The 57 renewable energy generators, whose power purchase agreement expired in 2019 after the five-year period, will now be able to renew their contracts with the Rajasthan Urja Vikas Nigam Ltd (RUVNL).
Besides the PPAs, as per the directions of the Rajasthan High Court, the arrears of the generators will be paid in 90 days. However, the generators will have to settle for a tariff of Rs 2.24 per unit for solar and Rs 2.44 per unit for wind, which is much lower than the average power purchase cost (APAC) they used to get earlier.
The renewable energy (RE) firms had signed PPAs to provide power to the discoms at the prevailing APAC rates along with renewable energy certificates which can be cashed in on the trading exchanges.
However, when the PPAs expired in 2019, terms and conditions were changed for renewal and rates were lowered. The power generators filed petitions in court, which provided a middle ground for agreement between the RUVNL and the generators, but many RE firms said that the rates were very low compared to the investments they had made in 2013-14.
