Transmission constraints are wasting clean energy

The most important challenge is the lack of power grid capacity. Renewable energy development is significantly outpacing the expansion of transmission infrastructure, creating growing concerns for policymakers.

According to Ember, a global energy think tank, “transmission shedding accounted for nearly two-thirds of total renewable energy reductions of 300 gigawatt hours (GWh) in the first quarter of 2026.”

In practical terms, much of the clean energy produced in India is being wasted because the country’s power grids cannot keep up. One in four interstate transmission projects faces delays of more than a year.

The central challenge is matching the pace of new power generation with the construction and reinforcement of the grid, said Sinha.

“Power generation projects can be built in 18 to 24 months. Transmission can take longer because it requires right-of-way, land acquisition, approvals, and coordination across many agencies. This is an implementation issue that becomes more important as the system grows,” he said.

India’s record renewable growth is straining infrastructure

Vibhuti Garg of the Institute for Energy Economics and Financial Analysis also attributed the problem to “inadequate planning.”

She told the BBC that when India was adding 10 to 15 GW of generation capacity each year, the grid could absorb the new power. However, the pace has increased dramatically, reaching a record 51 GW last year, while transmission infrastructure has failed to keep up.

The concentration of renewable energy projects in the northwestern states of Gujarat and Rajasthan has further intensified the challenge of evacuating power amid grid shortages.

Ember analysts now believe the widening gap between fast-moving power generation projects and slower transmission development is “the most significant operational risk to the country’s 2030 target of 500 gigawatts (GW) of non-fossil electricity.”

Battery storage could help close the grid gap

One potential solution would have been to install battery storage systems at renewable energy pooling stations and integrate stored electricity into the grid.

“Had that happened, India could have stored energy and used it in the evening instead of wasting it,” Garg said.

However, storage capacity has not increased because of a sharp rise in battery prices, a shortage of raw materials linked to wars in the Middle East, and a decline in the value of India’s currency, which has increased financing costs for Indian companies.

“As a result, many storage projects that were supposed to be launched have failed,” Garg added.