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MNRE Confirms Solar Curtailment Amid Low Demand and Grid Congestion

India’s Ministry of New and Renewable Energy (MNRE) has acknowledged that solar power output is being curtailed during periods of low demand to protect grid stability and reduce congestion in transmission lines. With solar capacity expanding rapidly, some plants are coming online ahead of schedule while transmission projects face delays, creating imbalances in the power system.

The National Solar Energy Federation of India (NSEFI), in a July 24 letter to the ministry, reported that solar developers in Rajasthan—the country’s leading renewable energy-producing state—are bearing the brunt of this issue. Curtailments in the state have risen to as high as 48% during peak generation hours, leading to significant financial stress for project operators.

According to NSEFI, developers have already lost over $26 million in revenue since April due to these restrictions. The absence of long-term supply contracts for some producers is worsening the financial impact, leaving many without a steady offtake for their power.

These curtailments mark a growing concern for India’s renewable energy sector, which is critical to achieving national clean energy targets. Industry experts say accelerated transmission expansion and better grid planning are essential to ensure that renewable power can be fully utilized without risking grid stability.