PM DHARA programme: Why India needs a ₹1.86 lakh crore smart-grid push for renewables

PM-DHARA is a planned scheme to strengthen India’s Intra-State Transmission System and add large-scale battery storage. Its purpose is to make the electricity grid flexible enough to absorb rapidly growing renewable power. The total project outlay is ₹1,86,405 crore.

Of this amount, ₹1,36,378 crore is assigned to transmission development under Green Energy Corridor Phase-III. Another ₹50,000 crore is allocated for 50 GWh of Battery Energy Storage Systems. These batteries can help manage renewable intermittency, transmission congestion, and electricity curtailment during peak periods.

The scheme also includes ₹54,082 crore in Central Financial Support. This support will help offset Intra-State transmission charges, which the government says can lower electricity costs for consumers. State Transmission Utilities will implement the scheme, while greenfield projects will use competitive bidding and upgrades will follow a cost-plus approach.

PM-DHARA represents a nationwide expansion of the infrastructure needed to carry renewable electricity from generating regions to the wider grid. Its planned transmission investment is ₹1,36,378 crore under Green Energy Corridor Phase-III. The scheme also provides ₹50,000 crore for battery storage.

The key capacity target is ambitious: the strengthened Intra-State transmission system should enable evacuation of up to 135 GW of renewable energy. “Evacuation” means moving electricity away from generating plants through transmission lines so it can reach demand centres and consumers. Without enough lines, clean electricity may be curtailed instead of delivered.

The expansion supports India’s broader energy goals. The country aims to source around 500 GW from non-fossil-fuel sources by 2030, while current non-fossil capacity is around 270 GW, according to the article. The stated longer-term goal is 786 GW by 2035–36.

Solar and wind do not produce electricity at a constant rate. Solar output falls when sunlight weakens and stops at night. Wind generation changes with weather conditions. This variability means the grid must continuously adjust other generators, storage, and electricity flows to match demand.

Conventional power plants can generally be scheduled according to expected demand, although they also have operating limits. Renewable plants, by contrast, may produce large amounts when conditions are favourable, even when local demand is low. Strong transmission lines can carry that electricity to other areas, while batteries can store some of it for later use.

The article says India’s renewable share has already reached 52% of total generation capacity, making grid planning increasingly important. PM-DHARA responds by strengthening Intra-State transmission and deploying 50 GWh of storage. These measures aim to manage fluctuations, congestion, curtailment, and changing demand more reliably.

A Battery Energy Storage System, or BESS, stores electricity in batteries and releases it when the grid needs more supply. It can charge when renewable generation is high and discharge later. This makes variable electricity sources more useful across different times of day.

For example, strong midday sunshine may produce more solar power than consumers immediately need. A BESS can absorb some of that surplus instead of allowing it to be curtailed. After sunset, when solar power is unavailable, the system can discharge electricity to help meet demand. Storage can also respond quickly when generation or demand changes.

PM-DHARA provides for 50 GWh of BESS capacity at generator ends or other locations important for grid flexibility. The article says this storage will address renewable intermittency, transmission congestion, and peak-hour curtailment. It will also help supply electricity when solar light is unavailable.

If renewable generation grows faster than transmission capacity, electricity may be produced but unable to reach consumers. This can create bottlenecks on existing lines and force grid operators to curtail, or reduce, renewable output. The result is less use of available clean energy and greater pressure on system management.

For example, a solar-rich area may generate heavily at midday while nearby demand is limited. Without enough lines or storage, the surplus cannot move elsewhere or be saved for later. Batteries can shift some electricity to evening demand, while stronger transmission can carry power across regions. These tools address two different parts of the problem.

The article specifically identifies congestion and peak-hour curtailment as challenges BESS can address. It also says ₹54,082 crore in Central Financial Support will offset Intra-State transmission charges. That support is intended to lower power costs and benefit consumers as renewable capacity expands.

Ladakh and Rajasthan are important because their desert regions have immense potential for renewable-energy development, as the minister noted. Such areas can host large solar projects, and Rajasthan’s open, sunny landscape is especially suitable for utility-scale generation. Developing these resources could help India increase non-fossil electricity.

The main challenge is location. Renewable projects in remote desert regions may be far from cities, industries, and other major electricity users. Electricity must therefore travel through high-capacity transmission networks. If those networks are weak or congested, generation may be curtailed even when plants are producing power.

PM-DHARA addresses this issue by strengthening Intra-State transmission and supporting storage at generator ends or other strategic locations. The planned system is expected to evacuate up to 135 GW of renewable energy. This infrastructure can connect remote generation to demand and make distant renewable resources more practical.

An electricity grid works through a continuous balancing process. At every moment, generation must closely match the electricity consumers are using. Grid operators forecast demand, schedule power plants, manage renewable output, and use reserves or storage when conditions change. Electricity cannot normally be stored cheaply in unlimited quantities, so this balance is constant.

For example, when evening demand rises as solar output falls, operators can increase other generation, import power, or discharge batteries. If wind suddenly weakens, flexible resources must respond. If generation exceeds demand, storage can absorb some electricity or renewable output may be curtailed. Transmission lines also redistribute power between regions.

This balance is fundamental because mismatches can affect grid frequency and stability. The article says India’s growing renewable share makes fluctuation management increasingly important. PM-DHARA combines stronger transmission with 50 GWh of storage so the system can handle changing renewable production while meeting consumer demand.