Key Findings
Over 50GW of renewable energy capacity remains stranded nationwide as of June 2025, leading to project delays and increasing per-unit transmission costs. These constraints limit the pace at which new capacity can be brought online.
India’s transition to renewables is limited by the mismatch between variable generation and grid consumption. While solar generation aligns with the afternoon peak consumption pattern, it tapers off in the evening when demand is high. This creates a gap that limits renewable integration and leads to the underutilisation of transmission corridors. Energy storage is vital to bridge this gap.
Renewable corridors often operate below their intended capacity; however, some degree of underutilisation is temporary, as it reflects strategic overbuilding to meet future demand growth.
Transmission planning needs to move beyond the traditional five-year static cycle to a more adaptive approach that reflects evolving generation patterns and demand growth.
India’s power transmission network, one of the largest in the world, spans over 494,000 circuit kilometres (ckm) of lines and 1.33 million megavolt-amperes of transformation capacity, forming a fully synchronised national grid. However, the network struggles to keep up with renewable energy deployment, leading to a growing gap between clean power generation and the availability of evacuation infrastructure. This imbalance limits renewable integration and increases the risk of stranded assets and higher delivery costs.
The widening gap between planned and actual transmission network expansion is becoming evident. In FY2025, only 8,830ckm of new transmission lines were commissioned against a target of 15,253ckm, reflecting a 42% shortfall, with Inter-State Transmission System (ISTS) additions at their lowest in a decade. Alongside this capacity gap, system inefficiencies are emerging, with analysis by the National Renewable Energy Laboratory indicating that up to 71% of ISTS corridors operate below 30% utilisation, underscoring the mismatch between infrastructure availability and actual power flows.
Market distortions further aggravate the situation. In several high-demand corridors, speculative hoarding of transmission capacity by entities without genuine project intent has driven up connectivity prices and delayed access for viable projects. Structural and procedural bottlenecks, including right-of-way (RoW) disputes, prolonged land acquisition processes, restrictions on equipment procurement, and multi-agency approval requirements, add to the delay. Among these, RoW remains one of the most significant barriers to timely transmission development. Similar land acquisition hurdles in the US have also slowed new transmission build-outs.
In India, the impact is most visible in Rajasthan, where 8 gigawatts (GW) of renewable energy capacity remains stranded, with nearly half curtailed during peak solar hours. Delayed completion of the Associated Transmission System—the dedicated transmission infrastructure linked to new generation projects—along with capacity hoarding and ecological directives mandating underground cabling in Great Indian Bustard habitats, have compounded evacuation challenges, inflated project costs, and reduced operational efficiency.
The implications are significant—over 50GW of renewable energy capacity is currently stranded nationwide, increasing per-unit transmission costs, weakening project viability, and deterring private investment. These constraints limit the pace at which new capacity can be brought online and undermine India’s ability to integrate variable renewable energy at scale, risking missed milestones in the country’s clean energy transition.
A unified generation-transmission planning framework that aligns timelines and locations for both generation and transmission capacity additions is essential. A single-window clearance system with strict timelines should be implemented to streamline land, RoW, and connectivity approvals. Performance-based incentives and disincentives tied to asset utilisation metrics can encourage timely commissioning and sustained operations. Scaling asset monetisation and public-private partnerships will be essential to unlocking capital for both inter-state and intra-state projects. In parallel, reconductoring of congested corridors and integration of energy storage systems should be prioritised in renewable-rich regions to enhance capacity utilisation and reduce curtailment.
A coordinated approach—combining regulatory reform, operational efficiency measures, and capital mobilisation—will be critical to transforming India’s transmission network into a flexible, resilient system capable of supporting high renewable penetration while ensuring cost-effective and reliable power delivery. The recent extension of ISTS charge waivers for storage and the implementation of time block-based General Network Access allocation—which allows power generators to use the transmission network without pre-identifying buyers—are steps in the right direction. Without targeted reforms, misalignment between generation commissioning and evacuation infrastructure is likely to continue driving congestion, curtailment, and systemic inefficiencies, ultimately slowing progress towards achieving India’s decarbonisation objectives.
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