India is considering low-cost, long-term loans to compensate renewable energy producers for losses caused by inadequate transmission infrastructure, according to four industry sources.
The proposal is being considered by the federal power ministry as developers in renewable-rich states such as Rajasthan and Gujarat struggle to send electricity to the national grid.
The transmission network has failed to keep pace with rapid growth in clean energy, particularly solar power, which accounts for about 162 gigawatts, or nearly one-third of India’s power generation capacity.
Renewable energy developers have lost about 45 billion rupees ($470.21 million) since February 2025 because transmission constraints have restricted their ability to supply electricity, the sources said.
In some projects, as much as 70%-80% of available renewable power could not be evacuated to the grid because of the infrastructure bottlenecks.
Government data showed India curtailed 14%, or 8,133 gigawatt hours, of its solar power generation between April and June 2026, highlighting the scale of the problem.
The proposed support could involve loans at below-market interest rates with repayment periods of seven to eight years, while the government verifies which projects would qualify for assistance.
Renewable developers say frequent and uncompensated power curbs could make it harder to secure financing and raise borrowing costs because lenders require confidence in future electricity generation.
ICRA estimates that about one-third of India’s newly commissioned 54.8 gigawatts of clean energy capacity was being evacuated through temporary transmission infrastructure as of May 2026.
The plan is intended to ease financial pressure on renewable producers while helping India address transmission bottlenecks that threaten its rapid expansion of clean energy capacity.