Challenges to India’s Renewable Energy Transition

March 9, 2026

Why in the News?

Concerns have emerged over grid congestion and stranded renewable energy capacity in India, highlighting operational challenges in the country’s renewable energy transition.

What’s in Today’s Article?

Renewable Energy Transition (Introduction, Stranded Renewable Power, Infrastructure Challenges, Operational Challenges, Risks, Solutions, etc.)

India’s Renewable Energy Transition

India has emerged as one of the world’s leading countries in the transition toward clean and renewable energy.
India’s renewable energy sector has witnessed rapid growth due to several factors:

As a result, renewable energy capacity in India has expanded rapidly across states such as Rajasthan, Gujarat, Tamil Nadu, and Karnataka, which possess favourable conditions for solar and wind power generation.
However, despite impressive growth in installed capacity, several structural and operational challenges have begun to emerge.

Stranded Renewable Power in India

One of the most pressing issues facing India’s renewable energy transition is the phenomenon of stranded renewable power.
Stranded power refers to situations where electricity generated from renewable sources cannot be transmitted to consumers due to limitations in the power grid.
For example, in Rajasthan, more than 4,000 MW of fully commissioned renewable energy capacity remains unable to evacuate power during peak hours because of grid congestion.
Although Rajasthan has approximately 23 GW of renewable capacity installed, the available evacuation capacity is only about 18.9 GW, leading to curtailment of power generation.
This means that renewable energy plants that are fully operational cannot deliver electricity to the grid, resulting in financial losses for developers and inefficiencies in the energy system.

Transmission Infrastructure Bottlenecks

Transmission infrastructure plays a crucial role in the renewable energy ecosystem because renewable energy generation is often concentrated in specific geographic locations, while electricity demand is spread across the country.
Large transmission corridors have been constructed to transport electricity from renewable-rich regions to demand centres.
However, many high-capacity transmission lines are currently operating far below their designed capacity.
For instance, 765 kV double-circuit transmission corridors designed to evacuate around 6,000 MW are often operating at only 600–1,000 MW, resulting in utilisation levels below 20%.
These transmission corridors involve massive public investment, with each corridor costing approximately Rs. 4,000 to Rs. 5,000 crore.
Underutilisation of such infrastructure results in inefficient use of public resources and increases the cost burden on electricity consumers.

Institutional and Operational Challenges

A major issue underlying grid congestion is the gap between infrastructure planning and operational management.
Transmission corridors are often planned by the Central Transmission Utility (CTU) based on projected renewable energy capacity.
Developers receive General Network Access (GNA) approvals, which allow them to connect their power plants to the national grid.
However, operational decisions made by grid operators sometimes limit the amount of electricity that can actually flow through these corridors.
As a result, a situation arises where infrastructure exists on paper but cannot be fully utilised in practice.
This mismatch between planning and operational realities undermines investor confidence and disrupts the renewable energy ecosystem.

Curtailment and Financial Risks

Curtailment refers to the forced reduction in electricity generation due to grid constraints.
In some regions, curtailment is disproportionately imposed on projects that have Temporary General Network Access (T-GNA), while projects with permanent network access continue operating normally.
This creates an uneven distribution of financial risks among renewable energy developers.
Projects that face curtailment may experience complete shutdowns during peak solar hours, leading to revenue losses and financial distress for investors.
Since renewable energy projects involve large upfront investments, prolonged curtailment can discourage future investments in the sector.

Technical Solutions and Global Best Practices

Many of the technical challenges affecting renewable energy integration are solvable through advanced grid management technologies.
Some key solutions include:
- Advanced reactive power technologies: Devices such as STATCOMs (Static Synchronous Compensators) and other reactive power equipment can help stabilise voltage and manage power flows.
- Dynamic grid management systems: Modern power systems use real-time monitoring tools such as dynamic security assessment and contingency management to maximise transmission capacity.
- Adaptive line rating technologies: These technologies allow transmission lines to carry more electricity under favourable environmental conditions.
Many countries with high renewable energy penetration have adopted such solutions to balance grid stability with efficient power transmission.

Institutional Reforms Needed

Experts suggest that addressing India’s renewable energy challenges requires stronger institutional coordination.
Improved grid utilisation targets: Grid operators should be evaluated not only on maintaining stability but also on maximising utilisation of transmission assets.
Transparent curtailment mechanisms: Curtailment should be distributed proportionately among generators to ensure fairness.
Dynamic reallocation of network capacity: Unused transmission capacity should be made available to other generators through transparent and real-time mechanisms.
Better coordination between planning and operations: Transmission planning agencies and grid operators must align their decisions to ensure that planned infrastructure delivers its intended capacity.

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