will be part of the overall target of 95,659 MVA for FY23. Thus, the ISTS network is expected to account for half of the country’s projected transformation capacity addition in FY23 while the other half will be built in the intrastate system.

According to estimates made by T&D India, the envisaged investment in developing the targeted 95,659 MVA of substation capacity should be in the region of Rs.37,000-40,000 crore.

It may be noted that CEA’s monitoring activity, including targets set, relates to power transmission infrastructure of 220kV or above, only.