Renewable Energy · Intermediate level · 3 min read ·

What is curtailment?

Curtailment is the forced reduction of the energy a system delivers to the grid, ordered by the grid operator when the grid cannot take any more at that moment. The system could produce more, but it is held back. In AGPE projects it is uncommon, though possible during hours of high generation.

In 30 seconds

  • It is a limit ordered from outside: it is not a system fault.
  • It happens when the local grid cannot take more energy at that moment.
  • While the limit lasts, the system delivers less energy than it could.
01

Why should you care?

A generation projection assumes the grid takes all the energy the system can deliver. Curtailment is one of the reasons that doesn't always happen.

  • You understand why real production can fall below what was possible.
  • You tell a grid limit apart from an equipment problem.
  • You read a solar project's risk section with more context.
02

Think of it as a highway at rush hour

Your car runs fine, but if the road is full, the traffic officer won't let you on until it clears. Solar energy is the car; the grid is the road. When it is congested, the operator asks the system to deliver less.
03

How does curtailment work?

  1. 1

    The grid hits its limit

    High generation, low local demand or a line under maintenance leave the grid with no room.

  2. 2

    The operator gives the order

    The Network Operator asks to reduce or pause the energy delivered, for a while.

  3. 3

    The system holds back

    The inverters lower the power they deliver, even with plenty of sun.

  4. 4

    Lost energy is measured

    The gap between what it could deliver and what it delivered is the curtailed energy.

The formula

Curtailment (%) = (Possible energy − Delivered energy) ÷ Possible energy

Possible energy
= what the system would have delivered without the limit
Delivered energy
= what the grid actually received
04

An example with numbers

Illustrative figures, unrelated to any project: a system would have delivered 2,000 kWh in a month, but received two curtailment orders on very sunny middays.

An example with curtailment
Possible energy for the month2,000 kWh
Curtailed energy40 kWh
Delivered energy1,960 kWh
Curtailment for the month2%

40 ÷ 2,000 = 0.02. A few short episodes weigh little; if they became frequent, the effect on the year's production would grow.

05

Where do you see it at Circular Urban?

Each solar project describes its risks and how they are mitigated, including those of connecting and delivering energy to the grid. Curtailment is among the risks you accept in the risk declaration: production and results are subject to the project's actual performance.

  • Each solar project sheet, in Risks & Mitigants.
  • Each solar project sheet, in Energy Production: Annual Production.
  • The risk declaration you sign before subscribing.
06

What changes in your finances once you get it

You separate projection and reality

You know estimated production assumes the grid takes everything, and that this can vary.

You read the full risks

You check in Risks & Mitigants how each project handles its grid connection.

You look at the year, not a day

One curtailment episode weighs little; what matters is how much energy is curtailed over the whole year.

07

Common mistakes

Myth

If the system produced less, something must have broken.

In reality

Not always: with curtailment the equipment works fine, but the grid can't take all the energy.

Myth

Curtailment only happens on cloudy days.

In reality

It is the opposite: it tends to happen in very sunny hours, when there is more generation than the grid can take.

Myth

Curtailed energy is stored to be sold later.

In reality

Without batteries, that energy simply isn't produced: generation in those hours falls below what was possible.

08

Test yourself

A system could deliver 5,000 kWh in a month and the grid received 4,900 kWh because of curtailment orders. What was the curtailment?

09

Keep learning

This content is educational. Every participation carries risks inherent to the project, including the possibility of partial or total loss, and results are subject to each project's actual performance.

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