The government has allowed solar power developers more time for executing projects, a move which may bring down project costs and tariffs of power generated from this source.
As per recent amendments in the competitive bidding guidelines for solar projects, for capacities above 250 MW, developers now have two years to commission the project from the date of signing the power purchase agreement (PPA) with the procurer. The earlier deadline was 15 months.
The deadline for commissioning projects within solar parks has also been extended to 21 months from the date of signing PPA from 13 months earlier.
A senior official from the ministry of new and renewable energy (MNRE) said the relaxation will allow developers more time to source equipment and help reduce the cost of setting projects up. “When timelines are relaxed, costs come down naturally,” the person said.
The move will help make a level-playing field for developers in India, as similar timelines are followed internationally, said the official who did not wish to be quoted.
The ministry has been receiving representations from developers on extension of deadlines for project completion, the official said.
