India’s rapid push for renewable energy is stalling due to inadequate transmission capacity, with significant curtailment and delays in project online deployment spotlighting the urgent need for infrastructure expansion amid a strong policy push.
India’s rapid build-out of renewable power is running into a more basic problem: the grid cannot always carry the electricity. According to ICRA, inadequate transmission capacity is now one of the main constraints on the sector, with some solar projects being curtailed in daylight hours because available lines are congested. The rating agency said the issue is becoming more visible just as the country’s pipeline remains large and policy support for clean power stays strong.
The strain is especially apparent for projects using Temporary General Network Access, or T-GNA, a short-term arrangement that allows renewable generators to use spare capacity on the inter-state transmission system. ICRA said about 37 per cent of renewable capacity at substations affected by curtailment across the northern, western and southern regions is operating under this route, with daytime curtailment of 30 to 50 per cent. In western India, around 55 per cent of the affected capacity was on T-GNA, while peak curtailment reached 8,617 MW as of August 6. The corresponding figure in the north was 5,573 MW.
ICRA’s latest assessment also underscores how much capacity is still waiting to come online. More than 150 GW of renewable projects were under construction as of June 30, the agency said, and it expects renewables, including large hydro, to account for more than 35 per cent of India’s electricity generation by FY30, up from 22 per cent in FY25. Even so, the pace of fresh awards has slowed sharply. Capacity fell from 40.6 GW in FY25 to 14.7 GW in FY26, and stood at just 4.7 GW by August 10 this year.
The slowdown is partly linked to a growing mismatch between project commissioning and contract signing. ICRA estimated that 40 GW to 45 GW of awarded capacity still lacked signed power purchase agreements as of April 2026. The agency said bidding is also shifting away from conventional solar and wind towards firm and dispatchable renewable energy, or FDRE, and round-the-clock supply, which are designed to provide more predictable output and better fit grid requirements.
Industry reports over the past year have repeatedly pointed to the same bottleneck. ICRA said transmission expansion has lagged behind generation growth, and that delays in land acquisition, right-of-way clearances and the signing of PPAs remain key execution risks. A July report from the agency projected that India’s power transmission sector may need ₹5 trillion to ₹6 trillion in investment between FY2026-27 and FY2031-32 to support the country’s renewable energy ambitions, while the Central Electricity Authority has already mapped transmission needs for more than 900 GW of non-fossil fuel capacity by 2035-36. ICRA said stronger intra-state and inter-state transmission build-out, along with more storage, will be vital if the existing project pipeline is to translate into actual electricity supply.
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