Renewable Transition in India: Policy and Institutional Bottlenecks

Source: The post “Renewable Transition in India: Policy and Institutional Bottlenecks” has been created, based on “India’s renewable transition caught between stranded power and institutional Inertia” published in “The Hindu” on  13th March 2026.

UPSC Syllabus: GS Paper-3- Economy

Context: India has made significant progress in expanding renewable energy capacity and attracting investment in the sector. However, operational challenges in the power transmission system are emerging as critical constraints.

Transmission Congestion in Rajasthan

1. Rajasthan currently has around 23 GW of commissioned renewable energy capacity, but the available evacuation margin is only about 18.9 GW.
2. Due to this mismatch, more than 4,000 MW of fully commissioned renewable capacity cannot evacuate power during peak solar hours.
3. If curtailment were distributed proportionately among all generators, the losses would be approximately 15 percent, which would be operationally inconvenient but financially manageable.
4. However, the entire burden of curtailment falls on projects operating under Temporary General Network Access (T-GNA), while projects with Permanent GNA continue to operate without interruption.
5. This binary treatment creates financial distress for renewable developers who completed projects on time and obtained all required approvals.

Under-utilisation of Transmission Infrastructure

1. High-capacity 765 kV double-circuit transmission corridors are designed to evacuate around 6,000 MW of power.
2. Each of these corridors costs approximately ₹4,000–₹5,000 crore to build.
3. Despite this design capacity, many corridors are currently operating at only 600–1,000 MW, which means utilisation is often below 20 percent.
4. As a result, several renewable plants remain connected to the grid but are unable to inject electricity due to gaps in transmission readiness.
5. Since these investments are recovered through consumer tariffs, customers end up paying for infrastructure that delivers only a fraction of its intended value.

Government Initiatives to Improve Clean Energy Utilisation

1. Green Energy Corridor (GEC)

1. The Green Energy Corridor programme was launched to strengthen the power transmission network for evacuating renewable energy from generation centres to demand centres.
2. The project focuses on building dedicated transmission lines and substations to integrate large-scale renewable energy into the national grid.
3. It includes intra-state and inter-state transmission infrastructure, particularly in renewable-rich states such as Rajasthan, Gujarat, and Tamil Nadu.
4. The initiative helps reduce renewable energy curtailment and improves grid stability.

2. National Smart Grid Mission (NSGM)

1. The National Smart Grid Mission aims to modernise the electricity grid using advanced communication and digital technologies.
2. It promotes smart meters, automation, and real-time monitoring of power flows.
3. Smart grid systems enable better demand management and facilitate efficient integration of renewable energy sources.

3. Revamped Distribution Sector Scheme (RDSS)

1. The Revamped Distribution Sector Scheme focuses on strengthening power distribution companies (DISCOMs).
2. It aims to reduce technical and commercial losses and improve the financial health of the distribution sector.
3. Improved distribution infrastructure helps utilities absorb higher shares of renewable energy without causing grid stress.

4. 4. National Electricity Policy and Renewable Purchase Obligations (RPO)

1. The government mandates Renewable Purchase Obligations requiring power distribution companies and large consumers to procure a certain share of electricity from renewable sources.
2. This policy ensures stable demand for renewable energy and encourages better utilisation of installed capacity.
3. Compliance mechanisms and penalties are used to ensure adherence to these targets.

5. Energy Storage and Battery Initiatives

1. The government is promoting Battery Energy Storage Systems (BESS) to address the intermittency of solar and wind power.
2. Energy storage allows excess renewable energy generated during peak production hours to be stored and used later.
3. This improves grid flexibility and reduces renewable energy curtailment.

6. Real-Time Power Market and Green Day-Ahead Market

1. Power exchanges now operate real-time electricity markets that allow renewable energy generators to sell surplus electricity efficiently.
2. The Green Day-Ahead Market (GDAM) enables trading exclusively in renewable power.
3. These market mechanisms improve renewable energy utilisation by enabling flexible power trading.

Institutional and Operational Issues

1. Limited Institutional Mandate

1. The national grid operator, Grid Controller of India Limited, is primarily mandated to maintain grid stability.
2. However, it does not have explicit accountability for maximising the utilisation of transmission assets within safe operating limits.
3. Consequently, there are no formal utilisation benchmarks or automatic review mechanisms when infrastructure operates significantly below capacity.

2. Planning–Operations Disconnect

1. Transmission corridors are planned by Central Transmission Utility of India Limited based on projected renewable capacity.
2. Developers receive General Network Access and invest in projects assuming that the planned transmission capacity will allow evacuation.
3. However, when corridors designed for 6,000 MW are operationally restricted to around 1,000 MW, a credibility gap emerges between planning and actual operations.
4. This mismatch places the commercial risks primarily on renewable generators, rather than on the institutions responsible for planning and operations.

3. Operational Conservatism

1. Grid operators often cite voltage oscillations and potential instability as reasons for restricting power flow.
2. Although these challenges are real, modern technologies such as STATCOMs, reactive power devices, and special protection schemes can effectively address them.
3. Many renewable plants already have static VAR generators and harmonic filters, yet they are not allowed to inject power due to conservative operational limits.
4. This indicates that the challenge is increasingly institutional responsiveness rather than technical feasibility.

Way Forward

1. The mandate of Grid Controller of India Limited should be expanded to include maximising transmission asset utilisation while maintaining grid stability.
2. Curtailment in congested regions should be distributed proportionately across all generators instead of being imposed entirely on T-GNA projects.
3. Unused or under-utilised General Network Access capacity should be dynamically reallocated through transparent real-time mechanisms.
4. Persistent under-utilisation of major transmission assets should trigger automatic technical reviews and public reporting.
5. Advanced grid management approaches such as dynamic security assessment, probabilistic risk evaluation, and adaptive line ratings should be adopted to improve utilisation while ensuring reliability.

Conclusion: India’s renewable energy transition depends not only on expanding generation capacity but also on ensuring efficient grid operations. Addressing transmission congestion, improving institutional accountability, and adopting modern grid management techniques are essential to ensure that renewable infrastructure delivers its full economic and environmental benefits.

Question: Transmission congestion and operational conservatism are emerging as major constraints in India’s renewable energy transition. Discuss with reference to the situation in Rajasthan.

Source: The Hindu