India is set to undertake a major expansion of its power transmission infrastructure, with government-backed investments of nearly Rs 9 trillion expected by 2032 as the country accelerates its renewable energy transition, according to a report by Kotak Neo, ANI reported.
The report said India’s clean energy ambitions now extend beyond adding solar and wind generation capacity, with significant investments required to strengthen the transmission network needed to deliver electricity from renewable energy projects to consumers across the country.
India’s installed renewable energy capacity reached 226 GW by June 2025, nearly three times the 76 GW recorded in 2014. Over the next decade, the country is expected to add another 470 GW of solar and wind capacity, creating a substantial need for new transmission lines, substations, transformers and grid infrastructure.
According to the report, every unit of renewable electricity generated must be supported by an expanded transmission network capable of moving power efficiently from generation centres to demand hubs.
Power demand in India is also expected to continue rising, with consumption projected to grow at a compound annual growth rate of 6.4 percent through 2030. Additional demand is being driven by expanding data centres, railway electrification, electric vehicle adoption and industrial growth.
The report identified High-Voltage Direct Current (HVDC) technology as a key component of India’s future transmission network, particularly as large renewable energy projects are increasingly located far from major consumption centres.
India’s HVDC transmission market is projected to grow from approximately $15 billion in 2025 to $31 billion by 2035, reflecting the growing importance of long-distance power transmission in the country’s energy landscape.
Annual investment in transmission infrastructure currently stands at around $8-9 billion, while large transmission projects typically require three to five years for completion. This is expected to provide sustained business opportunities for equipment manufacturers and infrastructure developers.
At the centre of the expansion programme is Power Grid Corporation of India Limited, which reported capital expenditure of Rs 35,540 crore in FY26, exceeding its revised target.
The company has outlined capital expenditure plans of Rs 1.08 lakh crore between FY26 and FY28 and has identified a project pipeline estimated at Rs 3.06 lakh crore through FY32.
Despite the strong growth outlook, the report highlighted several challenges facing the sector, including project execution delays, land acquisition issues, fluctuations in raw material prices and uncertainty regarding the timing of major HVDC project awards.
The report concluded that the transmission sector is entering a long-term investment cycle rather than a short-term spending phase, with infrastructure development expected to continue for at least the next decade as India pursues its renewable energy and energy security goals.
