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Market Chatter: India Weighs Low-Cost Loans to Offset Renewable Power Curtailment

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India is considering low-cost, long-term loans for renewable energy producers to compensate for losses due to inadequate transmission infrastructure, Reuters reported on Thursday, citing industry sources.

Developers have reportedly lost about 45 billion rupees ($470.2 million) since February 2025 as grid constraints limited power supplies from renewable-rich states including Rajasthan and Gujarat, the sources said. In some cases, 70-80% of output could not be evacuated.

The power ministry is discussing loans with seven- to eight-year tenures with producers while verifying eligible projects. Government data shows India curtailed 14% of its solar generation in April-June.

India's Ministry of Power did not immediately respond to a request for comment from.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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