Power Grid Hits Record High as National Electricity Plan Boosts Growth Prospects

25 Sep 2024 , 06:24 PM

Power Grid Corporation of India Ltd. shares surged nearly 5%, reaching a record high of ₹366.25 on September 25, 2024.

The Ministry of Power has finalized the National Electricity Plan (NEP) 2023-2032, with a total estimated cost of ₹9.15 lakh crore. This plan aims to meet escalating energy demands, targeting a peak demand of 458 gigawatts (GW) by 2032.

The transmission network is set to expand from 4.85 lakh circuit kilometers to 6.48 lakh circuit kilometers, while transformation capacity will increase from 1,251 GVA to 2,342 GVA.

The NEP includes initiatives for green hydrogen and pumped storage systems, benefitting transmission companies, cable manufacturers, and transformer producers with improved order visibility.

Nine additional transmission lines with a capacity of 33.25 GW will be added to the existing 33.5 GW in use, enhancing electricity transfer capacity from 119 GW to 168 GW.

The Central government is upgrading its transmission capital expenditure estimate to $110 billion, positioning Power Grid to benefit significantly from this investment.

With the latest increase, Power Grid’s market capitalization reached ₹3.37 lakh crore, reflecting strong market confidence in the company’s future.

Overall, this plan represents a major push in capacity addition and clean energy technologies, marking a positive trajectory for Power Grid.