Renewable developers seek Rs 3,000 crore as grid delays mount

Renewable-energy developers have sought a relief package of up to Rs 3,000 crore from the central goverment as delays in transmission infrastructure have left commissioned solar and wind projects unable to evacuate their full generation. Some affected projects are reportedly facing 80-90 per cent curtailment, with only 10-20 per cent of their power reaching the grid. Industry officials have estimated losses of up to Rs 50 crore a day for some companies, putting pressure on project revenues and debt repayments.

The immediate concern is concentrated in renewable-rich states such as Rajasthan and Gujarat, where generation capacity has expanded rapidly while associated transmission infrastructure has taken longer to become operational. The problem has become particularly visible around the Neemrana-II and Bikaner-III substations in Rajasthan, where transmission delays have affected projects that are otherwise ready to generate electricity.

The scale of the problem extends beyond these projects. Around 33 per cent of 54.8 GW of recently commissioned renewable-energy capacity was being evacuated through the temporary General Network Access (T-GNA) route as of May 2026. Curtailment during solar hours was reported at 50-60 per cent, particularly in Rajasthan and Gujarat. The financial impact has prompted requests for bridge financing, a moratorium on principal repayments and extensions to loan tenures during transmission delays.

India’s transmission network has expanded considerably over the past decade. In January 2026, the national transmission network crossed 500,000 circuit kilometres of lines at 220 kV and above, with transformation capacity reaching 1,407 GVA. The network had grown by 71.6 per cent since April 2014, while another 67,000 circuit kilometres of transmission projects were under development to support increasing non-fossil generation.

The challenge is increasingly about whether the required transmission assets are available at the right locations and when renewable projects begin commercial operations. Solar and wind projects can often be commissioned within 12-18 months, while associated transmission and evacuation infrastructure can take 24-36 months or longer. This difference in project timelines can leave generating assets ready for operation while the network remains incomplete.

Transmission projects themselves also face lengthy implementation processes. Projects awarded through the tariff-based competitive bidding route have frequently missed their scheduled commissioning dates. Of the projects commissioned under this route up to March 2026, only about 12 per cent were completed within their scheduled timelines, while the remainder faced delays ranging from two months to three years, with the median delay exceeding 10 months. Land acquisition, right-of-way constraints and regulatory approvals are among the main execution risks.

The consequences are already visible in renewable generation. An estimated 2.3 TWh of solar power was curtailed nationally between May and December 2025. In Rajasthan, up to 8 GW of renewable capacity was affected by curtailment during 2025, resulting in potential losses of nearly Rs 7 billion.

The transmission challenge comes at a time when India is preparing for another large expansion of the power system. The Central Electricity Authority has a dedicated transmission plan for integrating more than 500 GW of non-fossil capacity by 2030. India is also expected to invest around Rs 5-6 lakh crore in transmission infrastructure between 2026-27 and 2031–32, including new transmission corridors, strengthening of existing networks and additional evacuation capacity. This expansion would require adding roughly 20,000 circuit kilometres of transmission lines and 120 GVA of substation capacity each year.

This investment will need to be accompanied by a change in planning practice. Transmission planning needs to anticipate renewable capacity rather than respond after projects are already under construction. Generation additions, transmission corridors, substations, storage requirements and future demand centres need to be assessed together. Renewable-energy zones should be linked with transmission readiness, with stronger coordination among central and state transmission utilities, developers, discoms, regulators and planning agencies.

Greater attention is also needed for intra-state networks. India’s Green Energy Corridor has played an important role in connecting renewable-rich states, but the next phase of grid investment will need to strengthen substations, feeders and local evacuation systems within states. These networks are increasingly important for moving renewable electricity from generation sites to load centres, particularly as renewable projects become larger and more geographically concentrated.

Storage can provide additional flexibility where renewable generation is concentrated in a few hours of the day. Battery storage and pumped storage can shift electricity to periods of higher demand and help manage congestion. The CEA has also examined renewable-energy-plus-storage configurations for meeting India’s 500 GW non-fossil capacity target.

India’s next phase of renewable expansion will therefore depend heavily on how quickly transmission infrastructure can be planned, cleared and commissioned. The country already has a large transmission backbone and significant investment is planned for its expansion. The priority now is timely execution, stronger state-level networks and better coordination between generation and transmission planning. These factors will determine how much of India’s new renewable capacity can actually be evacuated and used.