Karnataka is moving to open its intra-state transmission network to private participation, as rapid renewable energy expansion begins to strain the state’s grid infrastructure. With an installed power capacity of over 30 GW, of which more than half of this capacity is contributed by renewables, the state is increasingly facing constraints in evacuating power efficiently from generation centres to demand hubs.
KERC Invites Bids
KERC has invited stakeholder feedback on the draft regulations, after which the framework may be finalised. The move signals a broader shift in how states are responding to the challenges of renewable integration, with transmission emerging as a key focus area for policy and investment. In a draft notification, the Karnataka Electricity Regulatory Commission (KERC) has proposed a framework to govern the grant of transmission licences for projects awarded through tariff-based competitive bidding. The move formalises a shift towards a market-driven model, allowing private developers to compete for building and operating transmission infrastructure.
Curtailment Risks Highlight Urgency Of Expansion
The proposal comes amid growing concerns over grid congestion and accommodating rapidly growing renewable integration. According to a study by the Climate Policy Initiative, renewable energy generators in Karnataka could face curtailment of dispatchable power up to 15–20 percent of installed capacity by 2030. This is likely to happen if transmission infrastructure does not keep pace with capacity additions, underscoring the urgency of expanding network capacity matching the generation capacity. By introducing a structured licensing mechanism for competitively bid projects, the state aims to accelerate transmission development and attract private capital into the sector. The approach is expected to ease pressure on state-run utilities while improving execution timelines for critical infrastructure.
Industry experts have also flagged delays linked to land acquisition, leasing land and right-of-way (RoW) approvals as the endemic bottlenecks in building the transmission infrastructure commissioning. Building transmission networks requires access to private land for towers , overhead stringing cables, laying data cables (fiber optics) on the high-voltage lines, particularly for 220 kV and 133 kV connections for the renewable projects. Rising land costs and delays in securing access are increasing project execution timelines and pushing up capital expenditure, impacting overall project viability. |
