Clean energy firms, promoters feigning pandemic as exit ruse may be blacklisted

NEW DELHI: The Centre plans to come down hard on those green energy firms and their promoters feigning the coronavirus pandemic as an excuse to exit already awarded contracts, said two people aware of the development.

This assumes significance given that India is running what will become the world’s largest clean energy programme, and comes in the backdrop of some wind energy developers seeking “low-cost exit options” for unviable projects.

The government plans to not only blacklist such companies but also censure their promoters, thereby preventing them from participating in future projects. With some project developers trying to terminate their power purchase agreements (PPAs) without encashment of their bank guarantees, the ministry of new and renewable energy (MNRE) has taken a dim view of such practices, as it can impact India’s green energy trajectory.