India’s Renewable Energy Transition

At the Bharat Climate Forum 2026, policymakers and system planners highlighted a major structural shift in India’s clean energy transition. India has already crossed 50% non-fossil fuel installed power capacity, marking a significant milestone. However, the main challenge is no longer insufficient generation capacity. Instead, transmission congestion and cautious grid operations have become the primary barriers to integrating renewable energy into the grid efficiently. As a result, thousands of megawatts of commissioned renewable energy remain stranded despite being fully ready for supply.

Grid Congestion and Transmission Bottlenecks

A major concern in India’s renewable energy expansion is the mismatch between generation growth and transmission infrastructure. Renewable capacity is expanding faster than evacuation capacity, leading to congestion in key renewable-rich states.

For example, Rajasthan has around 23 GW of renewable energy capacity but can evacuate only 18.9 GW. This results in more than 4,000 MW of commissioned capacity remaining unused during peak generation periods. Such congestion prevents efficient utilisation of existing renewable assets and slows down further expansion.

Inequitable Curtailment and T-GNA Issues

The current grid management system creates unequal treatment among generators during congestion. Under the Temporary General Network Access (T-GNA) mechanism, certain projects face complete shutdowns during peak constraints.

In contrast, if congestion were managed proportionately, all generators would experience a manageable reduction of around 15% rather than full curtailment for some projects. However, the present system disproportionately impacts newer developers operating under T-GNA, despite them meeting all regulatory and commissioning requirements in good faith. This creates financial uncertainty and weakens investor confidence in the sector.

Under-Utilisation of Existing Transmission Infrastructure

India’s transmission system also suffers from severe under-utilisation. High-capacity transmission corridors, such as 765 kV double-circuit lines designed to carry around 6,000 MW, are often operated at only 600–1,000 MW.

This indicates that while physical infrastructure exists, operational constraints prevent full utilisation. As a result, newly commissioned renewable energy projects remain connected to the grid but are unable to inject power consistently.

Disconnect Between Planning and Operations

A structural gap exists between transmission planning and real-time grid operations. The Central Transmission Utility of India (CTU) designs transmission corridors and allocates capacity based on projected full utilisation. However, Grid India, which manages system operations, often restricts actual power flow to much lower levels due to stability concerns.

This mismatch creates a credibility issue, as developers invest based on planned transmission capacity but face limitations in actual evacuation. The divergence between planning assumptions and operational reality undermines confidence in the system.

Operational Conservatism in Grid Management

Grid operators often adopt an overly cautious approach to ensure system stability. Concerns such as voltage oscillations and grid instability lead to restrictive control over renewable power injection.

Although modern mitigation technologies like STATCOMs, static VAR compensators, harmonic filters, and special protection schemes are already installed in many plants, they are not fully utilised to enhance grid flexibility. In addition, advanced operational tools such as dynamic security assessment, real-time contingency management, probabilistic risk evaluation, and adaptive line ratings are not yet widely implemented.

Lack of Institutional Accountability

There is limited accountability for inefficiencies in transmission planning and grid operations. While renewable developers face financial losses due to curtailment and stranded assets, grid operators and planning institutions do not face comparable performance-based consequences.

This imbalance ultimately increases costs for consumers, who bear the burden of under-utilised infrastructure through electricity tariffs.

Energy Storage Deficit

India’s renewable energy system also faces a significant shortage of energy storage capacity. Large-scale deployment of Battery Energy Storage Systems (BESS) and Pumped Hydro Storage (PHS) is essential to manage variability in solar and wind generation.

India is estimated to require around 411 GWh of energy storage by 2032 to ensure grid stability when renewable generation fluctuates. However, current deployment levels remain far below this requirement, limiting the flexibility of the power system.

Supply Chain Vulnerabilities

The renewable energy sector is also exposed to global supply chain risks. India remains heavily dependent on imports of critical minerals such as lithium, cobalt, and rare earth elements, as well as components required for solar cells and battery manufacturing.

This dependence makes the sector vulnerable to international price volatility, geopolitical disruptions, and supply shortages.

India’s Renewable Energy Sector: Current Status

India has achieved a major milestone by surpassing 50% of its installed power capacity from non-fossil fuel sources, thereby meeting its COP-26 Nationally Determined Contribution (NDC) target ahead of schedule.

As of November 2025, India’s non-fossil fuel installed capacity stood at 262.74 GW, accounting for 51.5% of total installed capacity. Solar energy remains the dominant contributor, with 132.85 GW of capacity, followed by wind energy at 53.99 GW. According to global rankings, India is among the top three countries in solar capacity and among the top four in both wind and total renewable energy capacity.

Key Government Initiatives

Several initiatives are supporting India’s renewable energy expansion. The PM Surya Ghar: Muft Bijli Yojana has significantly boosted rooftop solar adoption. The National Green Hydrogen Mission aims to produce 5 million metric tonnes of green hydrogen annually by 2030.

The Approved List of Models and Manufacturers (ALMM) promotes domestic manufacturing of solar components while ensuring quality standards. The Production Linked Incentive (PLI) scheme further strengthens manufacturing capacity.

Off-grid electrification initiatives under PM JANMAN and DA JGUA support tribal and remote communities through solar-based solutions. In addition, the National Policy on Geothermal Energy (2025), viability gap funding for offshore wind, and international cooperation through the International Solar Alliance further support India’s clean energy transition.

Measures to Resolve Grid Challenges

To address these challenges, several reforms are required. The mandate of Grid India must be redefined to balance reliability with efficient utilisation of transmission infrastructure. Curtailment during congestion should be distributed equitably across all generators rather than disproportionately affecting T-GNA projects.

Dynamic reallocation of unused transmission capacity must be introduced through transparent real-time systems. Advanced grid management tools such as dynamic security assessment and adaptive line ratings should be widely adopted.

Better coordination between the Central Transmission Utility of India and Grid India is essential to ensure that planned transmission capacity translates into actual usable evacuation capability.

Conclusion

India’s renewable energy transition has reached a critical stage where generation capacity is no longer the primary constraint. Instead, transmission efficiency, operational flexibility, and storage infrastructure have become the key determinants of progress. Aligning planning with real-time operations and scaling up energy storage is essential to prevent stranded assets and achieve India’s Net Zero 2070 target.