India is ramping up investment in its electricity transmission infrastructure to accommodate its rapidly growing renewable energy capacity, but challenges remain in grid expansion and supply chain constraints, according to a new report by the International Energy Agency.
The report, Building the Future Transmission Grid, highlights India’s ambitious plans to integrate 500 gigawatts of renewable energy capacity by 2030 and 600 GW by 2032. This requires significant transmission upgrades, including new high-voltage direct current lines and interregional connections.
“India has made substantial progress in expanding its transmission infrastructure, but achieving its renewable energy targets will require even greater investment and policy coordination,” the IEA report stated.
Investment Surge, But Challenges Persist
India has added nearly 180,000 kilometers of transmission lines over the past decade, representing a 70 percent increase.
In 2024, the government commissioned a 765-kilovolt transmission line from Khavada to Bhuj, capable of transmitting 3 GW of renewable power.
A larger 800 kV HVDC line between Gujarat and Maharashtra, designed to evacuate up to 8 GW, is set to be operational by 2026.
Despite these advances, the report warns that transmission development is struggling to keep pace with the rapid growth of solar and wind energy projects.
The IEA estimates that 1,650 GW of renewable energy projects globally are awaiting grid connections, with India among the countries facing backlogs.
“Grid congestion and delays in transmission expansion could significantly impact India’s ability to meet its clean energy targets,” said the IEA.
Supply Chain Constraints and Workforce Gaps
The surge in transmission infrastructure investment is also putting pressure on global supply chains. The report highlights rising costs and longer lead times for key components such as transformers, cables and conductors.
India’s domestic transformer manufacturers, including Indo Tech Transformers and Transformers & Rectifiers India Ltd, have seen strong revenue growth, but the sector faces increasing demand pressures.
A shortage of skilled workers also threatens grid expansion. The IEA estimates that the global power sector needs an additional 1.5 million workers by 2030, with India among the countries requiring a significant workforce expansion.
Policy and Regulatory Push Needed
India’s National Electricity Plan outlines strategies for investment in cross-border interconnections, storage solutions, and new substations to accelerate transmission development. However, the IEA calls for streamlining permitting processes and enhancing supply chain resilience.
“Proactive grid investment and regulatory clarity will be essential to ensure India’s transmission infrastructure keeps pace with its clean energy transition,” the report said.
India’s power grid transformation is a cornerstone of its decarbonization efforts, potentially making the country a global leader in renewable energy deployment. However, the IEA cautions that timely execution will be critical in avoiding bottlenecks that could slow progress.
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