Stranded Renewable Power and Grid Constraints in India

Syllabus: GS3/ Energy

Context

• At the Bharat Climate Forum 2026, energy experts highlighted a critical risk in India’s energy transition that renewable power generation is increasing rapidly, but grid and institutional constraints are preventing its efficient utilisation.

India’s Renewable Energy Sector

• India’s total renewable energy capacity reached 253.96 GW in November 2025, representing an increase of over 23% from 205.52 GW in 2024.
• Solar installed capacity reached 132.85 GW followed by Wind at around 53.99 GW.
• India’s Global Position:
  • India ranks 3rd globally in solar power installed capacity.
  • India ranks 4th in wind power installed capacity.
  • India ranks 4th in total renewable energy installed capacity worldwide.
• The leading states in India for renewable energy capacity are Rajasthan, Gujarat, Tamil Nadu, and Karnataka.
• The country aims to achieve 500 GW of non-fossil fuel capacity by 2030 as part of its climate commitments.

Challenges in India’s Renewable Energy Transition

• Transmission Congestion and Stranded Power: In Rajasthan, around 23 GW of renewable capacity has been commissioned, but grid evacuation capacity is only 18.9 GW, leaving over 4,000 MW of power stranded during peak solar hours.
• Unequal Curtailment of Renewable Projects: Renewable projects with Permanent General Network Access (GNA) continue to transmit power normally while projects with Temporary GNA (T-GNA) often face complete shutdown during peak hours.
  • This unequal treatment creates financial losses for developers who invested in projects after obtaining necessary approvals.
• Under-utilisation of Transmission Infrastructure: High-capacity transmission lines such as 765 kV corridors are designed to evacuate large amounts of electricity (around 6000 MW). In reality, many operate at only 600–1000 MW, which is less than 20% of their designed capacity.
  • These projects involve huge investments of ₹4,000–₹5,000 crore per corridor, and their costs are ultimately borne by electricity consumers.
• Institutional and Governance Issues: The grid operator Grid Controller of India Limited focuses mainly on grid stability, while no clear utilisation benchmarks or review mechanisms exist to address persistent underuse of transmission assets.
• Technical Constraints in Grid Operation: Grid operators cite technical risks such as voltage oscillations and potential grid instability when renewable energy injection increases rapidly.
  • Technologies such as STATCOMs, reactive power compensators, and advanced protection systems can help address these issues but are not deployed at sufficient scale.

Government Initiatives to Improve Clean Energy Utilisation

• Green Energy Corridor (GEC): Aims to strengthen the transmission infrastructure to evacuate renewable energy efficiently from generation points to demand centres.
• PM-KUSUM Scheme: Promotes installation of solar pumps and grid-connected solar power plants in rural areas to reduce diesel usage and support farmers.
• National Green Hydrogen Mission: Seeks to promote the production and use of green hydrogen to reduce reliance on fossil fuels in sectors like refining, steel, and fertilisers.
• Production Linked Incentive (PLI) Scheme: Provides financial incentives for domestic manufacturing of high-efficiency solar photovoltaic (PV) modules and advanced battery storage systems.
• Renewable Energy Hybrid Policy: Encourages setting up of projects that combine solar and wind energy in the same location to increase capacity utilisation and reliability.

Way Ahead

• The mandate of Grid Controller of India Limited should include both grid stability and optimal utilisation of transmission assets.
• Curtailment should be distributed proportionately among all generators to ensure fairness.
• Advanced grid management technologies should be deployed to integrate higher levels of renewable energy.
• Better coordination is required between planning institutions such as the Central Transmission Utility of India Limited and grid operators.

Source: TH