Whalesbook
Grid Strain Causes Major Renewable Power Losses
India saw substantial renewable energy losses, totaling around 300 gigawatt-hours (GWh) in the first quarter of 2026. These losses, known as curtailment, occurred because the electricity grid could not transmit all the clean power generated. The total renewable energy that went undelivered reached 470 GWh, with transmission constraints being the primary reason for most of this unused power.
The Northern region experienced the most severe impact, with 178 GWh of potential green electricity not reaching consumers. The Western region also faced significant losses, amounting to 122 GWh. In contrast, the Southern grid managed to deliver all its generated renewable power, suggesting a more efficient integration of its generation and transmission systems.
Infrastructure Development Lags Behind Renewable Growth
The issue stems from a widening gap between India's rapid expansion of renewable energy capacity and the slower development of its transmission infrastructure. Over the past five years, the country has only managed to complete about 80% of its annual transmission system upgrade targets. For the fiscal year 2027, the demand for the inter-state transmission system has significantly increased, requiring 25,146 circuit kilometers of new lines, a goal that seems challenging given past performance.
Project Delays Further Hinder Grid Capacity
Adding to the problem, many major transmission projects are significantly delayed. About one in every four large transmission projects is at least a year behind schedule. This lack of timely infrastructure development means that nearly 20 gigawatts (GW) of planned renewable energy capacity for fiscal year 2027 might face connection issues lasting longer than four months. This could lead to more power being curtailed and lost revenue for developers.
Battery Storage Offers a Solution to Curtailment
Energy experts believe that battery energy storage systems (BESS) can offer a practical way to reduce these losses in the short term. It is estimated that 3-4 GW of battery storage, each capable of holding a two-hour charge, could have absorbed a significant portion of the power that was curtailed in the first quarter. India has a substantial potential for battery storage, with an estimated 236 GW of readily available capacity at major power connection points.
Overcoming Challenges for Battery Storage Deployment
Despite the technical feasibility, rolling out battery storage on a large scale faces regulatory and commercial hurdles. To help overcome these, proposals include creating a government-backed entity to gather renewable power from projects facing temporary grid issues. This entity could then contract the power with battery storage developers. Furthermore, treating battery storage as a transmission asset could allow for shared costs across different states, aligning with existing payment structures for transmission lines and encouraging more investment.