Whalesbook
Solar Alignment Meets Gridhead
India recorded peak power demand during solar generation hours on 88 out of 90 days in the January-March 2026 quarter. This convergence signifies a critical shift, with daytime renewable energy production increasingly matching periods of highest electricity consumption.
The Curtailment Paradox
However, this alignment highlights a growing problem: renewable energy curtailment. Approximately 27 gigawatts (GW) of solar and 4 GW of wind power went unused in Q4 2025-26. An additional 83 GW of solar and 11 GW of wind faced curtailment under India's Tertiary Reserve Ancillary Service (TRAS) due to grid congestion. Gujarat reported the highest curtailment rates, signaling integration challenges in renewable-rich areas.
Zero-Price Power
This oversupply scenario has pushed market prices to near zero. On April 5, 2026, the Real Time Market (RTM) price on the Indian Energy Exchange (IEX) dropped to ₹0.0003 per kilowatt-hour, a consequence of excess solar power flooding the market during a dip in demand. Similar price collapses have been observed, prompting calls for Discoms and Open Access Consumers to optimize procurement costs.
The Storage Imperative
Experts like Akshay Hiranandani, CEO of Serentica Renewables, point out that reaching 50% non-fossil capacity ahead of schedule is insufficient without effective utilization. He stressed the need for accelerated battery storage deployment, market reforms, and robust enforcement of renewable purchase obligations to ensure fair pricing and efficient energy transition. Sanjeev Aggarwal, Chairman of Hexa Climate Solutions, echoed this, explaining how plain solar generation creates afternoon surges, forcing utilities into costly procurement cycles and reliance on thermal power for evening peaks.
Capacity and Future Needs
As of March 2026, tenders for 247 GWh of storage capacity have been issued, comprising 138 GWh for pumped storage projects (PSP) and 111 GWh for battery energy storage systems (BESS). While only 1.2 GWh of BESS is operational, an additional 6 GWh is expected by the end of 2026. The urgent priority remains scaling storage solutions to shift renewable energy to higher-value periods and balance the grid more effectively.