Significant PV project deadline extensions in India’s Uttarakhand

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
Uttarakhand Power Corporation (UPCL) failed to cooperate with developers. Credit: Abhijit Kar Gupta

Delays in solar PPA signing combined with a petition from developers has led to significant project commissioning deadline extensions in the Indian state of Uttarakhand, according to consultancy firm Mercom Capital Group.

A total of 181MW solar capacity were awarded across 23 projects in the state in October 2015 and these projects were due to be commissioned this month. Major winners included Acme (50MW) and Omkar PowerTech India (30MW). Punj Llyod, Emami Power and Rays Power Infra all won 20MW. Average prices were INR 5.78/kWh (US$0.086) said Mercom.

Industry members have often warned about the challenge of tight deadlines for commissioning along with low tariffs in the Indian market with hefty penalties imposed on late projects.

An official at the Uttarakhand Renewable Energy Development Agency (UREDA) told Mercom that the Uttarakhand project deadlines have been extended by six months to 31 March 2017, partly as a result of the distribution company Uttarakhand Power Corporation (UPCL) failing to cooperate with developers.

In response to the petition from developers calling for an extension, the Uttarakhand Electricity Regulatory Commission (UERC) said: “the delay in achieving financial closures and consequently the commissioning of the projects is due to the inefficiency of Uttarakhand Power Corporation which led to delays in the signing of the PPAs.”

An official at Omkar also told Mercom thatthere are ongoing issues between UREDA and UPCL.

Mercom said that UPCL is not ready to buy power from these solar projects at present and will only be able to evacuate power from these projects starting next year.

PPA signing delays also held back developers Telangana last year as well as in Jharkhand more recently. Whereas, Tata this week managed to sign a PPA for a 100MW project in Andhra Pradesh.

Read Next

PV Tech Premium
January 25, 2022
European solar power purchase agreement (PPA) prices can be expected to level off this year following a turbulent end to 2021 as the market undergoes a shift in the balance of power to the seller side.
January 25, 2022
Indian PV encapsulant and backsheet manufacturer RenewSys has brought its encapsulant production capacity up to 3GW with the commissioning of a new line in Bengaluru, India, with the company eventually targeting 11GW of capacity through a “phased manner”.
January 24, 2022
Renewables developer and operator Leeward Renewable Energy has signed power purchase agreements (PPAs) with telecom company Verizon for a portfolio of four under-development solar and wind plants in the US with a combined capacity of 640MW.
January 21, 2022
India is at risk of a supply and demand mismatch for solar equipment if domestic PV manufacturers are unable to meet the quantity and quality required by project developers, Fitch Solutions has warned.
PV Tech Premium
January 21, 2022
Greece is on track to accelerate solar deployment in the coming years, with the sector boosted by rising demand for renewable offtake agreements from corporations and clean energy policies from the EU, according to the general manager of Greek industrial group Mytilineos’s renewables business.
January 17, 2022
A round-up of the latest projects news, including EDP Renewables completing Indiana’s largest PV project, two Gulf utility companies pricing their first green bonds and an Australian utility linking its project to the national grid.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 8, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal
Solar Media Events
April 25, 2022
Berlin, Germany