Andhra Pradesh has informed renewable power producers that its electricity discoms will not be able to pay renewable energy-based power producers as they are facing a reduction in collections due to the lockdown to contain the coronavirus outbreak.
In a letter, a copy of which was reviewed by FE, the Southern Power Distribution Company of Andhra Pradesh has said that the ‘force majeure event’ is ‘affecting the performance obligations’ of the discoms under the power purchase agreements (PPAs) and ‘no cause of action for breach or liability will arise as a consequence of the said force majeure event’. Andhra Pradesh’s decision to revise tariffs of renewable energy projects has already created a stir in the industry and hit the national mission to have 175 giga-watts of renewable energy capacity by 2022.
