Page 56 - Policy Economic Report - March 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

The India-Africa Strategic Meet further strengthened partnerships, with focus on expanding renewable
energy, grid modernisation, and last-mile connectivity across the continent.

Strengthening transmission infrastructure for integration of renewable energy

The Government has adopted planning and implementation approach that prioritises grid readiness,
transmission expansion, and energy storage deployment as integral components of development of
Renewable Energy (RE) sources in the country. The steps required for integration of RE into the grid,
while expanding the renewable capacity, have been undertaken to achieve the goal of energy security
along with energy transition. To support this, several measures have been initiated, including
strengthening the transmission infrastructure and grid operation, deploying smart grid technologies, and
expanding energy storage systems to address supply intermittency and enable round-the-clock power
delivery. These measures are outlined below:

(i) Strengthening of transmission infrastructure and grid operation:

a. Development of Inter-State Transmission System (ISTS) and Intra-State Transmission Systems
(InSTS) for evacuation of renewable energy. Transmission system has been planned for
integration of over 500 GW RE capacity by the year 2030.

b. As per the National Electricity Plan (Volume-II Transmission), the transmission network is
planned to expand from about 5.04 lakh circuit km (as on February 2026) to 6.48 lakh circuit km
by 2032, and transformation capacity from about 1429 GVA to 2345 GVA. Inter-regional
transmission capacity is also planned to increase from 120 GW (as on February 2026) to 143 GW
by 2027 and further to 168 GW by 2032.

c. MNRE is implementing Green Energy Corridor (GEC) as Intra-State Transmission projects scheme
in ten States namely Rajasthan, Karnataka, Andhra Pradesh, Himachal Pradesh, Madhya
Pradesh, Kerala, Gujarat, Uttar Pradesh, Maharashtra and Tamil Nadu in two phases, i.e. GEC-I
and GEC-II for evacuation of 44 GW of RE.

d. Dedicated High Voltage Direct Current (HVDC) transmission links with bi-directional power flow
capability are envisaged to enable efficient long-distance bulk transfer of renewable power and
improve grid controllability.

e. Central Electricity Regulatory Commission through the Connectivity and General Network Access
to the Inter-State Transmission System (Third Amendment) Regulations, 2025 has introduced
solar-hour and non-solar-hour connectivity, enabling optimal use of transmission infrastructure
and promoting hybrid renewable projects combining solar, wind and BESS.

f. Central Electricity Authority (Technical Standards for Connectivity to the Grid) Regulations have
been notified to prescribe the minimum technical requirements for the RE generating plants to
ensure the safe, secure and reliable operation of the grid.

g. Flexibilization of thermal generation is mandated to address the variability of RE generation.

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