India's Green Power Crisis: Cuts Hit Solar Farms

India's renewable energy sector is grappling with a significant challenge: producing more green power than the grid can transmit. This has led to production cuts at solar and wind farms, particularly in Rajasthan and Gujarat, causing substantial financial losses for developers and jeopardizing the country's ambitious renewable energy targets.

The Ministry of New and Renewable Energy has directed the Central Electricity Authority (CEA) and Grid Controller of India (Grid India) to jointly study and propose solutions for this complex issue. The problem stems from rapid growth in renewable capacity outpacing the development of transmission infrastructure and energy storage capabilities. This imbalance can cause grid oscillations, forcing operators to curtail generation to ensure stability.

Developers face economic repercussions, as compensation for curtailed power often fails to cover all incurred losses. This situation risks slowing down investment in green energy projects and could lead to increased renewable energy tariffs if not addressed through improved transmission planning, storage integration, and market reforms.

To mitigate these issues, ongoing efforts include commissioning new high-capacity transmission lines. However, the pace of transmission infrastructure development has lagged behind renewable capacity additions in some periods. Experts emphasize the need for greater system flexibility, market-based dispatch, and robust power purchase agreements to ensure sustainable growth and reliable supply of green energy.