Jaipur: After a lull of nearly two months, the energy department has again asked renewable energy generators to cut production by 20% as Rajasthan struggles with surplus daytime electricity and limited storage capacity to meet evening demand.The latest curtailment has renewed concerns over the state’s ability to absorb its fast-expanding renewable energy capacity. For developers, the order could mean lower generation and revenue losses, even as projects continue to carry fixed operating costs and debt-servicing obligations.In a communication issued Wednesday, the State Load Dispatch Centre (SLDC) directed renewable energy producers to “impose 20% curtailment on all RE generation (solar and wind) with immediate effect at actual running generation due to high frequency, heavy underdrawal.”The SLDC issues curtailment directions after factoring in the demand-supply position on the grid.The order comes months after Rajasthan saw steep curtailments in April, when solar and wind projects were asked to reduce generation by 30% to 80% during peak solar hours. Officials had then cited weak daytime demand, the operational inflexibility of coal-fired thermal plants and inadequate battery storage capacity as key reasons for the cuts.The recurring curtailments point to a structural mismatch between renewable generation and electricity demand, and to insufficient storage infrastructure to shift excess power produced during the day to evening peak hours.Rajasthan has added substantial solar capacity in recent years, but the grid continues to depend on thermal plants that cannot be switched off and restarted as flexibly as renewable generation fluctuates.“Battery energy storage systems can help bridge this gap. However, delays in commissioning storage capacity have constrained the state’s ability to manage the mismatch between generation and demand,” said D D Agarwal, director of Samta Power, an NGO working in the energy sector.For solar developers, repeated curtailment orders have raised concerns over project viability, especially when generation is restricted despite plants being available to supply power. The financial impact varies depending on the terms of individual power purchase agreements and whether compensation provisions apply in curtailment cases.Surplus power*Of the roughly 18,000 MW of solar power capacity operating in the state, nearly 10,000 MW is reportedly facing curtailment*Industry representatives say curtailment has been persistent between April and Aug, with generation cuts ranging from 20% to 80%.*Developers fear higher curtailment levels during the winter months, when daytime electricity demand declines*Stakeholders have suggested expanding daytime agricultural power consumption, citing Gujarat’s model to reduce curtailment*Also, priority should be on increasing battery storage projects to meet peak power demand
Solar projects told to cut generation by 20% as state struggles limited storage capacity | Jaipur News
