India's renewable energy growth hits a wall: 21 GW stuck in transmission queues
India's renewable energy sector is confronting a significant obstacle as transmission infrastructure lags behind the rapid deployment of solar and wind projects. According to government data, nearly 21 gigawatts (GW) of renewable energy capacity—about 9% of the country's installed capacity—is currently connected to the grid through temporary arrangements, awaiting dedicated evacuation lines.
This temporary status, known as Temporary General Network Access (T-GNA), allows renewable plants to schedule power only when spare transmission capacity is available. During peak solar generation, this often leads to curtailment—the intentional reduction of power output. Around 12 GW of that capacity faces restrictions during such periods, exposing developers to significant revenue losses and raising concerns about project viability.
The mismatch between renewable energy deployment and transmission commissioning is stark. In the financial year 2025-26 (FY26), approximately 6,900 gigawatt-hours (GWh) of clean electricity was curtailed due to transmission constraints and grid-security requirements, according to latest government data. Developers report curtailment levels as high as 70-80% of their generating capacity for T-GNA projects, posing serious risks to debt servicing and financial sustainability.
Electricity curtailment refers to the intentional reduction of power output from renewable generators. While renewable energy sources enjoy 'must-run' status in India, they can still be backed down on grounds of grid security, technical constraints, and transmission bottlenecks. During April-June 2025, grid operators curtailed 8,133 GWh of solar power for these reasons. Developers are compensated for grid-security-related backing down, but curtailment caused by transmission bottlenecks remains a key financial concern.
The financial stress has prompted industry action. On July 22, the Sustainable Project Developers Association (SPDA), which represents over 50 renewable energy companies, wrote to the Ministry of New and Renewable Energy (MNRE) seeking relief. The letter highlighted that delays in evacuation infrastructure are outside developers' control, yet they continue to bear interest during construction, commitment charges, operation and maintenance expenses, and other fixed costs while revenues remain deferred.
The SPDA urged the MNRE to facilitate financial relief through the Ministry of Finance, the Reserve Bank of India (RBI), and financial institutions. Among the measures sought are a moratorium on principal repayments for the period of transmission delay, interest-free or concessional bridge financing, extension of loan repayment tenure without adverse credit implications, and restructuring of project debt without downgrading asset classification.
The issue underscores a broader challenge in India's energy transition: while renewable capacity grows rapidly, the grid infrastructure needed to evacuate that power is not keeping pace. Without coordinated planning and funding for transmission projects, the country risks undermining the viability of its clean energy investments. Addressing these bottlenecks is essential not only for protecting existing projects but also for sustaining investor confidence in India's renewable energy ambitions.
