PPA renegotiations may hit green power firms’ cash flows


PPA renegotiations may hit green power firms’ cash flows

With Andhra Pradesh government asking renewable energy generators to renegotiate power purchase agreements (PPAs), Fitch Ratings is of the view that it will hamper private players’ operating cash flows.

Among the reasons for this impact is a delay in payments by state-owned distribution companies, or discoms. Earlier this month, the Andhra Pradesh government had formed a high-level negotiation committee to look into PPAs of solar and wind energy, citing high tariffs.

On Wednesday, in a report, Fitch Ratings said, “We expect the Andhra Pradesh government to face vigorous challenges from operators of renewable power projects and the central government.  Read More

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