Transmission Constraints Emerge As Key Hurdle To India's Renewable Energy Expansion: ICRA

New Delhi, Aug 20 (KNN) Insufficient transmission infrastructure has emerged as a key constraint to India's renewable energy expansion, with several solar projects facing curtailment during daylight hours due to grid congestion, according to rating agency ICRA.

Around 37 percent of renewable energy capacity at substations affected by curtailment across the northern, western and southern regions operates under Temporary General Network Access (T-GNA), with such projects facing 30-50 percent curtailment during the day, ICRA said.

T-GNA Projects Face High Curtailment

T-GNA enables renewable energy projects to access available capacity on the inter-State transmission system for short periods, ranging from a single time block to around 11 months.

However, prolonged dependence on the arrangement can increase operational costs and affect project revenues, particularly when generation is curtailed, reported The Hindu.

In western India, around 55 percent of the affected capacity was operating under T-GNA, with peak curtailment reaching 8,617 MW as of August 6. The corresponding figure for the northern region stood at 5,573 MW.

Girishkumar Kadam, Senior Vice-President and Group Head, Corporate Ratings, ICRA, said timely development of intra-State and inter-State transmission infrastructure, along with increased energy-storage capacity, would be critical to sustaining renewable energy additions.

Other challenges include delays in signing power purchase agreements (PPAs), land acquisition issues and financial constraints faced by distribution companies.

Over 150 GW Renewable Capacity Under Construction

The transmission constraints come as India's renewable energy pipeline remains substantial. More than 150 GW of renewable energy projects were under construction as of June 30, ICRA said.

The agency expects renewable energy, including large hydro, to account for more than 35 percent of India's electricity generation by FY30, up from 22 percent in FY25.

However, new renewable energy project awards have slowed significantly. Capacity declined from 40.6 GW in FY25 to 14.7 GW in FY26 and stood at 4.7 GW as of August 10, 2026.

ICRA estimated that around 40-45 GW of capacity with awarded bids remained without signed PPAs as of April 2026.

Renewable Bidding Shifts Towards Firm Power

Kadam said the nature of renewable energy bidding is also changing, with greater emphasis on firm and dispatchable renewable energy (FDRE) and round-the-clock (RTC) power rather than conventional solar and wind projects.

ICRA said the growing importance of grid adequacy means that timely transmission development and energy storage will be critical to converting the existing project pipeline into actual power generation.

Despite these challenges, ICRA maintained a stable outlook for India's renewable energy sector, supported by continued policy backing and competitive tariffs.

(KNN Bureau)