Transmission Bottlenecks in India's Renewable Energy Sector

#GS-3 #Economy #Infrastructure #Energy #Renewable Energy #Environment #Climate Change

Why in News

The Sustainable Project Developers Association (SPDA) recently reached out to the Ministry of New and Renewable Energy (MNRE) for financial relief.
This request came after grid operators curtailed 8,133 GWh of solar electricity between April and June 2026 because transmission lines were not ready.

Transmission bottlenecks happen when companies build solar and wind plants much faster than the government builds high-voltage power lines.
Developers can complete solar or wind farms in 12 to 18 months, but expanding inter-state transmission system (ISTS) lines takes 36 to 60 months.
Because of this delay, power plants must run on Temporary General Network Access (T-GNA), which only allows them to supply power when spare grid capacity exists during non-peak hours.

Around 21 GW or nearly 9% of India's total renewable energy capacity depends on temporary grid connections, with 12 GW facing severe power cuts during sunny hours.
Grid capacity shortages forced power operators to waste 6,900 GWh of green power in FY2025-26 and 8,133 GWh in just the first quarter of FY2026-27.
Solar-rich states like Rajasthan face extreme power curtailments between 70% and 95% during peak afternoon hours.
India completed only about 80% of its annual transmission targets over the last five years, causing 1 in 4 major transmission projects to face long delays.

Renewable power plants take under 18 months to build, while transmission lines require up to 60 months due to slow civil work and equipment buying.
Getting land rights for transmission lines causes friction, as local farmers frequently protest against power towers crossing their fields.
Clearances for lines passing through sensitive wildlife areas take very long, such as underground cabling rules protecting the Great Indian Bustard in Rajasthan and Gujarat.
Global shortages of high-voltage direct current (HVDC) transformers and circuit breakers delay key grid projects.
Concentrating solar and wind plants in resource-rich areas like Rajasthan and Gujarat overloads local power pooling stations.

Heavy power backing-down cuts plant revenues below 5% of expected earnings, raising the risk of non-performing assets (NPAs) for lenders.
Unpredictable grid access drops internal rates of return (IRRs), making foreign investors reluctant to fund new solar projects.
Public lenders like PFC, REC, and IREDA have extended over ₹5.08 lakh crore in loans to green energy projects, creating financial risks for the banking system.
Wasting clean electricity forces power utilities to burn coal to meet electricity demand, making green energy goals harder to achieve.
Persistent grid delays threaten India's goal of reaching 500 GW of non-fossil fuel power capacity by 2030.

The Central Electricity Regulatory Commission (CERC) introduced General Network Access (GNA) rules to grant reliable, long-term grid access to power plants.
The government launched Green Energy Corridors Phase-I and Phase-II to carry renewable power across state boundaries.
Authorities expanded power grid targets to 25,146 circuit kilometers for FY2026-27 to clear transmission backlogs.
Regulators introduced T-GNA rules as a stopgap option so completed solar plants could sell extra power instead of remaining completely shut.

Planning committees must coordinate solar project approvals directly with transmission line construction schedules.
Installing 3 to 4 GW of battery energy storage systems (BESS) at crowded grid sub-stations can store excess afternoon power for evening use.
The RBI and financial bodies should offer debt restructuring and lower-cost bridge loans to developers affected by grid delays.
Grid companies should use dynamic line rating (DLR) tools and modern conductors to boost line capacity without building new towers.
Regulators need to create clear financial compensation rules for power projects forced to stop generation due to grid overload.

Transmission delays present real operational and financial risks to India's clean energy goals.
Building power lines on time, deploying energy storage, and offering financial support to power producers will safeguard investments and help reach climate targets for 2030.