India faces rising renewable energy curtailment and grid constraints

India’s renewable energy sector is facing significant challenges due to grid constraints and weather volatility. Renewable energy curtailment has risen sharply from 0.07 TWh in January 2025 to 2.68 TWh in May 2026, as transmission infrastructure struggles to keep pace with rapid capacity growth. In regions like Rajasthan and Gujarat, approximately 12 GW of renewable capacity faces curtailment of up to 100% due to delayed transmission lines.

To address these issues, Aurora Energy Research has launched the India Grid Service, a subscription-based analytics tool designed to forecast curtailment risks and assess grid connectivity. Initially launching in Rajasthan, the service plans to expand to cover over 80% of India’s renewable energy pipeline, including Maharashtra, Gujarat, Karnataka, Andhra Pradesh, Telangana, and Tamil Nadu.

Simultaneously, the battery energy storage sector is becoming increasingly critical for balancing the grid during extreme weather, such as the severe heatwaves and delayed monsoons observed in 2026. While battery prices saw a decline in early 2025, recent increases driven by raw material supply tightening and policy changes in China have raised standalone battery tender tariffs to approximately Rs 210,000 per MW per month, creating new complexities for developers.