India's ambitious renewable energy drive is facing a significant hurdle: the slow expansion of its power transmission infrastructure. While the country has witnessed a surge in renewable energy capacity, the development of the grid needed to transmit this power to consumers is lagging behind. This disconnect threatens to undermine India's clean energy goals and deter future investments in the sector.

Capacity Addition vs. Transmission Expansion

India's renewable energy sector has seen impressive growth in recent years. In the financial year 2024-25, the country added a record 29.52 GW of renewable energy capacity, bringing the total installed renewable energy capacity to 220.10 GW as of March 31, 2025. Solar energy has been a major driver of this growth, with installed solar capacity reaching 105.65 GW. Wind power has also crossed a significant milestone, exceeding 50 GW. Overall, renewables now constitute over 50% of India's total installed power capacity.

However, the expansion of the transmission infrastructure has not kept pace with this rapid growth. According to data from the Central Electricity Authority (CEA), only 1,998 circuit kilometers (ckm) of new transmission lines were added till August this fiscal year, which is 30% less than the previous year. This is significantly short of the full-year target of 15,382 ckm. In fiscal year 2025, only 8,830 ckm of new transmission lines were commissioned, against a target of 15,253 ckm, marking a 42% shortfall.

Stranded Capacity and Financial Losses

The inadequate transmission infrastructure is leading to a significant amount of renewable energy capacity being stranded. A study estimates that nearly 50 GW of renewable capacity nationwide cannot be evacuated due to insufficient infrastructure. Other reports suggest this figure could be even higher. For instance, Rajasthan alone has 8 GW of renewable energy capacity stranded, with nearly half of it curtailed during peak solar hours. This situation inflates per-unit transmission costs, weakens project viability, and deters private investment. Developers are seeking compensation for financial losses incurred due to delayed transmission connections.

Challenges and Bottlenecks

Several factors contribute to the slow pace of transmission expansion. These include:

• Right-of-way (RoW) issues and land acquisition delays: Obtaining the necessary land and clearances for transmission lines often faces resistance and bureaucratic hurdles, delaying project completion.
• Multi-agency approvals: The need for approvals from various agencies further complicates and prolongs the process.
• Speculative hoarding of transmission capacity: Some entities engage in speculative hoarding of transmission capacity, driving up connectivity prices and delaying access for legitimate projects.
• Underutilized existing infrastructure: Ironically, a significant portion of the existing transmission system remains underused. Analysis indicates that up to 71% of Inter-State Transmission System (ISTS) corridors operate below 30% utilization, highlighting a mismatch between where lines exist and where power flows are required.
• Mismatches in generation and consumption: Solar generation often coincides with afternoon peak demand but declines in the evening when consumption remains high, leading to underutilized transmission corridors.

Solutions and the Way Forward

To address these challenges and ensure the successful integration of renewable energy, several measures are needed:

• Unified generation-transmission planning: A coordinated framework that aligns the timelines and locations for both power generation and grid infrastructure is crucial.
• Streamlined approval processes: Implementing a single-window clearance system can expedite approvals and reduce delays.
• Incentives for performance: Introducing performance-based incentives can encourage timely completion of transmission projects.
• Investment in energy storage: Prioritizing the integration of energy storage systems is vital to bridge the mismatch between intermittent renewable generation and grid consumption.
• Smart grid technologies: Utilizing automation, sensors, and real-time data analytics can improve grid flexibility and manage variable renewable energy supply.
• Adaptive planning approaches: Moving away from traditional five-year static transmission planning cycles towards adaptive approaches that account for evolving generation patterns is necessary.
• Improved demand forecasting: Enhancing the accuracy of electricity demand forecasting is essential for effective planning.

India's commitment to renewable energy is commendable, and the country has made significant strides in increasing its clean energy capacity. However, to fully realize the benefits of this renewable surge, it is imperative to address the bottlenecks in transmission infrastructure. By implementing coordinated reforms and accelerating grid expansion, India can ensure that its renewable energy potential is unlocked, paving the way for a sustainable and secure energy future.