Nagaland seeks investment to cut outside power dependence

Nagaland is looking to expand its power generation capacity and draw investment in renewable energy, transmission and battery storage as it seeks to reduce its heavy reliance on electricity purchased from outside the state, officials said Thursday, August 13.

Principal Secretary and Development Commissioner Y. Kikheto Sema said the state's peak power demand is around 193 MW, while in-state generation stands at only about 20 MW roughly 10% of requirement despite an installed capacity of 29.4 MW. Nagaland additionally receives about 202 MW from central sector projects including NEEPCO, NHPC, NTPC and OTPC, he said.

Sema made the remarks at a high-level meeting with North East Transmission Company Limited (NETC) officials led by managing director Jai Shankar at the Nagaland Civil Secretariat in Kohima, an official statement said.

The meeting focused on possible collaboration and investment in the state's power sector, particularly transmission infrastructure, renewable generation and battery energy storage.

Sema said reliable and adequate power was essential for industrial growth, healthcare, employment and overall economic development, and called for power generation to be treated as a foundation for attracting industry.

He pointed to Nagaland's significant solar and hydro potential, while noting the state's continued heavy dependence on outside power, and called for solar, hydro and hybrid energy projects backed by adequate transmission and storage infrastructure, developed in a way that protects the state's environment. He asked NETC to submit concrete proposals for collaboration.

Shankar said NETC was keen to work closely with the state government to strengthen Nagaland's power infrastructure and explore partnerships in transmission systems, renewable energy and battery storage.

He said the company viewed Nagaland as a long-term stakeholder rather than merely an external partner, and proposed forming a Special Purpose Vehicle with equitable participation from NETC and the state government to jointly develop transmission infrastructure and associated substations.

Principal Secretary for Power K.D. Vizo said Nagaland's generation capacity needed to be scaled up, particularly through solar energy, alongside adequate transmission and substation infrastructure.

Officer on Special Duty for Finance Ketoulhou Metha said energy remained a priority sector despite fiscal constraints and that the government would examine NETC's proposals for viable collaboration and resource mobilization. NETC's head of HR and business development, Riteish Kumar, presented the company's proposal for a strategic partnership to strengthen the state's power infrastructure.