Kearney Flags Transmission Gaps Threatening India’s 500 GW RE Ambition

India'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 digitalisation capabilities, according to a new report by global management consulting firm Kearney.

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 modernisation 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.

The consequences are already visible on the ground: between April and June 2026, India curtailed more than 8 TWh of solar generation, primarily because of grid congestion.

Kearney’s report identifies five key structural challenges slowing India’s transmission expansion. Fragmented planning among central and state transmission utilities can lead to mismatches between renewable generation and evacuation infrastructure, particularly in renewable-rich states. 

Underutilised assets and rising costs are another concern, as transmission capacity is often allocated based on planned power purchase agreements, while solar-heavy corridors may remain underused outside generation hours. 

Right-of-way and clearance delays have also affected at least 14 ISTS projects covering 1,972.5 circuit km as of March 2025. Meanwhile, supply-chain constraints, including long transformer lead times and dependence on imported CRGO steel, are contributing to project delays. Finally, limited digital adoption of GIS, drones, LiDAR and wide-area monitoring is restricting opportunities to improve transmission planning, construction and operations.

Kearney’s report proposes five measures to strengthen India’s transmission sector. It calls for integrated long-term planning through a national transmission planning framework covering central and state utilities. It also recommends better utilisation of existing capacity through co-located battery storage, flexible AC transmission systems and dynamic line ratings. 

To address delays, the report suggests pre-cleared transmission corridors, faster approvals and a national GIS-based right-of-way database. Strengthening domestic supply chains through local CRGO steel production, long-term equipment contracts and mechanised construction is another priority. 

Finally, Kearney recommends greater digital adoption, including advanced energy management systems and wider deployment of phasor measurement units for more predictive and efficient grid operations.

Sanchit Makhija, Partner, Kearney, said, "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. 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.

India not only needs to build more but also use existing infrastructure more efficiently. Our 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 utilisation 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.”