The government has approved two significant interstate transmission system projects worth ₹13,595 crore to facilitate the evacuation of 9 GW of renewable energy from Rajasthan and Karnataka. These projects are part of the government’s ambitious target to achieve 500 GW of renewable energy capacity by 2030 and will be implemented through tariff-based competitive bidding.
The first project, a power evacuation scheme for the Rajasthan Renewable Energy Zone, is valued at ₹12,241 crore. It aims to evacuate 4.5 GW of renewable energy, with 1.0 GW from the Fatehgarh complex, 2.5 GW from the Barmer complex, and 1.0 GW from the Nagaur (Merta) complex. The power will be transmitted to the Mainpuri region, Fatehpur, and Orai in Uttar Pradesh, with a completion period of two years.
The second project, a system strengthening scheme in Karnataka, will evacuate 4.5 GW of renewable energy from the Koppal and Gadag areas. This project is scheduled for completion by June 2027 and will cost approximately ₹1,354 crore.
These projects are crucial to India’s renewable energy goals. The Council on Energy, Environment and Water reported that renewable energy sources contributed 71% to the 26 GW of power generation capacity added in FY24. In FY25, nodal agencies are expected to bid out 50 GW of renewable energy capacity.
To reach the 500 GW target by 2030, India needs to add around 44 GW annually, requiring $190-215 billion in investment over the next seven years. An additional $150-170 billion will be needed for electricity transmission, distribution, and energy storage to support the incremental renewable energy capacity.
Renewable energy, excluding large hydro projects, currently contributes 146.65 GW to India’s total installed power capacity of 444.8 GW. According to Moody’s Ratings, renewable energy and electricity transmission will continue to drive investments in the power sector over the next six to seven years.
