News Brief | February 2015
India to spend $21.6 billion on smart grids
India is looking to smart grid infrastructure to help tackle an out-of-control electricity theft problem and improve reliability. Theft costs the Indian power sector $16.2 billion per year. The government has already committed billions of dollars in funding for smart grid infrastructure and cumulative spending is forecasted at $21.6 bn over the period 2015-2025, according to a new study published today by Northeast Group, LLC. ¨India loses more money to theft than any other country in the world,¨ said Ben Gardner, President of Northeast Group. ¨The state of Maharashtra-which includes Mumbai-alone loses $2.8 bn per year, more than all but eight countries in the world. Nationally, total transmission and distribution losses approach 23 per cent and some States´ losses exceed 50 per cent. Most Indian utilities are financially unsustainable.¨
India´s Central government has responded with billions of dollars in promised funding for smart grid infrastructure. In November 2014, Prime Minister Modi announced $4 bn in funding for smart metering programs. Additionally, over $8 bn is available for loss reduction programs and dozens of projects are now underway across States. Northeast Group´s study analyses the complex regulatory frameworks and industry structures across the States.