Why Grid Companies will be India’s Next Energy Champions

It is only via smart grids and the requisite infrastructure that power can be reliably delivered when and where required. Accordingly, India’s energy transition leaders will not only be its power producers but also grid entities that manage storage, transmission and delivery.

June 11, 2026. By News Bureau

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Nationally Determined Contribution

Power Grid Corporation of India

NTPC

Over the past few years, India has steadily expanded its renewable energy (RE) capacity. As the clean energy transition gathers pace, an increasing need is being felt for robust grid infrastructure. Due to the intermittency of RE, specifically solar, ample storage, transmission and grid capacity will be indispensable to ensure available power is not stranded.

Current Constraints and Their Latent Opportunities
Considering the current constraints, the actual challenge lies in the reliable integration, management and distribution of clean energy across the entire power network. Although the nation has speedily expanded its RE capacity within a few years, the next growth phase will depend on effectively storing and delivering this power. Therefore, grid companies will play a critical role in meeting this objective.

After a period of muted progress, the transmission sector seems poised for a strong revival by FY2027, backed by an investment cache of INR 7.6 trillion. Consequently, companies that build and manage this grid infrastructure are geared to emerge as the next energy winners. It is apparent that prolonged challenges in implementing power projects, which include infrastructure, have led to a big backlog. Today, this has transformed into a latent opportunity that is ripe for execution.

While structural and regulatory risks linger, the industry has entered a stage of sustained growth driven by RE expansion, conducive policy measures and rising project momentum. By 2030, India intends to have 500 GW of non-fossil fuel capacity. Highlighting its steady progress in the transition from non-fossil fuel sources, the country reached 50 percent of the installed electricity capacity in June 2025, five years ahead of its 2030 Nationally Determined Contribution (NDC) target under the Paris Agreement.

The Indispensable Role of Grid Infrastructure
But the large-scale addition of renewables has repeatedly exposed gaps in evacuation infrastructure and transmission connectivity. Record RE targets will go in vain if grid infrastructure is not in place to efficiently store, transmit and use this power. Conversely, growing electricity demand from data centres, electric vehicles, the manufacturing sector and digital networks is raising the pressure on current power systems.

In such a scenario, rapidly expanding RE capacity will be most useful. But since RE sources like solar and wind remain variable in nature, it complicates the task of balancing the grid. Once again, this highlights the importance of proper power infrastructure such as storage systems, substations, smart grid technology and transmission networks. Infrastructure is imperative because solar and wind projects are usually built in distant locations, away from industrial hubs that need power supplies 24/7. Distribution of power then requires the establishment of high-voltage transmission lines spanning thousands of kilometres.

Keeping these needs in mind, instead of operating only as power suppliers, public sector entities like NTPC and Power Grid Corporation of India, as well as private players, are expanding their transmission networks to act as critical grid enablers. The significance of power grids cannot be overemphasised. When solar and wind output fluctuates, the role of grids becomes crucial in managing evening ramp-ups since this is the time when solar power stands suspended even as demand peaks.

At this point, Battery Energy Storage Systems (BESS) and pumped hydro storage equipment are used to balance the grid. Long-duration energy storage alternatives like pumped storage and thermal storage are particularly useful in supporting seasonal balancing and ensuring clean round-the-clock (RTC) power. BESS integration is also helpful to prevent curtailment of renewable energy, which is one of the core challenges. Hybrid projects that blend renewables with storage can be pivotal in promoting RTC supplies.

Smart Grids: The Need of the Hour
Given the issue of grid congestion, modernisation of grids is also essential. The shift from manual to digital energy management will enhance efficiencies as smart grids can manage two-way power flows, especially in the case of rooftop solar, where consumers also act as prosumers of power. Prosumers have a vital role in the RE ecosystem as they sell their excess power back to the grid.

In the context of grid digitalisation, one must mention the measures being undertaken in Rajasthan. The International Solar Alliance is deploying digital twin technology in the desert state’s power distribution network. Through AI-powered twin technology, renewable energy will be integrated while improving grid stability. Digital twins make this possible by allowing real-time monitoring, predictive detection of faults and smarter grid restoration. This helps in handling variable solar power and other distributed RE sources. Predictive load and asset management also assist in lowering operational losses by curbing curtailment.

How Grids Can Promote Energy Security
As the temperature soars across the country, peak power demand reached a record high of 256 GW on 25 April this year. During this period, 30 percent of the overall power generation came from RE, with solar providing 24 percent of the peak power demand. In the coming years, record temperature spikes will occur at periodic intervals. Supported by a stable grid, the role of RE will be key in meeting unprecedented power needs.

It is only via smart grids and the requisite infrastructure that power can be reliably delivered when and where required. Accordingly, India’s energy transition leaders will not only be its power producers but also grid entities that manage storage, transmission and delivery. This power can be used reliably later, making it the most strategic investment in the power industry. Grid firms that augment India’s power capacity will then benefit from meeting this demand, helping India become a truly energy-secure nation.

- Simarpreet Singh, Executive Director and CEO, Hartek Power