India's Power Transmission Network Struggles to Keep Up with Renewable Energy Deployment

India's rapidly growing power transmission network, spanning over 494,000 circuit kilometres of lines and 1.33 million megavolt-amperes of transformation capacity, is struggling to accommodate the increasing deployment of renewable energy. The imbalance between clean power generation and evacuation infrastructure has resulted in a growing gap, limiting renewable integration and increasing the risk of stranded assets and higher delivery costs. A recent report by the Institute for Energy Economics and Financial Analysis highlights the critical challenges facing India's power transmission network and the need for targeted reforms to ensure a resilient and efficient system capable of supporting high renewable penetration.

Key Takeaways:

• The power transmission network in India spans over 494,000 circuit kilometres of lines and 1.33 million megavolt-amperes of transformation capacity, forming a fully synchronised national grid.
• 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.
• The widening gap between planned and actual transmission network expansion is becoming evident, with a 42% shortfall in new transmission lines commissioned in FY2025.
• Up to 71% of ISTS corridors operate below 30% utilisation, underscoring the mismatch between infrastructure availability and actual power flows.
• Structural and procedural bottlenecks, including right-of-way disputes, prolonged land acquisition processes, and multi-agency approval requirements, add to the delay.
• The impact is most visible in Rajasthan, where 8 gigawatts of renewable energy capacity remains stranded, with nearly half curtailed during peak solar hours.
• Over 50GW of renewable energy capacity is currently stranded nationwide, increasing per-unit transmission costs, weakening project viability, and deterring private investment.
• A unified generation-transmission planning framework and a single-window clearance system are essential to streamline approvals and encourage timely commissioning of transmission projects.

Statistics:

• 494,000 circuit kilometres of transmission lines
• 1.33 million megavolt-amperes of transformation capacity
• 42% shortfall in new transmission lines commissioned in FY2025 (8,830ckm vs. 15,253ckm target)
• 71% of ISTS corridors operate below 30% utilisation
• 8 gigawatts of renewable energy capacity stranded in Rajasthan
• Over 50GW of renewable energy capacity currently stranded nationwide

Sources:

https://ieefa.org/sites/default/files/2025-09/Green%20Power%20Transmission%20Development%20in%20India%20FV6%20%281%29.pdf