Renewable power curtailment and DSM penalties to be discussed in India minister meeting

Two Union ministers are set to review problems affecting renewable power supply on Wednesday. New & Renewable Energy Minister Pralhad Joshi said a meeting with Power Minister Manohar Lal will cover grid curtailment and transmission gaps. The talks follow reports of renewable generators facing supply backdowns and limited lines to move green power.

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Joshi linked the discussion to India’s target of 500 GW renewable energy by 2030. Joshi said the agenda will include measures that affect clean power producers nationwide. Speaking to reporters at the sidelines of the CII Business Summit, Joshi outlined priority issues. Joshi flagged penalties, grid limits, and network strengthening as key concerns.

Renewable energy curtailment and DSM penalties

"Various issues will come for discussion for boosting renewable energy in the country, including the deviation settlement mechanism DSM, curtailment and transmission,\" Joshi told reporters at the sidelines of the CII Business Summit here. Under DSM, generators pay charges when actual supply differs from promised supply. Renewable producers say output depends on weather and varies often.

Curtailment at the grid level is another pressure point for solar and wind plants. When supply exceeds demand, renewable output can be reduced to keep the grid stable. Industry experts say coal-based generation cannot be cut below a minimum level. As a result, surplus solar supply is backed down to maintain smooth operations.

Industry experts also link curtailment to the economics of thermal power stations. Plants are seen as unviable if they operate below 50 per cent plant load factor (PLF). Because of this floor, grid operators may keep thermal units running. That can leave renewable projects facing backing down during high generation periods.

Renewable energy transmission network gaps

A separate issue raised by industry is limited transmission infrastructure for renewable evacuation. Developers report that generation has outpaced the build-out of grid connections in some areas. This can delay or restrict the movement of electricity from renewable projects. The Joshi-Manohar Lal meeting is expected to cover ways to strengthen these links.

Renewable energy PPAs and polysilicon policy

At the summit, Joshi also spoke about delays in signing power purchase agreements for green projects. Joshi said a meeting with developers will take place soon. Joshi also said the government will soon release a policy on polysilicon. Polysilicon is used to make solar photovoltaic cells and semiconductors.

Renewable energy industry views and 500 GW target

Speaking at the session, Girish Tanti, Chairman, CII RE Manufacturing Council, and CII National Committee on Renewable Energy, and Vice-Chairman, Suzlon, said thatIndia is uniquely positioned as a leader combining scale, speed, resilience and self-reliance in the sector. Tanti said grid strength, bidding processes, and domestic manufacturing ecosystems need focus. Tanti linked these steps to sustaining progress towards 500 GW.

Rahul Munjal, Co-Chairman, CII National Committee on Renewable Energy, and Founder & Chairman, Hero Future Energies, said energy self-reliance must be a national priority. Munjal said India should look beyond current goals to a longer clean energy plan. Munjal also referred to a one terawatt capacity vision. Suchitra Ella, Vice President, CII, said India added 55.3 GW of non-fossil capacity in FY 2025–26. Ella said renewables met over 51 per cent of peak power demand.

The Wednesday meeting is expected to bring policy and grid issues into one forum. Officials and industry have pointed to DSM penalties, curtailment, and transmission limits as immediate problems. The ministers are also expected to consider PPA delays and supply chain policy steps. These issues are linked to keeping renewable additions on track for 2030.

With inputs from PTI