India’s Cheapest Power is Here, the Grid Must Catch Up

UPSC Syllabus: Gs Paper 3- Infrastructure

Introduction

India’s clean energy transition has reached a crucial stage. Solar and wind power have become the country’s cheapest sources of electricity, with more than 45 GW added in 2025. Combined with some of the world’s lowest battery costs, firm clean power can now be supplied at around ₹3.5 per kWh. However, transmission infrastructure has emerged as the main constraint. While renewable energy projects can be completed within 12–18 months, transmission networks often take 3–5 years, leaving large amounts of low-cost clean energy stranded. India’s Cheapest Power is Here, the Grid Must Catch Up.

Why Transmission Has Become a Critical Constraint

1. Stranded Renewable Energy Capacity: More than 50 GW of clean energy capacity is already stranded because transmission infrastructure is not available when projects are ready for operation.
2. Faster Growth of Renewables than Transmission: Renewable energy projects can be developed quickly, but transmission expansion is slowed by land acquisition, multiple approvals, and limits on creating new corridors.
3. Rising Future Electricity Demand: India currently has around 250 GW of renewable capacity and another 100 GW under construction. The country will require nearly 2,000 GW by 2050 to meet growing electricity demand and support industrial and transport electrification.
4. Need for Massive Grid Expansion: Meeting future renewable energy targets will require one of the world’s largest transmission expansion programmes. Building new transmission lines alone will not be sufficient.
5. Importance of Better Grid Utilisation: India must expand transmission infrastructure while also making better use of the network that already exists. Both approaches are necessary for the energy transition.

Unlocking the Potential of the Existing Grid

1. Battery Storage Improves Transmission Use: Most renewable projects currently use their transmission connections for only about 25% of the time. Batteries can store electricity and supply it during evening and night demand, increasing utilisation by two to three times.
2. Storage Can Unlock Additional Capacity: Deploying batteries at renewable energy sites can enable the equivalent of around 400 GW of additional clean energy without building new transmission corridors.
3. Using Underutilised Coal Transmission Networks: Many old or high-cost coal plants, with nearly 100 GW of capacity, operate at low utilisation despite having valuable transmission connections.
4. Sharing Coal-Based Grid Infrastructure: Solar and wind projects located near coal plants can use available transmission capacity when coal units are not fully operating. This can support around 100 GW of additional clean energy.
5. New Revenue from Existing Assets: This approach gives renewable developers access to scarce grid connections while allowing coal plant owners to earn revenue from underused transmission assets.
6. Leveraging Existing Transmission Substations: Many existing substations can accommodate additional renewable energy connections without requiring major new infrastructure.
7. Combining Substations with Storage: Adding batteries at these locations can support peak demand and improve power flow management. This can enable nearly 100 GW of additional clean energy.
8. Upgrading Existing Conductors: Many transmission lines still use older conductors that limit electricity flow. Replacing them with high-temperature, low-sag conductors can nearly double transmission capacity using the same towers and rights-of-way.

Creating Clean-Energy Superhighways

1. Higher Capacity Without New Land: Advanced conductors can nearly double transmission capacity using the same towers and rights-of-way, avoiding the need for additional land acquisition.
2. Combining Multiple Grid Solutions: Storage systems, shared transmission connections, existing substations, and reconductoring can work together to maximise the value of existing infrastructure.
3. Potential to Unlock Over 1,000 GW: These measures can collectively unlock more than 1,000 GW of clean energy within the current transmission footprint.
4. Faster Deployment Timeline: Most of these upgrades can be implemented within months rather than years, making them much faster than building entirely new transmission corridors.
5. Fewer Regulatory Barriers: Grid optimisation requires minimal permitting and fewer approvals compared to developing new transmission routes.
6. Supporting Renewable Expansion During Grid Build-Out: Existing grid upgrades allow new renewable projects to move forward while larger transmission projects are still being developed.
7. Lower Cost of Grid Usage: Better utilisation of existing assets can improve efficiency and reduce the average cost of using transmission infrastructure.
8. Easier Renewable Energy Siting: Locating projects near coal plants, renewable energy hubs, and substations can reduce land-related challenges while improving grid access.

Way Forward

1. Expand Transmission Alongside Optimisation: India must continue building new transmission infrastructure while simultaneously upgrading and optimising the existing grid.
2. Future-Proof New Transmission Projects: New transmission lines should be designed with advanced conductors and integrated storage to maximise long-term capacity.
3. Higher Power Transfer from New Infrastructure: Transmission systems built with advanced technologies can carry four to five times more clean power for a modest additional cost.
4. Large Planned Grid Investments: India plans to expand its transmission network by around 40% over the next decade through investments exceeding $100 billion.
5. Implement Storage-Linked Grid Access: National regulations already support better use of grid connections through storage integration. States need to expand and implement these provisions.
6. Promote Advanced Transmission Technologies: Procurement and regulatory frameworks should encourage technologies that increase capacity without requiring new corridors.
7. Develop Renewable Energy Zones: Coordinated planning of renewable energy zones and transmission corridors can reduce delays related to site selection and infrastructure development.
8. Support Industrial Demand for Reliable Power: Efficient transmission networks are essential to provide dependable electricity to sectors such as steel, aluminium, cement, chemicals, and data centres.

Conclusion

India’s renewable energy growth now depends as much on transmission capacity as on power generation. Upgrading existing grid infrastructure through storage, shared transmission use, and advanced conductors can unlock over 1,000 GW of clean energy. Alongside strategic grid expansion, maximising the utilisation of existing networks will be critical for a reliable, affordable, and low-carbon energy future.

Question for practice:

Examine how transmission constraints are affecting India’s clean energy transition and discuss the measures proposed to unlock the full potential of renewable energy through grid optimisation and modernisation.

Source: The Hindu