GS-3: Renewable energy
Introduction:
The Sustainable Project Developers Association (SPDA) urged the Ministry of New and Renewable Energy (MNRE) to provide financial relief after 8,133 GWh of solar power was curtailed during April–June 2026 due to transmission delays.
About Transmission Bottlenecks in India’s Renewable Sector:
What it is?
- Transmission bottlenecks occur when the growth rate of renewable energy (RE) capacity addition drastically outpaces the construction and commissioning of dedicated high-voltage inter-state transmission system (ISTS) lines.
- Because solar and wind projects are built within 12–18 months while transmission lines take 36–60 months, clean energy power plants are forced to operate under Temporary General Network Access (T-GNA).
- Under T-GNA, generators can inject power only when spare transmission margin exists, resulting in severe power curtailment during peak generation hours.
Key Data & Statistics:
- Massive Capacity Under Temporary Access: Approximately 21 GW (nearly 9%) of India’s installed renewable energy capacity relies on temporary grid connections (T-GNA), with 12 GW facing active evacuation limits during peak solar hours.
- High Generation Curtailment: In FY2025–26, around 6,900 GWh of clean electricity was restricted due to grid mismatches, while Q1 FY2026–27 alone saw 8,133 GWh curtailed.
- Extreme Regional Curtailments: In solar hubs like Rajasthan, RE projects experience extreme generation curtailments ranging between 70% and 95% during peak afternoon hours.
- Execution Deficit in Transmission: India met only about 80% of its annual transmission build-out targets over the past five years, with 1 in 4 major inter-state transmission schemes delayed by a year or more.
Reasons for Transmission Bottlenecks:
- Mismatched Project Timelines: Solar and wind farms can be commissioned in 12–18 months, whereas transmission lines require 36–60 months due to civil construction and equipment procurement.
Example: Solar plants in Rajasthan came online years before their dedicated ISTS pooling sub-stations were commissioned.
- Right-of-Way (RoW) and Land Disputes: Acquiring continuous corridors for high-voltage transmission lines faces intense resistance from local landowners and farmers.
Example: Line construction routinely gets halted in agricultural belts over land compensation claims.
- Forest and Environmental Clearances: Transmission corridors traversing eco-sensitive zones face prolonged regulatory hurdles.
Example: Power line construction in Rajasthan and Gujarat faced long delays to comply with Great Indian Bustard (GIB) undergrounding mandates.
- Supply Chain Shortages for HVDC Equipment: Global supply chain bottlenecks have created a shortage of critical electrical equipment.
Example: A thin global supplier base has delayed the delivery of High-Voltage Direct Current (HVDC) transformers and circuit breakers.
- Geographical Concentration of Generation: Renewable capacity is heavily concentrated in specific resource-rich regions rather than distributed evenly.
Example: Mass capacity additions in Rajasthan (Northern Grid) and Gujarat (Western Grid) cause severe congestion at regional grid pooling stations.
Challenges Associated with Transmission Bottlenecks:
- Imminent Financial Stress and NPA Risks: Severe curtailments reduce plant revenues to less than 5% of projections, leaving developers unable to service institutional debt.
Example: A 300 MW plant operating at 10 MW generation capacity risks turning into a Non-Performing Asset (NPA).
- Erosion of Investor Confidence & Project IRRs: Unpredictable T-GNA curtailment lowers project Internal Rates of Return (IRRs), discouraging foreign and private capital investments.
Example: Clean energy funds face lower-than-projected returns on capital deployed in Northern Grid solar parks.
- Systemic Exposure for Public Financial Institutions: Indian banks and financial institutions (such as PFC, REC, and IREDA) have deployed over ₹5.08 lakh crore in the RE sector over two financial years, creating systemic banking sector exposure.
- Wasted Clean Power & Carbon Offsets: Curtailing clean electricity forces grid operators to maintain fossil-fuel spinning reserves to meet demand.
Example: The 8,133 GWh of solar power curtailed in Q1 FY27 could have powered nearly 1.4 million homes for a year.
- Threat to National 500 GW Clean Energy Target: Persistent evacuation bottlenecks jeopardize India’s target of reaching 500 GW of non-fossil fuel power capacity by 2030.
Initiatives Taken So Far:
- Implementation of GNA Regulations: Central Electricity Regulatory Commission (CERC) rolled out the General Network Access (GNA) framework to provide firm, long-term transmission rights to ISTS-connected power plants.
- Green Energy Corridors (GEC): Implemented dedicated GEC Phase-I and Phase-II schemes to evacuate renewable power through intra-state and inter-state transmission networks.
- Scale-Up of ISTS Infrastructure Targets: Expanded future ISTS construction targets to 25,146 circuit kilometers (ckm) for FY2026–27 to clear transmission backlogs.
- Introduction of T-GNA Stopgap Arrangement: Allowed temporary grid access protocols to prevent fully constructed renewable plants from remaining completely idle while waiting for long-term transmission lines.
Way Forward:
- Co-Optimal Planning of Generation and Transmission: Shift away from generation-led planning toward synchronized, joint execution of RE plants and transmission corridors.
- Deploying Battery Energy Storage Systems (BESS) at Pooling Stations: Install 3–4 GW of 2-hour battery storage at congested pooling stations to absorb peak afternoon solar generation and release it during evening peak hours.
- Financial Relief and Debt Restructuring: Implement RBI-backed debt restructuring, principal repayment moratoriums, and concessional bridge financing for projects affected by transmission delays.
- Adopting Dynamic Line Rating (DLR) and Reconductoring: Utilize DLR technology and advanced conductor materials to increase the transfer capacity of existing power lines without waiting for new construction.
- Harmonizing Curtailment Compensation Frameworks: Establish standardized compensation protocols for T-GNA projects facing transmission-led backing down to protect developer revenue streams.
Conclusion:
Transmission bottlenecks pose an operational risk to India’s clean energy expansion and financial stability. Addressing this challenge requires synchronized transmission planning, rapid deployment of battery storage, and debt relief for affected developers. Aligning grid expansion with renewable generation capacity is vital to safeguard investments and achieve India’s 2030 climate goals.
