India's ISTS Sector Set for INR 1 Lakh Crore Investment in Renewable Shift

India's Inter-State Transmission System (ISTS) sector is projected to see capital expenditure (capex) of around INR 1 lakh crore between fiscal years 2026 and 2027 to support renewable energy evacuation. According to Crisil Ratings the investment surge aligns with India’s broader goal of scaling up its renewable energy capacity. The amount will be twice of INR 50,000 crore of the capex cumulatively seen between fiscals 2024 and 2025.

The addition of 65 gigawatts (GW) to 75 GW of solar and wind capacities in Crisil Ratings expects over 2026 and 2027. Timely planning and execution of transmission capacities remains critical as the execution period of a transmission project is typically two to four years which is twice that of a renewable energy project.

“The transmission projects has ramped up significantly, with an estimated INR 1.6 lakh crore worth of projects slated for 2024 and 2025”, Says Manish Gupta, deputy chief ratings Officer at Crisil

The focus now shifts to enhancing transmission capabilities as there is renewable energy capacity growing rapidly taking place to ensure smooth integration into the national grid, ensuring reliable energy access which is supporting India’s clean energy ambitions.

“We have seen these projects incurring an average delay of about ten months in commissioning, with few projects even seeing delays of over 18 months. Factoring these delays, we estimate transmission connectivity to be enabled for up to 60 GW of potential renewable capacity by fiscal 2027”, says the expert.

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