‘Transmission Constraints Threaten India’s Renewable Energy Expansion’, Pg12

Key Highlights:

• Insufficient transmission lines are significantly impeding India's renewable energy expansion, leading to the curtailment of solar power projects.
• Rating agency ICRA reported that approximately 37% of renewable energy capacity operating under Temporary General Network Access (T-GNA) faces 30-50% curtailment during daylight hours.
• Peak curtailment reached 8,617 MW in Western India and 5,573 MW in the Northern region as of August 6.
• Timely development of intra-State and inter-State transmission infrastructure, alongside increased storage capacity, is crucial for sustaining renewable energy growth.
• India currently has over 150 GW of renewable projects under construction as of June 30, with renewable energy projected to account for over 35% of electricity generation by FY2029-30.

Detailed Insights:

• Curtailment occurs when a power generator is forced to reduce or stop electricity production due to oversupply or grid congestion.
• T-GNA is a short-term arrangement allowing renewable energy projects to use available capacity on the inter-State transmission system for periods up to 11 months.
• Prolonged use of T-GNA and subsequent curtailment negatively impacts the revenues and operational costs of power suppliers.
• Other challenges hindering renewable energy expansion include delays in Power Purchase Agreements (PPAs), land acquisition, and financial issues of distribution companies.
• Bids for new renewable energy projects have seen a sharp decline, from 40.6 GW in 2024-25 to 4.7 GW by August 10 this year.
• The focus in new bidding processes is shifting towards Firm and Dispatchable Renewable Energy (FDRE) and Round-the-Clock (RTC) power to ensure grid stability.
• The National Grid of India, managed by Power Grid Corporation of India Limited (PGCIL), is the high-voltage transmission network connecting power stations and substations across the country.

Key Concepts Involved:

• Curtailment: The intentional reduction of electricity output from power generators, typically renewables, to maintain grid balance due to oversupply or transmission constraints.
• Temporary General Network Access (T-GNA): A short-term contractual arrangement allowing power generators to utilize existing inter-State transmission capacity.
• Power Purchase Agreements (PPAs): Long-term contracts between electricity generators and buyers for the sale and purchase of power.
• Firm and Dispatchable Renewable Energy (FDRE): Renewable energy that can be supplied reliably and on demand, often achieved through hybrid projects or energy storage.
• Round-the-Clock (RTC) Power: Continuous electricity supply available 24 hours a day, typically by combining various energy sources and storage solutions.