India renewables scheme targets grid and storage bottlenecks
India is stepping up support for the power infrastructure behind its renewable energy expansion as grid limitations continue to restrict the use of new capacity. The PM Dhara program, announced on Sept. 30, 2026, sets out INR1.86 trillion in planned spending over five years for transmission links, storage solutions and other grid upgrades.
Highlights
- The PM Dhara scheme allocates INR1.36 trillion over five years for intra-state transmission connectivity to address renewable energy grid bottlenecks.
- INR500 billion is earmarked under the program for storage solutions and grid improvements to support renewable energy access over the next five years.
- Grid constraints cause about two-thirds of renewable electricity curtailment in India, indicating benefits from the scheme will accrue gradually as infrastructure expands.
Funding plan for transmission and storage
As reported by S&P Global Ratings, the PM Dhara scheme is designed to direct funding toward the weakest parts of India’s renewable energy buildout rather than deliver a rapid fix to capacity constraints.The program allocates INR1.36 trillion over five years for intra-state transmission connectivity. It also sets aside INR500 billion over the next five years for storage solutions and other improvements intended to strengthen the grid and support renewable energy access.
Grid constraints shape sector impact
Transmission and storage remain central obstacles as renewable capacity rolls out quickly across India. Grid constraints account for about two-thirds of curtailment in renewable electricity, underscoring why added generation alone does not fully translate into usable power.The scheme points to a longer-term effort to improve how renewable electricity is moved and stored across the country. For the power sector, that means the benefits are likely to build gradually as transmission connectivity and storage infrastructure expand.
In our earlier coverage of India potentially raising coal-fired power additions through 2035, we explained that electricity demand is accelerating faster than expected and putting strain on supply. We noted that the push for more firm capacity is being framed as a grid-stability measure even as the country continues large annual renewable additions alongside other balancing options like pumped storage and nuclear.
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