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Q. Despite achieving cost parity in RE generation, India faces grid bottlenecks. Discuss ‘Stranded Capacity’ and suggest smart grid optimisation techniques without heavy land acquisition. (10 Marks, 150 words)

June 20, 2026

GS Paper IIIEconomy

Core Demand of the Question

  • Concept of stranded renewable capacity in India
  • Causes of grid bottlenecks and transmission constraints
  • Smart grid optimisation techniques to utilise existing infrastructure

Answer

Introduction

India’s rapid expansion of renewable energy, with over 45 GW added in 2025, has led to cost parity with conventional power sources (~₹3.5/kWh). However, more than 50 GW of clean energy capacity remains stranded due to slow transmission expansion, land acquisition issues, and under-utilisation of existing grid infrastructure.

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Stranded Capacity

  • Definition: Stranded capacity refers to renewable projects that cannot deliver electricity to the grid despite being ready for operation.
  • Causes: Transmission lines take 3–5 years to build, whereas projects can be commissioned in 12–18 months; Grid constraints, multi-agency approvals, and lack of storage infrastructure reduce utilisation; Existing lines and substations are often underused; solar lines operate only 25% of the time
  • Effect : Recent national load data reveals that during peak midday solar generation, the country’s coal fleet is forced to swing down sharply. However, thermal plants cannot safely drop below their 55% minimum technical load without risking structural damage.

Smart Grid Optimisation Techniques (without heavy land acquisition)

  • Battery storage at key nodes: Stores daytime solar power for evening peaks, increasing utilisation 2–3x.
  • Use of coal corridors: Transmission lines of underused coal plants can carry renewable power when plants operate below capacity (~100 GW potential).
  • Substation optimisation: Connecting new RE projects to existing substations and pairing with storage (~100 GW additional capacity).
  • Advanced conductors: High-temperature, low-sag wires can nearly double transmission on existing towers.

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Conclusion

Addressing stranded capacity requires optimising existing grid infrastructure with storage, reconductoring, and strategic utilisation of underused lines. These measures can unlock ~1,000 GW of renewable energy without new land acquisition, ensuring faster integration of India’s low-cost clean energy into the national grid.

Despite achieving cost parity in RE generation, India faces grid bottlenecks. Discuss ‘Stranded Capacity’ and suggest smart grid optimisation techniques without heavy land acquisition.  (10 Marks, 150 words)

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