India’s power transmission network plays a critical role in driving economic and regional growth. Expanding and modernizing transmission infrastructure enables reliable electricity access, boosting industrial productivity, supporting agriculture, and fostering urbanization. A robust transmission network facilitates energy distribution to remote areas, reducing disparities between regions, notes Arun Sharma.
Enabling the integration of renewable energy sources supports sustainable growth. Improved power supply attracts investments, particularly in manufacturing and IT sectors, and promotes job creation. Furthermore, a reliable transmission system enhances economic resilience, supports rural development, and helps in bridging the urban-rural divide, ensuring inclusive growth across India.
To support this growth, the Ministry of Power aims to expand India’s power transmission network to 648,000 circuit kilometres (ckm) by 2032, up from 485,000 ckm in 2024, to meet an expected peak electricity demand of 458 GW. The multiplier effect of this on the economy goes beyond the direct employment aspect and energizes regional development.
Renewable Energy: The Future
India has set a target to reach 500 GW of non-fossil fuel-based installed capacity by 2030 to revolutionize its energy sector. A large part of this transformation involves expanding its renewable energy (RE) capacity, including solar, wind, and hydroelectric power. However, as the country progresses toward greater adoption of renewable energy, one of the major challenges that stands in the way of its success is the country’s electricity transmission infrastructure.
As of January 2025, India’s total non-fossil fuel energy capacity has reached 217.62 GW, representing over 47 per cent of the nation’s total installed capacity and marking a significant leap in the country’s clean energy transition.
The year 2024 witnessed a record-breaking addition of 24.5 GW of solar capacity and 3.4 GW of wind capacity, reflecting more than 200 per cent the solar installations and a 21 per cent rise in wind capacity compared to 2023. With the addition of 8,180 MW of nuclear capacity, the combined non-fossil fuel-based power now accounts for nearly half of the country’s installed electricity generation capacity according to a report by the Ministry of New and Renewable Energy (MNRE). This marks a significant step towards establishing India as a global leader in clean energy. The rapid scale up in total share of non-fossil fuel in total installed capacity in the country is illustrated here:
Current Transmission Infrastructure and Planned Expansions
As of December 2024, the total length of transmission lines at 220kV and above levels stands at approximately 4,91,504 ckm. Central Electricity Authority (CEA) has outlined a comprehensive National Electricity Plan (Transmission) to support the anticipated surge in renewable energy generation. This plan inter alia includes the addition of approximately 191,474 ckm of transmission lines and 1,274 Giga Volt Ampere (GVA) of transformation capacity at 220kV and above voltage levels between 2022-23 and 2031-32.
Furthermore, the plan proposes the development of 33.25 GW of High Voltage Direct Current (HVDC) bi-pole links to facilitate long-distance power transmission with minimal losses. To enhance inter-regional power transfer capabilities, the inter-regional transmission capacity is planned to increase from the current 119 GW to 143 GW by 2026-27, and further to 168 GW by 2031-32. This expansion is crucial for balancing regional disparities in power generation and demand, especially as renewable energy sources are often concentrated in specific areas.
Transmission Challenges in Integrating Renewables
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Inter-State Transmission strengthening
In India, the integration of renewable energy into the grid faces a significant challenge due to the need for a robust and flexible transmission system. Unlike conventional power plants, renewable energy sources such as solar and wind are intermittent and often location specific. Solar energy is abundant in regions such as Rajasthan, Gujarat, and parts of Andhra Pradesh, while wind power generation is concentrated along the coast, particularly in Tamil Nadu, Gujarat, and Maharashtra. To utilize these renewable resources efficiently, a well-developed transmission network is essential to carry the electricity from remote generation points to demand centres located in more populated, industrial, and urban areas.
Recognizing the importance of strengthening intra-state transmission networks, MNRE is implementing the Intra-State Transmission SystemGreen Energy Corridor Phase-I (GEC-1). This initiative involves eight renewable-rich states: Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, and Tamil Nadu. The project aims to establish approximately 9,700 ckm of transmission lines and 22,600 MVA of substation capacity to facilitate the integration of around 24 GW of renewable energy into the grid.
Significant progress has been achieved under GEC-1 scheme. For instance, as of July 31, 2023, Gujarat has completed 1,526 ckm of transmission lines and achieved 7,980 MVA of substation capacity, while Madhya Pradesh has completed 2,773 ckm of transmission lines and 4,748 MVA of substation capacity. In totality 8,940 ckm of transmission lines and 21,293 MVA of substation capacity could be achieved.
Though above developments are pivotal in ensuring that renewable energy generated within RE rich states can be effectively transmitted to areas with high demand, the quantum and pace of inter-regional transmission capacity needs to be enhanced substantially to achieve set goals by 2030.
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Land Acquisition and Right-of-Way Issues
Securing land and obtaining right-of-way clearances for new transmission lines can lead to project delays and increased costs. The challenges primarily relate to land acquisition and RoW for transmission lines in India are multi-faceted and require a balanced approach between infrastructure development, social justice, and environmental sustainability. Legal, social, and technical measures need to be in place to ease these challenges, along with support from the state and district administration, ensuring that transmission networks can expand to meet the country’s growing energy needs while minimizing disruption to communities and the environment.
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Financing Constraints
Mobilizing the required capital for large-scale transmission projects is challenging, particularly in attracting private sector investment. The National Electricity Plan estimates a total expenditure of approximately Rs.9.16 lakh crore (around $110 billion) by 2032. This investment is essential for constructing new transmission lines, upgrading existing infrastructure, and implementing advanced technologies to manage the complexities associated with renewable energy integration.
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Technological Integration
Incorporating advanced technologies such as smart grids, energy storage systems, and real-time monitoring requires substantial investment and technical expertise. The integration of smart grids, which use digital communication technology, is critical for real-time monitoring and management of renewable energy. Smart grids can help in balancing supply and demand, managing fluctuations, and ensuring better visibility of renewable energy sources. Additionally, advanced forecasting tools for renewable generation will allow grid operators to better plan and manage the fluctuations in wind and solar power generation.
Bridging the Gap: The Future of Renewable Energy Transmission
India is making strides in addressing transmission bottlenecks and major initiatives are given below:
- Green Energy Corridors (GEC): The GEC aims to connect renewable-rich states to demand hubs through new transmission lines and substations. By 2024, the government plans to complete 33,800 ckm of transmission lines under this initiative.
- Inter-State Transmission System (ISTS): The National Grid’s capacity has expanded, and more renewable integration is possible. As of 2023, India has 400 GW of grid-connected renewable energy capacity, and with enhanced transmission, the aim is to increase renewable energy share to 50 per cent of the energy mix by 2030.
- Smart Grids and Storage: Incorporating smart grid technologies and energy storage solutions will help balance supply and demand, addressing the intermittency issues. For example, the 4,000 MW of battery storage capacity planned by the government will be essential for stabilizing the grid.
- Policy Support: The government has introduced measures to streamline land acquisition processes, provide clearances, and offer incentives to private investors in the transmission sector. MoP has also recommended new guidelines for RoW compensation towards uniformity in payment for damages to landowners.
- Financial Mechanisms: Exploring innovative financing models e.g. Viability Gap Funding (VGF), Public-Private Partnerships (PPP) and production-linked incentive (PLI) schemes, to attract investment in transmission infrastructure. and incentives to attract investments in renewable energy transmission.
Fortifying India’s global role
India has set an ambitious roadmap to expand its power transmission infrastructure with a planned investment of Rs.9.12 lakh crore ($110 billion) by 2032. This initiative is a critical step in positioning India as a global leader in clean energy transition. With participation in major international climate treaties such as the UNFCCC 1994, Paris Agreement 2016, etc, India is reinforcing its shift toward renewable energy through policy-backed investments in transmission infrastructure.
Conclusion
A modernized transmission infrastructure is essential for India to achieve its renewable energy goals. The expansion of the Green Energy Corridor, investment in smart grids, and energy storage solutions will be key to overcoming transmission challenges. With continued policy support and infrastructure development, India can efficiently harness its renewable potential, reduce dependence on fossil fuels, and work towards a sustainable energy future.
About the author: Arun Sharma is CEO – Infrastructure Business, Sterlite Power
