Powering India’s Energy Transition Through Grid Modernisation

Grid automation will help shift from unidirectional to bidirectional energy flows, enabling households, electric vehicles and distributed producers to become crucial players in the renewable energy ecosystem.

November 04, 2025. By News Bureau

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Kartik Daftari

Hi-Tech Radiators Pvt. Ltd.

Fossil fuel generation

Grid Ecosystem

India is progressing at a steady pace toward the goal of 500 GW of renewable energy capacity by 2030. As of June 2025, the country has already developed 235.7 GW of non-fossil fuel capacity – 226.9 GW from renewable sources and 8.8 GW from nuclear power. Pralhad Joshi, Union Minister for New and Renewable Energy, has recently mentioned that India has surpassed Japan to become the world’s third-largest solar energy generator. This feat demonstrates India’s dominant role in the global energy transition.

Having said that, renewable energy generation and capacity building is just one half of the story. The other half is about ensuring sustainable and reliable renewable energy transmission across the vast geography of the country. This is where the grid system, known as the backbone of the power sector, assumes greater importance. Electricity grids carry energy from energy generation-rich regions to distant demand-generating locations and hubs, ensuring stability, security and efficiency in energy transmission and distribution. In the movement towards a clean energy future, a resilient and tech-enabled grid system is essential for large-scale renewable energy adoption.

The Transmission Challenge

India’s unified national electricity grid connects all five regional grids – Northern, Eastern, Western, Southern and North-Eastern – into a seamless network, which facilitates energy transmission from energy surplus regions to energy shortage regions. However, the present grid system may face challenges as the renewable energy generation is not equally distributed. States like Rajasthan, Gujarat, Maharashtra, Tamil Nadu, Karnataka and Andhra Pradesh take up the major share of solar and wind energy capacity. On the other hand, states or regions that are the major consumption centres, such as Delhi-NCR, Uttar Pradesh, Punjab, Haryana, West Bengal, and Bihar, are hundreds of kilometres away.

Inadequate renewable energy evacuation capacity leads to power transmission and distribution imbalance. Without a significant expansion and upgradation of grid infrastructure, these inefficiencies will grow with the rise of renewable energy capacity. Mobilising over 500 GW of renewable energy in 2030 will require the development of robust, high-capacity corridors capable of evacuating and distributing green energy effectively across the nation.

Technology as Game-Changer

Renewable energy generation brings with it unique challenges – variability, decentralisation, and intermittency. The erstwhile grid built for predictable, centralised fossil fuel generation needs to adapt to a diverse renewable energy mix including solar, wind, hydropower, nuclear, hydrogen, and distributed energy resources (DERs).

Advanced transformers, smart substations, and flexible AC transmission systems (FACTS) will be instrumental in integrating renewable energy into the grid. Having said that, the future lies in digital intelligence. Automated control systems, AI-driven forecasting, real-time monitoring, and predictive analytics will empower grid operators to anticipate fluctuations, prevent overloads, and optimise energy flows.

In addition, energy storage solutions such as grid-scale batteries and pumped hydro act as a buffer between variable generation and the continued power demand. Grid automation will help shift from unidirectional to bidirectional energy flows, enabling households, electric vehicles and distributed producers to become crucial players in the renewable energy ecosystem.

Policy Support and Market Design

Grid modernisation is not about technology deployment. The process also involves forward-looking market design. On the policy front, the government has taken steps in the right direction by rolling out the National Smart Grid Mission (NSGM) and the Smart Meter National Programme (SMNP). As a part of these programmes, over 20 million smart metres have been deployed to enhance transparency, cut down losses and drive demand-side management.

Introducing Locational Marginal Pricing (LMP) on power exchange could be an apt measure to align price movements with real-time grid conditions, incentivising generation where it is required. It will improve energy delivery efficiency and grid investment efficiency. In a decentralised renewable energy ecosystem, LMP enables the grid’s stability and efficiency.

All these policy measures could attract private investment in developing useful solutions such as battery storage, flexible transmission technologies, and advanced forecasting tools.

Building a Future-Ready Grid Ecosystem

The energy transition is not just about phasing out fossil fuels. It is about reshaping and reengineering the architecture of the country's power generation, transmission and distribution system. Growing renewable energy adoption in personal and commercial, and mass transport, as well as across industries, will place unprecedented demand load on the grid. In addition, the growth of energy-intensive architecture data centres will further intensify the demand.

Hence, building grid resilience will be the key to facilitating energy distribution while addressing issues like power outages and intermittency. Deploying self-healing networks, predictive maintenance capabilities will help in overcoming grid infrastructure fragility. Renewable energy players in developed countries have already started working towards setting up robust grid energy resilience strategies, which involve integrating smart grid technologies, building localised microgrids and energy storage.

Grid: The Cornerstone of the Energy Transition

The grid will determine the scale of our energy transition. A modernised, intelligent, and resilient grid will strike a balance between demand and supply. The energy transition and energy security drive in the country offers an opportunity to reimagine the power infrastructure, to meet domestic needs as well as set a global benchmark for clean energy transition. Enabling policy, targeted investment, cutting-edge technology adoption and strong public-private collaboration will build a strong grid ecosystem capable of keeping pace with the country’s renewable energy ambitions. Therefore, grid modernisation needs to be prioritised.

- Kartik Daftari, MD & CEO, Hi-Tech Radiators Pvt. Ltd.