How Does India Plans to Achieve Integration of Renewable Energy

The Indian Government is accelerating integration of renewable energy through the development of Green Energy Corridors (GEC) and the expansion of the Inter-State Transmission System (ISTS), which has been planned to integrate over 500 Gigawatt (GW) of non-fossil fuel capacity by 2030 and over 600 GW by 2032 (including GEC-I & II).

Under the National Electricity Plan (NEP) (Volume-II Transmission), the transmission network (220kV and above) is projected to expand to 6.48 lakh circuit kilometre (ckm) with transformation capacity increasing to 2,345 Giga Volt Ampere (GVA) by 2031-32.

The inter-regional transmission capacity is planned to increase from 120 GW as of January 2026 to 168 GW by 2032. The transmission schemes associated with renewable energy generation projects are at various stages of implementation, with phases aligned with capacity additions.

The Ministry of New and Renewable Energy (MNRE) is implementing GEC as an Intra-State Transmission projects scheme in ten States, namely Rajasthan, Karnataka, Andhra Pradesh, Himachal Pradesh, Madhya Pradesh, Kerala, Gujarat, Uttar Pradesh, Maharashtra and Tamil Nadu, in two phases, i.e. GEC-I and GEC-II, for the evacuation of 44 GW of renewable energy. Out of which, 26 GW of renewable energy is integrated.

Further, the intra-state transmission system under the GEC-III scheme for large-scale integration of renewable energy is under consideration.

To address the intermittency associated with renewable energy sources, the Government is promoting a combination of energy storage and hybrid solutions to ensure grid stability and a reliable power supply.

Under NEP (Volume-II Transmission), the transmission system up to 2031-32 for 35.6 GW Pumped Storage Projects (PSP) has already been planned.

Further, the transmission system has been identified/planned to achieve 100 GW PSPs from 2025-26 to 2035-36. Under the plan, around 47 GW of Battery Energy Storage Systems (BESS) has been considered for integration by 2031-32.

To support the deployment of energy storage systems, the Government is implementing two Viability Gap Funding (VGF) schemes for approximately 43.8 GWh of Battery Energy Storage Systems, launched in March 2024 and June 2025.

In addition, the Ministry of Heavy Industries (MHI) is implementing the National Programme on Advanced Chemistry Cell (ACC) Battery Storage with a ₹18,100 crore Production Linked Incentive (PLI) scheme outlay to establish 50 GWh of ACC battery manufacturing capacity, including 10 GWh for grid-scale storage

The Central Electricity Regulatory Commission, through the Connectivity and General Network Access to the Inter-State Transmission System (Third Amendment) Regulations, 2025, has introduced solar-hour and non-solar-hour connectivity, enabling optimal use of transmission infrastructure and promoting hybrid renewable projects that combine solar, wind, and BESS.

To support rooftop solar adoption across the country, MNRE is implementing PM Surya Ghar: Muft Bijli Yojana (PMSG: MBY) since February 2024.

The scheme targets to achieve rooftop solar installations in one crore households in the residential sector by Financial Year (FY) 2026-27 with an outlay of ₹ 75,021 crore.

The government has taken the following steps to simplify the procedure for the adoption of the RTS across the country under the PMSG: MBY:

1. Online process from application to disbursal of the subsidy directly into the residential consumer’s bank account through the National Portal.
2. Availability of collateral-free loans from nationalised banks at a concessional interest rate with a tenure of 10 years. The JanSamarth portal has been integrated with the scheme’s National Portal to enable loan availing online.
3. Simplified the regulatory approval process by waiving the technical feasibility requirement and introducing auto load enhancement up to 10 kW.
4. A total of 31.04 lakh households have benefited from the installation of Rooftop Solar under the scheme till February 2026.

The development of the GEC scheme and the expansion of the ISTS are providing the necessary backbone for large-scale integration of renewable energy.

Simultaneously, the promotion of BESS, PSPs, and hybrid/round-the-clock renewable energy projects is enhancing grid flexibility, managing intermittency, and ensuring the availability of firm, dispatchable green power at a competitive price.

Further, the government’s support for RTS systems through simplified procedures and financial incentives is encouraging affordable distributed generation and reducing grid burden.

The transmission systems supporting renewable energy generation are planned in advance, and National Grid is continually strengthened to facilitate the seamless integration of renewable energy capacity across the country.

As of January 2026, the renewable energy capacity commissioned is around 263 GW. For the integration of about 207 GW of upcoming Wind and Solar generation capacity, the ISTS network is under various stages of implementation.

Further, around 18 GW of renewable energy capacity has been considered for integration into the intra-state network under the GEC scheme of MNRE. Additional Hydro capacity of around 19 GW has been planned through 2030.