India's energy grid faced challenges in Q1 2026 as coal-fired power plants restricted the incorporation of renewable energy.
As per The Economic Times report, approximately 300 GWh of solar power was curtailed due to transmission constraints, hindering the expansion of clean energy initiatives.
During the 1st quarter of 2026, coal-fired plants in India prevented 300 GWh of solar energy from feeding into the grid.
This was primarily due to transmission issues. The Central Electricity Authority highlighted that nearly two-thirds of the total curtailment stemmed from these constraints.
The government's directive in 2023 to coal plants to reduce output and accommodate solar power was largely ignored, postponing the deadline to June 2027.
While reducing coal plant operations to 40% was suggested, plant operators resisted, citing higher costs and reduced longevity.
Operating at a reduced capacity could increase operational costs and shorten the lifespan of coal plants.
A senior NTPC official indicated no clarity on covering these costs, leaving plant operators with little motivation to comply with the government's recommendations.
With the rising influence of renewable energy on the grid, coal plants are under pressure. Load factors fell from 85% in 2009-10 to about 55% in 2023-24 and might decrease to 40%.
The decreased utilisation is likely to affect equity returns under regulated tariffs, increasing per-unit coal power costs.
The policy to reduce the minimum technical load of coal plants to accommodate more solar energy remains contentious.
The anticipated policy benefits have been hindered due to resistance from thermal power generators and lack of a clear cost recovery mechanism.
India's struggle to integrate solar energy into its power grid highlights the challenges in balancing its traditional and renewable energy sectors. While coal plants persist in their operations, renewable energy curtailment continues to pose challenges in the transition to cleaner energy sources.
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Published on: May 26, 2026, 10:44 AM IST
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