Higher Curtailment of Older ‘Expensive’ Renewable Projects: A Challenge for Renewable Energy Developers in India
Renewable energy curtailment continues to be a significant challenge for renewable energy developers in India, with developers alleging that older projects with higher tariffs are curtailed more than newer projects supplying power at lower tariffs. This issue was highlighted by the National Solar Energy Federation of India (NSEFI), which provided curtailment data from March to August 2017 for five projects in Tamil Nadu, including three supplying power at Rs 7.01 per kilowatt-hour (kWh) and two at Rs 5.10 per unit.
The data revealed that while curtailment from cheaper projects remained near zero, the other three projects faced curtailment of over 50 percent on several days. This indicates that older renewable energy projects with higher tariffs are more susceptible to curtailment, which can significantly impact the profits of renewable energy developers.
The reasons for the higher curtailment of older projects with higher tariffs are not entirely clear, but it may be due to various factors such as grid congestion, transmission constraints, and priority given to newer projects with lower tariffs. This unfair treatment of older projects with higher tariffs can lead to revenue losses and financial challenges for renewable energy developers.
The impact of curtailment on the profits of renewable energy developers is significant. When renewable energy generation is curtailed, it means that the energy that could have been generated and sold is lost, resulting in revenue losses. This can be particularly detrimental to smaller renewable energy projects or developers with limited financial resources, as it can affect their viability and financial sustainability.
To address the issue of higher curtailment of older projects with higher tariffs, it is crucial to improve grid infrastructure and transmission capacity to accommodate the increasing renewable energy capacity in the country. Additionally, transparent and equitable curtailment policies need to be implemented, ensuring that all renewable energy projects are treated fairly regardless of their tariffs.
Furthermore, energy storage solutions, such as battery storage, can also play a role in mitigating curtailment by storing excess renewable energy during times of high generation and releasing it during times of low demand. This can help to optimize renewable energy generation and minimize curtailment, ensuring that renewable energy developers are able to fully utilize their energy generation and maximize their profits.
Source: Downtoearth.org
The higher curtailment of older projects with higher tariffs is a challenge for renewable energy developers in India, as it can significantly impact their profits and financial sustainability. Improving grid infrastructure, implementing transparent and equitable curtailment policies, and exploring energy storage solutions can be effective measures to address this issue. Ensuring a fair and conducive operating environment for all renewable energy projects will be crucial for the growth and success of the renewable energy sector in India. #RenewableEnergy #Curtailment #IndiaRenewables #EnergyStorage #GridInfrastructure