Coronavirus shadow over 3 GW solar projects

Nearly 3 GW of solar projects worth Rs 16,000 crore could be at risk of penalties for missing their Scheduled Commercial Operation Date (SCOD), if the impact of Coronavirus on trade with China prolongs.

India sources about 80 per cent of its solar modules from China, where trade has been impacted as measures are being put in place to combat the spread of the virus, according to an analysis by Crisil.

As per the standard terms of power purchase agreements, non-adherence to completion timelines attracts penalties, including downward renegotiation of tariffs.

The measures such as restricted movement of people and shut down of factories have disrupted module manufacturing in China and its feeder industries.