According to Bloomberg News, ReNew Energy Global Plc is being compelled to reduce solar power generation as India's overburdened grid infrastructure finds it difficult to handle the surge of renewable energy during peak daylight hours, which puts pressure on the company's profitability.
According to CEO Sumant Sinha, the renewable energy producer is experiencing up to 15% of its solar electricity curtailed on some days due to transmission networks' inability to integrate excess supplies when generation peaks.
"The reality is that you're asked not to generate, and that is losing us power," Sinha stated, noting that every generating disruption has a direct negative impact on profits. "We are simply being told to back down because the grid build-out has been significantly delayed."

The remarks highlight the growing strain on India's power system as the nation prepares for a hot summer with skyrocketing electricity demand and the increasing difficulty of striking a balance between the supply of renewable energy and consumption trends. Demand usually increases dramatically in the evening, while solar generation usually peaks throughout the day.
India's grid limitations have already resulted in a considerable reduction in renewable energy. system Controller of India Ltd. reports that on some days last year, the national system was unable to receive approximately 40% of solar power output.To address the imbalance, ReNew, which accounts for about 5% of India's 223-gigawatt renewable energy capacity, is now stepping up its battery storage expenditures. According to Sinha, the company intends to construct over four gigawatt-hours of battery capacity this year in addition to its renewable initiatives.
The batteries are anticipated to assist in reducing the disparity between midday solar generation and nighttime consumption by storing excess electricity during the day and releasing it when demand rises.
ReNew is also dealing with growing expenses related to the situation in Iran, which has increased transportation prices and caused delays in the delivery of essential raw materials for its solar panel business.However, for the time being, the impact is still tolerable.
According to Sinha, any rise in overall expenses "is probably not more than a few percentage points" and is "hopefully temporary."
As the industry struggles with declining wind speeds, the company anticipates that its future renewable portfolio will lean more toward solar power, according to Sinha.