LSN News › India

World · India Bureau

India allows renewable projects to monetize curtailed power via battery storage

The Ministry of Power has granted renewable energy developers permission to store and independently sell electricity from curtailed generation using co-located battery energy storage systems, opening a new revenue stream for solar and wind projects.

LSN India · 29 August 2026

India allows renewable projects to monetize curtailed power via battery storage

In a move aimed at improving operational flexibility for renewable energy installations, India's power ministry has cleared renewable energy (RE) projects to utilize curtailed transmission-linked green node allocation (T-GNA) power to charge battery energy storage systems (BESS) and subsequently sell the stored electricity on their own terms.

The directive permits RE generators to install additional battery storage capacity at project sites and repurpose power that would otherwise be lost due to transmission constraints. This curtailment of renewable generation occurs when grid infrastructure cannot accommodate all available renewable output, forcing operators to scale back production during peak generation periods.

By enabling RE projects to store this otherwise-wasted power, the ministry seeks to address both the challenge of renewable curtailment and the underutilization of installed generation capacity. The stored electricity can be discharged and sold independently, allowing project developers to capture value from power that would previously have been entirely lost.

The policy is expected to enhance the economic viability of renewable energy projects while improving overall grid efficiency. Industry observers view the measure as a significant step toward optimizing India's renewable energy infrastructure and supporting the country's renewable capacity expansion targets.