India Cuts Solar Output to Ease Power Grid Strain

New Delhi, Aug 19 (KNN) India is reducing solar power generation during periods of low demand to stabilise its power grid and address congestion in transmission lines, the Ministry of New and Renewable Energy (MNRE) told Reuters.

The ministry explained that several new plants have come online earlier than expected, while transmission projects have faced delays.

This mismatch has forced power curtailments, adding pressure on renewable energy developers who are already struggling with slowing demand.

According to the National Solar Energy Federation of India (NSEFI), solar producers in Rajasthan—India’s largest renewable energy hub—are experiencing frequent curtailments, with nearly 48 per cent of power cut during peak generation hours.

Since April, developers have lost more than USD 26 million in revenue. NSEFI, which counts Adani, Tata, Amazon Web Services, SHV, and Gentari among its members, warned that such curbs threaten project viability and future investment.

The group has urged the government to fast-track transmission and battery storage projects, some of which face delays of up to two years. The federal power ministry has said it is expediting interstate transmission lines to ease the pressure.

While Rajasthan is the worst affected, other key renewable states including Tamil Nadu, Gujarat, and Maharashtra are also curbing output.

In Tamil Nadu, solar generation fell 10 per cent below forecast between April and June, according to local producers. Officials said coal power was also curtailed when demand was low.

India’s renewable energy capacity, particularly solar, grew rapidly in the first half of 2025 as older projects came online. However, project awards dropped 75 per cent year-on-year in the June quarter, and tenders fell 65 per cent, reflecting what MNRE called a “temporary recalibration” rather than a slowdown.

Government data shows solar plant usage fell to 19.5 per cent in June. MNRE expects utilisation to remain in the 21 per cent-25 per cent range during peak months.

(KNN Bureau)