The sector is set to become greener, smarter and more resilient

What is your assessment of the current state of the power sector?

Over the past year, India’s power sector has entered a dynamic phase of evolution, underpinned by ambitious decarbonisation goals and accelerated clean energy adoption. The country has already achieved over 50 per cent of its installed electricity capacity from non-fossil fuel sources, five years ahead of the 2030 target.

Government-led initiatives such as the production-linked incentive (PLI) schemes for solar PV manufacturing, battery storage and green hydrogen have bolstered domestic manufacturing, enhanced energy security and reduced import dependence. The extension of transmission charge waivers for energy storage projects till 2028, coupled with a Rs 54 billion scheme to support 30 GWh of battery storage, underscores the government’s commitment to achieving 500 GW of renewable energy by 2030 and the net zero carbon target by 2070.

However, several challenges persist. One major issue is the integration of renewable energy into the grid. While capacity is increasing, land acquisition, financing and grid connectivity remain hurdles. Peak demand management is another critical area.

Distribution remains a weak link. Many state-owned utilities operate under financial stress and inefficiencies in service delivery persist. Reforms, including bringing more competition into the distribution business and promoting digit­alisation initiatives, are expected to improve reliability and financial health, but progress remains uneven across states.

In short, India’s power sector is evolving, with renewables driving growth. Yet, addressing land, connectivity, operational and financial bottlenecks, along with strengthening distribution companies, will be crucial to determine how efficiently the sector meets the country’s power demand and decarbonisation goals.

What are the key unresolved issues?

India’s power sector has made remarkable progress over the past decade. However, several critical issues remain unresolved, which could influence the pace and effectiveness of India’s energy transition.

A key challenge continues to be land acquisition and right-of-way (RoW) delays. Despite advances in survey technologies such as LiDAR and drone mapping, acquiring land for long-distance transmission corridors, especially in densely populated or ecologically sensitive areas, remains a significant bottleneck. Complex landownership patterns, fragmented land titles, and prolonged environmental and forest clearances often result in project delays and cost escalations.

Another pressing concern is the mismatch between renewable energy growth and transmission infrastructure development. While solar and wind projects can be commissioned within 18-24 months, transmission corridors, substations and evacuation lines often require three to five years to complete. This disparity frequently leads to congestion, curtailment of renewable en­ergy and ­underutilisation of green assets. Strengthening interstate and intra-state transmission networks remains critical to enable efficient power flow from renewable-rich zones to high-demand industrial and urban centres.

The sector also faces challenges ­related to grid flexibility and energy storage shortfalls. The current storage capacity, including pumped hydro and battery systems, is insufficient to manage the variability and intermittency of renewable generation. While policies promoting battery energy storage and solar-hybrid projects are emerging, these solutions must be scaled up on prio­rity to ensure a stable, round-the-clock ­renewable supply.

Regulatory and financial uncertainties further complicate transmission expansion. Ambiguities in tariff structures, interstate transmission charges and project approvals increase risks for private investors. Financing remains a barrier due to the high capital intensity and long gestation periods of transmission projects, often resulting in elevated interest costs and constrained private sector participation.

Addressing these issues will require a concerted focus on policy reforms, accelerated transmission network expansion, grid modernisation, and strategic deployment of energy storage and smart technologies.

How do you rate the progress in the renewable energy segment over the past year? What immediate policy reforms are needed for the segment?

India’s renewable energy segment has made remarkable strides over the past year, reflecting the country’s commitment to ambitious climate and decarbonisation targets. Solar and wind continue to lead this transformation, with over 29.5 GW of renewable capacity added in 2024-25 alone, including a record 23.8 GW of solar capacity. This expansion has brought the total renewable cap­acity to over 220 GW, positioning India well ahead of its 2030 intermediate targets.

While this progress is significant, sustaining and scaling it requires immediate policy reforms. Streamlining land acquisition and RoW approvals remains a priority, as delays in these areas continue to constrain project execution. Expedited environmental clearances and more transparent regulatory processes are critical to reduce risk and improve project bankability.

Planning inter- and intra-state transmission infrastructure in advance to align with renewable energy development is essential as transmission projects have long gestation periods. Strengthening the financial position of distribution companies and ensuring clear tariff structures will be key to ensuring efficient renewable absorption. ­Additionally, targeted support for domestic manufacturing of critical components, including storage systems and subsea cables, will reduce import dependence and improve infrastructure readiness.

States can set up “war rooms” in line with the centre’s Project Monitoring Group (PMG) for key infrastructure projects, particularly where coordination among multiple agencies is required.

Equally important is the adoption of modern digital technologies, including smart grids, internet of things (IoT)-enabled monitoring and predictive analytics, which can enhance operational efficiency, optimise energy flows and minimise losses. Coordinated action between central and state authorities, combined with robust public-private partnerships, will be vital to align project timelines, mitigate execution risks and maintain investor confidence.

What are the biggest opportunities for private players in the transmission segment?

India’s clean energy transition and rapid economic growth are creating unprecedented opportunities for private players in the transmission segment. The planned integration of over 500 GW of renewable capacity by 2030 will require large-scale expansion of interstate transmission systems, green energy corridors and high voltage direct current (HVDC) lines.

At the same time, opportunities extend beyond project execution. The government’s Make in India initiative, which focuses on localising the manufacturing of critical transmission equipment, including transformers, HVDC gear and switchgear, has opened up new avenues for private companies to invest in domestic production and supply chains.

Digitalisation and technology adoption are another promising growth area. With the rising share of renewable energy, the need for smarter, more resilient grids is evident. Private firms can lead the way in deploying advanced solutions such as predictive analytics, remote monitoring and smart grid applications to improve efficiency, reduce outages and strengthen grid stability.

What are the measures needed to enhance private sector participation at the intra-state transmission level?

India’s ambitious renewable energy targets and growing electricity demand necessitate a robust intra-state transmission network that can keep pace with the expansion of generation capacity.

The adoption of tariff-based competitive bidding (TBCB) across states is a key enabler as it fosters transparency, ensures cost efficiency and encourages competition. States such as Uttar Pradesh and Madhya Pradesh have demonstrated their effectiveness, and replicating these models nationwide can accelerate intra-state grid development.

Equally important is addressing bottleneck issues around land acquisition and RoW, which remain major causes of delays and cost overruns. Establishing single-window clearance systems, creating separate war rooms for renewable energy and transmission projects, and offering structured compensation mechanisms can significantly expedite project development and reduce risks for private developers.

A stable and predictable regulatory environment is also essential. Timely tariff approvals, clarity on technical standards and a robust payment security mechan­ism will instil greater investor confidence. Furthermore, aligning central and state transmission plans will provide visibility into long-term project pipelines, enabling private players to strategically allocate capital.

What are the key objectives of the Sterlite Power demerger? How will it reshape the company’s future growth?

Sterlite’s demerger is aimed at creating sharper focus and unlocking the full potential of its diverse operations. The restructuring has separated the business into two distinct entities: Resonia, which is focused on infrastructure and transmission projects, and Sterlite Electric, which is driving products and solutions. This demerger allows each entity to operate independently, with clear objectives, faster decision-making and better resource allocation.

The demerger will also enhance transparency and governance, making it easier for investors to track performance and value creation for each business. Each entity can now align its growth strategy with its specific market dynamics – Resonia with large-scale infrastructure and grid integration and Sterlite Electric with scalable, technology-led solutions.

What have been the key business developments for Resonia over the past year?

Over the past year, Resonia has strengthened its position as a leading player in India’s transmission sector, undertaking significant initiatives to modernise grid infrastructure and support the energy transition. Central to these efforts has been the award of the 11th transmission project under the TBCB framework for the Integration of the Ananthapur II Renewable Energy Zone (REZ) Phase I. Designed to evacuate 4.5 GW of renewable energy from Andhra Pradesh, the project exemplifies Resonia’s pivotal role in integrating variable renewable energy into the national grid.

To support these initiatives, Resonia continues to invest in cutting-edge technologies that enhance transmission efficiency and grid reliability. The company is leveraging high-capacity power conductors, modern substations with integrated geographic information systems, and innovative project execution methodologies such as drone and helicrane-assisted construction.

The company has also laid out an ambitious investment road map, with a target of deploying around Rs 1 lakh crore in transmission assets by FY 2032. This translates into annual portfolio additions of Rs 10,000 crore-Rs 15,000 crore, reflecting both growth mo­mentum and long-term commitment to ­India’s power sector.

What are some of the advanced technologies being adopted by Resonia for project execution, monitoring and asset management?

As India’s energy landscape undergoes rapid transformation, Resonia is embracing advanced technologies for pro­ject execution, monitoring and asset management to ensure a future-ready transmission network. A core focus area is integrating digital intelligence into operations. With the deployment of IoT sensors across transmission lines and substations, we enable real-time monitoring of voltage, temperature and current parameters, thereby facilitating predictive maintenance.

We are deploying dynamic line rating technologies that adjust transmission capacity in real time based on weather conditions, ensuring optimal utilisation of existing infrastructure. Coupled with AI-based load forecasting and intelligent balancing, these innovations are critical to managing the intermittency of renewables and strengthening overall grid stability.

On the project execution front, Resonia is pioneering the use of drone and LiDAR-based surveys, helicopter-­assisted stringing and robotic construction methods. These innovations accelerate project timelines, minimise environmental disruption, and make it possible to build critical infrastructure even in challenging terrain.

By combining advanced digital tools with innovative construction techniques, Resonia is not only enhancing the reliability and resilience of India’s transmission infrastructure but also ensuring that the grid is fully prepared to integrate the country’s fast growing renewable energy capacity.

What is your outlook for the power sector for the near to medium term?

India’s power sector is poised for a decisive transformation in the near to medium term, driven by the twin imperatives of energy security and decarbonisation. Renewable energy, led by solar and wind, will remain the growth engine, supported by policy measures such as PLI schemes, storage incentives and transmission charge waivers.

However, this rapid expansion brings with it the critical challenge of grid readiness. Transmission capacity additions must keep pace with renewable deployment to avoid evacuation bottlenecks. The sector will also see greater private participation, enabled by regulatory reforms, ­viability gap funding and innovative financing models such as green bonds.

Overall, the medium-term outlook is one of accelerated growth and structural transformation. By aligning capacity expansion with infrastructure and policy reforms, India’s power sector is set to become greener, smarter and more resilient.

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