The high-level committee formed by Andhra Pradesh government to review and renegotiate the signed power purchase agreements with wind and solar power developers has the potential to impair the cash flows of projects in the sector.
Independent power producer KPI Global Infrastructure has received Gujarat Energy Transmission Corporation’s approval to enhance solar power evacuation from 30 MW to 70 MW (30 MW existing + 40 MW additional capacity) at 66 KV Amod Substation of district Bharuch in Gujarat.
Citing the risk to solar projects, lobby group the National Solar Energy Federation Of India has asked the Ministry of New and Renewable Energy to exclude flat steel products coated with alloy of aluminum and zinc from anti-dumping duty.
The state government will defy a ministerial order not to renegotiate signed deals after leadership of the legislative assembly changed hands in May’s elections. Consultancy Bridge to India says the contracts are legally binding but the move will shake investor confidence nevertheless.
With Karnataka withdrawing open access waivers and the policy not replicated elsewhere, corporate buyers are increasingly favouring group captive projects that are exempt from the cross-subsidy surcharge—the largest and most unpredictable component of grid charges for open access power.
Indian solar manufacturers are facing a double whammy with USA removing preferential trade status for India and safeguard duty imposed by India nearing fall to 20% from July 2019. Struggling to find domestic as well as export markets, they expect the government to focus on policy direction, not just expenditure.
Citing huge losses to solar power developers, the lobby group has urged state-owned utility Karnataka Power Transmission Corporation Limited not to arbitrarily curtail generation from solar power projects that are in any case ‘must run.’
The power minister’s proposal would be a step in the right direction towards meeting the 40 GW rooftop solar target, as it removes a financing hurdle for small and medium enterprises.
Easy access to finance topped the agenda of the minister’s meeting with various stakeholders, wherein issues related to land acquisition and Goods and Services Tax (GST) were also discussed.
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