Key Takeaways
- India lost approximately 300 GWh of renewable energy in Q1 2026 due to transmission constraints.
- The northern region faced the highest curtailment, with 178 GWh lost, while the southern region experienced no transmission-related losses.
- Ember urges the adoption of battery energy storage systems to address these transmission issues effectively.
Renewable Energy Losses in India due to Transmission Issues
India’s renewable energy sector faced significant challenges in early 2026, losing approximately 300 GWh of clean electricity from January to March due to transmission bottlenecks. This analysis, conducted by Ember, highlights a concerning trend where the total renewable energy curtailment reached around 470 GWh in the first quarter of 2026, underscoring the urgency of addressing infrastructure deficits.
The northern and western grids were notably impacted, with the northern region accounting for 178 GWh of the curtailed energy and the western region for 122 GWh. In contrast, the southern region managed to avoid such losses, largely attributed to better coordination between electricity generation and transmission infrastructure developments.
On March 30, 2026, alone, India lost 34 GWh, equivalent to the daily electricity consumption of approximately 5 million urban middle-class households. Duttatreya Das, an Energy Analyst at Ember, emphasized that the ongoing curtailment due to transmission constraints is becoming a material issue for the country.
The report indicates that the primary challenge lies in the growing gap between renewable energy capacity additions and the development of the required transmission infrastructure. Over the past five years, India has only achieved 80% of its annual targets for developing transmission infrastructure. For the fiscal year 2026-27, the target expanded to 25,146 circuit kilometers, but one in four major transmission projects is already delayed by over a year. This situation could lead to extended connectivity delays for nearly 20 GW of renewable energy capacity.
Given the backdrop of increasing natural gas prices influenced by geopolitical tensions, the report’s authors argue for a shift in planning approaches. To improve the situation, they recommend transitioning from generation-led to co-optimally planned generation and transmission systems.
Ember suggests utilizing battery energy storage systems (BESS) as a near-term remedy for these transmission issues through a “transmission-as-a-service” model. With about 3-4 GW of two-hour battery storage capacity needed to mitigate most of the curtailment, 236 GW of plug-and-play BESS headroom is reportedly ready at various pooling stations. Das notes that while technical solutions are present, regulatory and commercial gaps still need to be addressed.
To further alleviate transmission constraints, the report recommends establishing a government-backed intermediary entity to consolidate power from renewable projects and engage with BESS developers, thereby mitigating contracting risks. It also outlines the importance of classifying battery storage as a transmission asset, with costs distributed in a manner similar to transmission charges.
Currently, the combined costs of solar and storage, estimated at ₹7-8 per kWh, still fall below the ₹10 per kWh many states spend on peak power. Implementing regulatory changes to capitalize on this gap could be a swift intervention to lower curtailment rates linked to transmission challenges. Furthermore, the report advocates for harmonizing curtailment compensation policies, streamlining intra-state connectivity, and deploying technologies like dynamic line rating to enhance the usage of existing transmission systems.
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