Key Takeaways
- India curtailed nearly 11 terawatt-hours of solar energy in the past 15 months due to insufficient grid capacity.
- The country must improve transmission infrastructure and energy storage to maximize renewable energy use.
- Current renewable generation exceeds coal, yet coal remains dominant due to curtailment and inflexible power systems.
Power Demand Outstrips Infrastructure
Amid a surge in power demand during the intense summer heat, India faced challenges in meeting evening electricity needs as air conditioning usage soared. Despite a notable increase in renewable energy production, some providers were instructed to limit their output due to the grid’s inability to manage excess clean electricity. In the last 15 months, India has wasted nearly 11 terawatt-hours of solar generation—enough to power around 10 million homes—according to government statistics and research from energy think tank Ember.
As the world’s most populous nation and a significant contributor to climate change, India is progressively integrating renewable energy into its power grid, particularly solar energy. However, insufficient transmission and storage capabilities hinder the effective use of available renewable resources. Experts identify this gap as a key challenge in India’s energy transition. The construction of solar and wind farms is not enough; the country urgently needs enhanced transmission lines, energy storage systems, and a more adaptable power framework.
According to Neshwin Rodrigues, an energy analyst, the current situation highlights critical hurdles in the renewable sector. India possesses over 300 gigawatts of clean energy capacity, with more than half derived from renewables. However, due to curtailment—where grid capacity does not allow for the full generation of wind and solar plants—coal remains the primary power source.
Coal plants struggle to reduce their output, especially when solar generation peaks during the afternoon, leading to inefficiencies and increased operational costs. Vinay Pabba, CEO of Vibrant Energy, likens this flexibility issue to “asking an elephant to dance.” This curtailment ultimately translates into financial losses for clean energy developers, as they are compensated only for the electricity they successfully transmit to the grid.
A concentration of solar power generation in western India also contributes to rapid congestion in transmission lines, particularly in states like Gujarat and Rajasthan, which represent nearly half of India’s solar capacity. This bottleneck risks increasing reliance on coal plants when renewable energy is available but cannot be utilized effectively.
Energy experts warn that without a proper storage infrastructure, coal plants may continue to operate even when there’s abundant cheap renewable energy. India has underachieved in transmission construction, only meeting 80% of its annual targets over the past five years, according to Ember’s findings.
To alleviate pressure on existing transmission networks, spreading renewable installations across the country and developing smaller local solar projects could be beneficial. Disha Agarwal from the Council on Energy, Environment and Water points out that as renewable capacity grows, the challenge to balance demand and supply will intensify.
India aims to reach 500 gigawatts of clean electricity capacity by 2030 with plans for nearly 70% of its installed power to come from non-fossil sources by 2036. A recent study from the University of California, Berkeley indicated that battery-backed renewable power could rival conventional power plants in reliability while being more economical than new coal-fired plants.
Despite the promise of battery storage to address these issues, India’s current storage capacity is limited, with only 3 gigawatts of battery storage available compared to the anticipated need of 74 gigawatts by 2032. Energy stakeholders emphasize the importance of establishing high-quality storage projects to secure grid functionality and advance energy transition goals.
With the rising demand from electrifying transportation and new data centers, forecasts suggest that the need for robust infrastructure developments must be addressed promptly to avoid compounding existing challenges in India’s energy sector.
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