Mumbai's transmission upgrade: who pays, who profits, and what alternatives were skipped

Mumbai's new Kudus, Aarey HVDC link, commissioned by Adani Energy Solutions and Hitachi Energy, delivers up to 1,000 MW of renewable power into the city, enough to meet nearly half of peak demand^[1][2][3]. The project was triggered by the October 2020 blackout that exposed Mumbai's fragile transmission^[3]. But while the line strengthens resilience, the story is also one of monopoly rents and forgone alternatives.

Adani Electricity Mumbai Infra Limited (AEMIL), a subsidiary of Adani Energy Solutions, developed the link as a regulated transmission asset^[1]. In India, as in the U.S., transmission owners earn a guaranteed return on capital, meaning every rupee spent on the line earns a profit, with no incentive to consider cheaper grid-enhancing technologies (GETs) or non-wires alternatives. Before approving a 1,000 MW HVDC line, regulators should have demanded evidence that dynamic line ratings, advanced conductors, or storage-as-transmission were evaluated and found insufficient. The project includes 50 km of underground cable and a compact substation^[3], technically impressive, but also capital-intensive.

The cost allocation question is equally critical. The project was identified by the Central Electricity Authority and the Maharashtra Electricity Regulatory Commission as a 'critical bulk power injection scheme'^[1]. But who benefits, and who pays? If costs are socialized across all Mumbai ratepayers while benefits flow disproportionately to certain distributors or consumers, the allocation is regressive. Independent studies have shown that narrowly defining 'beneficiary' can strand useful lines, while overbroad definitions gold-plate local builds. The compliance docket for this project, MERC's tariff order and the transmission pricing framework, is where the real fight happens.

Meanwhile, Tata Power commissioned a 101 MW wind farm in Maharashtra to supply green power to Mumbai^[6]. This distributed generation could be paired with storage to defer or avoid some transmission upgrades. The structural point: every transmission project should face a GETs-first review, competitive bidding for construction, and transparent cost allocation that puts the burden on those who benefit most. Mumbai's new HVDC link is a resilience win, but without those checks, it risks being a profit center for the developer at ratepayers' expense.