Overview
On 20 August 2026, Reuters reported that the Indian government is reportedly evaluating a scheme to provide low‑cost loans to renewable energy producers. The proposal is intended to compensate developers for losses incurred because the transmission network has not kept pace with the rapid expansion of green energy, especially solar power.
Key Figures
- Solar power capacity is about 162 GW, representing roughly one‑third of India’s total power‑generation capacity, according to government data.
- Renewable energy developers have incurred losses of approximately 45 billion rupees (about US$470.21 million) since February 2025, attributed to limited transmission infrastructure that restricts the flow of clean power from states such as Rajasthan and Gujarat to the national grid.
- In certain projects, between 70 % and 80 % of the generated renewable power could not be injected into the grid.
- Government statistics show that India curtailed 14 % of its solar output, equivalent to 8,133 gigawatt‑hours, during the April‑June quarter.
Intended Support Mechanism
The contemplated low‑cost loan facility is aimed at offsetting the financial impact of these transmission bottlenecks, thereby encouraging continued investment in renewable generation capacity.
Scope and Impact
The measure targets renewable energy developers across the country, with particular relevance to projects in Rajasthan and Gujarat where curtailment has been most pronounced.