Renewable energy developers seek Rs 3,000 crore relief amid transmission bottlenecks

Mumbai: Renewable energy developers have sought a relief package of up to ₹3,000 crore from the central government to ease financial stress from transmission delays that caused them to curtail electricity production, people aware of the matter said.

They are seeking financial relief through concessional bridge financing, a moratorium on the repayment of principal for the period of transmission delay and extension of loan repayment tenures without penalties.

The proposal comes as delays in commissioning key transmission assets, including the Neemrana-II and Bikaner-III substations in Rajasthan, have resulted in 80-90% curtailment of renewable power generation for several renewable energy projects, significantly affecting revenue recovery and loan repayments.

Curtailment happens when the grid is unable to absorb the power being produced, forcing a reduction in electricity generation.

Industry executives said due to this, some companies are losing up to Rs 50 crore daily, and a moratorium would allow developers to defer repayments while transmission infrastructure is completed, reducing the immediate financial burden.

"RE developers have sought financial relief as their commissioned projects are evacuating only around 10-20% power as their general network access (GNA) is delayed," said an industry official aware of the discussions.

The GNA delay is attributable to multiple factors, including renewable energy projects that are coming into operation ahead of schedule, coupled with delays in the completion of transmission lines, he said.

"The Neemrana-II and Bikaner-III substations in Rajasthan are delayed by more than a year ... the RE projects have come up but are unable to connect to these substations," the official added.

The Bikaner-III to Neemrana-II transmission corridor and associated substations are delayed past their initial December 2025 target due to pending forest clearance and right-of-way constraints, among other factors.

In April-June 2026, during the peak summer months, India curtailed 8,133 GWh of solar power because of transmission bottlenecks and grid constraints. According to analysts, this could have powered 1.4 million homes a year. India's electricity demand touched a record 270.82 GW on May 21.

"The Ministry of New and Renewable Energy has sought project-wise data from the National Solar Energy Federation of India to assess the extent of the financial impact and determine the size and structure of any relief package," the official added.

The ministry did not reply to an email questionnaire sent.