New Delhi, Nov. 13 -- The head of the Central Electricity Authority recently suggested that electricity tariffs could rise because consumer demand is not keeping pace with the rollout of transmission networks. Over time, though, as demand rises and utilization picks up, transmission tariffs will moderate, but only up to a point even if demand keeps rising as new lines have mainly been built to cater to renewables.

This is a result of the dynamics of the planning process, which includes the purchase of electricity by states-the dominant procurers-and the Centre's policies on capacity creation as well as expansion of transmission networks.

Propelled by the decline in the price of solar panels and incentives to achieve ambitious targets, r...