Whalesbook
Peak Demand Meets Solar Supply
India saw its peak power demand occur during solar generation hours on 88 out of 90 days in the January-March 2026 quarter. This trend shows a key shift, with daytime renewable energy production increasingly matching the times of highest electricity use.
Renewable Energy Wasted
Yet, this alignment reveals a growing issue: renewable energy curtailment. Around 27 gigawatts (GW) of solar and 4 GW of wind power went unused in Q4 FY26. A further 83 GW of solar and 11 GW of wind were curtailed under India's Tertiary Reserve Ancillary Service (TRAS) due to grid congestion. Gujarat reported the highest curtailment rates, pointing to integration challenges in areas rich with renewables.
Market Prices Plummet
This surplus energy has driven market prices to near zero. On April 5, 2026, the Real Time Market (RTM) price on the Indian Energy Exchange (IEX) fell to ₹0.0003 per kilowatt-hour. This happened as excess solar power flooded the market during a period of lower demand. Such price collapses have led to calls for utilities and major energy users to optimize their procurement costs.
Experts Stress Storage Need
Akshay Hiranandani, CEO of Serentica Renewables, noted that achieving 50% non-fossil energy capacity ahead of schedule is not enough without effective use. He emphasized the need for faster battery storage deployment, market reforms, and strong enforcement of renewable purchase obligations to ensure fair pricing and an effective energy transition. Sanjeev Aggarwal, Chairman of Hexa Climate Solutions, shared this view, explaining how simple solar power generation causes afternoon surges, forcing utilities into expensive procurement and reliance on thermal power for evening peaks.
Storage Projects Underway
By March 2026, tenders had been issued for 247 GWh of storage capacity. This includes 138 GWh for pumped storage projects (PSP) and 111 GWh for battery energy storage systems (BESS). Currently, only 1.2 GWh of BESS is operational, with an additional 6 GWh expected by the end of 2026. The main priority remains scaling storage solutions to move renewable energy to higher-value periods and better balance the grid.