India’s Green Energy Push Faces Transmission Bottleneck
POWER & RENEWABLE ENERGY

India’s Green Energy Push Faces Transmission Bottleneck

India’s rapid progress in clean energy generation is increasingly constrained by a growing transmission bottleneck. While new power generation capacity has nearly tripled to 26.8 GW so far this fiscal year, the expansion of the national transmission network has faltered.

Data from the Central Electricity Authority (CEA) shows that only 1,998 circuit kilometres (ckm) of new lines were added by August 2025 — a 30 per cent decline from the previous year — against a full-year target of 15,382 ckm.

This gap between generation and transmission is already stranding new renewable projects. A JMK Research study estimates that nearly 50 GW of renewable capacity nationwide remains unutilised because of inadequate grid infrastructure, driving up per-unit transmission costs, undermining project viability, and discouraging private investment.

Developers such as ACME Solar and AMPIN Energy have petitioned the Central Electricity Regulatory Commission (CERC) for compensation over financial losses caused by delayed grid connections.

Of the 26.8 GW added this year, renewable energy contributes 20.1 GW, followed by coal and other thermal projects at 3.6 GW, hydro at 2.4 GW, and nuclear at 700 MW. While the surge in green power generation supports India’s target of 500 GW non-fossil capacity by 2030, the absence of adequate evacuation infrastructure risks slowing its real impact.

Unlike coal-based plants, solar and wind power are intermittent and require stronger, flexible transmission systems to maintain grid stability. Ironically, even as new projects await connectivity, parts of the existing transmission system remain underutilised. Analysis by the National Renewable Energy Laboratory (NREL) found that up to 71 per cent of Inter-State Transmission System (ISTS) corridors operate below 30 per cent utilisation, exposing a geographical mismatch between where lines exist and where power flows are needed.

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

Between April and August 2025, state utilities built 1,263 ckm of lines and central public sector companies added 708 ckm, both missing their respective targets of 1,444 ckm and 717 ckm. The private sector, though holding a smaller share, met its 27 ckm goal.

Despite current lags, private sector interest is rising — with over 30 new power sector companies, mainly transmission firms and infrastructure investment trusts, incorporated in the first half of 2025.

To bridge the gap, the Centre is accelerating efforts to expand the transmission backbone as the 2030 renewable energy deadline nears. The CEA’s National Electricity Plan projects that India will need an additional 191,000 ckm of transmission lines by FY32, requiring an investment of about Rs 9.15 trillion (Rs 9.15 lakh crore) to ensure reliable power supply and accommodate battery storage capacity.

India already operates one of the largest transmission networks in the world, spanning 495,405 ckm — the essential backbone of its energy transition. However, unless transmission keeps pace with generation, the country’s clean energy ambitions risk being slowed by its own grid constraints.

India’s rapid progress in clean energy generation is increasingly constrained by a growing transmission bottleneck. While new power generation capacity has nearly tripled to 26.8 GW so far this fiscal year, the expansion of the national transmission network has faltered. Data from the Central Electricity Authority (CEA) shows that only 1,998 circuit kilometres (ckm) of new lines were added by August 2025 — a 30 per cent decline from the previous year — against a full-year target of 15,382 ckm. This gap between generation and transmission is already stranding new renewable projects. A JMK Research study estimates that nearly 50 GW of renewable capacity nationwide remains unutilised because of inadequate grid infrastructure, driving up per-unit transmission costs, undermining project viability, and discouraging private investment. Developers such as ACME Solar and AMPIN Energy have petitioned the Central Electricity Regulatory Commission (CERC) for compensation over financial losses caused by delayed grid connections. Of the 26.8 GW added this year, renewable energy contributes 20.1 GW, followed by coal and other thermal projects at 3.6 GW, hydro at 2.4 GW, and nuclear at 700 MW. While the surge in green power generation supports India’s target of 500 GW non-fossil capacity by 2030, the absence of adequate evacuation infrastructure risks slowing its real impact. Unlike coal-based plants, solar and wind power are intermittent and require stronger, flexible transmission systems to maintain grid stability. Ironically, even as new projects await connectivity, parts of the existing transmission system remain underutilised. Analysis by the National Renewable Energy Laboratory (NREL) found that up to 71 per cent of Inter-State Transmission System (ISTS) corridors operate below 30 per cent utilisation, exposing a geographical mismatch between where lines exist and where power flows are needed. Last year, only 8,830 ckm of new transmission lines were commissioned against a target of 15,253 ckm, marking a 42 per cent shortfall, with ISTS additions at their lowest in a decade. Between April and August 2025, state utilities built 1,263 ckm of lines and central public sector companies added 708 ckm, both missing their respective targets of 1,444 ckm and 717 ckm. The private sector, though holding a smaller share, met its 27 ckm goal. Despite current lags, private sector interest is rising — with over 30 new power sector companies, mainly transmission firms and infrastructure investment trusts, incorporated in the first half of 2025. To bridge the gap, the Centre is accelerating efforts to expand the transmission backbone as the 2030 renewable energy deadline nears. The CEA’s National Electricity Plan projects that India will need an additional 191,000 ckm of transmission lines by FY32, requiring an investment of about Rs 9.15 trillion (Rs 9.15 lakh crore) to ensure reliable power supply and accommodate battery storage capacity. India already operates one of the largest transmission networks in the world, spanning 495,405 ckm — the essential backbone of its energy transition. However, unless transmission keeps pace with generation, the country’s clean energy ambitions risk being slowed by its own grid constraints.

Next Story
Infrastructure Energy

Vedanta Aluminium Uses 1.57 bn Units of Green Energy in FY25

Vedanta Aluminium, India’s largest aluminium producer, recently reported consumption of 1.57 billion units of renewable energy in FY25, marking a significant milestone in its 2030 decarbonisation roadmap. The company also achieved an 8.96 per cent reduction in greenhouse gas (GHG) emissions intensity compared to FY21, reinforcing its leadership in India’s low-carbon manufacturing transition. During FY25, Vedanta Aluminium expanded its renewable energy portfolio through long-term power purchase agreements, strengthening its strategy to source nearly 1,500 MW of renewable power over the lon..

Next Story
Real Estate

Oberoi Group to Develop Luxury Resort at Makaibari Tea Estate

EIH Limited, the flagship company of The Oberoi Group, has announced the signing of a management agreement to develop an Oberoi luxury resort at the iconic Makaibari Tea Estate in Darjeeling. The project marks a key milestone in the Group’s long-term strategy of creating distinctive hospitality experiences in rare and environmentally significant locations. Established in 1859, Makaibari is one of the world’s oldest tea estates and is globally recognised for its Himalayan landscape, primary forests and exceptional biodiversity. Spread across 1,236 acres, the estate houses one of the world..

Next Story
Real Estate

GHV Infra Secures Rs 1.09 Bn EPC Order in Jamshedpur

GHV Infra Projects Ltd, a fast-growing EPC company in India’s infrastructure and construction sector, has recently secured a Rs 1.09 billion work order in Jamshedpur, Jharkhand. Awarded by a reputed group entity, the contract covers end-to-end civil construction, mechanical, electrical and plumbing (MEP) systems, along with high-quality finishing works for a large building development. The project will be executed over a 30-month period, with defined benchmarks for quality, safety and timely delivery. The order strengthens GHV Infra’s footprint in Jamshedpur, a key industrial hub known fo..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App