India restricts solar output to manage grid congestion and low demand

The Ministry of New and Renewable Energy (MNRE) has confirmed that solar generation is being curtailed during periods of low demand to maintain grid stability and ease transmission congestion.

The ministry told Reuters that output cuts have been caused by some plants starting operations earlier than scheduled, while transmission projects faced delays. The practice, known as curtailment, has added to challenges for renewable developers already struggling with weak demand and limited supply contracts.

According to the National Solar Energy Federation of India, curtailments in Rajasthan have reached up to 48 per cent during peak hours, causing revenue losses of over 26 million dollars since April. The industry body said repeated delays to transmission lines are undermining project viability and called for faster grid and storage development.

Curtailments are also reported in Tamil Nadu, Gujarat and Maharashtra. In Tamil Nadu, solar generation in the June quarter was 10 per cent below forecasts, with coal plants also being scaled back during low demand.

While renewable generation grew at a record pace in early 2025, new project awards fell sharply, with tenders down 65 per cent year-on-year. The ministry described this as a temporary recalibration, not a slowdown.

Government data shows solar utilisation dropped to 21.4 per cent in May and 19.5 per cent in June, partly due to lower irradiance.