India’s green energy transition is often projected as a story of rapid capacity addition and global leadership. Yet beneath the headline numbers lies a growing structural bottleneck. While renewable energy capacity has expanded dramatically, the country’s transmission ecosystem has failed to keep pace. The result is rising curtailment, stranded assets and mounting financial stress—threatening to slow India’s clean energy momentum at a critical juncture.
Rapid renewable growth, uneven foundations
Aggressive policy interventions over the past decade have driven a quantum jump in renewable energy capacity—from about 75 GW in 2015 to nearly 250 GW in 2025. Solar power, in particular, has grown at breakneck speed. Between 2019 and 2025, installed solar capacity nearly tripled from 35 GW to over 100 GW, growing at an annual rate of around 24 per cent.
However, this expansion has not been matched by corresponding investments in grid infrastructure. Transmission capacity additions during the same period have grown at a modest rate of about 6.5 per cent, creating a widening gap between generation and evacuation capability.
Renewable energy curtailment: an emerging crisis
The consequences of this mismatch are now visible. Several states are witnessing significant renewable energy curtailment, especially during solar peak hours. Rajasthan alone has seen daytime solar curtailment of around 4 GW in multiple months of 2025 due to transmission congestion. Gujarat, Tamil Nadu and Maharashtra have reported curtailments ranging from 10 to 30 per cent of renewable generation.
More worrying is the stranding of nearly 50 GW of renewable capacity nationwide due to inadequate transmission availability. For developers, this translates into revenue losses, weakened investor confidence and rising contractual disputes.
Generation–transmission mismatch at the core
A key structural issue lies in the differing construction timelines. Solar and wind projects can typically be commissioned within a year, while transmission lines—especially inter-state corridors—require at least 24 months to become operational. This asymmetry has led to renewable capacity overshooting grid readiness.
The slowdown in building the Inter-State Transmission System (ISTS) has further compounded the problem, despite India claiming one of the world’s largest transmission networks.
Why policy tools have not been enough
Over the years, multiple policy measures have sought to address grid constraints—green energy corridors, General Network Access (GNA) and Transitional GNA frameworks, waiver of ISTS charges, and the vision of “one nation, one grid, one price”. Yet, these initiatives have not fully resolved bottlenecks on the ground.
Energy storage, often projected as a game changer, remains at an early stage. Against a target of 400 GWh of storage capacity by 2031–32, progress has been slow due to high upfront costs, supply chain disruptions and the absence of cost parity at scale.
Land and social hurdles in transmission expansion
Transmission development is deeply entangled with land, environmental and social complexities. Securing the Right of Way (RoW) for transmission lines remains one of the most persistent challenges. RoW represents a limited legal easement over private or community land, rather than outright acquisition, often triggering resistance from landowners.
Although transmission projects are exempt from prior environmental clearance under the Environmental (Protection) Rules, 1986, they still face hurdles related to forest clearances, land laws and community opposition.
The unresolved issue of compensation
Compensation norms remain another major friction point. Existing legal provisions often provide compensation far below market expectations, sometimes by a factor of 10 to 100. To address this, the Ministry of Power constituted a committee in 2005, which recommended:
- Compensation up to 85 per cent of land value (based on circle rates) where significant damage occurs
- Compensation capped at 15 per cent of land value for diminution due to RoW
These norms apply to transmission towers of 66 kV and above. However, implementation across states has been uneven, fuelling disputes and project delays.
Legal gaps exposed by judicial scrutiny
The legal framework governing transmission has also come under scrutiny. The Electricity Act, 2003 provides the backbone for power sector regulation but remains silent on land acquisition for transmission lines. This gap was highlighted in the Supreme Court’s 2024 judgment in “MK Ranjitsinh v Union of India”, which examined the threat posed by overhead transmission lines to the Great Indian Bustard.
While the judgment attempted to balance development with environmental protection, it underscored the fragmented legal terrain in which India’s green transition operates—caught between electricity law, land laws and conservation mandates.
Why coordination is now critical
India’s energy transition is increasingly constrained not by generation potential, but by systemic coordination failures. Renewable capacity planning and transmission planning continue to operate in silos, leading to inefficiencies and avoidable economic losses.
A more integrated approach—aligning renewable project approvals with assured transmission readiness, accelerating ISTS expansion, and actively involving states in planning—has become imperative. Without such coordination, India risks undermining the very gains it has made in clean energy deployment.
What to note for Prelims?
- Growth trajectory of renewable energy capacity in India
- Meaning and causes of renewable energy curtailment
- Role of ISTS, GNA and green energy corridors
- Concept of Right of Way (RoW) in transmission projects
What to note for Mains?
- Structural mismatch between RE generation and transmission capacity
- Legal and social challenges in transmission expansion
- Implications of grid constraints for India’s energy transition goals
- Need for integrated planning and cooperative federalism in power sector reforms
