Energy for India’s Future: Consolidating the Transmission Backbone for Renewables Growth

By Poonam Sharma

India’s transition to a low-carbon future is rooted in its ambitious 500 GW of renewable energy capacity by 2030 vision. A key enabler of this vision is India’s transmission infrastructure — the hidden grid that provides power from sources to consumers. As the world’s third-highest consumer of power, India has one of the largest power grids to synchronize, spanning over 4 lakh circuit kilometers of transmission lines. Yet, for integrating surging renewable sources and providing secure access to electricity, a strategic remake and upgrade of the power transmission industry is an absolute necessity.

The power supply system has three essential components: generation, transmission, and distribution. As electricity is generated in traditional plants and renewable plants, it needs to travel far to reach residences, industries, and commerce. This is made possible by transmission networks, which cut losses and maximize efficiency. Transmission is therefore a key role in not only providing power but also enabling India’s transition towards clean energy and economic growth.

India is gradually making the shift towards a smart grid — a smarter network with automation, communication, and IT capabilities to maximize real-time power flow. Smart grids dynamically track generation and consumption to make real-time adjustments for stability. Technologies such as 765 kV AC transmission lines and High Voltage Direct Current (HVDC) corridors play a critical role in bridging power surplus and deficit areas seamlessly. Such technologies reduce inefficiencies and guarantee uninterrupted power availability.

India’s grid integration started in the 1960s with state grids developing into five regional grids. A new phase of integration was initiated by the formation of the Power Grid Corporation in 1989, which finally reached its culmination with the addition of Leh-Ladakh in 2019. The integration of a single national grid under the umbrella of “One Nation, One Grid, One Frequency” has significantly enhanced power sharing between states with improved load balancing and stability.

Power Grid Corporation of India Limited (POWERGRID), a Maharatna PSU, has played a key role in this revolution. With more than half its ownership still with the government, POWERGRID leads the way in the creation of high-capacity transmission infrastructure.

Even with progress, the sector faces several challenges that require immediate attention:

-Right of Way (RoW) Problems: Slowness in land acquisition and legal issues in obtaining RoW permits results in serious project lags. Compensation disputes also contribute to the logjams.

Supply Chain Bottlenecks:  Project bidding increases have spurred equipment shortages. In addition, import restrictions on essential components, including those from China, have worsened delays.

– Aging Infrastructure: A large part of India’s current grid infrastructure is old, especially in rural regions, leading to increased losses and frequent power outages. These need to be upgraded to provide stable power supply.

– Transmission Losses and Theft:  Resistance in long-distance transmission lines and electricity theft account for huge energy and monetary losses. Urban slums and far-flung villages are most susceptible to such inefficiencies.

To respond to these bottlenecks, the Indian government has undertaken several reforms and incentives:

Updated Compensation Norms:  In 2024, the government doubled compensation for RoW acquisition by increasing the tower base and corridor area payments, making land purchase more viable.

Supply Chain Revival:  There’s a focus on local manufacturing and securing imports of strategic materials such as CRGO steel utilized in transformers — essential for renewable integration.

Upgrades to Infrastructure:  Sizeable investments are being channeled into upgrading present infrastructure with AI-based solutions and high-tech machinery for enhanced reliability and loss reduction.

Expansion of Transmission Network:  Initiatives are underway to extend the present 4.9 lakh circuit km network to 6.5 lakh km by 2032. This entails extending to underserved rural and far-flung areas, providing inclusive access to power.

Private Sector Participation: Today, private Transmission Service Providers (TSPs) operate 15% of interstate networks, and this percentage is set to go up to 50%. Competitive bidding has been implemented by States such as Maharashtra and Madhya Pradesh in a bid to seek private investment.

India’s transmission industry has a forecast investment of USD 100 billion within the next 7–8 years, promising a shift from the past paradigm. Major thrust areas of the future are:

  Facilitating smart grid adoption across the country at a faster pace.

 Promoting public-private partnerships to access capital and expertise.

 Implementing consistent policy across states to minimize regulatory barriers.

 Combining AI, IoT, and blockchain for real-time grid management and predictive maintenance.

India’s transmission grid is not a pipe through which electricity flows — it is the lifeblood of its energy revolution. With the country charging ahead on its green energy goals, a resilient, efficient, and technologically sophisticated transmission system will be the foundation of sustainable and equitable growth. Supporting this sector with innovation, investment, and reform will mean that India’s energy aspirations are anchored and within reach.