New Delhi: India’s power transmission infrastructure is poised for a major transformation as the country accelerates its transition towards clean energy. According to a recent report by Kotak Neo, nearly ₹9 trillion worth of government-committed capital expenditure is expected to flow into the transmission sector by 2032 to support the rapid growth of renewable energy capacity and rising electricity demand across the country.
The report highlights that India’s energy transition is no longer limited to setting up large solar parks and wind energy projects. Instead, equal attention is now being directed toward strengthening the transmission network required to transport electricity efficiently from generation centres to consumers spread across regions.
India’s installed renewable energy capacity reached 226 GW by June 2025, a sharp increase from 76 GW in 2014. Over the next decade, the country is expected to add another 470 GW of renewable energy capacity, largely driven by solar and wind projects. This expansion forms a crucial part of India’s broader climate and energy security goals.
However, experts note that generating renewable power alone is insufficient unless the supporting grid infrastructure evolves simultaneously. The report stressed that every unit of renewable electricity requires an extensive network of transmission lines, transformers, substations and grid systems before it can be integrated into the national power network.
“India is adding 470 GW of renewable capacity. Every watt of that power needs wires, transformers, substations, and transmission lines before it can reach the grid,” the report stated.
The growing renewable energy landscape is also expected to significantly increase the role of High-Voltage Direct Current (HVDC) transmission systems. These systems are particularly important for transporting electricity over long distances with minimal transmission losses, especially as many renewable energy projects are located far from major consumption centres.
According to the report, India’s HVDC market is projected to expand from approximately USD 15 billion in 2025 to nearly USD 31 billion by 2035. This growth reflects the increasing need for advanced transmission technologies capable of handling large-scale renewable integration.
India’s electricity demand is also expected to rise steadily in the coming years. The report estimates that power demand will grow at a compound annual growth rate (CAGR) of 6.4 per cent until 2030. Several emerging sectors are contributing to this rise, including data centres, railway electrification, electric vehicles and industrial expansion.
The expansion of digital infrastructure and manufacturing activities has further increased the urgency for reliable and efficient power distribution systems. Analysts believe that stronger transmission and distribution networks will become essential to maintaining grid stability while supporting economic growth.
The report identified Power Grid Corporation of India Ltd. (PGCIL) as a key player in the country’s transmission infrastructure expansion. The state-run company reportedly exceeded its revised capital expenditure target in FY26, recording an actual capex of ₹35,540 crore during the financial year.
Power Grid has outlined an ambitious investment strategy for the coming years. The company plans to invest nearly ₹1.08 lakh crore between FY26 and FY28 and currently has an estimated business pipeline worth ₹3.06 lakh crore through FY32. This pipeline includes major inter-state transmission projects, renewable energy corridors and grid modernisation initiatives.
Industry observers believe that the long execution timelines of transmission projects, often ranging between three and five years, offer sustained visibility and opportunities for equipment manufacturers, engineering firms and infrastructure developers operating in the power sector.
Despite the strong growth outlook, the report also cautioned about several risks that could affect project implementation. Key challenges include land acquisition hurdles, delays in project execution, fluctuations in raw material prices and uncertainty regarding the timing of large HVDC project orders.
Nevertheless, analysts believe the current investment cycle marks the beginning of a long-term infrastructure transformation rather than a short-term spending surge.
“This is not a one-time capex cycle. It is a decade-long infrastructure buildout,” the report noted, underlining the scale and strategic importance of India’s transmission sector in achieving the country’s renewable energy ambitions.
