INFRASTRUCTURE
Power cost shoots up as transmission capacity lags behind a surge in renewable energy
- IBJ Bureau
- Nov 08, 2025
India’s rapid addition of renewable energy capacity is straining grid operations, while contributing to rising cost of power supply due to mismatch with growth in demand, Central Electricity Authority (CEA) Chairman Ghanshyam Prasad has said.
The country has achieved 50 per cent of its installed electricity capacity from renewable energy sources earlier this year. India has set a target of 500 gw of renewable energy capacity by 2030.
However, India is building transmission based on potential renewable energy generation rather than actual capacity or demand, and this approach has led to skyrocketing transmission charges, which is concerning State power utilities, Mr Prasad has said.
He further adds that the country is likely to add over 40 gw of renewable energy this year, pointing out that without demand, the surplus will be very difficult to manage.
This mismatch between a lack of adequate transmission infrastructure and a build-up in renewable energy capacity has kept grid absorption uncertain, leading to delay in signing of power purchase agreements for the commissioned renewable energy capacity.
“To address these challenges, the CEA will revise transmission plans every six months to reflect real-time developments and is working with the India Meteorological Department to improve localised weather forecasting for solar and wind generation,” Mr Prasad has said.
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