Transmission Constraints Hinder India's Renewable Expansion
POWER & RENEWABLE ENERGY

Transmission Constraints Hinder India's Renewable Expansion

The credit rating agency ICRA has identified transmission constraints as a primary obstacle to the expansion of renewable energy capacity in India. The agency noted that inadequate interstate transmission links and limited evacuation capacity are causing significant curtailment of renewable generation, reducing utilisation of commissioned projects and delaying new capacity additions. It said that planning and execution timelines for transmission projects lag behind generation project timelines, creating bottlenecks that impede the intended pace of capacity addition.

ICRA highlighted that the challenge encompasses not only physical grid infrastructure but also regulatory and land acquisition hurdles that slow project delivery. The agency outlined that grid reinforcements, dedicated transmission corridors and enhanced coordination between central and state agencies are required to align evacuation capability with generation growth. It recommended that such measures be prioritised to reduce instances of renewable curtailment and improve the financial viability of developers and investors.

The assessment pointed to the need for investment in flexibility measures such as energy storage, demand management and strengthened regional interconnections to manage variability from wind and solar resources. The agency observed that adoption of storage and grid management tools would lower the operational stress on transmission networks and enable higher utilisation of renewable output. It also flagged that improved forecasting and scheduling practices, together with market mechanisms that reward flexibility, would support smoother integration.

Stakeholders were urged to accelerate transmission project approvals and to streamline clearances to match the pace of renewable deployment. The review called for policy clarity on transmission planning horizons and for incentivising private participation in transmission to augment capacity. The agency concluded that resolving transmission constraints is essential for meeting national renewable targets and for securing the economic benefits of decarbonisation across the power sector.

The credit rating agency ICRA has identified transmission constraints as a primary obstacle to the expansion of renewable energy capacity in India. The agency noted that inadequate interstate transmission links and limited evacuation capacity are causing significant curtailment of renewable generation, reducing utilisation of commissioned projects and delaying new capacity additions. It said that planning and execution timelines for transmission projects lag behind generation project timelines, creating bottlenecks that impede the intended pace of capacity addition. ICRA highlighted that the challenge encompasses not only physical grid infrastructure but also regulatory and land acquisition hurdles that slow project delivery. The agency outlined that grid reinforcements, dedicated transmission corridors and enhanced coordination between central and state agencies are required to align evacuation capability with generation growth. It recommended that such measures be prioritised to reduce instances of renewable curtailment and improve the financial viability of developers and investors. The assessment pointed to the need for investment in flexibility measures such as energy storage, demand management and strengthened regional interconnections to manage variability from wind and solar resources. The agency observed that adoption of storage and grid management tools would lower the operational stress on transmission networks and enable higher utilisation of renewable output. It also flagged that improved forecasting and scheduling practices, together with market mechanisms that reward flexibility, would support smoother integration. Stakeholders were urged to accelerate transmission project approvals and to streamline clearances to match the pace of renewable deployment. The review called for policy clarity on transmission planning horizons and for incentivising private participation in transmission to augment capacity. The agency concluded that resolving transmission constraints is essential for meeting national renewable targets and for securing the economic benefits of decarbonisation across the power sector.

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