Karnataka’s power regulator has finally started approving old power purchase agreements (PPAs) with wind energy developers
Nearly 60,000 mw of thermal power projects in the IPP (independent power producers) segment are stressed mainly for want of long-term power purchase pacts and unavailability of domestic gas supplies, says a report.
The BJP-ruled Uttar Pradesh government is using strong-arm tactics, such as the unilateral termination of power purchase agreements (PPAs), to get generators to reduce electricity tariffs.
Wind power developers in Karnataka with commissioned capacity of 270 MW are hit as the state’s energy department and electricity regulator engaged in a tiff over tariff rates.
The central government is set to hold a two-day brainstorming session with states on big power sector reforms including direct transfer of subsidy and strict laws obligating distribution utilities to provide round-the-clock power and connection portability.
Gas-based power plants, already reeling under financial stress and availability of cheaper alternatives, face further risk as their plant load factor (PLF) is set to deteriorate from a lowly 23% at present.
Karnataka’s electricity regulator has refused to approve the power purchase agreements (PPAs) for wind power projects that were commissioned before March 31, 2017, without a fresh tariff reduction of 17% to Rs 3.74/unit.
India’s wind energy capacity addition in the current financial year remains adversely impacted due to migration from feed-in tariff to bid tariff route and with a very limited progress seen in tie-up of incremental wind energy Power Purchase Agreements (PPAs) through bidding route so far
Attempts by India’s state-owned power distributors to renegotiate power-purchase agreements (PPAs) for renewables could delay wind and solar projects, leaving the door open for gas-fired developments.
The Indian Banks Association is planning to seek the Centre’s immediate intervention over state governments scrapping or looking to renegotiate power purchase agreements ( PPAs) with thermal and renewable energy producers, several bank executives said. They warn that this will worsen an already precarious bad-loan situation.