Key facts
- India is considering waiving transmission charges for solar and wind energy projects facing delays due to grid shortages.
- The proposed relief is for projects with power sale contracts signed by the end of the current year.
- The Central Electricity Regulatory Commission may extend this relief to battery storage projects.
- India has a target of 500 GW of non-hydrocarbon generation capacity by 2030.
- Recent legislative changes aim to reduce reliance on imported solar components from China.
The Indian government is exploring measures to alleviate delays in renewable energy projects, primarily caused by insufficient transmission infrastructure. A proposal to waive transmission charges for solar and wind energy developers who have secured power sale contracts by the end of the year is under consideration by the country's power regulator. This initiative aims to support India's ambitious goal of achieving 500 GW of non-hydrocarbon generation capacity by 2030.
Recent legislative changes, intended to reduce reliance on imported solar components from China, have impacted the supply chain despite substantial local module manufacturing capacity. While solar cell manufacturing capacity remains limited, India has seen rapid expansion in solar power generation, adding a record 44 GW in the financial year 2025/26. However, this growth is hampered by the lack of adequate transmission lines to connect new capacity to the national grid.
Beyond solar and wind, the Central Electricity Regulatory Commission is also considering extending similar relief to battery storage projects. This move aligns with New Delhi's broader strategy to diversify its energy mix away from coal and gas, which currently account for about 70% of total generation but are projected to fall below 50% by 2035.