India's ambitious renewable energy growth is being significantly hampered by inadequate transmission infrastructure, leading to substantial grid curtailment. As of May 2026, a striking 33% of the nation's recently commissioned 54.8 GW renewable energy (RE) capacity cannot be evacuated, according to a report by rating agency ICRA. This curtailment is most acute during solar hours, often reaching 50-60%.
The primary cause for this bottleneck is the slow pace of transmission infrastructure development, which lags behind the rapid expansion of RE generation capacity. This disparity directly impacts RE developers, leading to reduced returns on their investments as generated power cannot reach the grid.
Transmission Capex and Persistent Challenges
ICRA projects a substantial capital expenditure of Rs 5-6 trillion in the transmission sector between 2026-27 and 2031-32. This investment aims to bolster existing infrastructure, add new evacuation capacities, and establish fresh transmission routes to support upcoming generation centers. The government's goal to evacuate power from over 900 GW of non-fossil fuel capacity by 2035-36, including 548 GW from solar and wind, underscores the urgency of these upgrades.
However, significant execution challenges persist. Ankit Jain, Vice President and Co-Group Head at ICRA Limited, highlighted issues such as land acquisition, right-of-way (RoW) disputes, and delays in regulatory approvals. These hurdles consistently push project completion timelines beyond their scheduled dates.
“Power transmission projects continue to face significant execution risks owing to challenges in acquiring land, ROW-related issues and regulatory approvals, leading to delays in timely implementation,” Jain stated.
Indeed, out of all projects commissioned by March 2026 under the tariff-based competitive bidding (TBCB) route, only 12% were completed on schedule. The majority experienced delays ranging from two months to three years, with a median delay exceeding ten months.
Operational Impact and Regional Disparities
The delays in transmission capacity additions directly translate into power evacuation risks for RE players. In regions with high RE penetration where infrastructure build-out is incomplete, generators frequently face significant curtailment. This is largely due to transmission constraints or insufficient temporary general network access (T-GNA) margins, preventing the scheduling of power.
While curtailments are notably pronounced in states like Rajasthan and Gujarat, the southern region has experienced more limited curtailment, even during peak solar hours. Looking ahead, a massive pipeline of 107 GW across various energy segments (solar, wind, hybrid, hydro, pumped storage, and thermal) is slated for integration into the inter-state transmission system (ISTS) network between 2026-27 and 2030-31.
ICRA cautions that future slippages in commissioning this upcoming transmission infrastructure are highly probable. Such delays could further impede RE capacity additions or prolong current grid curtailment issues, materially impacting the financial viability of renewable energy projects across India.