Building Green Grids for India’s Renewable Energy Future
As India scales up its renewable energy generation, the real challenge is no longer just producing clean power. The bigger task is transmitting and distributing it efficiently and reliably.
August 05, 2025. By News Bureau
The electrical and allied equipment industry has emerged as a key enabler of this transformation. This sector is actively contributing to the vision of Atmanirbhar Bharat by advancing research, fostering innovation, and expanding India’s global manufacturing footprint.
A Growing Industry with Deep Impact
The past two years have seen the domestic electrical industry grow at an impressive 14 percent annually, with FY 2023–24 marking a high point. Also, the long-term outlook remains optimistic. The sector holds potential for 12 percent compound annual growth, with the capacity to contribute more than 3 percent to the national GDP, while generating widespread employment across the value chain. India’s electrical industry is evolving rapidly, with growth coming not only from traditional Transmission and Distribution (T&D) but also from emerging areas like energy storage, electric mobility, and charging infrastructure. Over USD 18 billion in foreign direct investment in the power sector over the past 20 years, global investors clearly recognise the scale and opportunity of India’s energy market. As the country charts its path towards becoming a USD 30 trillion economy by 2047 and achieving net-zero emissions, the energy sector is poised for a fundamental transformation.
Greening the Grid: The Real Challenge
As India scales up its renewable energy generation, the real challenge is no longer just producing clean power. The bigger task is transmitting and distributing it efficiently and reliably. Solar and wind projects are often located in remote areas, far from the cities and industries where most of the power is needed. Without a robust and responsive grid, much of this clean energy cannot be fully utilised.
To address this challenge, India needs to significantly strengthen its transmission network. The Central Electricity Authority has outlined the need for 1.24 lakh circuit kilometers of additional transmission lines and 7.2 lakh MVA of transformation capacity by 2030. This massive expansion is key to linking the renewable-rich regions to major demand centers across the country.
At the distribution level, the grid needs to become smarter and more efficient. The government's plan to install 25 crore smart meters under the Revamped Distribution Sector Scheme will help in managing the grid through Dynamic Simulation. There will also be a 30 percent to 40 percent increase in the need for low-tension feeders, substations, capacitor banks, and distribution transformers, especially in fast-growing towns and rural areas.
Modernising the grid also means making it more intelligent and flexible. Renewable energy is not constant, and grid operators must be able to manage variability in real time. This will require greater use of digital tools such as automated control systems, demand forecasting, and real-time monitoring. As more households and businesses install solar rooftops and contribute power back into the grid, managing two-way power flows will become increasingly important.
Storage solutions are another essential part of the equation. Battery energy storage systems and pumped storage projects can store excess energy during periods of high generation and release it when demand peaks. These technologies will help maintain grid stability and ensure that renewable energy is available when it is most needed.
Greening the grid is not only a technical requirement. It is a national priority that supports economic growth, environmental sustainability, and energy access. With the right investments, planning, and collaboration, India can build a grid that is not just bigger, but also smarter, cleaner, and ready for the future.
Powering India, Reaching the World
As India strengthens its renewable energy infrastructure, its electrical manufacturing sector is striding along and becoming a global force. With a strong push for indigenisation and a focus on quality, safety, and reliability, Indian products are now reaching key international markets.
Over the past five years, exports have grown at a compound annual rate of 11.4 percent. Transformers, cables, conductors, rotating machines, and transmission towers have all seen strong demand. Major export destinations include the United States, UAE, United Kingdom, Germany, and Australia.
There is growing potential to expand into new markets such as Africa, Latin America, and the European Union, where demand for clean and reliable energy infrastructure is rising.
At home, the focus remains on building smarter grids, supported by energy storage, digital controls, and modern transmission systems. This twin approach—strengthening domestic capability while expanding global reach—is key to making India a leader in the global energy transition. Indian manufacturers are increasing their capacity to meet the new demand and also doing backward integration.
- Sunil Singhvi, President, IEEMA
please contact: contact@energetica-india.net.
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