India Weighs Low-Cost Loans to Support Renewable Projects Hit by Power Curbs

Key Highlights:

• 14% solar curtailment: India curbed 14% (8,133 GWh) of its solar power output between April and June 2026, according to goernment data.
• ₹4,500 crore in losses: Renewable energy developers have reportedly lost about ₹45 billion since February 2025 due to inadequate transmission infrastructure.
• 7–8-year low-cost loans: The power ministry is considering long-tenure, low-interest loans to compensate affected producers.
• 1/3 of new capacity on temporary lines: ICRA estimates a third of India's newly-commissioned 54.8 GW clean energy capacity was being evacuated through temporary transmission infrastructure (as of May 2026).

Key Observations:

• Transmission infrastructure has struggled to keep pace with India's rapid renewable capacity additions, especially solar.
• The proposed loan support is being considered to support affected renewable energy producers amid near-term grid constraints.
• Transmission infrastructure expansion remains important for India's clean energy expansion plans.

Source: Reuters, 20 August 2026

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