India’s power-transmission network, one of the largest in the world and now synchronised, is expanding gradually compared to 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.
Transmission Expansion Lags Behind Targets
In FY2025, only 8,830 circuit kilometres (ckm) of new transmission lines were commissioned, falling short of the 15,253 ckm target—a 42 percent gap. Inter-State Transmission System (ISTS) additions were the lowest in a decade, and up to 71 percent of ISTS corridors operate below 30 percent utilisation, highlighting underutilisation challenges.
“Speculative hoarding of transmission capacity by entities without genuine project intent has driven up connectivity prices and delayed access for viable projects,” says Vibhuti Garg, Director – South Asia, IEEFA.
Other factors slowing transmission growth include right-of-way (RoW) issues, extended land acquisition timelines, equipment procurement restrictions, and multi-agency approvals, notes Prabhakar Sharma, senior consultant at JMK Research.
Private Sector Participation and Policy Initiatives
Despite increased private sector participation under Tariff-Based Competitive Bidding, India’s overall transmission expansion remains below National Electricity Policy targets. Annual transmission additions have consistently fallen short since FY2019, except in FY2021.
Government initiatives such as the Green Energy Corridor (GEC) and General Network Access (GNA) framework have supported infrastructure growth. As of June 2025, the GEC has facilitated the commissioning of 27.45GW of renewable energy, with 36GW more in the pipeline across ISTS and Intra-State Transmission System (InSTS) Phases I and II.
The GNA Third Amendment introduces a flexible allocation model, dividing GNA for renewable projects into solar and non-solar hours, aligning transmission capacity with actual generation patterns and unlocking otherwise idle capacity.
Regional Challenges and Stranded Capacity
The report highlights Rajasthan, where 8GW of renewable energy remains stranded, nearly half of which is curtailed during peak solar hours. Issues such as ongoing Associated Transmission System completion, capacity hoarding, and ecological directives for underground cabling in Great Indian Bustard habitats exacerbate evacuation challenges.
“Underutilised transmission assets occur when corridors operate below capacity for prolonged periods. Some underutilisation is temporary, reflecting strategic overbuilding to meet future demand growth,” says Chirag Tewani, senior research associate at JMK Research.
Market distortions such as speculative hoarding of transmission capacity, combined with procedural bottlenecks including right-of-way disputes, extended land acquisition timelines, equipment procurement restrictions, and multi-agency approvals, have further delayed network expansion.
The impact is particularly acute in Rajasthan, where 8 GW of renewable energy remains stranded, nearly half curtailed during peak solar hours, exacerbated by delayed Associated Transmission System projects, capacity hoarding, and ecological mandates for underground cabling in sensitive habitats.
Nationwide, over 50 GW of renewable capacity faces similar constraints, raising per-unit transmission costs, weakening project viability, and discouraging private investment. These challenges threaten India’s ability to integrate variable renewable energy at scale and meet decarbonisation milestones.
Since its early evolution from fragmented state grids to the fully synchronised national grid, led by the Power Grid Corporation of India Limited (PGCIL), India’s transmission system has grown significantly. However, annual transmission line additions have consistently fallen short of National Electricity Policy targets since FY2019, with only FY2021 exceeding expectations. In FY2025, PGCIL achieved less than half of its 5,281 ckm target, contributing to the overall 42 percent shortfall and raising concerns about meeting the NEP’s goal of adding nearly 0.19 million ckm by 2032.
Recommendations to Accelerate Transmission Growth
The authors call for unlocking capital through asset monetisation and promoting public-private participation. Suggestions include:
Standardised monetisation frameworks to recycle capital from brownfield assets.
A single-window clearance system with strict timelines for land, RoW, and connectivity approvals.
Performance-based incentives and disincentives tied to asset utilisation metrics.
A coordinated approach combining regulatory reform, operational efficiency, and capital mobilisation is critical to transforming India’s transmission network into a flexible, resilient, and cost-effective system capable of supporting the nation’s renewable energy ambitions.
Baburajan Kizhakedath