- India must accelerate the development of transmission infrastructure to match the rapid growth in renewable energy generation and consumption.
- Policymakers and industry players must adopt smart grids and HVDC technologies to bridge the transmission gap and ensure the reliable and clean delivery of energy.
Transmission infrastructure has become the proverbial missing middle in India’s electricity sector. Power generation capacity, particularly in green energy, has grown rapidly at a rate of around 15–16% CAGR over the past five years. Similarly, power consumption has increased steadily at a rate of roughly 7% CAGR. However, transmission infrastructure has lagged, growing at only 3% CAGR during the same period. As a result, the gap between generation and consumption sites is widening. The waiting period for transmission allocation now extends to one or two years. Consequently, lenders frequently ask power project developers about the readiness of evacuation infrastructure before approving financing.
As of mid-2025, India’s high-voltage transmission network, covering 220 kV and above, spans nearly 495,000 circuit kilometres (ckt km). The alternating current (AC) transformation capacity has reached about 1,354,000 MVA. Additionally, high-voltage direct current (HVDC) lines exceeding 18,000 MW facilitate efficient long-distance bulk power transfer. These developments have strengthened the backbone of India’s grid, yet challenges remain.
In FY2025, the country commissioned only 8,830 circuit kilometres of new transmission lines, against a target of approximately 15,000 circuit kilometres. This reflects a shortfall of nearly 40%. Notably, additions to the Inter-State Transmission System (ISTS) fell to their lowest level in a decade. Furthermore, reports indicate that up to 71% of ISTS corridors operate at below 30% utilisation. These figures underscore the pressing need to expand transmission capacity to keep pace with growth in generation and consumption.
Without immediate action, these bottlenecks could delay India’s renewable energy targets and increase risks for developers and investors. Therefore, policymakers and industry stakeholders must prioritise transmission infrastructure, streamline approvals, and invest in innovative technologies such as smart grids and HVDC expansions. By taking these steps, India can bridge the transmission gap, ensure reliable power delivery, and fully harness its clean energy potential.
Ultimately, strengthening transmission infrastructure is not only a technical necessity. It also remains a strategic imperative to sustain India’s energy transition and meet the growing demand for green power nationwide.