Curtailing renewables to provide flexibility is an inefficient system response

In 2025, India curtailed 2.3 TWh of solar energy to manage grid flexibility, resulting in an estimated USD 63-76 million in compensation payments and 2.11 million tonnes of missed CO2 emission reductions. While India reached 50% non-fossil fuel capacity in 2025 with 135.8 GW of installed solar, the report warns that curtailment could become routine unless grid flexibility improves to keep pace with solar growth, which is currently outpacing demand.

• Between May and December 2025, the system operator NLDC triggered emergency TRAS-down, resulting in the curtailment of approximately 2.3 TWh of solar energy. This amount represents about 18% of the average monthly solar generation of 13 TWh during that period, with nearly half of the total curtailment (0.9 TWh) occurring in October 2025.
• The financial cost of compensating renewable generators for the 2.3 TWh of curtailed energy is estimated between INR 5,750 million and INR 6,900 million (approximately USD 63 million to USD 76 million), based on a tariff range of INR 2.5 – 3.0 per kWh. These payments are funded via the Deviation and Ancillary Service Pool Account and are indirectly passed to consumers through electricity tariffs.
• The curtailment of solar energy in 2025 led to a missed opportunity to avoid 2.11 million tonnes of CO2 emissions, which is roughly equivalent to the annual emissions of 0.4 million households in India.
• India reached a milestone in 2025 by achieving 50% non-fossil fuel–based power generation capacity. Installed solar capacity reached approximately 135.8 GW, with 38 GW added between January and December 2025.
• Current grid flexibility is limited because the coal fleet has technical constraints and the hydro fleet is not expected to expand significantly. Because solar capacity is growing faster than demand, curtailment could become routine if flexibility improvements are not accelerated.

APA

Ember (2026). Curtailing renewables to provide flexibility is an inefficient system response. https://ember-energy.org/chapter/curtailing-renewables-to-provide-flexibility-is-an-inefficient-system-response/

Chicago

Ember. Curtailing renewables to provide flexibility is an inefficient system response. 2026. https://ember-energy.org/chapter/curtailing-renewables-to-provide-flexibility-is-an-inefficient-system-response/.

Wikipedia

{{cite report |author=Ember |title=Curtailing renewables to provide flexibility is an inefficient system response |date=27 January 2026 |url=https://ember-energy.org/chapter/curtailing-renewables-to-provide-flexibility-is-an-inefficient-system-response/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ember2026curtailing, author = {{Ember}}, title = {{Curtailing renewables to provide flexibility is an inefficient system response}}, institution = {Ember}, year = {2026}, month = jan, url = {https://ember-energy.org/chapter/curtailing-renewables-to-provide-flexibility-is-an-inefficient-system-response/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }