India’s clean energy story reads like a tale of two speeds. On one side, solar and wind installations are breaking records. On the other, the transmission network that’s supposed to carry this power is struggling to keep pace. The result? Over 50 gigawatts of renewable capacity sitting idle, unable to reach the consumers who need it.
This isn’t just a technical hiccup. It’s a roadblock that could derail India’s target of 500 GW of non-fossil fuel capacity by 2030.
Understanding Transmission Bottlenecks in India
Think of transmission lines as highways for electricity. When renewable energy plants generate power in remote locations like Rajasthan or Gujarat, that electricity needs to travel hundreds of kilometres to reach homes and factories in Delhi or Mumbai. If the highways are congested or incomplete, the power gets stuck.
Right now, that’s exactly what’s happening across India.
As of June 2025, the country added just 8,830 circuit kilometres of transmission lines against a target of 15,253 kilometres in FY2025. That’s a 42 per cent shortfall. Inter-State Transmission System additions hit their lowest point in a decade.
The numbers tell a stark story. Analysis by the National Renewable Energy Laboratory found that up to 71 per cent of India’s interstate corridors operate below 30 per cent capacity. This isn’t about lack of infrastructure. It’s about mismatch between where lines exist and where power flows.
Companies like Almighty Energy, which specialises in connectivity and transmission solutions for renewable projects, are working to bridge this gap. With an operations and maintenance portfolio exceeding 1.3 GW across utility-scale solar installations, firms in this space understand the ground reality: even after a renewable plant is built and commissioned, getting the power to the grid remains a separate challenge.
The Scale of Stranded Renewable Capacity
Here’s what stranded capacity means in practical terms. A solar plant in Rajasthan generates clean electricity during peak sunshine hours. But without adequate transmission infrastructure, that power can’t flow to Maharashtra’s industrial belt. The plant is operational. The panels work fine. But the electricity goes nowhere.
Over 50 GW of renewable energy capacity remains stranded nationwide as of mid-2025. To put that in perspective, that’s roughly equivalent to the entire installed capacity of countries like Spain or Poland.
Rajasthan faces the worst of it. Out of 22 GW of operational inter-state transmission system-connected renewable projects in the state, approximately 8 GW remained stranded as of July 2025. Nearly half faced generation curtailment of around 3.8 GW in the same month.
The reasons are multiple. Delayed commissioning of transmission infrastructure tops the list. But there are also technical hurdles, ecological restrictions requiring underground cabling in Great Indian Bustard habitats, and what experts call “speculative grid access” where entities reserve transmission capacity without genuine project intent.
Why Grid Infrastructure Can’t Keep Up
The gap between renewable generation and transmission capacity isn’t accidental. It’s structural.
Renewable energy projects have a gestation period of 18 to 24 months. Transmission infrastructure takes much longer. Rights of way need to be secured. Land acquisition processes drag on. Multi-agency approvals add layers of delay. Equipment procurement faces restrictions.
The Central Electricity Authority’s transmission plan for integrating over 500 GW of renewable capacity by 2030 calls for adding about 51,000 circuit kilometres of transmission lines and 433,500 MVA of transformation capacity at an estimated cost of Rs 2.44 lakh crore.
Breaking that down further, the plan includes 8,120 circuit kilometres of High Voltage Direct Current transmission corridors, 25,960 circuit kilometres of 765 kV AC lines, 15,758 circuit kilometres of 400 kV lines, and 1,052 circuit kilometres of 220 kV cable.
The investment requirement is massive. But even with funding in place, execution faces hurdles.
In states like Rajasthan, right-of-way disputes slow down new line construction. In some high-demand corridors, developers are paying premiums of up to Rs 40 lakh per megawatt just to secure grid access. This speculative hoarding creates artificial scarcity and drives up costs for genuine renewable energy developers.
Regional Mismatches: Where Power Is vs Where It’s Needed
India’s renewable resources are geographically concentrated. Rajasthan, Gujarat, and Tamil Nadu have the richest solar and wind potential. But the highest electricity demand comes from industrial centres and densely populated regions like Delhi-NCR, Maharashtra, and West Bengal.
The transmission network wasn’t designed for this geography. When India’s grid was built around coal-fired power plants, those facilities were often located closer to demand centres or along coal supply routes. Renewable energy zones are in different locations entirely.
This creates what energy planners call “geographic mismatch.” Power generation happens in one part of the country. Consumption happens elsewhere. The connecting infrastructure isn’t robust enough to handle the flow.
On August 11, 2022, India lost 6 GW of renewable energy due to frequency and voltage instability. Without grid upgrades, such incidents will become more frequent.
The Solar Energy Corporation of India and the Ministry of New and Renewable Energy have identified 181.5 GW of Renewable Energy Zones across eight states. Major upcoming generation centres include Fatehgarh, Bhadla, and Bikaner in Rajasthan; Khavda in Gujarat; Anantapur and Kurnool in Andhra Pradesh; offshore wind locations in Tamil Nadu and Gujarat; and the renewable energy park in Ladakh.
Getting power from these zones to consumption centres requires massive inter-regional transmission capacity. The current inter-regional capacity stands at 112,250 MW. The plan calls for increasing it to about 150,000 MW by 2030.
The Economic Cost of Delays
Stranded capacity isn’t just a technical problem. It’s a financial drain.
When a renewable energy plant sits idle, developers lose revenue. Projects face cost overruns. Returns get delayed. Investor confidence drops. Per-unit transmission costs increase because fixed infrastructure costs are spread over lower actual power flows.
For a sector that attracted Rs 84,309 crore in investments in Q1 2025 alone, these delays create serious risks. International investors looking at India’s renewable market factor in transmission reliability. If projects can’t evacuate power consistently, investment slows down.
The ripple effects extend beyond renewable developers. Distribution companies that signed Power Purchase Agreements expecting clean energy supply face shortfalls. Industrial consumers committed to renewable energy targets struggle to source green power. The entire ecosystem takes a hit.
Over 40 GW of renewable capacity remains stalled due to unsigned Power Sale Agreements. Many of these projects cite transmission uncertainty as a reason for delayed contracting.
Policy Responses and Current Initiatives
The government recognises the problem. Recent policy measures aim to address transmission gaps, though implementation varies.
The General Network Access Third Amendment introduces a more flexible allocation model. It divides GNA for renewable projects into solar and non-solar hours, ensuring transmission capacity aligns better with actual generation patterns. This unlocks capacity that would otherwise remain idle.
The extension of Inter-State Transmission System charge waivers for storage systems encourages battery energy storage deployment, which helps balance variable renewable generation.
The Green Energy Corridor scheme has enabled commissioning of 27.45 GW of renewable energy capacity as of June 2025, with an additional 36 GW in the pipeline across ISTS and Intra-State Transmission System Phases I and II.
In September 2025, the Central Electricity Authority announced a shift to potential-based planning, with plans to be revised every six months to reflect evolving ground realities. Monthly meetings are being held to expedite investment planning and prevent delays in approvals and execution.
These are steps in the right direction. But the pace needs to accelerate.
The Path Forward: Solutions and Recommendations
Fixing transmission bottlenecks in India requires coordinated action across multiple fronts.
First, unified generation-transmission planning. Currently, renewable capacity auctions happen on one timeline, transmission planning on another. Aligning these timelines would prevent mismatches. When a 2 GW solar park gets auctioned, the associated transmission system should be planned and commissioned in parallel.
Second, a single-window clearance system for land acquisition, rights of way, and connectivity approvals. Multiple agencies currently handle different aspects of transmission project approvals. Consolidating this into one system with strict timelines would cut delays significantly.
Third, performance-based incentives and disincentives tied to asset utilisation. Transmission infrastructure that sits underutilised represents wasted capital. Metrics that reward timely commissioning and sustained operations would change behaviour.
Fourth, accelerated adoption of energy storage systems. Battery energy storage can bridge the gap between variable solar generation and consistent demand. The National Electricity Plan calls for integrating 47 GW of battery energy storage and 31 GW of pumped storage systems by 2032. Meeting these targets is critical.
Fifth, reconductoring of congested corridors. This involves replacing old conductors with new, higher-capacity ones on existing transmission towers. It’s faster and cheaper than building new lines, and it can significantly increase capacity in bottleneck areas.
Almighty Energy and similar firms play a role here through their EPC and connectivity services. By providing end-to-end solutions for transmission connections, they help developers navigate the complex approvals process and get projects grid-connected faster.
What This Means for India’s 2030 Targets
India’s commitment at COP26 was clear: 500 GW of non-fossil fuel-based electricity capacity by 2030. As of December 2024, installed renewable capacity stood at 209 GW. That’s a 16 per cent year-on-year increase, but the growth rate needs to accelerate.
Meeting the 2030 target requires adding roughly 50 GW of renewable capacity annually. But if transmission remains a bottleneck, those installations won’t translate to actual clean energy supply.
The National Electricity Plan projects energy demand will increase to 2,440 billion units by 2030 from 1,255 billion units in 2022. Renewables are expected to meet over 90 per cent of global electricity demand growth through 2030. India can’t afford to miss this transition.
The economic stakes are equally high. India is set to invest over USD 360 billion in renewable energy and infrastructure by 2030. USD 150 billion to USD 170 billion of that is earmarked for transmission and storage alone. Getting value from that investment depends on execution.
Industry Perspectives: Operation and Maintenance Challenges
For companies managing renewable assets, transmission constraints create operational headaches.
When Almighty Energy won the Solar Energy Corporation of India’s contract for operation and maintenance of a 10 MW solar project in Rajasthan, the scope included coordinating power forecasting and scheduling with the State Load Dispatch Centre. This coordination becomes far more complex when transmission capacity is uncertain or curtailment is frequent.
The five-year O&M contract requires maintaining guaranteed annual generation of at least 21 per cent. But if transmission bottlenecks force generation curtailment, meeting those guarantees becomes difficult through operational efficiency alone.
This is the daily reality for renewable asset managers. Even with perfect module cleaning, regular maintenance, and optimal plant performance, evacuation constraints can derail targets.
The broader industry faces similar challenges. With transmission auctions till December 2024 more than doubling from the previous year to clock USD 12.6 billion, there’s clear momentum in building backbone infrastructure. But auctioned capacity needs to translate to on-ground commissioning.
Looking Ahead: What Needs to Change
The conversation around renewable energy in India often focuses on installation targets and auction volumes. Those metrics matter, but they’re incomplete without corresponding transmission capacity.
Energy planners need to think differently. Instead of treating transmission as an afterthought, it should be integrated into renewable project planning from day one. When states identify Renewable Energy Zones, transmission corridors should be planned simultaneously, not years later.
Technology offers part of the solution. Smart grid infrastructure, advanced metering systems, and real-time load management can optimize existing transmission capacity. High Voltage Direct Current transmission lines can carry more power over longer distances with lower losses compared to conventional AC lines.
But technology alone won’t solve structural issues like land acquisition delays or multi-agency approval processes. Those require policy reforms and administrative will.
The good news is that awareness is growing. Industry reports from the Institute for Energy Economics and Financial Analysis and JMK Research have put a spotlight on transmission gaps. Policymakers are responding with initiatives like potential-based planning and flexible GNA allocation.
The challenge now is execution. India has the renewable energy potential. It has the investment appetite. It has technical expertise. What it needs is the transmission infrastructure to tie it all together.
For companies like Almighty Energy working on the ground, this represents both a challenge and an opportunity. As India builds out its grid to support 500 GW of renewable capacity, demand for connectivity solutions, land aggregation services, and operations management will only grow.
The next five years will determine whether India’s renewable energy transition succeeds or stalls. Transmission bottlenecks in India remain the weakest link. Unless fixed, they will stall the country’s march towards its 2030 goals. Getting the grid expansion to catch up with renewable growth isn’t optional. It’s the difference between meeting climate commitments and falling short.
Frequently Asked Questions
What causes transmission bottlenecks in India’s renewable energy sector?
Transmission bottlenecks in India stem from multiple factors including delayed infrastructure commissioning, right-of-way disputes, lengthy land acquisition processes, and the mismatch between renewable generation timelines (18-24 months) and transmission project timelines (several years). Speculative hoarding of grid capacity by entities without genuine project intent also creates artificial scarcity in high-demand corridors, driving up connectivity costs.
How much renewable energy capacity is currently stranded in India?
As of June 2025, over 50 gigawatts of renewable energy capacity remains stranded across India due to transmission constraints. Rajasthan alone has approximately 8 GW of stranded capacity out of 22 GW of operational projects. This represents a significant portion of installed capacity that cannot evacuate power to end consumers despite being fully operational.
What is India’s plan to expand transmission infrastructure by 2030?
The Central Electricity Authority’s transmission plan calls for adding approximately 51,000 circuit kilometres of transmission lines and 433,500 MVA of transformation capacity at an estimated cost of Rs 2.44 lakh crore. This includes over 8,000 ckm of HVDC corridors and substantial AC transmission infrastructure. The plan aims to increase inter-regional transmission capacity from 112,250 MW to about 150,000 MW by 2030.
Why does transmission infrastructure take longer to build than renewable energy projects?
Renewable energy projects have a gestation period of 18 to 24 months, while transmission infrastructure faces multiple delays. Rights of way must be secured across multiple land parcels, land acquisition involves complex negotiations and legal processes, projects require approvals from multiple agencies, and equipment procurement can face restrictions. These factors combined mean transmission projects often take 3 to 5 years or longer.
How do transmission delays affect India’s 500 GW renewable energy target?
Transmission delays directly threaten India’s 2030 target of 500 GW non-fossil fuel capacity. With only 209 GW installed as of December 2024, India needs to add approximately 50 GW annually. If transmission remains a bottleneck, new renewable capacity cannot evacuate power to consumers, making installations functionally useless. This creates cost overruns, delays investor returns, and undermines confidence in the sector, potentially slowing down the pace of new installations.
