India curtailed more than 8 TWh of solar power generation between April and June 2026, with grid congestion identified as a major factor, according to a report by global management consulting firm Kearney. The report says the nation’s ambition to hit 500 GW of renewable energy capacity by 2030 will depend on how quickly the power transmission network scales up its planning, execution, and digitalization capabilities.
The report, “Rewiring India’s power future: a blueprint for an intelligent and future-ready transmission sector,” finds that even as peak power demand is projected to climb to 459 GW by FY2036, the country’s transmission backbone, that is built for a different era of thermal-led generation, needs significant modernization to keep pace with a rapidly changing, renewables-heavy grid.
To support the shift, India’s Inter-State Transmission System (ISTS) rolling plan calls for 67,263 circuit kilometers of new transmission lines and 629,597 MVA of additional transformation capacity by FY2030–31, requiring an estimated investment of INR 4.85 lakh crore. Yet Kearney’s analysis based on Central Electricity Authority (CEA) data shows that annual transmission additions have consistently missed National Electricity Plan targets, with shortfalls as high as 50 percent in some years.
“India’s transmission sector is at an inflection point. The country has set out one of the most ambitious renewable energy targets in the world, and the investment blueprint to support it is largely in place. Accelerating execution will separate ambition from achievement,” said Sanchit Makhija, Partner, Kearney.
“In Q1FY2027 alone, more than 8 TWh of solar power was curtailed. That is close to 2 percent of all the electricity India generated in the quarter, and roughly a fifth of its solar output, clean energy already built and paid for that never reached consumers.”
Makhija said that India not only needs to build more but also use existing infrastructure more efficiently.
“Kearney analysis shows that co-locating storage can free up to 60 percent of tied-up grid capacity, and technologies such as FACTS and dynamic line rating can add 20 to 30 percent more throughput on existing lines. “India does not have a funding gap; it has an execution and utilization gap. Transmission players should stop thinking of themselves as corridor builders and start operating as platform leaders to set the pace of India’s energy transition,” said Makhija.
Kearney’s report identifies five interlinked structural issues the sector needs to address:
To close these gaps, Kearney’s report lays out five imperatives for transforming India’s transmission sector:
1. Shift to integrated, long-range planning — establishing a Central Electricity Authority-anchored national transmission planning cell with oversight across all state transmission utilities, built around a unified 15- to 20-year demand horizon.
2. Unlock existing capacity through storage and smarter allocation — mandating co-located battery energy storage for new renewable projects and tying transmission access to demonstrated capacity utilization. Kearney analysis indicates that co-located storage can free up to 60 percent of tied-up connectivity, while flexible AC transmission systems can increase line loading by 20 to 30 percent and dynamic line rating can unlock a further 10 to 20 percent from existing lines.
3. Move to a corridor-based right-of-way model — designating 8 to 10 pre-cleared corridors across renewable-rich states, backed by a statutory 90-day clearance SLA, a national GIS-based right-of-way database and standardized community compensation norms.
4. Strengthen supply chains and execution capability — building domestic CRGO steel capacity through global joint ventures, signing multiyear framework agreements with equipment manufacturers, and setting up a national leasing pool for mechanized construction equipment.
5. Build digital centers of excellence — deploying next-generation energy management systems and extending phasor measurement unit coverage down to the 132 kV level to enable predictive, analytics-driven grid operations.
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