[20th June 2026] The Hindu OpED: India’s cheapest power is here, the grid must catch up

Mentor’s Comment

India now produces some of the world’s cheapest solar and wind power, yet more than 50 GW of completed renewable capacity remains stranded not because projects are unfinished, but because grid connectivity and transmission is unavailable.

Why Has Transmission Become the Binding Constraint in India’s Energy Transition?

1. Cheapest Source of Power: Solar and wind have emerged as India’s lowest-cost electricity sources, with firm clean power available at around ₹3.5 per kWh when paired with storage.
2. Rapid Renewable Expansion: India added over 45 GW of renewable capacity in 2025 and currently has about 250 GW installed, with another 100 GW under construction.
3. Existing Base and Pipeline: India currently has about 250 GW of renewable capacity installed and another 100 GW under construction, indicating that transmission expansion is lagging generation growth.
4. Stranded Renewable Capacity: More than 50 GW of completed renewable projects remain unable to evacuate power due to transmission shortages.
5. Mismatch in Project Timelines: Renewable projects can be commissioned within 12-18 months, whereas transmission corridors often require 3-5 years.
6. Future Scale Requirement: India may require nearly 2,000 GW of renewable capacity by 2050 to meet rising electricity demand and electrification goals.

How Can Existing Grid Assets Unlock Nearly 1,000 GW of Additional Clean Energy?

1. Storage at Renewable Sites: Batteries can store surplus daytime generation and supply power during evening peaks, significantly increasing utilisation of existing transmission lines.
2. Reuse of Coal Corridors: Underutilised transmission infrastructure connected to coal plants can be shared with renewable projects, unlocking the equivalent of nearly 100 GW of clean-energy capacity.
3. Leveraging Existing Substations: Available capacity at transmission substations can accommodate additional renewable connections and support battery integration, enabling another 100 GW equivalent.
4. Reconductoring Existing Lines: Replacing older conductors with high-temperature, low-sag conductors can nearly double power-carrying capacity on the same towers.
5. Combined Impact: Storage, shared infrastructure, and reconductoring together can unlock more than 1,000 GW of clean-energy potential within the existing transmission footprint.

Does Better Grid Utilisation Solve the Problem or Merely Defer It?

1. Fastest Short-Term Solution: Grid optimisation can be deployed within months and quickly connect stranded renewable projects.
2. Not a Substitute for Expansion: Existing infrastructure alone cannot support India’s projected renewable requirement of 2,000 GW.
3. Scale Limitation: Future renewable parks and industrial electrification will require entirely new transmission corridors.
4. Sequencing Advantage: Optimisation provides immediate relief while larger transmission projects are planned and executed.
5. Grid Expansion Imperative: India plans a 40% expansion of its transmission network over the next decade, costing more than $100 billion. New corridors must incorporate advanced conductors and storage compatibility to avoid recreating future bottlenecks.
6. Core Tension: The cheapest and fastest solution is grid optimisation, but the durable solution remains large-scale transmission expansion. Both approaches are necessary.

What Regulatory and Policy Changes Are Needed?

1. Storage-Linked Renewable Planning: Regulators should promote greater integration of storage with renewable projects to improve grid utilisation.
2. State-Level Implementation: States and distribution utilities must incorporate storage and grid-efficiency measures into procurement and planning decisions.
3. Technology-Oriented Procurement: Procurement norms should reward advanced transmission technologies that expand capacity without requiring new corridors.
4. Integrated Infrastructure Planning: Renewable energy zones and transmission corridors should be developed in a coordinated manner.
5. Future-Proof Transmission Design: New transmission infrastructure should be designed for significantly higher renewable penetration from the outset.

What Does International Experience Reveal About Transmission Bottlenecks?

1. United States: Delays in connecting renewable projects to the grid have emerged as a major obstacle to the clean-energy transition.
2. Europe: Several European countries face similar transmission constraints despite substantial renewable deployment.
3. Common Lesson: Cheap renewable generation alone does not guarantee energy transition success unless transmission capacity keeps pace.
4. India’s Advantage: A unified national grid and a strong record of transmission expansion provide India with an opportunity to avoid similar bottlenecks.

Conclusion

India’s energy transition has moved from a generation challenge to a transmission challenge. The fastest gains lie in optimising existing grid infrastructure through storage, shared transmission assets, and reconductoring, which together can unlock nearly 1,000 GW of additional clean-energy potential. However, optimisation only buys time; achieving India’s long-term renewable ambitions requires simultaneous investment in new, high-capacity transmission corridors. India’s success will depend on pursuing both tracks together.