Key facts
- India is encouraging battery storage integration with solar projects.
- Up to 42 GW of solar projects are struggling to find buyers.
- 18 GW of solar-only projects without batteries are most at risk.
- Grid and transmission constraints are the primary cause of renewable energy curtailment.
- India requires an estimated 10 GWh of battery storage to mitigate curtailment.
India is prioritizing battery storage integration into solar power projects to address significant curtailment issues and attract buyers, according to Santosh Sarangi, Secretary of the Ministry of New and Renewable Energy. As much as 42 gigawatts (GW) of solar projects are currently struggling to find offtakers, with approximately 18 GW of solar-only projects without batteries being the most vulnerable.
An additional 15 GW of projects awarded at high prices also face difficulties securing buyers. Without battery backup, solar installations experience curtailments during peak demand hours and hot months. The rapid expansion of renewable energy in India is outpacing the growth of the electricity grid, leading to increased clean energy curtailments and potentially slowing down the sector's boom.
Grid and transmission constraints were responsible for nearly two-thirds of renewable energy curtailment in the first quarter, totaling 300 gigawatt-hours (GWh), according to a May report by Ember. A separate analysis by Ember in June indicated that India requires around 10 GWh of battery storage immediately to prevent renewable energy curtailment when coal power plants cannot reduce output below their technical minimum.
During the April to June quarter, the hottest months in India, the national grid wasted 11% of its solar power output despite record electricity demand. The grid failed to absorb 8 billion kilowatt-hours (kWh) of solar energy, compared to the 63 billion kWh that were successfully transmitted, stated Shripad Yesso Naik, Minister of State in the New and Renewable Energy Ministry.