This paper introduces the concept of renewable energy contingencies that represent long-term/extended variability of variable renewable energy (VRE) resources, namely, significant periods (e.g., days/weeks) of low wind/solar availability. These contingencies have not received much attention to date but are likely to emerge as a major issue in some countries such as India as the share of VRE increases. Using 38 years of climate model reanalysis data for wind over India, we demonstrate that low periods of wind contingency below long-term (Indian) national average of 5 m/s can extend for more than 100 days in several zones some of which are deploying large wind farms. Even in some of the best wind resource areas in India with long term average wind speed close to 7 m/s, low wind days (e.g., 5 m/s which is substantially below average) can extend up to 60 days. We propose a four-step methodology around a co-optimization based energy-ancillary services dispatch model to assess the impact of renewable contingency and implemented it for the state of Tamil Nadu, the most wind-rich state of India. We have estimated that annual renewable contingency cost impact of 5 GW additional wind in Tamil Nadu to be in the range of US$27–76 million pa. Planning analysis should embrace the concept of renewable contingency to recognize these costs and put in place necessary spinning reserve and back-up generation resources.