Transmission shortfalls leave India’s renewables underutilized, IEEFA warns
NEW DELHI (UI) — India’s renewable energy rollout is outpacing its power grid expansion, leaving more than 50 gigawatts stranded as of June 2025, according to a new study by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics.
The report found that only 8,830 circuit kilometers of transmission lines were added in fiscal year 2025, 42% below target, with Inter-State Transmission System (ISTS) additions at their lowest in a decade. Nearly three-quarters of ISTS corridors are operating below 30% utilization, underscoring inefficiencies in connecting renewable projects to demand centers.
“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,” said Vibhuti Garg, IEEFA’s South Asia director.
Other challenges include land acquisition delays, right-of-way disputes, and lengthy multi-agency approval processes, the report noted.
India’s grid constraints are slowing renewable adoption despite government efforts like the Green Energy Corridor program and General Network Access reforms. In Rajasthan alone, 8 GW of capacity remains stranded, with almost half curtailed during peak solar output. Underground cabling requirements in Great Indian Bustard habitats have also complicated transmission expansion.
Report co-author Prabhakar Sharma of JMK Research said streamlining approvals and monetizing existing assets could accelerate progress. Recommendations include single-window permitting, stricter timelines, and performance-based incentives tied to asset utilization.
“Scaling India’s transmission infrastructure requires unlocking capital through institutionalized asset monetization and greater public-private participation,” Sharma said.
The report emphasizes that aligning transmission buildout with renewable deployment will be critical to avoid bottlenecks and ensure reliable, cost-effective power delivery.
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