Transmission line, thermal capacity addition slows 30% in FY25

New Delhi: Green power capacity addition gained momentum in the last financial year (FY25), but transmission line and thermal power generation capacity slowed down, data from the Central Electricity Authority (CEA) showed, with implications for stable power supply.

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Only 8,830 circuit kilometres (ckm) of transmission lines were added in FY25, 37.8% lower than 14,203 ckm in the previous fiscal, the data showed— much lower than the target of 15,253 ckm.

The state sector added 4,761 ckm of transmission lines, about 57% of the target of 8,254 ckm during the fiscal. Central sector projects, largely with Power Grid, witnessed an addition of 2,586 ckm, about 48% of the target of 8,254 ckm and the private sector implemented 1,483 ckm of projects, which is 93.5% of the target of 1,586 ckm.

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A strong transmission network with adequate storage capacity is crucial for stabilizing power supply, more so with increasing renewable energy capacity in the country. Plans to connect the Indian grid with the national transmission networks of the UAE, Saudi Arabia, Sri Lanka and Singapore under the One Sun One World One Grid initiative would also require a strong domestic network.

A total of 1,950 ckm of transmission lines were added in March 2025.

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Experts suggest that land acquisition and right of way (RoW) constraints have impacted the progress of the projects. In June 2024, power ministry revised land compensation rates upwards to lower instances of disputes.

Power transmission grid is key to achieving energy transition in the country, more so when the government aims to achieve 500GW of non-fossil capacity in the country by 2030.

An estimated ₹10 trillion investment would be required in the power transmission space by 2030 as the government aims to add battery storage capacity along with expanding transmission network.

According to the National Electricity Plan for transmission released by the CEA in October last year, a cumulative investment of ₹9.15 trillion would be required in the transmission sector to achieve 500GW clean energy capacity and add the required storage capacity to ensure steady power supply.

The plan entails integration of 10GW of offshore wind capacity, 47GW of battery energy storage systems, and 30GW of pumped storage plants. It also includes plans to cater to the needs of green hydrogen and green ammonia manufacturing hubs along with cross-border interconnections of transmission networks. 

A transmission system has also been planned for delivering power to green hydrogen and green ammonia hubs at coastal locations like Mundra, Kandla, Gopalpur, Paradeep, Tuticorin, Vizag and Mangalore.

Capacity addition of coal-based power generation projects also fell 32.65% to 3.87GW, from 5.75GW in FY24. This comes at a time when the government is looking at enhancing its plan to add a total of 80GW of thermal capacity by 2032 and install a total over 100GW coal-based capacity in the country.

The lag in this case also can be attributed to delays in commissioning, land acquisition, and supply of material among other issues.

The need for more coal-based power generation capacity, despite the ambitious energy transition plans, comes in the backdrop of increasing power demand. India's energy requirement has grown over the years. In the past three years, peak power demand has hit record highs. This summer it is expected to hit 270GW, surpassing the previous high of 250GW logged in May last year.

This increase in demand has led to higher power generation, across sources, ranging from coal-based power capacity to renewable energy.

The capacity addition in the renewable energy front was robust last year with a total of 28.72GW being added, compared to 18.48GW in the previous 12 months.