42% Shortfall in India’s Transmission Expansion ISTS Additions At Decade Low-IEEFA

India’s power transmission network, one of the largest in the world, spans over 494,000 circuit kilometres (ckm) of lines and 1.33 million megavolt-amperes of transformation capacity, forming a fully synchronised national grid. However, the network struggles to keep pace with renewable energy deployment, leading to a growing gap between clean power generation and the availability of evacuation infrastructure. This imbalance limits renewable integration and increases the risk of stranded assets and higher delivery costs.

Citing these details, IEEFA’s latest report on "Green Power Transmission Development in India" found the widening gap between planned and actual transmission network expansion has become evident, with around a 42% shortfall and Inter-State Transmission System (ISTS) additions at their lowest in a decade. In FY2025, only 8,830 ckm of new transmission lines were commissioned against a target of 15,253 ckm, reflecting the shortfall.

The report linked this gap to structural and procedural bottlenecks, including right-of-way (RoW) disputes, prolonged land acquisition processes, restrictions on equipment procurement, and multi-agency approval requirements, which contribute to delays. Among these, the study noted, RoW remains one of the most significant barriers to timely transmission development. Similar land acquisition hurdles in the US have also slowed new transmission build-outs.

State Impacted By Stranded RE Projects

The study found that Indian states like Rajasthan faced the most visible impact, with around 8 gigawatts (GW) of renewable energy capacity stranded in the state, nearly half of it curtailed during peak solar hours. The report said that delayed completion of the Associated Transmission System—the dedicated transmission infrastructure linked to new generation projects—along with capacity hoarding and ecological directives mandating underground cabling in Great Indian Bustard habitats, has compounded evacuation challenges, inflated project costs, and reduced operational efficiency.

Execution Delays Exacerbated by RoW constraints.

The IEEFA report showed that at least 14 ISTS projects have faced significant delays in recent years, most of them linked to unresolved RoW issues. Land acquisition disputes, driven by compensation demands exceeding state-notified rates, have stalled construction and led to major cost overruns. These challenges have strained transmission development.

IEEFA noted that players such as PGCIL and private firms like Adani and Sterlite have been affected by these delays. To address these risks, the report suggested that tendering agencies formalise RoW clearances within their scope. It further recommended that by securing approvals or achieving partial RoW readiness, tendering agencies can provide developers with greater certainty, reduce execution risks, and accelerate project delivery.

Internationally, the US illustrates how RoW acquisition has become a barrier, even in a country with a long-established transmission network.

Implications For Over 50GW RE Capacity

These bottlenecks have several implications for over 50 GW of renewable energy capacity currently stranded nationwide, increasing per-unit transmission costs, weakening project viability, and deterring private investment. They also limit the pace of new capacity additions and undermine variable renewable energy integration at scale, risking missed milestones in the country’s clean energy transition.

Need For a Unified Generation-Transmission Framework

The report suggested that a unified generation-transmission planning framework, aligning timelines and locations for both generation and transmission capacity additions, is essential. It stressed the importance of establishing a single-window clearance system with strict timelines to streamline land, RoW, and connectivity approvals. The report also recommended performance-based incentives and disincentives tied to asset utilisation metrics to encourage timely commissioning and sustained operations.

Scaling Asset Monetisation

Additionally, the report emphasised scaling asset monetisation, noting that public-private partnerships will be essential to unlocking capital for both inter-state and intra-state projects. In parallel, reconductoring of congested corridors and integration of energy storage systems should be prioritised in renewable-rich regions to enhance capacity utilisation and reduce curtailment.

The report further emphasised that a coordinated approach—combining regulatory reform, operational efficiency measures, and capital mobilisation—will be critical to transforming India’s transmission network into a flexible, resilient system capable of supporting high renewable penetration while ensuring cost-effective and reliable power delivery.

The recent extension of ISTS charge waivers for storage and the implementation of time block-based General Network Access allocation—which allows power generators to use the transmission network without pre-identifying buyers—are steps in the right direction.

Thus, without targeted reforms, the misalignment between generation commissioning and evacuation infrastructure is likely to continue driving congestion, curtailment, and systemic inefficiencies, ultimately slowing progress toward India’s decarbonisation objectives.