India's Transmission Expansion Faces A 42% Shortfall

 

India's transmission expansion faces a 42% shortfall, with new interstate transmission lines hitting a decade-low.

 

India boasts one of the world's largest power transmission networks, with over 494,000 kilometers of lines and 1.33 million kilovolt-amperes of transformer capacity, forming a unified, synchronized national grid. However, this network has struggled to keep pace with renewable energy deployment, leading to a widening gap between clean power generation and grid-connected infrastructure capacity. This imbalance limits renewable energy consumption and increases the risk of stranded assets and transmission costs. According to the Institute for Energy Economics and Financial Analysis' latest report, "Green Power Transmission Development in India," the gap between planned and actual transmission network construction has widened significantly, reaching a shortfall of approximately 42%, while new inter-regional transmission system expansion has fallen to its lowest point in a decade. In fiscal year 2025, only 8,830 kilometers of new transmission lines were completed, far below the target of 15,253 kilometers.

 

The report attributes this shortfall to structural and procedural bottlenecks, including disputes over line corridor rights, lengthy land acquisition processes, equipment procurement restrictions, and multi-agency approval requirements, which collectively lead to project delays. Among them, transmission corridor rights have been cited as the primary obstacle hindering the timely progress of transmission projects. The United States is also facing slowdowns in transmission construction due to land acquisition challenges.

 

Regions like Rajasthan have been most significantly impacted, with approximately 8 GW of renewable energy capacity stranded, nearly half of which is curtailed during peak solar power generation periods. The report notes that delays in supporting transmission system construction, capacity hoarding, and ecological directives requiring underground cable laying to protect the habitat of the Great Indian Bustard have exacerbated grid connection challenges, increased project costs, and reduced operational efficiency.

 

At least 14 interregional transmission projects have experienced significant delays in recent years, most of which are related to unresolved disputes over transmission corridor rights. Land acquisition disputes stemming from compensation demands exceeding national standards have led to construction stalls and significant cost overruns. Power Grid Corporation of India and private companies such as the Adani Group and Sterlite have all been affected by project delays.