TCCL Report on Renewable Integration & Curtailment: Causes, Solutions and Impact on Project Bankability

As renewable energy penetration deepens, curtailment issues are rising since the installations are concentrated largely in a few states. The equity IRR could fall below zero if the curtailment exceeds 40% and ADSCR would fall below unity if the curtailment exceeds 20%. The reports deals with the potential solutions including demand side and supply side management along with the most sustainable solution of energy storage.

It adds that curtailment implies the inefficiency of the integration of renewable energy with the grid. Thus, the larger is the flexibility of the system, the smaller will be the curtailment! The solutions to make the system more flexible are two-folds: supply-side management and demand-side management.