India’s grid bottleneck forces ReNew to scale back power generation, limit losses

ReNew Energy Global Plc is being forced to scale back solar power generation, Bloomberg News reported, as India’s strained grid infrastructure struggles to absorb surging renewable energy during peak daytime hours, putting the company’s profitability under pressure.

The renewable energy producer is seeing as much as 15% of its solar electricity curtailed on certain days because transmission networks are unable to integrate excess supply when generation peaks, according to chief executive officer Sumant Sinha.

Also Read: ReNew commissions 2.4 GW, marks record renewable capacity addition


“The fact is you’re asked not to generate, and that is losing us power,” Sinha said, adding that every interruption in generation directly hurts earnings. “The grid build-out has got delayed quite substantially and therefore we are just being told to back down.”

The comments underscore the mounting stress on India’s power system as the country braces for an intense summer marked by soaring electricity demand and the growing challenge of balancing renewable energy supply with consumption patterns. Solar generation typically peaks during the day, while demand rises sharply in the evening.

India’s grid constraints have already led to significant renewable energy curtailment. On some days last year, nearly 40% of solar power output was denied access to the national grid, according to Grid Controller of India Ltd.

ReNew, which represents roughly 5% of India’s 223-gigawatt renewable energy capacity, is now accelerating investments in battery storage to tackle the mismatch. The company plans to install nearly four gigawatt-hours of battery capacity alongside its renewable projects this year, Sinha said.

Also Read: ReNew to set up 6.5 GW solar facility in Andhra Pradesh with investment of Rs 4,500 crore

The batteries are expected to help store surplus daytime electricity and release it later when demand increases, easing the imbalance between midday solar generation and evening consumption.

At the same time, ReNew is grappling with rising costs linked to the Iran conflict, which has pushed up shipping expenses and delayed deliveries of key raw materials for its solar panel business.

Still, the impact remains manageable for now.

Any increase in overall costs “is probably not more than a few percentage points” and is “hopefully temporary,” Sinha said.

The company also expects its future renewable portfolio to tilt more heavily toward solar power as the sector contends with weakening wind speeds, according to Sinha.