Transmission constraints threaten to curb India’s renewable energy expansion, says ICRA
Rating agency ICRA reports that India's renewable energy expansion is being hindered by insufficient transmission infrastructure and grid congestion. Projects operating under temporary network access are facing significant curtailment, which increases operational costs and threatens revenue.
Why it matters
Transmission bottlenecks pose a major risk to India's ambitious renewable energy targets and the financial viability of green power projects.
Insufficient transmission lines have emerged as a major obstacle to India’s rapid expansion of renewable energy capacity, leading to many solar power projects being “curtailed” during daylight hours, rating agency ICRA said on Wednesday (August 19, 2026). Curtailment occurs when a power generator is forced to reduce or stop producing electricity due to oversupply and grid congestion.
Around 37% of renewable energy capacity at substations affected by curtailment in the northern, western, and southern regions operates under a Temporary General Network Access (T-GNA), and this capacity faces 30% to 50% curtailment during the day, ICRA said in a statement.
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