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India Targets USD 100 Billion Power Grid Investment for Renewable Energy Integration
India plans to invest nearly USD 100 billion in power transmission infrastructure by 2032, according to Kotak Neo. This investment is crucial for integrating 470 GW of new renewable capacity and meeting rising electricity demand.
India's Transmission Spending Surge
India's power transmission infrastructure is set for a substantial investment, with government-committed capital expenditure projected to reach nearly USD 100 billion by 2032, as reported by Kotak Neo. This spending targets the comprehensive grid infrastructure necessary for the country's clean energy transition.
The report emphasizes that the shift to clean energy extends beyond establishing solar and wind farms; it necessitates robust transmission networks to move electricity across regions efficiently. India is on track to add 470 GW of renewable capacity, requiring extensive wiring, transformers, substations, and transmission lines to connect this power to the grid.
Renewable Capacity and Demand Growth
As of June 2025, India's installed renewable energy capacity stood at 226 GW, a near three-fold increase from 76 GW in 2014. Over the next decade, the country plans to add another 470 GW of solar and wind energy. Concurrently, power demand is forecast to grow at a Compound Annual Growth Rate (CAGR) of 6.4 percent through 2030.
High-Voltage Direct Current (HVDC) transmission systems are expected to be critical in this expansion, especially as renewable projects are increasingly located far from consumption centers. The HVDC market in India is projected to grow from USD 15 billion in 2025 to USD 31 billion by 2035.
Investment Visibility and Sectoral Demand
Annual transmission capital expenditure currently ranges between USD 8 billion and USD 9 billion. Large-scale projects typically have completion timelines of three to five years, offering long-term revenue visibility for equipment manufacturers. Additional demand drivers include data centers, railway electrification, electric vehicles, and industrial expansion, all of which will necessitate enhanced transmission and distribution infrastructure.
Power Grid Corporation of India is central to this transmission buildout. Its actual capital expenditure in FY26 surpassed its revised target, reaching USD 4.88 billion.
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