Following the lockdown and fall in electricity demand, several states are now curtailing renewable power purchases and have also issued notices on non-payment to generators. These states have invoked Force Majeure clause in their power purchase agreements (PPA) with renewable projects to nix power supply and payment.
While Punjab has told renewable power producers to run their units at their own cost and risk, Uttar Pradesh, Andhra Pradesh and Madhya Pradesh have refused payment and have stated that they are curtailing renewable power.
Renewable power including solar, wind, small hydro and biomass comes under ‘must-run status’, that is, it cannot be stalled or shut under any circumstances.
