High court order on interim tariff won’t help AP green projects: India Ratings

Mumbai: Solar and wind energy projects in Andhra Pradesh will remain stressed despite an order from the Andhra Pradesh high court that the state distribution companies should pay an interim tariff of ₹2.44 per unit and ₹2.43 per unit to solar and wind energy developers, respectively. Credit ratings agency India Ratings said it is unlikely that renewable energy players, who supply to the state and are caught in the middle of forced tariff renegotiations, will get any respite through this interim tariff.

“The order to pay an interim tariff of ₹2.44/unit and ₹2.43/unit for solar and wind projects, respectively, will not be sufficient for the entire debt servicing for the capacity of 554MW in Ind-Ra’s state portfolio (with AP state discoms as direct counterparties),” the agency said.