By VP Singh, Pradeep S Mehta & Akash Sharma
India needs to install nearly 50 gigawatt (Gw) of renewable energy (RE) annually to reach its goal of 500 Gw non-fossil fuel-based energy capacity by 2030. Around 300 Gw is expected to come from solar power. However, based on recent installation trends, India will need to deploy close to 10 Gw more solar capacity annually than the average of the past few years to stay on course.
While solar power is auctioned almost every fortnight and developers are actively securing capacity, strengthening the power transmission network remains crucial to ensure that the generated power is effectively delivered and utilised. Captive solar too holds great promise, and unlocking its potential can make a meaningful contribution to achieving our RE targets.
Grid lag hits solar
Solar power plants in India are typically commissioned within 12-18 months, depending on their capacity and location. In contrast, dedicated transmission infrastructure can take three-four years to become operational. This mismatch creates a significant lag between project completion and injection of power into the grid. Even when connected, many plants face curtailment due to grid congestion, limiting full utilisation of installed capacity.
According to the International Energy Agency, nearly 3,000 Gw of RE capacity was awaiting grid connectivity as of 2024, with India among nations facing the biggest backlogs. This is despite the commendable work of the Power Grid Corporation of India, which has built a robust national transmission network across such a vast and diverse geography. Over 30% of India’s total transmission capacity has been added in just the last decade.
Solar power project developers also cite land acquisition and right of way (RoW) as big hurdles to timely commissioning. With the majority of projects concentrated in the western and southern states—including Rajasthan, Gujarat, Maharashtra, and Tamil Nadu—further expansion in these areas risk deepening technical bottlenecks and may lead to growing social tensions and community resistance.
The Ladakh Green Energy Corridor serves as a strong example of how transmission and connectivity challenges can be addressed effectively. Currently underway with an allocation of over `200 billion, the transmission system is designed to evacuate 13 Gw of RE from Ladakh and transfer it into the national grid. More such projects are needed in regions similar to Ladakh, where high solar irradiation levels—even greater than those in Rajasthan—can result in greater capacity utilisation. Besides, the vast, sparsely populated landscapes significantly reduce issues related to land acquisition and RoW.
Setting up transmission infrastructure in the northern and north-eastern regions can also help harness the significant hydropower potential of neighbours like Nepal and Bhutan. It aligns well with the vision of One Sun, One World, One Grid, provided enabling regulations are formulated and these countries receive financial assistance and a guaranteed market to sell power. Such cross-border energy cooperation would play a crucial role in balancing the variability inherent in RE generation.
India’s transmission bottlenecks stem partly from limited industry involvement. Despite significant private investment in RE generation, both as investors and project developers, the transmission sector has seen limited private participation. According to the Ministry of Power, of the 37 Inter-State Transmission System projects awarded to private entities, only 13 have been commissioned, 20 are under construction, and four have been cancelled. Data from NITI Aayog reveals that just 9% of India’s transmission lines are built by the private sector—independently or through joint ventures with government agencies—underscoring the heavy reliance on public investment.
Private push is needed
Private capital is making inroads into various clean energy and allied sectors, and even the traditional entry barriers in nuclear energy appear to be easing. What is now essential is to channel more private investment into transmission to accelerate the development of infrastructure critical to achieving clean energy goals.
Another complementary and effective strategy would be to proactively promote captive solar plants. Regulations governing captive solar projects are largely focused on self-consumption, with rigid requirements on equity ownership, minimum power offtake, and battery storage. However, reforming the captive and group captive frameworks could be a game changer for solar. Such reforms would enable a wider range of industries to access affordable and reliable clean energy.
While the Green Energy Open Access Rules have helped streamline procedures and introduced banking facilities, they fall short of addressing key barriers to scalability of captive solar. Policy must focus on incentivising private investment in transmission infra and standardising banking mechanisms. Expanding captive solar will generate additional revenue for utilities and boost the trading of renewable energy certificates, supporting obligated entities in meeting their renewable purchase obligations. To fully realise these benefits, a broader approach should go beyond captive models to attract larger volumes of private investment across the RE ecosystem.
India is among the world’s leading producers of RE—a remarkable achievement that merits recognition. A decade ago, its installed RE capacity stood at around 40 Gw. Since then, it has expanded at a compound annual growth rate of nearly 19%, crossing the 200-Gw mark by late 2024.
As a leading voice of the Global South, India must continue to set an example, reinforcing its commitment to clean energy and demonstrating to the global community that it is leaving no stone unturned in building a sustainable energy future.
Singh is former Governor of Punjab. Mehta and Sharma work for CUTS International, a global public policy research and advocacy group