India Renewable Energy Capacity Expansion and Curtailment Risk

at risk of curtailment

India is rapidly adding renewable energy capacity, particularly solar, but the transmission infrastructure is not expanding at the same pace. This mismatch is causing a risk of curtailment for more than 35 GW of renewable capacity, especially projects operating under temporary general network access (TGNA). Curtailment is most significant in Rajasthan and Gujarat, affecting project returns and financial metrics such as debt service coverage ratios and equity internal rates of return.