SLDC orders small RE power generator to reduce power generation

State Level Dispatch Center (SLDC) Forcing Small Renewable Energy Projects to Cut Production

In a move that appears to undermine Prime Minister Narendra Modi’s vision of achieving net-zero carbon emissions, Gujarat’s State Level Dispatch Center (SLDC) is reportedly forcing Gujarat based small solar and wind power producers to curtail their electricity generation.

While the central government pushes for a green transition, SLDC officials are instructing small-scale power plants (2 to 5 megawatts) to reduce their output by 20% to 70%, citing grid instability caused by “oversupply.” If producers fail to comply, the SLDC reportedly cuts off their power supply manually.

Prioritizing Polluting Coal over Clean Energy The most shocking aspect of this directive is that it targets clean energy producers rather than coal-fired power plants. Industry insiders suggest this is being done to benefit large, influential coal-based electricity producers. Ironically, coal-generated electricity is both more expensive for consumers and significantly more harmful to the environment compared to wind and solar power.

Violation of ‘Must-Run’ Status Many of these small solar projects operate under the PM-KUSUM scheme, with government contracts spanning 25 years. Under 2021 government guidelines, these small-scale renewable projects were granted “Must-Run” status, meaning they are critical for grid stability and should not be shut down. Despite this, SLDC continues to impose heavy production cuts, contradicting national climate goals and putting the financial viability of small renewable energy projects at risk.