Page 61 - Policy Economic Report - Jan 2026

January 2026 POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

8. Transmission:

• Adoption of latest technologies and suitable compensation for land use to address Right of Way
(RoW) challenges.

• Parity of transmission tariff with conventional power by 2030 for all types of new RE capacity.

• Utilization-based framework for allocation of transmission connectivity, along with appropriate
regulatory mechanisms to ensure optimal use and prevent speculative holding of connectivity.

9. Distribution:

• Measures to achieve single-digit AT&C losses.

• Shared distribution networks to enhance competition and efficiency, while eliminating the
requirement of duplication of network.

• Establishment of a Distribution System Operator (DSO) to facilitate sharing of network and
integration of distributed renewables, storage, Vehicle-to-Grid (V2G) systems.

• N-1 redundancy at distribution transformer level in all cities with population more than 10 lakh
by 2032. Such cities to be considered for undergrounding of distribution network in congested
areas.

10. Grid Operations:

• Functional unbundling of State Transmission Utilities (STUs) and creation of independent state-
level entities to manage SLDC operations and transmission planning functions.

• Alignment of State Grid Codes with Indian Electricity Grid Code specified by CERC

11. Cybersecurity:

• Establishment of Robust cybersecurity framework.

• Mandatory storage of power sector data within India to ensure data sovereignty and system
resilience.

12. Data Sharing:
• Sharing of operational and market data under a framework prescribed by the Central

Government.
• Ensuring real-time visibility of Distributed Energy Resources to DISCOMs and SLDCs.
13. Technology & Skill Development:
• Transition to indigenously developed SCADA system by 2030.
• Development of domestic software solution for all critical applications in the power system.

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