Transmission Constraints Threaten to Curb India’s Renewable Energy Expansion

Syllabus: GS3/Renewable Energy/Infrastructure

Context

• Insufficient transmission lines have emerged as a major obstacle to India’s rapid expansion of renewable energy capacity.

About

• Close to 21 gigawatts (GW), that is about 9% of the country’s installed renewable energy capacity, is currently transferred from plants through temporary grid connections while awaiting dedicated transmission infrastructure.
  • Of this, around 12 GW faces restrictions on “power evacuation” during periods of peak solar generation. 
  • Power evacuation is the process of transferring electricity generated at a power plant to the consumption point.
• During the financial year 2025-26 (FY26), around 6,900 gigawatt-hour (GWh) of clean electricity faced restrictions due to a mismatch between the rapid pace of renewable energy deployment and commissioning of associated transmission infrastructure. 
• Industry executives also cautioned that these projects could turn into non-performing assets (NPAs) if the government doesn’t address the issue. 

Electricity Transmission

• Electricity generated at a power plant has to travel through transmission lines before reaching distribution networks and ultimately consumers.
  • The basic chain is: From Renewable Energy Project to Transmission Network to Distribution Network and ultimately to Consumers.
• India’s solar and wind capacity has expanded rapidly, but transmission infrastructure in some renewable-rich regions has not kept pace.
• This is particularly important because India’s major renewable-energy resources are concentrated in specific regions.
  • Electricity generated in these regions may have to travel hundreds or thousands of kilometres to reach major demand centres.

Current Infrastructure for Grid Transmission

• General Network Access (GNA) Framework: It is a temporary arrangement that allows renewable energy plants to use whatever spare transmission capacity is available while they wait for their permanent transmission connection.
  • T-GNA projects, however, can schedule power only if spare transmission capacity is available. 
• Concerns: During periods of network congestion, long-term GNA projects receive priority, often resulting in curtailment of generation from T-GNA-connected plants.
  • The curtailment faced by these projects are as high as 70-80%  of their generating capacity, posing serious concern on project viability and debt servicing.
• When the grid cannot accommodate all the electricity being generated, power generation may have to be deliberately reduced. This is known as power curtailment.

Why are Transmission Projects Taking Time?

• Transmission infrastructure is more complicated and time-consuming to develop than generation capacity.
• Major challenges include:
  • Land acquisition and Right of Way (RoW) issues.
  • Obtaining environmental and other statutory clearances.
  • Delays in construction of transmission lines and substations.
  • Procurement of specialised equipment.
  • Coordination between renewable-energy developers, transmission companies and governments.
  • Mismatch between the commissioning dates of renewable projects and transmission infrastructure.
• This creates a situation where a renewable-energy project may be ready to generate electricity while its dedicated transmission system is still under construction.

Concerns: 

• Power Curtailment: Insufficient transmission capacity can force renewable-energy plants to reduce generation, resulting in wastage of clean electricity.
• Financial Stress: Curtailment reduces revenue for renewable-energy developers, making it difficult to service project debt and potentially discouraging future investment.
• Grid Stability: The intermittent nature of solar and wind power, combined with inadequate transmission and storage, can create challenges in maintaining grid stability and balancing electricity supply and demand.
• Delay in Renewable Targets: Transmission bottlenecks can slow the effective utilisation of India’s rapidly expanding renewable capacity, potentially affecting the achievement of its 2030 clean-energy and climate targets.

Government Initiatives

• Grid Integration Plan: India’s grid is being reimagined through the ₹2.4 lakh crore Transmission Plan for 500 GW, linking renewable-rich states with demand centres.
  • The Government is prioritizing investment in transmission infrastructure through the Green Energy Corridors and new high-capacity transmission lines from Rajasthan, Gujarat, and Ladakh. 
  • While these projects are multi-year efforts, once operational they will unlock over 200 GW of new renewable capacity. 
• Vision till 2032: Government has already planned for building High-Voltage Direct Current (HVDC) corridors and boosting inter-regional transmission capacity from 120 GW today to 143 GW by 2027, and 168 GW by 2032.
• Incentives: Domestic manufacturing, incentivised through the Production-Linked Incentive (PLI) scheme, Domestic Content Requirement, imposition of duties, and duty exemptions for capital equipment, is reducing import dependency.
• National Institute of Solar Energy (NISE): Offers training programs, workshops, and research support for solar PV, solar thermal, and hybrid technologies.
• Capacity Building for State Nodal Agencies (SNAs): Training and technical support to state renewable energy agencies for project implementation, monitoring, and policy enforcement.
• Research & Innovation Support: Funding for R&D in battery storage, hybrid projects, offshore wind, and green hydrogen.
• International Cooperation & Training Programs: Collaboration with IRENA, GIZ, and other global agencies for knowledge exchange.
• Deployment of Smart Grid Technologies: Advanced grid support technologies are planned to enhance voltage stability, improve system strength, and support reliable integration of renewable energy.

Conclusion

• Over the past two years, policy attention has consciously shifted from pure capacity growth to system design.
• These reforms mark a decisive step toward optimising transmission utilisation and fast-tracking stranded renewable projects, directly addressing one of the sector’s core implementation challenges.

Source: IE