Renewable surge stalled: India adds 26.8 GW power but grid expansion lags

New Delhi: India’s race to expand clean energy is running into a transmission bottleneck. Even as new power generation capacity has nearly tripled to 26.8 GW so far this fiscal year, expansion of the transmission backbone is faltering. Just 1,998 circuit kilometers (ckm) of new lines were added till August, 30% less than a year ago, against a full-year target of 15,382 ckm, according to data from the Central Electricity Authority (CEA).

The gap between generation and transmission is already stranding projects. A JMK Research study estimates that nearly 50 GW of renewable capacity nationwide cannot be evacuated because of inadequate infrastructure, inflating per-unit transmission costs, weakening project viability and deterring private investment.

Developers such as ACME Solar and AMPIN Energy have petitioned the Central Electricity Regulatory Commission (CERC) seeking compensation for financial losses from delayed transmission connections.

Of the 26.8 GW installed this year, renewable energy accounts for 20.1 GW, followed by coal or other thermal projects of 3.6 GW, hydro capacity of 2.4 GW and nuclear power of 700 MW. While the ramp-up in clean power is critical for India’s target of 500 GW non-fossil capacity by 2030, the absence of robust evacuation infrastructure risks slowing its impact.

Unlike coal, solar and wind are intermittent and require stronger networks to assure stability of the grid and the power system.

Ironically, parts of the existing transmission system remain underused even as new projects wait for grid access. Analysis by the National Renewable Energy Laboratory indicates that up to 71% of Inter-State Transmission System (ISTS) corridors operate below 30% utilisation, underscoring a mismatch between where lines exist and where power flows are required.

Last year, only 8,830 ckm of new transmission lines were commissioned against a target of 15,253 ckm, a 42% shortfall, with ISTS additions at their lowest in a decade.

From April to August this year, state utilities built 1,263 ckm of lines and central government-backed companies added 708 ckm, both falling short of their targets of 1,444 ckm and 717 ckm, respectively. The private sector, with a smaller share, met its target of 27 ckm during the period.

Private sector interest rises amid delays

Despite the shortfall, private interest is rising: in the first half of 2025, more than 30 power sector firms, mostly transmission companies and infrastructure investment trusts, were incorporated amid slackening growth in capacity addition.

The Centre has been making efforts to accelerate transmission line expansion in the country as the deadline of 500 GW non-fossil power generation capacity by 2030 draws closer. According to the CEA’s National Electricity Plan, India will need an additional 191,000 ckm of transmission lines by FY32, requiring a cumulative investment of about ₹9.15 trillion to ensure steady power supply as well as add battery storage capacity.

India’s transmission network, already one of the largest in the world at 495,405 ckm, remains the backbone of its energy transition.

Mint earlier reported that in the first half of 2025, more than 30 power sector firms, mostly transmission companies and infrastructure investment trusts, were incorporated amid the slackening growth in transmission capacity.