Manila, Philippines --- (METERING.COM) --- October 11, 2011 - India’s Power Grid Corporation is to receive a $750 million loan from The Asian Development Bank (ADB) to finance a national grid improvement project, which will allow the bulk transfer of electricity (3,000 MW) from independent power producers in the western state of Chhattisgarh to areas of high demand in the north, including the national capital territory of Delhi.

This will be done through the establishment of a 1,300 km interregional transmission link using 800 kV high voltage direct current (HVDC) technology, a key driver of smart grid development.

“Strengthening the interregional HVDC transmission network will promote open access to power supply, increase investment in both generation and distribution, help integrate the electricity market and encourage power trading and competitive electricity prices,” said Kaoru Ogino, Senior Energy Specialist in ADB's South Asia Department.

India's demand for electricity, fuelled by its strong growth, has sharply exceeded supply in recent years, with a peak power deficit of over 12 percent in 2010. The generating capacity has been increasing over the years but expansion of the transmission network has not kept pace. Some states have the capacity to generate more power than they need, and creating interregional transmission corridors will allow them to move surplus electricity to areas short of supply.

To develop the national grid, Power Grid plans to invest about $22 billion to more than double the size of its transmission network between now and 2017, when the project is due for completion.