India’s Renewable Energy Expansion Hampered by Transmission Bottlenecks, 50 GW Stranded: IEEFA – EQ
In Short : India’s renewable energy growth is outpacing its transmission infrastructure, leaving over 50 GW of capacity stranded, according to an IEEFA report. Challenges include incomplete evacuation systems, capacity hoarding, and ecological restrictions. While initiatives like the Green Energy Corridor and a ₹2.4 trillion transmission plan aim to integrate 500 GW by 2030, accelerated investments and grid modernization are crucial for fully harnessing renewable potential.
In Detail : India’s renewable energy sector is growing rapidly, yet its transmission infrastructure is struggling to keep pace. According to the Institute for Energy Economics and Financial Analysis (IEEFA), over 50 GW of renewable capacity remains stranded as of June 2025. This has led to project delays, increased per-unit transmission costs, and inefficiencies in renewable energy deployment nationwide.
The Green Energy Corridor (GEC) has enabled commissioning of 27.45 GW of renewable energy capacity. An additional 36 GW is in the pipeline under Inter-State Transmission System (ISTS) and Intra-State Transmission System (InSTS) Phases I and II. Despite these efforts, completion of the associated transmission systems is still ongoing, delaying effective power evacuation.
Specific challenges are evident in Rajasthan, where 8 GW of renewable capacity remains stranded, and nearly half of it is curtailed during peak solar hours. These bottlenecks limit the ability to bring new capacity online, constraining India’s efforts to integrate variable renewable energy efficiently.
Ecological considerations, such as directives for underground cabling in Great Indian Bustard habitats, have also slowed transmission expansion. Capacity hoarding by some states further exacerbates the problem, leaving renewable energy resources underutilized and increasing the overall cost of grid integration.
IEEFA emphasizes the need for a well-connected, inter-regional national grid to optimize unevenly distributed renewable resources. India is progressing with a ₹2.4 trillion (~$29.6 billion) transmission infrastructure plan, aiming to integrate over 500 GW of renewable energy capacity by 2030.
Energy storage solutions like Pumped Hydro Storage (PHS) and Battery Energy Storage Systems (BESS) are emerging as critical tools to stabilize renewable generation. These technologies can help balance the grid, though current deployment is limited and mainly supports short-term supply stability rather than large-scale integration.
Demand-side measures are equally important. Implementing time-of-use electricity tariffs and expanding transmission networks can reduce grid balancing requirements. A more connected and responsive national grid is essential to accommodate the variable output from solar and wind projects across different regions.
Despite significant progress, current transmission limitations continue to hinder the full utilization of renewable capacity. Without accelerated investments and modernization, a large portion of India’s renewable energy potential will remain stranded, delaying the achievement of national clean energy targets.
In conclusion, while India has expanded its renewable energy capacity impressively, the lagging transmission infrastructure poses a major challenge. Addressing these bottlenecks through strategic investments, grid modernization, and policy reforms is critical to fully harness renewable energy, enhance energy security, and ensure a sustainable, resilient power system for the future.
