India’s Power Secretary Highlights Need for Localized Supply Chains in Renewable Sector

India must assess the viability of a production-linked incentive (PLI) scheme to enhance its renewable energy transmission capacity, according to Power Secretary Pankaj Agarwal, who spoke at an event on Monday.  

He emphasized the importance of localizing the supply chain for transmission equipment, noting that approximately 1,650 gigawatts (GW) of global renewable energy capacity is currently ready to be connected to the grid, as reported by Reuters. 

The country has already initiated several PLI schemes to strengthen domestic manufacturing and reduce reliance on international supply chains. Agarwal pointed out that India faces limitations in its transmission capacity, particularly regarding the need to upgrade specific types of equipment.  

According to the Reuters report, he added that global supply chains are experiencing strain due to surging power demand.

As part of its ambitious energy goals, India—recognized as the world's fastest-growing major economy—aims to increase its non-fossil power capacity to 500 GW by 2030, a significant rise from the approximately 154.5 GW currently in place.  

In contrast, India’s coal-fired power output declined for the second consecutive month in September compared to the same period last year. This decrease is attributed to slower growth in electricity demand and a notable increase in solar power generation, reflecting a shift towards more sustainable energy sources.