Punjab govt wants to renegotiate solar power tariffs
Punjab is the latest state to seek a revision of its solar power tariffs with chief minister Amarinder Singh’s government calling for a tariff of ₹4.50 per unit, said two people aware of the development, requesting anonymity.
The state government has cited fall in prices of solar panels as well as lower borrowing costs and reduced corporate taxes behind the proposed step. Punjab’s decision is expected to compound the woes of clean energy sector which is in the midst of a logjam over contracts with Gujarat and Andhra Pradesh, and inordinate payment delays by states such as Telangana.
A communication issued on Tuesday by the Punjab State Power Corp. Ltd (PSPCL) reviewed by Mint said: “RE (renewable energy) power rates need to be brought down to the level of average pooled cost of power @ 4.50 per unit worked out by PSERC (Punjab State Electricity Regulatory Commission) for 2020-21.
