**Executive Summary**
This report outlines the measures undertaken by the Ministry of Power to maintain grid stability and reliability amid increasing renewable energy (RE) penetration. It details strategic initiatives in transmission infrastructure, regulatory reforms, and energy storage integration to accommodate over 500 GW of non-fossil capacity by 2030 and 900 GW by 2035-36. Key deadlines include the extension of Inter-State Transmission System (ISTS) charge waivers for specific storage projects commissioned or awarded by June 2028.
**Key Points / Main Content**
**Grid Management and Operational Measures**
* **Forecasting and Monitoring:** Establishment of Regional Energy Management Centres (REMCs) for real-time management and advanced weather forecasting via NCMRWF and ISRO.
* **Frequency and Voltage Control:** Implementation of Automatic Generation Control (AGC) and Ancillary Services (SRAS/TRAS) for frequency regulation.
* **Technical Infrastructure:** Deployment of STATCOMs and synchronous condensers for voltage stability, alongside SCADA works sanctioned for 455 towns under the Revamped Distribution Sector Scheme (RDSS).
**Regulatory Compliance and Standards**
* **Connectivity Requirements:** RE plants must comply with Central Electricity Authority (CEA) Technical Standards for Grid Connectivity, verified by CTUIL and Regional Load Dispatch Centres (RLDC).
* **Grid Code Mandates:** RE plants are required to participate in primary and secondary frequency control; thermal generation is mandated to provide flexibilization to address RE variability.
* **Market Access:** CERC Regulations 2025 introduced Solar and Non-Solar Hour access to optimize transmission capacity and encourage hybrid projects.
**Transmission Infrastructure Expansion**
* **National Electricity Plan:** Outlines transmission requirements for 2023–2032 to meet projected demand.
* **Green Energy Corridor (GEC):** Implementation in ten states to evacuate 44 GW of RE capacity, with 9,856 ckm of lines and 24,300 MVA substations already commissioned.
* **ISTS Projects:** Approximately 260 GW of ISTS transmission action has been initiated, with 54 GW commissioned and 173 GW currently under construction.
**Energy Storage Systems (ESS) and Incentives**
* **Storage Targets:** Planning for 100 GW of Pumped Storage Projects (PSPs) between 2025-26 and 2035-36.
* **Financial Support:** Two Viability Gap Funding (VGF) schemes for 43.8 GWh of Battery Energy Storage Systems (BESS) and a ₹18,100 crore PLI scheme for Advanced Chemistry Cell manufacturing.
* **Incentives:** ISTS charge waivers for co-located BESS and PSPs, provided they meet the June 2028 commissioning or award deadlines.
**Impact Analysis**
**Renewable Energy (RE) Power Producers**
**Impact:** Required to adhere to stricter technical standards and contribute to grid stability services.
**Action Required:** Ensure compliance with CEA regulations and participation in frequency control as mandated by the Indian Electricity Grid Code.
**Thermal Power Generators**
**Impact:** Operational requirements have shifted to support the variability of renewable sources.
**Action Required:** Implement mandated flexibilization of thermal generation units.
**Transmission Utilities (CTUIL/RLDCs)**
**Impact:** Increased responsibility for verifying technical compliance and managing massive capacity additions.
**Action Required:** Conduct system studies for connectivity and perform Resource Adequacy Studies for projects exceeding the 500 GW threshold.
**Energy Storage and Battery Manufacturers**
**Impact:** Significant growth opportunities through VGF, PLI schemes, and budgetary support for infrastructure.
**Action Required:** Developers must commission co-located BESS or secure PSP construction awards by June 2028 to utilize ISTS charge waivers.
Key Entities Referenced
National Electricity Plan (Volume-II Transmission): A strategic policy document outlining the transmission system requirements and capacity additions projected for the period 2023 to 2032.
Green Energy Corridor (GEC): A major infrastructure scheme implemented in ten states to facilitate the evacuation of renewable energy through dedicated transmission lines and substations.
Central Electricity Authority (CEA): The statutory body responsible for establishing technical standards for grid connectivity and formulating long-term transmission plans for non-fossil fuel integration.
Revamped Distribution Sector Scheme (RDSS): A government initiative supporting the modernization of the distribution sector, including the sanctioning of SCADA works for urban grid management.
Production Linked Incentive (PLI) scheme: A financial incentive program aimed at establishing 50 GWh of Advanced Chemistry Cell manufacturing capacity to support grid-scale energy storage.
Ministry of Power
IMPACT OF INCREASING RENEWABLE ENERGY
PENETRATION ON GRID STABILITY
Posted On: 30 MAR 2026 4:14PM by PIB Delhi
The Government has comprehensively assessed the impact of increasing Renewable Energy (RE)
penetration on grid stability, particularly in view of the variability and intermittency associated with solar
and wind power. With the rapid scale-up of RE generation, there is focus on ensuring grid readiness,
flexibility, and reliability through a combination of transmission strengthening, RE forecasting, grid
operation reforms and energy storage integration.
In this regard, the following measures have been undertaken:
i. Establishment of Regional Energy Management Centres (REMCs) for renewable forecasting and
real-time grid management.
ii. Implementation of Automatic Generation Control (AGC) and Ancillary Services (SRAS/TRAS) for
frequency regulation and balancing.
(iii) Advanced grid support technologies such as STATCOMs and synchronous condensers for voltage
stability and dynamic response have been considered in the transmission planning and are at various
stages of implementation.
(iv) Under the Revamped Distribution Sector Scheme (RDSS), Supervisory Control and Data Acquisition
(SCADA) works have been sanctioned for 455 towns.
v. Advanced weather forecasting by National Centre for Medium Range Weather Forecasting
(NCMRWF) in coordination with the Indian Space Research Organisation (ISRO) for better RE
generation and demand forecasting, thereby supporting effective management of variability in
renewable energy generation.
(vi) Central Electricity Authority (CEA) (Technical Standards for Connectivity to the Grid) Regulations
lay down the minimum technical requirements for the RE generating plants to ensure the safe, secure and
reliable operation of the grid. The compliances to the said regulations by RE plants are verified jointly by
Central Transmission Utility (CTUIL) and Grid-India/ Regional Load Dispatch Centres (RLDC) based on
relevant system studies before granting connectivity/interconnection to the national grid.vii. Indian Electricity Grid Code mandates RE plants to participate in the primary and secondary
frequency control in case of contingencies. Hybrid RE power plants, Energy Storage Systems such
as BESS and PSP are promoted for mitigating variability in RE generation and provide adequate
frequency support to the grid.
viii. The grid stability in case of voltage fluctuations is dependent on the adequate reactive power
support from generators. The requirements of dynamic reactive power support from the generators
is covered in the CEA (Technical Standards for connectivity to the Grid) Regulations.
(ix) Flexibilization of thermal generation is mandated to address the variability of RE generation.
The Government has taken following measures to expand transmission infrastructure for evacuation of
renewable energy:
i. Government of India has published National Electricity Plan (Volume-II Transmission) in 2024,
which outlines the transmission system requirements for the period 2023 to 2032, commensurate
with projected generation capacity additions to meet the projected electricity demand.
ii. Transmission system has been planned for integration of over 500 GW non-fossil generation
capacity by the year 2030. Further, the Central Electricity Authority (CEA) has brought out a
comprehensive transmission plan in March 2026 for integration of over 900 GW of non-fossil fuel
capacity by 2035-36.
(iii) Ministry of New and Renewable Energy (MNRE) is implementing Green Energy Corridor (GEC)
scheme in ten states viz., Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Kerala, Madhya
Pradesh, Maharashtra, Rajasthan, Tamil Nadu and Uttar Pradesh. Out of sanctioned 17,686 ckm
transmission lines and 47,177 MVA substations for evacuation of 44 GW RE capacity, a total of 9856 ckm
transmission lines and 24,300 MVA substations for evacuation of 24 GW RE capacity has been
commissioned under GEC scheme.
The transmission schemes associated with RE generation projects are taken up for implementation in a
phased manner commensurate with the RE Capacity addition. Towards achievement of 500 GW non-fossil
generation by 2030, transmission system for 230 GW was envisaged to be developed under Inter-State
Transmission System (ISTS). For this, action for transmission system of about 260 GW under ISTS has
already been taken, 54 GW transmission system is already commissioned, 173 GW transmission capacity
is under construction and 33 GW transmission projects are under bidding.
Further, CTUIL has received large number of applications of RE projects beyond 500 GW. However, grant
of connectivity for such applications are under consideration taking into account the load-generation
balance, identification of load centers and Resource Adequacy Studies carried out by CEA with respective
States/UTs.The Government is promoting integration of Energy Storage Systems (ESS) with renewable energy to
address intermittency and ensure reliable power supply. The following measures have been taken:
i. Ministry of Power is administering two Viability Gap Funding (VGF) schemes, launched in March
2024 and June 2025, to support development of approximately 43.8 GWh of Battery Energy Storage
Systems (BESS). The objective of the scheme is to deploy BESS for the integration of larger
amount of RE.
ii. Central Electricity Regulatory Commission (Third Amendment) Regulations, 2025 have introduced
Solar Hour and Non-Solar Hour access, under which solar projects are aligned with Solar Hours,
while wind and Energy Storage Systems are permitted round-the-clock access. This framework
promotes optimal utilisation of transmission capacity and encourages hybrid project with different
combination of solar, wind and BESS to ensure more reliable renewable power supply.
(iii) Planning of transmission systems to support development of up to 100 GW of Pumped Storage
Projects (PSPs) during 2025-26 to 2035-36.
(iv) Providing budgetary support for enabling infrastructure (Roads, Transmission lines etc.) for
development of Hydro PSP.
v. Waiver of Inter-State Transmission System (ISTS) charges has been extended, for co-located BESS
projects commissioned up to June 2028 and for Pumped Storage Projects (PSPs) where construction
work is awarded by June 2028, to improve overall project viability.
(vi) Production Linked Incentive (PLI) scheme with an outlay of ₹18,100 crore supports establishment of
50 GWh Advanced Chemistry Cell manufacturing capacity, including grid-scale storage.
vii. Guidelines have been issued for procurement of renewable energy with storage to enable firm and
dispatchable power supply.
This information was given by The Minister of State in the Ministry of Power, Shri Shripad Naik, in a
written reply in the Rajya Sabha today.
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NR/AP/MD
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