Indian power minister touts penalising states for not honouring PPAs

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
Indian power minister R.K. Singh. Credit: twitter

India’s Ministry of New and Renewable Energy (MNRE) is finalising laws that will include penalties for state governments and distribution companies (Discoms) that do not honour power purchase agreements (PPAs), according to power minister R.K. Singh.

Singh's comments at the Global Investors’ India Forum lacked detail and it is unclear just how new such a policy would be, given that a signed PPA should in theory be protected by law already. Nevertheless, cancelling, renegotiaiting or price-matching PPAs in the solar sector has gathered momentum recently with incidences in Tamil Nadu, Jharkhand and Uttar Pradesh, causing some concern for the sector.

According to a government release, Singh said MNRE is in the final stages of “codifying” this law that would penilise “delinquencies”. It also plans to make Renewable Purchase Obligations (RPOs) statutory.

Enforcement of RPOs, which mandate states to procure a certain percentage of their energy from renewables, has been famously poor to date, and it remains to be seen whether the new plans would have any impact. Former joint secretary of MNRE Tarun Kapoor once said that the RPO was the single most important policy driver for solar in India.

Other new rules announced by Singh include making smart meters mandatory and imposing penalties for non-payment of electricity bills.

Read Next

April 14, 2021
As the market moves away from power purchase agreements, the possibility for a new breed of investors comfortable with market risk is emerging alongside the potential for some larger investors to bring trading in-house.
April 14, 2021
While recent solar auctions in Spain and Portugal have made headlines with low prices and high levels of participation, the power purchase agreement market will be key to helping both countries reach their 2030 solar deployment targets, it was suggested during a panel discussion.
April 12, 2021
A consortium between Abu Dhabi-based Masdar, EDF Renewables and Nesma Holding Company has broken ground on a 300MW PV project in Saudi Arabia.
PV Tech Premium
April 8, 2021
After a challenging year, India’s solar sector stands primed for something of a rebound. But a host of familiar issues, from the perilous state of DISCOMs to regulatory uncertainty, run the risk of stymying future growth. Vinay Rustagi, managing director at consultancy Bridge to India, talks to PV Tech about the future prospects for Indian solar.
April 8, 2021
Utility group Black Hills Energy has signed a 15-year power purchase agreement (PPA) with solar energy company 174 Power Global for its first large-scale solar power project in Colorado, US.
April 8, 2021
Tata Power Solar has expanded its PV manufacturing facility in Bengaluru, India, taking the total production capacity of modules and cells to 1.1GW.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
April 20, 2021
Upcoming Webinars
April 28, 2021
4:00 - 4:30 PM CET
Solar Media Events
May 11, 2021