Grid Bottlenecks in India’s Renewable Energy Expansion

• 11 Mar 2026

For Prelims: Renewable energy, Central Electricity Regulatory Commission, Central Transmission Utility, Grid India, One Sun One World One Grid. 

For Mains: India’s energy transition and renewable energy expansion, Grid infrastructure and transmission challenges in renewable integration, Initiatives related to renewable energy sector.

Source:TH 

Why in News?

At the Bharat Climate Forum 2026, policymakers and system planners highlighted a critical risk to India’s clean energy transition. They noted that transmission congestion and overly cautious grid operations are now the main barriers to scaling renewable energy, rather than shortages in generation capacity.

Summary 

• India has crossed 50% non-fossil installed power capacity, but transmission congestion, under-utilised grid infrastructure, and operational conservatism are leaving thousands of megawatts of renewable power stranded.  
• Better coordination between planning and operations, equitable curtailment policies, advanced grid management, and expansion of energy storage systems are essential to sustain India’s renewable expansion and achieve its Net Zero 2070 target.

What are the Concerns in India’s Renewable Energy Build-Out? 

• Grid Congestion: Generation capacity is outpacing transmission (evacuation) capacity. For example, Rajasthan has 23 GW of renewable capacity but can only evacuate 18.9 GW; as a result, over 4,000 MW of fully commissioned capacity cannot evacuate power during peak hours. 
• T-GNA Shutdowns: If grid congestion were managed evenly, all projects would face a financially manageable ~15% peak-hour loss. 
  • Instead, the grid forces 100% shutdowns entirely on projects holding Temporary General Network Access (T-GNA). 
  • GNA is a mechanism under India's Central Electricity Regulatory Commission that allows power generators and consumers to access the Inter-State Transmission System (ISTS) on a short-term, non-discriminatory basis.  
    • Managed through the National Open Access Registry, T-GNA enables flexible, temporary, and advanced, or immediate, power scheduling. 
  • Projects with Permanent GNA operate uninterrupted, heavily penalizing new developers who met all their timelines and secured clearances in good faith. 
• Severe Under-utilisation of Existing Assets: High-capacity 765 kV double-circuit corridors designed to carry ~6,000 MW are routinely operated at just 600–1,000 MW (below 20% utilisation). 
  • As a result of this under-utilisation, several newly commissioned RE projects remain connected to the grid but are unable to inject their power. 
• Structural Disconnect: The Central Transmission Utility (CTU) plans corridors and allocates GNA to developers based on a full projected capacity (e.g., 6,000 MW). 
  • Grid India (the operator) subsequently permits only a fraction of that power to flow (e.g., 1,000 MW). 
  • This sharp divergence creates a credibility problem. Developers make billion-rupee investments based on CTU connectivity approvals, only to find the physical infrastructure does not translate into usable capacity. 
• Operational Conservatism: Grid operators cite "voltage oscillations and grid instability" to heavily restrict power flows, making extreme conservatism the default. 
  • Proven mitigation technologies such as STATCOMs, static VAR generators, harmonic filters, and special protection schemes are already equipped in many new plants, but operators do not allow them to be used to support the grid. 
  • Unlike advanced global operators, Indian institutions fail to employ modern techniques like dynamic security assessments, real-time contingency management, probabilistic risk evaluation, and adaptive line ratings. 
• Lack of Institutional Accountability: Government institutions face no performance reviews or penalties when the grid under-delivers.  
  • Meanwhile, renewable developers face financial ruin from stranded assets, and consumers pay for the under-utilised infrastructure through their electricity tariffs. 
• Lack of Storage: India requires an estimated 411 GWh of energy storage capacity by 2032 to maintain grid stability when the sun isn't shining, but current Battery Energy Storage Systems (BESS) and Pumped Hydro Storage (PHS) deployments remain severely inadequate. 
• Supply Chain Vulnerabilities: India remains heavily dependent on imports for critical minerals (lithium, cobalt, rare earths) and raw materials required for manufacturing solar cells and batteries, making the sector vulnerable to global supply shocks.

India’s Renewable Energy Sector 

• Current State: India has achieved a historic milestone by generating over 50% of its cumulative electric power installed capacity from non-fossil fuel sources, fulfilling its COP-26 NDC target five years ahead of the 2030 deadline. 
  • As of November 2025, India's total non-fossil power installed capacity reached 262.74 GW, accounting for 51.5% of the country's total installed electricity capacity. 
• Solar Power Dominance: Solar energy is the primary driver of this growth. Solar capacity has reached 132.85 GW by November 2025, marking a 41% year-on-year increase. 
• Wind Power Growth: Wind energy capacity also saw substantial growth, reaching 53.99 GW by November 2025. 
• Global Standing: According to IRENA RE Statistics 2025, India ranks 3rd globally in Solar Power installed capacity, 4th in Wind Power, and 4th in total Renewable Energy capacity. 

Key Initiatives 

• PM Surya Ghar: Muft Bijli Yojana: Launched in February 2024, the scheme saw nearly 14.43 lakh rooftop solar (RTS) systems installed in 2025, benefiting over 18.14 lakh households. 
• National Green Hydrogen Mission (NGHM): Aims to produce 5 Million Metric Tonnes (MMT) of green hydrogen annually by 2030. 
  • NGHM provides financial incentives for domestic manufacturing of electrolyzers and the production of Green Hydrogen. 
• Approved List of Models and Manufacturers (ALMM): Introduced by the Ministry of New and Renewable Energy in 2019, is a regulatory framework that mandates the use of approved solar PV modules (List-I) and cells (List-II) in government-supported projects.  
  • It promotes domestic manufacturing under “Make in India” while ensuring quality, performance, and warranty standards through strict inspection and certification. 
  • The Production Linked Initiative (PLI) scheme further boosted manufacturing. 
• PM JANMAN & DA JGUA: The Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) and Dharti Aabha Janjatiya Gram Utkarsh Abhiyan(DA JGUA)  provides off-grid solar systems such as Solar Home Lighting Systems and Solar Mini-Grids to tribal and PVTG habitations where grid electrification is not feasible.  
• National Policy on Geothermal Energy (2025): Notified in September 2025 to accelerate the clean energy transition and support India’s Net Zero 2070 commitment by harnessing untapped geothermal potential. 
• Viability Gap Funding (VGF) for Offshore Wind: Financial support provided for the initial 1,000 MW of offshore wind energy projects (primarily off the coasts of Gujarat and Tamil Nadu) to kickstart the sector. 
• International Cooperation: Strengthened multilateral collaboration through the International Solar Alliance and initiatives like One Sun One World One Grid.

What Measures can Resolve India's Renewable Grid Issues? 

• Redefine the Grid Operator's Mandate: Grid India must be explicitly mandated and rigorously evaluated to maximise asset utilisation within safe limits, rather than focusing solely on grid stability.  
  • Performance metrics must balance both reliability and efficiency. 
• Implement Equitable Curtailment: Power curtailments (shutdowns) during peak congestion must be distributed proportionately across all generators.  
  • The current system, which places 100% of the burden on projects with T-GNA, must be scrapped to prevent inequitable commercial outcomes. 
• Dynamic Capacity Reallocation: Any unused or under-utilised grid capacity (GNA) must be dynamically reallocated using transparent, real-time protocols to ensure no safe evacuation headroom is wasted. 
• Establish Automatic Accountability Reviews: If major transmission assets persistently fail to deliver their planned capacity, formal review mechanisms must be automatically triggered.  
  • These reviews must determine if the bottleneck is technical, operational, or due to delays, and the findings must be made public to ensure transparency. 
• Adopt Advanced Grid Management Frameworks: Grid operators must deploy dynamic security assessments, real-time contingency management, probabilistic risk evaluation, and adaptive line ratings. 
• Align Planning and Operations: Better coordination is needed between the Central Transmission Utility of India and Grid India so that transmission corridors planned for specific capacities translate into actual, usable power evacuation for developers. 

Bharat Climate Forum (BCF) 

• The Bharat Climate Forum is a policy and stakeholder platform that brings together government leaders, industry, financial institutions, and research organisations to discuss strategies for India’s climate action and clean energy transition. 
  • The forum supports India’s climate ambitions (achieving Net Zero by 2070 and 500 GW of non-fossil capacity by 2030) with its economic priorities (Atmanirbhar Bharat and Viksit Bharat). 
• Bharat Cleantech Manufacturing Platform:  Launched at Bharat Climate Forum 2025, the platform aims to unite policymakers, industry, finance, and research institutions to accelerate domestic cleantech manufacturing in India.  
  • It seeks to reduce dependence on imported climate technologies, strengthen supply chain security, and position India as a global cleantech hub, with projections of a USD 120–USD 150 billion annual market size by 2030 and significant export and job creation potential. 

Conclusion 

To prevent billions in stranded assets, policymakers must urgently align transmission planning with dynamic grid operations and rapidly scale up energy storage. Ultimately, this shift from expanding generation to ensuring efficient power evacuation is non-negotiable for securing India's Net Zero 2070 goals.

Drishti Mains Question:

India has rapidly expanded its renewable energy capacity but faces structural bottlenecks in grid infrastructure. Examine the causes and suggest measures to address them.

Frequently Asked Questions (FAQs) 

1. What is the Approved List of Models and Manufacturers (ALMM)?
TheApproved List of Models and Manufacturers mandates the use of approved solar PV modules and cells in government-supported projects to promote domestic manufacturing and ensure quality standards. 

2. What is the objective of the National Green Hydrogen Mission?
TheNational Green Hydrogen Mission aims to produce 5 million metric tonnes of green hydrogen annually by 2030 while supporting domestic electrolyzer manufacturing. 

3. What is PM Surya Ghar: Muft Bijli Yojana?
ThePM Surya Ghar: Muft Bijli Yojana promotes rooftop solar installations for households to reduce electricity costs and expand distributed solar capacity. 

4. Why is grid congestion a concern for renewable energy in India?
Transmission limitations prevent evacuation of all generated renewable power, leavingthousands of megawatts of installed capacity stranded despite being operational. 

5. Why is energy storage important for renewable energy integration?
Technologies such asBattery Energy Storage Systems and Pumped Hydro Storage help balance supply fluctuations and maintain grid stability in renewable-heavy systems. 

UPSC Civil Services Examination, Previous Year Question (PYQ)  

Prelims  

Q. With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct? (2015)

1. It is a Public Limited Government Company.  
2. It is a Non-Banking Financial Company.  

Select the correct answer using the code given below:  

(a) 1 only  

(b) 2 only  

(c) Both 1 and 2  

(d) Neither 1 nor 2  

Ans: (c) 

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Mains  

Q. “Access to affordable, reliable, sustainable and modern energy is the sine qua non to achieve Sustainable Development Goals (SDGs)”.Comment on the progress made in India in this regard. (2018)

Q. Write a note on India’s green energy corridor to alleviate the problem of conventional energy. (2013).