Archive · 10 Jan 2026
India's Green Energy Crisis: Distress Sales Threaten Trajectory
India is producing a lot of solar power, but there isn't enough demand or storage for it.
This is causing electricity distributors to sell the power at a loss on exchanges.
The problem is getting worse because the government has set high targets for using green energy, but the infrastructure to handle it isn't ready.
Experts are saying that India needs to slow down the growth of green energy and focus on more stable types of renewable energy that can be used when needed.
The distributors are also in a lot of debt, which makes the problem even harder to solve.
Some states are even choosing cheaper coal power over green energy.
The government is trying to figure out how to fix this, but it's a big challenge.
Discoms are selling solar power on exchanges at a loss (₹0.50 - ₹1.50 per unit) due to excess supply and weak demand.
Rapid green energy expansion is outpacing storage and management capabilities, leading to distress sales.
Mandatory renewable purchase targets (RPOs) are forcing discoms to buy more green power than they can use or sell profitably.
Experts suggest shifting focus to Firm and Dispatchable Renewable Energy (FDRE) and thermal plant flexibility to stabilize the grid.
Discoms' cumulative debt of ₹6 trillion and lack of evacuation infrastructure are exacerbating the crisis.
- Who
- Electricity distributors (Discoms) and renewable energy developers
- What
- Distress sales of solar power on exchanges at a loss due to excess supply and weak demand
- When
- Ongoing, with recent significant price drops in 2025
- Where
- India, particularly on the Indian Energy Exchange
- Why
- Rapid expansion of green energy outpacing storage and management capabilities, coupled with mandatory renewable purchase targets
- Current Solar Power Prices
- ₹0.50 - ₹1.50 per unit
- Long-term Contract Prices
- ₹2 - ₹3.50 per unit
- Renewable Purchase Obligations (RPO) Target
- 43% in 5 years
- Discoms' Cumulative Debt
- ₹6 trillion
- India's Total Renewable Energy Capacity (Nov 2025)
- 253.96 GW
- Renewable Energy Added in 2025
- 44.51 GW
- Firm and Dispatchable Renewable Energy (FDRE) Price
- ₹5 per unit
- Solar-cum-Storage Project Tariffs
- ₹2.90 - ₹3.60 per unit