India’s power transmission sector is entering a critical phase as the country expands renewable energy capacity and prepares for a sharp increase in electricity demand. According to a recent report by management consulting firm Kearney, India’s transmission network will need significant changes to support its clean energy ambitions. The country is targeting 500 GW of renewable energy capacity by 2030, while peak electricity demand is expected to reach 459 GW by FY2036.
The report highlights that the challenge is not limited to building more transmission infrastructure. India will also need smarter planning, better utilization of existing assets and greater use of digital technologies to manage an increasingly renewable-heavy power system.
Kearney has identified five major structural challenges affecting the transmission sector. The first is a lack of coordination between central and state utilities. Transmission projects are also progressing more slowly than renewable energy developments, creating a mismatch between generation capacity and grid availability.
The second challenge is the underutilization of transmission assets operated by the Central Transmission Utility. The report notes that connectivity is often allocated without adequately considering capacity utilization factors. This can result in transmission infrastructure being used below its potential while increasing transmission charges.
Right-of-way constraints and lengthy regulatory approval processes represent another major obstacle. Transmission projects can face delays because of land access, permissions and other clearances, leaving hundreds of circuit kilometers stalled. Supply chain constraints are also affecting project execution, particularly for critical equipment such as transformers and high-voltage conductors. Traditional construction practices can further extend project timelines.
The report also points to limited digital adoption across the transmission network. Insufficient real-time monitoring can create gaps in understanding grid conditions and restrict the ability of utilities to respond quickly to changing power flows.
To address these issues, Kearney has proposed a five-pillar framework. The first pillar focuses on long-term network planning covering 15 to 20 years and incorporating renewable generation, battery energy storage systems, pumped hydro storage and changing demand patterns.
The second pillar focuses on improving asset utilization. The report recommends greater use of co-located energy storage, Flexible AC Transmission Systems and dynamic line-rating technologies to increase the capacity and flexibility of existing networks.
The third pillar proposes a corridor-based delivery model with pre-cleared national transmission corridors, standardized community compensation and time-bound approvals.
The fourth pillar emphasizes strategic procurement and capital management. Multiyear agreements with equipment manufacturers, stronger domestic manufacturing and digital project management could help address supply constraints and construction delays.
The fifth pillar calls for Digital Centers of Excellence and wider deployment of real-time monitoring systems and phasor measurement units across state-level transmission networks.
Together, these measures could help India build a more flexible, efficient and resilient transmission system capable of supporting its growing renewable energy capacity and future electricity demand.
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
