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India Prepares Power Grid for Risks of Oversupply from Renewable Energy

As India's renewable energy (RE) capacity soars—currently at 224 GW out of a total 470 GW installed capacity—the power grid is facing a new challenge: managing the risks of "too much green energy." Intermittent sources like solar and wind can cause sharp supply fluctuations, threatening grid stability. To address this, key government agencies including Grid-India, the Central Electricity Authority (CEA), and the Central Electricity Regulatory Commission (CERC) are working on plans to improve scheduling, forecasting, and RE management. Thermal power is being maintained as a reliable baseload to anchor the grid.

This proactive approach comes in light of recent events such as the major blackout in Spain and Portugal in April 2025, triggered by a sudden drop in solar power generation. A similar risk looms in India, where solar-rich states have already experienced local outages during peak summer months due to volatility in RE output. With peak demand projected to reach 277 GW in FY26, experts stress the urgency of integrating advanced energy storage solutions and robust grid infrastructure to prevent cascading failures and ensure energy security as the country accelerates its clean energy transition.