The Government of India is intensifying efforts to ensure seamless integration of non-fossil fuel-based power into the national grid, with transmission systems being planned to accommodate over 500 GW of renewable energy (RE) capacity by 2030, the Ministry of Power said.
In a written reply in the Rajya Sabha, Minister of State for Power Shripad Naik stated that grid readiness and stability are being continuously assessed through advanced system studies, including load flow, dynamic stability, and contingency analysis. These assessments help manage challenges related to renewable energy variability, intermittency, and peak demand.
To support large-scale RE integration without compromising grid stability, the government has implemented a range of structural, technological, and market-based measures.
Strengthening Transmission and Grid Infrastructure
Transmission planning is being aligned with renewable capacity expansion, with both inter-state and intra-state networks being developed in parallel. Strong interconnection between Inter-State Transmission System (ISTS) and state networks is being ensured to improve voltage stability, reduce losses, and enhance reliability.
Under the Green Energy Corridor (GEC) Scheme, the government is providing financial assistance to states for building transmission infrastructure. The first phase of intra-state systems, enabling evacuation of 24 GW of renewable energy, has already been commissioned, while the second phase—designed for around 20 GW capacity—is currently under implementation.
Additionally, the National Electricity Plan (Transmission) notified in 2024 outlines infrastructure expansion for the period 2023–2032, aligned with projected generation growth.
Advanced Grid Management and Forecasting
The government has established Regional Energy Management Centers (REMCs) to improve renewable energy forecasting and assist grid operators in managing intermittency. Further, guidelines for installing Automatic Weather Stations (AWS) at solar and wind plants have been issued to enhance real-time data accuracy and predictability.
Technologies such as Static Synchronous Compensators (STATCOMs), Static VAR Compensators (SVCs), and synchronous condensers are being deployed to regulate voltage and maintain grid stability. Automatic Generation Control (AGC) is also being used to maintain frequency by sending real-time signals to power plants.
Market Reforms and Flexible Operations
India has introduced innovative market mechanisms such as the Green Day Ahead Market (GDAM) and Green Term Ahead Market (GTAM) to facilitate renewable energy trading. Market-based Tertiary Reserve Ancillary Services (TRAS) have also been implemented to address real-time supply-demand imbalances.
To manage variability, the government is promoting solar-wind hybrid projects, renewable projects with storage, and flexible operation of thermal and hydro power plants. Fast-ramping sources such as hydro and gas-based plants are being optimally scheduled to maintain grid balance.
Energy Storage and Manufacturing Push
Energy storage remains a key focus area. The government is supporting the deployment of Battery Energy Storage Systems (BESS) through Viability Gap Funding (VGF), targeting the development of 43 GWh storage capacity.
In parallel, the Ministry of Heavy Industries is implementing a Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage, aiming to establish 50 GWh of domestic manufacturing capacity, including 10 GWh dedicated to grid-scale applications.
Regulatory Framework and Compliance
The Central Electricity Authority (CEA) has established technical standards for grid connectivity to ensure safe and reliable integration of renewable energy plants. Compliance with these standards is verified jointly by the Central Transmission Utility and grid operators before any project is connected to the national grid.
The Indian Electricity Grid Code mandates renewable energy plants to participate in frequency control mechanisms during contingencies, further strengthening grid resilience.
Capacity Expansion to Meet Future Demand
India’s peak electricity demand is projected to reach 446 GW, with total energy requirement estimated at 3,215 billion units (BU) by 2034–35. To meet this demand, the government has outlined a comprehensive capacity addition plan:
Thermal Power: At least 97 GW of additional coal and lignite capacity planned, with ongoing construction and tendering activities.
Hydropower: Over 12.7 GW under construction and additional capacity planned by 2031–32.
Nuclear: 6.6 GW under construction, with 7 GW in planning stages.
Renewable Energy: 157.8 GW under construction and 48.7 GW in planning, including solar, wind, and hybrid projects.
Energy Storage: Significant expansion in pumped storage and battery systems, with multiple projects under construction and tendering.
With a combination of infrastructure expansion, advanced grid technologies, policy incentives, and market reforms, the government aims to ensure reliable integration of renewable energy while maintaining grid stability and meeting the country’s growing electricity demand.
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