No Grid, No Green Power: Why Transmission Is Critical to Energy Transition

Transmission is no longer just a support system that helps use installed capacity. It has become the foundation for real market growth. Better lines enable open access for commercial and industrial consumers, support more corporate renewable power purchase agreements, and open the door to advanced grid services that create fresh demand for clean energy.

June 02, 2026. By News Bureau

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National Electricity Policy 2026

Energy Infrastructure

National Electricity Plan

Collaboration

India installed a record high of 44.5 GW of renewable energy capacity in 2025, with almost 35 GW of this capacity being added in the category of solar energy alone between January and November. The increased capacity of non-fossil fuels crossed 253 GW. The figures and bar diagrams show an impressive increase in clean energy generation. In reality, a significant portion of this clean energy remains unused at various places because of inadequate infrastructure to transport this generated power to places where it is actually consumed.

Transmission is no longer just a support system that helps use installed capacity. It has become the foundation for real market growth. Better lines enable open access for commercial and industrial consumers, support more corporate renewable power purchase agreements, and open the door to advanced grid services that create fresh demand for clean energy.

Transmission is also becoming the digital backbone for the power sector. Smarter grids, with real-time forecasting and dynamic balancing, are improving the efficiency of renewables, bringing system flexibility, and building long-term resilience. It is becoming the basis for future-ready power systems. Smart grid technologies, dynamic balancing, storage, and better access are required to convert variable renewable power into reliable and dispatchable power. The recent talks and debates within the sector regarding curtailment and infrastructure gaps are a clear example.

The Draft National Electricity Policy 2026 brings a stronger focus on performance and accountability across the full power chain. It sets tighter benchmarks for distribution companies and stresses system efficiency. This raises transmission planning and grid discipline as central elements in India’s next stage of energy change.

As policy reforms, institutional changes and investment plans move forward, transmission is shifting from a background layer to the strategic driver. It will decide how well India turns renewable targets into dependable green power that actually reaches users.

India’s Energy Infrastructure Priorities

In FY2025, only 8,830 circuit kilometers of new lines were built, compared to the target of 15,253 ckm. The disparity is an indication of the significant bottlenecks in the system. Budget 2026 provides only limited and fragmented support, with reduced spending on transmission and storage infrastructure from INR 800 crore to INR 600 crore, and wind spending remains flat. All these indicators are now more relevant and emphasise the need to consider the value of the grid, its reliability, and the issues related to its integration, as well as the need to better align policies to avoid stranded investment. All these are now making the case for the value of the grid as an essential element, as opposed to an additional requirement, in the pursuit of renewable energy and the strength of the economy.

The National Electricity Plan for transmission up to 2032 estimates a total cost of Rs 9.15 lakh crore. This breaks into Rs 4.25 lakh crore for 2022-2027 and Rs 4.9 lakh crore for 2027-2032. The scale of planned spending matches the size of the challenge ahead.

The Mandate Shift

Transmission now carries a changed and bigger mandate. It must act as the strategic enabler of renewable evacuation and grid stability. It must serve as the orchestrator that moves energy smoothly from remote generation hubs, often in states like Rajasthan and Gujarat, to major demand centres. It must function as a true partner in decarbonisation and overall system transformation.

Therefore, the infrastructure planning should match the renewable-rich areas. High-voltage corridors are required to efficiently transmit and minimise losses during the transportation of the produced energy. Future-proof infra should include smart grids and AI-based prediction and hybrid systems to efficiently deal with the fluctuations of renewable sources of energy.

Transmission Ecosystem Shift: Collaboration Becomes the New Infrastructure Model

The country’s strategy is evident in the consistent growth of the Green Energy Corridors. Till 2025, 9,161 circuit kilometres of infrastructure have been established. This infrastructure is required to bridge the evacuation gaps and can contribute to the aim of adding more than 230 GW of renewable energy sources.

Stronger pipelines from renewable sites to the grid are also taking shape through interstate links and new technologies such as battery storage tenders that now exceed 80 GWh.

Industry players must step up as active ecosystem partners. This means co-developing transmission plans with government bodies like the Central Electricity Authority. It includes bringing more public-private investment into large national transmission programmes. And it calls for smoother certifications, faster approvals and clear pathways for interstate system expansion.

Pain Points and Strategic Levers

Streamlined land acquisition and right-of-way mechanisms are still essential to speed up transmission buildout. Accelerated single-window clearances for grid projects would cut delays significantly. Integration of storage solutions at suitable points would reduce the impact of generation variability. Policy incentives for domestic manufacturing of transmission equipment would lower costs and strengthen local supply chains. Equitable risk-sharing models between developers and utilities would make projects more attractive and bankable.

Immediate Playbook

Companies and planners should adopt a grid-first energy strategy that puts evacuation planning ahead of simply adding generation capacity. They need to develop investment scale and execution strength for interstate corridors and smart grid upgrades. At the same time, they must strengthen forecasting tools, policy advocacy and technology adoption to achieve seamless integration across the system.

Vision

Organisations that treat transmission as a core part of their strategy will gain real advantages. They will achieve higher renewable utilisation rates, contribute to national energy security, show stronger decarbonisation readiness and build long-term sustainability in India’s green economy.

The 2025 capacity additions prove India’s ambition is serious. The difference between targets on paper and actual green power delivered will depend on how quickly and effectively the transmission network catches up. When transmission leads, the energy transition moves from ambition to results.

- Prashant Sinha, CEO, Resonia Ltd.