50GW renewable capacity stranded in absence of transmission network: Report
Over 50GW of renewable energy capacity remains stranded nationwide as of June 2025, leading to project delays and increasing per-unit transmission costs. These constraints limit the pace at which new capacity can be brought online
- Sep 24, 2025,
- Updated Sep 24, 2025 4:18 PM IST
India’s power transmission network, one of the largest in the world, is struggling to keep up with renewable energy deployment, leading to a growing gap between clean power generation and the availability of evacuation infrastructure, according to a report released Wednesday.
The widening gap between planned and actual transmission network expansion is becoming evident and this imbalance limits renewable integration and increases the risk of stranded assets and higher delivery costs, said the IEEFA-JMK report “Green Power Transmission Development in India”.
In FY25, only 8,830 ckm (circuit kilometre) of new transmission lines were commissioned against a target of 15,253 ckm, reflecting a 42% shortfall, with Inter-State Transmission System (ISTS) additions at their lowest in a decade.
Alongside this capacity gap, system inefficiencies are emerging, with analysis by the National Renewable Energy Laboratory indicating that up to 71% of ISTS corridors operate below 30% utilisation, underscoring the mismatch between infrastructure availability and actual power flows.
Market distortions further aggravate the situation. 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. Structural and procedural bottlenecks, including right-of-way (RoW) disputes, prolonged land acquisition processes, restrictions on equipment procurement, and multi-agency approval requirements, add to the delay.
“The implications are significant—over 50GW of renewable energy capacity is currently stranded nationwide, increasing per-unit transmission costs, weakening project viability, and deterring private investment. These constraints limit the pace at which new capacity can be brought online and undermine India’s ability to integrate variable renewable energy at scale, risking missed milestones in the country’s clean energy transition,” it said.
The report said that a coordinated approach—combining regulatory reform, operational efficiency measures, and capital mobilisation—will be critical to transforming India’s transmission network into a flexible, resilient system capable of supporting high renewable penetration while ensuring cost-effective and reliable power delivery.
“The recent extension of ISTS charge waivers for storage and the implementation of time block-based General Network Access allocation—which allows power generators to use the transmission network without pre-identifying buyers—are steps in the right direction,” it added.
Without targeted reforms, misalignment between generation commissioning and evacuation infrastructure is likely to continue driving congestion, curtailment, and systemic inefficiencies, ultimately slowing progress towards achieving India’s decarbonisation objectives.
India’s power transmission network, one of the largest in the world, is struggling to keep up with renewable energy deployment, leading to a growing gap between clean power generation and the availability of evacuation infrastructure, according to a report released Wednesday.
The widening gap between planned and actual transmission network expansion is becoming evident and this imbalance limits renewable integration and increases the risk of stranded assets and higher delivery costs, said the IEEFA-JMK report “Green Power Transmission Development in India”.
In FY25, only 8,830 ckm (circuit kilometre) of new transmission lines were commissioned against a target of 15,253 ckm, reflecting a 42% shortfall, with Inter-State Transmission System (ISTS) additions at their lowest in a decade.
Alongside this capacity gap, system inefficiencies are emerging, with analysis by the National Renewable Energy Laboratory indicating that up to 71% of ISTS corridors operate below 30% utilisation, underscoring the mismatch between infrastructure availability and actual power flows.
Market distortions further aggravate the situation. 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. Structural and procedural bottlenecks, including right-of-way (RoW) disputes, prolonged land acquisition processes, restrictions on equipment procurement, and multi-agency approval requirements, add to the delay.
“The implications are significant—over 50GW of renewable energy capacity is currently stranded nationwide, increasing per-unit transmission costs, weakening project viability, and deterring private investment. These constraints limit the pace at which new capacity can be brought online and undermine India’s ability to integrate variable renewable energy at scale, risking missed milestones in the country’s clean energy transition,” it said.
The report said that a coordinated approach—combining regulatory reform, operational efficiency measures, and capital mobilisation—will be critical to transforming India’s transmission network into a flexible, resilient system capable of supporting high renewable penetration while ensuring cost-effective and reliable power delivery.
“The recent extension of ISTS charge waivers for storage and the implementation of time block-based General Network Access allocation—which allows power generators to use the transmission network without pre-identifying buyers—are steps in the right direction,” it added.
Without targeted reforms, misalignment between generation commissioning and evacuation infrastructure is likely to continue driving congestion, curtailment, and systemic inefficiencies, ultimately slowing progress towards achieving India’s decarbonisation objectives.