India requires major transmission buildout as renewable energy curtailment reaches 33%: ICRA
ICRA estimates the field will must add spherical 20,000 circuit kilometres of transmission lines and 120 gigavolt-amperes (GVA) of substation ability yearly to satisfy the government’s earlier Nationwide Electricity Thought-II targets.
On the different hand, the company warned that execution challenges, at the side of land acquisition and accurate-of-manner (RoW) considerations, proceed to extend tasks. These delays are contributing to renewable energy curtailment, with grid constraints ensuing in spherical 33% curtailment as of Could well perchance perchance also merely 2026 in regions where transmission infrastructure has yet to satisfy up with know-how ability.
Commenting on the execution challenges, Ankit Jain, vp, ICRA Restricted, stated: “Vitality transmission tasks proceed to face well-known execution dangers owing to challenges in procuring land, ROW related considerations and regulatory approvals, main to delays in timely implementation. Most transmission tasks awarded by the central nodal companies throughout the tariff based aggressive bidding (TBCB) route were delayed past their scheduled commissioning date (SCOD) attributable to these challenges.”
“Out of the full tasks commissioned by March 2026 below this route, handiest 12% turned into completed internal the scheduled timeline, while the steadiness turned into commissioned with a saunter of two months to a pair of years, with the median extend of over 10 months. This extend within the transmission ability addition impacts the probability of energy evacuation for the renewable energy gamers, ensuing in curtailment related episodes,” he added.
ICRA moreover great that prominent orders and novel explain inflows for major transmission instruments suppliers extra than doubled in FY2026 compared with FY2022, reflecting the expected magnify in transmission spending.
While the funding pipeline is expected to toughen sturdy explain books for instruments producers, ICRA stated small manufacturing ability and shortages of professional labour would possibly perchance constrain execution except suppliers make better ability.
The company added that renewable energy curtailment on the interstate transmission procedure (ISTS) remains largely driven by transmission bottlenecks and insufficient quick-term fashioned community rep admission to (T-GNA), ensuing in non-scheduling of energy.
Furthermore, Jain highlighted, “Out of the no longer too long within the past commissioned complete RE ability of 54.8 GW, 33% is being evacuated below T-GNA route at an all-India diploma as of Could well perchance perchance also merely 2026. Additional, the curtailment below TGNA is the top doubtless at some point of solar hours and has remained within the vary of fifty-60% at some point of the identical length. These instances are extra prominent in Rajasthan and Gujarat, while curtailments within the southern screech remain small even within the solar hours.”
“A large pipeline of tasks of 107GW across solar, wind, hybrid, hydro, pumped storage and thermal segments, which already were granted connectivity, are deliberate to be constructed-in into the ISTS community between 2026-27 and 2030-31. As seen within the past, slippages in achieving timely commissioning of the upcoming transmission infrastructure can’t be dominated out, which would possibly perchance impression RE ability additions or result in continued grid curtailment episodes for the RE gamers, materially impacting the return metrics of the RE tasks,” concluded Jain.
