By Abbas Nazil
India’s power transmission network is failing to keep pace with the rapid growth of renewable energy, according to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics.
The study stressed the urgent need for coordinated planning between generation and transmission, streamlined approvals, and innovative financing models to ensure the grid can handle rising renewable capacity.
In fiscal year 2025, India added 8,830 circuit kilometres of transmission lines, falling 42 percent short of its 15,253 km target.
Inter-State Transmission System (ISTS) additions were the lowest in ten years, while 71 percent of ISTS corridors are operating below 30 percent utilization.
Speculative hoarding of transmission capacity by entities lacking genuine projects has worsened the situation, driving up connectivity costs and delaying access for viable renewable projects.
Delays in transmission expansion are linked to right-of-way disputes, slow land acquisition, restrictions on equipment sourcing, and the burden of multi-agency clearances.
Despite private sector participation through Tariff-Based Competitive Bidding, growth has consistently lagged behind National Electricity Policy goals since FY2019, except for FY2021.
Government initiatives like the Green Energy Corridor (GEC) and the General Network Access (GNA) framework have helped, with the GEC enabling 27.45 GW of renewable integration by June 2025 and another 36 GW in progress.
However, stranded projects remain a major concern.
In Rajasthan, 8 GW of renewable capacity is left idle, nearly half curtailed during peak solar hours due to transmission delays, hoarding, and ecological restrictions such as mandatory underground cabling in Great Indian Bustard habitats.
The report also pointed out underutilized transmission corridors, where some assets run well below capacity, though limited overbuilding has been deemed strategic for future demand.
Recommendations include unlocking capital through asset monetization, expanding public-private participation, and instituting a single-window clearance system with strict approval timelines.
Performance-based incentives tied to asset utilization were also suggested to enhance efficiency.
The report told India to adopt a coordinated strategy blending regulatory reform, operational efficiency, and capital mobilisation to create a resilient transmission system capable of supporting its renewable transition.
