Amendments in power policies by states pose regulatory risks to renewable energy developers: ICRA
NEW DELHI: Renewable energy developers that have significant third-party power-purchasing agreements are prone to regulatory risks, as States continue to amend their power policies which withdraw or reduce incentives, according to a report by ratings agency ICRA.
Various states have taken such decisions to help their distribution companies, which often suffer from cashflow issues. Recently, the Maharashtra Electricity Regulatory Commission (MERC) decided to levy additional surcharge on group captive projects, which were exempted earlier.
