Short-term contracts find favour with power discoms

Short-term contracts find favour with power discoms

India’s electricity sector is poised for a structural shift with distribution utilities becoming increasingly averse to entering into long-term power purchase agreements (PPAs) for thermal projects.

Even as lenders want tariff certainty for the loan period, generation utilities are looking at developing a portfolio of short-term power procurement contracts ranging from “day ahead” to the ones spanning one, three or five years, to protect themselves from disruptions caused by record low green energy tariffs.

This assumes importance given that India’s current installed capacity of 329,205 megawatt (MW) and projects under construction are expected to meet the country’s electricity demand until 2026. Read More…


Credit By : Livemint

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