India’s power-transmission network, one of the largest in the world and now fully synchronised, is expanding at a slower pace than the rapid growth of renewable energy, according to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics. The report emphasizes the need for coordinated planning between generation and transmission, streamlined approval processes, and innovative investment mechanisms to enable the grid to accommodate increasing renewable energy capacity.
In fiscal year 2025, India commissioned 8,830 circuit kilometres of new transmission lines against a target of 15,253 circuit kilometres, leaving a 42 percent gap. Inter-State Transmission System (ISTS) additions were the lowest in a decade, and up to 71 percent of ISTS corridors are operating below 30 percent utilisation. The report notes that speculative hoarding of transmission capacity by entities without genuine project intent has driven up connectivity prices and delayed access for viable renewable projects.
The study identifies multiple factors contributing to delays in transmission expansion. These include right-of-way issues, extended land acquisition timelines, restrictions on equipment procurement, and multi-agency approvals. Despite increased private sector participation under Tariff-Based Competitive Bidding, transmission growth remains below National Electricity Policy targets, with annual additions falling short since FY2019, except for FY2021.
Government initiatives such as the Green Energy Corridor (GEC) and the General Network Access (GNA) framework have supported transmission infrastructure development. As of June 2025, the GEC has facilitated the commissioning of 27.45 GW of renewable energy capacity, with another 36 GW in the pipeline across ISTS and Intra-State Transmission System (InSTS) Phases I and II. The GNA Third Amendment introduces a more flexible allocation model for renewable projects, dividing GNA into solar and non-solar hours to align transmission capacity with actual generation patterns and unlock otherwise idle capacity.
The report highlights ongoing challenges in states like Rajasthan, where 8 GW of renewable capacity remains stranded, with nearly half curtailed during peak solar hours. Delays in the completion of the Associated Transmission System, capacity hoarding, and ecological regulations requiring underground cabling in Great Indian Bustard habitats have further complicated power evacuation. The report also notes a growing issue of underutilised transmission assets, as some corridors operate below their design capacity for prolonged periods, though some overbuilding is strategic to meet future demand.
To scale India’s transmission infrastructure effectively, the authors recommend unlocking capital through institutionalised asset monetisation and enhanced public-private participation. Central and state utilities could adopt standardised monetisation frameworks to recycle capital from brownfield assets. Introducing a single-window clearance system with strict timelines for land, right-of-way, and connectivity approvals, along with performance-based incentives and disincentives tied to asset utilisation, could accelerate commissioning and improve operational efficiency.
The report concludes that transforming India’s transmission network into a flexible, resilient, and cost-effective system requires a coordinated approach combining regulatory reform, operational efficiency, and capital mobilisation. Such measures will be crucial for ensuring reliable power delivery while supporting the country’s ongoing renewable energy transition.
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