Nearly 50 GW of renewable-energy projects in India are estimated to face delays because of inadequate interstate transmission connectivity, according to officials cited in recent reporting. The constraint is emerging as the country accelerates solar and wind capacity additions and seeks to connect resource-rich regions with major electricity-consuming centres.

The Ministry of Power has issued fresh guidelines for determining compensation for landowners affected by the Right of Way (RoW) requirements of interstate transmission lines. The framework distinguishes between land forming part of the transmission corridor and land used for tower foundations, while aiming to establish greater consistency in states without notified compensation mechanisms.

Under the guidelines, compensation is to be linked to prevailing market values instead of outdated circle rates. The measure addresses a recurring issue in transmission development, where disputes over RoW and land acquisition have contributed to delays in construction and project commissioning.

The impact extends beyond the affected land parcels. Renewable projects that have generation capacity but lack completed evacuation infrastructure cannot reliably deliver electricity to the grid. Transmission congestion can also lead to curtailment, particularly when solar generation peaks while demand remains relatively low.

The government estimates that 335 GW of transmission capacity will be needed to connect 280 GW of variable renewable energy to the interstate transmission system by 2030. A substantial portion of this capacity has been completed or is under construction, but the scale of the remaining buildout remains significant. The development of transmission infrastructure is therefore becoming as important as securing developers, equipment and project finance for India’s renewable-energy expansion.