India to Invest in Smart Grid

India represents an opportunity for the smart-grid market. India is projected to invest $44.9 billion in smart metering, distribution automation, battery storage, and other smart-grid market segments during the next decade. This investment will help to reduce the country's staggering 22.7 percent transmission and distribution loss rate.

India has the second largest electricity customer market size in the world. China has the largest. The Indian market will be open to international vendors, as stated in the central government's smart grid development strategy. This will create significant market opportunities. Vendors from across Europe, North America, and Asia have already joined in small-scale pilots and grid upgrade projects, and have been linked with announcements of large-scale rollouts by Indian utilities that are upcoming in the next several years.

India’s power sector market conditions will require significant smart grid infrastructure investment. It has one of the highest T&D (transmission and distribution) loss rates in the world. In some states, the T&D loss rates exceed 50 percent, and almost all states have loss rates above 15 percent. Most Indian utilities fail to achieve cost recovery, and smart-grid investment will be an important tool for utilities to reduce losses and improve revenue collection and operational efficiency.

The Indian central government has taken measures to support smart grid development, including financial revitalization programs for utilities, the establishment of a central smart grid agency, and the publication of recommended financing strategies for early deployments. This type of investment will benefit the construction industry for years to come.

Related Articles