Nagaland seeks investment, joint ventures to address power generation deficit

The Nagaland government on Thursday, August 13 held a high-level meeting with officials of the North East Transmission Company Limited (NETC) to explore investments, infrastructure development and joint venture models aimed at strengthening the state’s power sector.

The meeting, chaired by Principal Secretary and Development Commissioner Y Kikheto Sema at the Nagaland Civil Secretariat, focused on expanding the state’s transmission network, increasing renewable energy generation and establishing battery energy storage systems (BESS).

Sema highlighted Nagaland’s significant gap between power demand and in-state generation. The state’s peak power demand is around 193 MW, while its actual generation is approximately 20 MW, accounting for about 10 per cent of the requirement.

Although Nagaland has an installed generation capacity of 29.4 MW, actual operational generation remains around 20 MW. The balance is met through the state’s allocated share of 202 MW from Central Sector projects operated by entities including NEEPCO, NHPC, NTPC and OTPC.

Sema called for greater private and institutional investment in the power sector, stressing the importance of reliable electricity supply for industrial development, healthcare, employment generation and broader economic growth.

He also pointed to the state’s potential in renewable energy, particularly solar and hydropower, and asked the NETC team, led by Managing Director Jai Shankar, to submit concrete project proposals and partnership models to help reduce Nagaland’s dependence on power purchases from outside the state.

Shankar expressed NETC’s interest in developing strategic partnerships with the Nagaland government. He proposed setting up a Special Purpose Vehicle (SPV) with equitable equity participation by NETC and the state government for the joint development of transmission lines, substations and integrated solar-hybrid energy storage systems.

He said Nagaland would need to pursue a balanced energy mix comprising hydropower, solar, wind, gas and energy storage to meet evolving grid requirements.

Shankar further said improved transmission and power evacuation infrastructure could enable Nagaland to meet its domestic requirements and potentially sell surplus renewable energy to other states. Such a model, he said, could generate additional revenue for the state while reducing power procurement costs.

Principal Secretary (Power) K.D. Vizo supported the proposal and underlined the need to rapidly expand local generation, particularly through solar projects, along with the development of adequate substation infrastructure.

Officer on Special Duty (Finance) Ketoulhou Metha said the power sector remained a priority for the state despite fiscal constraints. He said the government would examine NETC’s proposals and assess options for mobilising resources for viable projects.

During the meeting, NETC Head of HR & Business Development (Corporate) Riteish Kumar made a detailed presentation on a proposed framework for strengthening Nagaland’s power grid through strategic public-private collaboration.