It said evacuation infrastructure for renewable energy (RE) projects will drive investments in the power transmission segment
India currently has 87.67 GW of renewable generation capacity installed, close to a quarter of its total installed capacity of 371 GW
ReNew recently started participating in transmission project tenders
State peak hour power demand estimated to jump 35% to 30,000 mw by 2024
India has expanded transmission network capacity at a compound annual growth rate of 12% over 5 years between 2012-13 and 2017-18
A number of EPC firms invested in the transmission segment and such assets may come up for sale
GEC 1 as enabling infrastructure connecting renewables-rich states to main grid
States needs to improve operations as there is public pressure for better and reliable supply
The investment figure includes an estimate of Rs 30,000 cr in transmission systems below 220 kv
The government plans to offer projects totalling Rs 4,500 crore, but there is no timeline yet
Consolidation hits the youngest infra sector in country
For smooth integration of renewable energy with grid is need for adherence to grid standards and regulations by RE generators
But steep valuation is a deterrent for stocks such as ABB, Alstom T&D, and Siemens