How transmission bottlenecks are threatening India’s renewable energy projects
India's renewable energy (RE) capacity addition is outpacing the transmission infrastructure needed to evacuate and deliver that power, resulting in significant curtailment (wasted generation) and stranded capacity
Around 300 GWh of renewable energy was curtailed in the January-March 2026 quarter due to transmission constraints, accounting for nearly two-thirds of total curtailment across the inter-state transmission system in that period
Roughly 50 GW of renewable capacity nationally remains constrained or stranded because evacuation infrastructure has not kept pace with generation capacity
Rajasthan is the worst-affected state, with a large share of its inter-state transmission system (ISTS)-connected renewable projects facing delays of four months or more
Key bottlenecks identified include Right-of-Way (RoW) disputes for land acquisition, forest clearance delays, and a limited number of global suppliers for High Voltage Direct Current (HVDC) transmission equipment
India has met only around 80% of its annual transmission capacity addition targets over the past five years, against a requirement to expand the network from about 5,03,661 circuit km to roughly 6,48,190 circuit km by FY 2031-32
Inter-State Transmission System (ISTS) and the Central Transmission Utility
The Inter-State Transmission System is the high-voltage national grid network that carries electricity across state boundaries, distinct from intra-state transmission and distribution networks managed by states. Under Section 38 of the Electricity Act, 2003, the Central Government designates a Central Transmission Utility (CTU) to plan, build, and operate this inter-state network on a non-discriminatory, open-access basis; the CTU is barred from generating or trading electricity to avoid conflicts of interest.
Key Details
- Statutory basis: Section 38, Electricity Act, 2003
- Power Grid Corporation of India Limited (POWERGRID) originally performed the CTU function; in March 2021 the Ministry of Power carved this out into a dedicated, independent entity — Central Transmission Utility of India Limited (CTUIL) — to separate transmission planning/operation from POWERGRID's own asset-owning and business role
- CTU functions include inter-state network planning, granting open access/connectivity, and coordinating with state transmission utilities (STUs)
- Renewable-rich states like Rajasthan, Gujarat, and Karnataka depend heavily on ISTS links to move power to demand centres elsewhere
The reported bottlenecks are specifically in ISTS-linked projects — meaning delays in CTUIL/POWERGRID-executed inter-state lines are the direct cause of the curtailment and stranded capacity described in the article.
ISTS Charge Waiver and the Green Energy Corridor Scheme
To make renewable power competitive despite its often-remote generation sites, the government exempts eligible solar, wind, and storage projects from paying inter-state transmission charges — the ISTS waiver — while funding dedicated new transmission lines to evacuate renewable power under the Green Energy Corridor (GEC) scheme, first launched in 2015 and now in its second phase.
Key Details
- ISTS charge waiver: 100% waiver for solar and wind projects commissioned by June 30, 2025, with a phased step-down thereafter for up to 25 years; hydro pumped storage projects awarded by June 30, 2028 get a full waiver for 25 years
- Green Energy Corridor Phase-II includes a dedicated ISTS project for a 13 GW renewable energy zone in Ladakh, with POWERGRID as the implementing agency
- The Central Electricity Authority (CEA) prepares the transmission roadmap for evacuating over 500 GW of renewable capacity by 2030, notified under the National Electricity Plan (Transmission) in October 2024
- Curtailment can be partly absorbed by Battery Energy Storage Systems (BESS); an estimated 3-4 GW of two-hour battery storage could absorb most of the currently curtailed renewable power
The article's core finding — transmission capacity additions running behind renewable generation growth — is precisely the risk these schemes (GEC, ISTS waiver, CEA's transmission roadmap) were designed to pre-empt; the reported shortfall indicates implementation, particularly land-related Right-of-Way clearance, is lagging the policy framework.
India's 500 GW Non-Fossil Fuel Capacity Target (NDC)
India's updated Nationally Determined Contribution (NDC) under the Paris Agreement, submitted in August 2022, commits to achieving about 50% cumulative electric power installed capacity from non-fossil fuel sources by 2030 — operationalised domestically as a target of 500 GW of installed non-fossil (renewable plus nuclear plus large hydro) capacity by 2030.
Key Details
- India's updated NDC (2022): 45% reduction in emissions intensity of GDP by 2030 (from 2005 levels) and about 50% cumulative installed electric power capacity from non-fossil sources by 2030
- Domestic operational target: 500 GW non-fossil capacity by 2030
- Transmission planning under the National Electricity Plan (Transmission), notified October 2024, is explicitly designed around this 500 GW figure
- Curtailment and stranded capacity directly undermine progress toward this NDC-linked target, since generation capacity added but not evacuated does not translate into usable clean power
The transmission shortfall described threatens the credibility of the 500 GW target's delivery timeline, since capacity that cannot be evacuated does not count toward actual clean electricity supplied to the grid, even though it may be counted in installed-capacity statistics.
- Renewable energy curtailed due to transmission constraints, Q1 2026 (Jan-Mar): ~300 GWh (nearly two-thirds of total 470 GWh curtailed in the period)
- Renewable capacity stranded/constrained nationally: ~50 GW
- Rajasthan: ISTS-connected RE projects facing delays of 4+ months; as of mid-2025, around 8 GW of its 22 GW ISTS-connected RE capacity was stranded
- India's transmission network: ~5,03,661 circuit km currently; needs to expand to ~6,48,190 circuit km by FY 2031-32 (~24,000 circuit km/year required)
- Transmission target achievement rate over past five years: ~80% of annual targets
- India's 2030 non-fossil capacity target (NDC-linked): 500 GW
- ISTS charge waiver: 100% for solar/wind commissioned by June 30, 2025, phased down thereafter for up to 25 years
- CTUIL (Central Transmission Utility of India Limited) carved out from POWERGRID: March 2021, under Section 38, Electricity Act 2003