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India Strengthens Transmission Infrastructure to Support Rapid Renewable Growth

India is ramping up its power transmission infrastructure to keep up with its rapidly growing renewable energy capacity, targeting 500 GW of clean energy by 2030. In the first half of 2025, over 30 new power sector firms, mainly transmission companies and infrastructure investment trusts, were registered. The Union government alone established 10 of these, up from just two in February.

Despite strong progress in renewable capacity—242.8 GW of non-fossil fuel sources now make up nearly 50% of the total 484.8 GW installed capacity—the transmission network has lagged behind. Only 8,830 circuit kilometers (ckm) were added in FY25, a 38% drop compared to FY24. However, in April-May 2025, capacity additions picked up, reaching 620 ckm, higher than the 391 ckm added in the same period last year.

To meet future demands, India needs to add 191,000 ckm of transmission lines by 2031-32, requiring an estimated Rs19.15 trillion investment. This expansion will support offshore wind, battery storage, pumped storage, and green hydrogen hubs.

As the ISTS (inter-state transmission system) charge waivers for renewable projects are phased out, the focus is shifting to intra-state transmission. This will increase the role of state governments and agencies in driving infrastructure development.