India's Renewable Curtailment Hits 27 GW of Solar in Q4 FY26

India's power sector recorded its slowest electricity generation growth in six years — just 3 per cent year-on-year — in the fourth quarter of FY 2025-26, even as renewable energy continued to expand rapidly and grid constraints curtailed 27 gigawatts of solar and 4 gigawatts of wind capacity, according to analysis by the Centre for Research on Energy and Clean Air. The quarter highlighted a widening gap between India's clean energy installation pace and the grid's capacity to absorb that output.

India's installed power capacity reached approximately 533 gigawatts by March 2026, with non-fossil fuel sources accounting for around 53 per cent. Solar capacity surged to approximately 150 gigawatts, driving most renewable expansion. During Q4 FY26, 16.2 gigawatts of renewable capacity was added compared with 2.3 gigawatts of thermal and 0.5 gigawatts of large hydro. Coal remained the dominant generator at 339 billion units, or 73 per cent of total generation, with solar contributing 24 per cent year-on-year growth, wind 11 per cent, nuclear 10 per cent and large hydro 7 per cent.

Peak demand hit 245 gigawatts on January 9, and all-time peak demand reached 250 gigawatts on May 30, 2024. A significant shift in demand timing is underway, with 88 out of 90 days recording peak demand during solar generation hours, signalling a move away from traditional evening peaks. Coal plant load factors fell to 69 per cent from 72 per cent a year earlier. Curtailment was concentrated in high-renewable states, particularly Gujarat, where large solar parks including Khavda recorded the highest losses. Solar accounted for nearly 88 per cent of total curtailment, with losses peaking in March.

Policymakers are addressing grid flexibility by proposing to reduce the minimum technical load for coal plants from 55 per cent to 40 per cent to allow more dynamic operation alongside variable renewables. Projections indicate peak demand could reach 459 gigawatts by 2035-36, requiring total installed capacity of over 1,100 gigawatts with a 70 per cent non-fossil share. Achieving this will depend heavily on large-scale energy storage — estimated at 174 gigawatts or 888 gigawatt-hours — and extensive transmission expansion. CREA's analysis suggests the next phase of India's energy transition will be defined less by adding generation capacity and more by strengthening grid infrastructure to efficiently utilise growing renewable output.

Key figure — 27 GW of solar capacity curtailed in Q4 FY26