India Explores Power Grid Connectivity with Sri Lanka to Boost Cross-Border Energy Trade
India is actively exploring regional grid connectivity, including potential power transmission links with Sri Lanka, as part of efforts to expand cross-border electricity trade and advance the global "One Sun, One Grid, One World" initiative. This announcement was made by Minister of Power Manohar Lal Khattar during his address at the Bharat Electricity Summit 2026 in New Delhi.
Minister Khattar Highlights India's Role in Regional Energy Cooperation
In his speech, Minister Khattar emphasized that regional interconnections, such as those with Sri Lanka, can facilitate the flow of clean energy across borders and strengthen the vision of a unified global grid. He stated, "We are already providing power to Nepal, Bangladesh, and Bhutan, and soon we will also supply electricity to Sri Lanka in the near future." This move underscores India's growing leadership in fostering energy partnerships within South Asia.
India's Competitive Advantage in Power Generation Costs
Khattar highlighted India's significant competitive edge in power generation costs, noting that the country produces electricity at a much lower rate compared to many nations, including European countries. "We have more affordable power than most countries in the world, including European countries. Their cost of production is around Rs 35 per unit, while ours is significantly lower," he explained. The minister added that India aims to further reduce power production costs to enhance accessibility and affordability.
Importance of Transmission Infrastructure and Renewable Energy
The minister stressed the critical role of robust transmission infrastructure in enabling seamless electricity exchange across regions. He traced the evolution of energy use from early dependence on fire and coal to modern sources like hydro, wind, nuclear, and solar power. Khattar pointed out that conventional resources are finite, emphasizing the growing importance of renewable energy, particularly solar power, in meeting future demand.
Electricity as a Driver of Economic Growth
Khattar underscored that electricity is fundamental to achieving India's goal of becoming a developed nation by 2047. He noted that key sectors such as education, healthcare, industry, and infrastructure heavily depend on reliable electricity supply. India has significantly expanded its transmission network over the past decade, enhancing its ability to move power across regions and meet rising demand.
Current and Future Power Demand in India
The country's peak electricity demand reached around 250 gigawatts (GW) in 2024, and preparations are underway to meet higher requirements, with readiness to supply up to 270 GW during peak periods. Khattar further noted that emerging demand drivers such as data centers, electric vehicles, and new industries are expected to require an additional 30 GW of capacity in the coming years, putting further pressure on the power system.
Balancing Renewable and Conventional Energy Sources
While renewable energy capacity is expanding rapidly, Khattar said fossil fuel-based generation will continue to play a role in the near term to ensure reliability. "Non-fossil sources are growing fast, but conventional energy remains necessary to meet rising demand," he stated. This balanced approach aims to maintain grid stability while transitioning to cleaner energy sources.
Focus on Energy Storage and Innovation
Khattar highlighted the importance of energy storage in stabilizing the grid and integrating renewable power. India is targeting around 100 GW of storage capacity by 2035 through a mix of battery storage and pumped hydro projects. While battery storage offers flexibility, hydro-based storage provides longer operational life. The minister encouraged startups and entrepreneurs to develop new solutions in energy generation, transmission, and storage, emphasizing that innovation will be critical in improving efficiency and sustainability in the sector.
