The renegotiation of contracts with renewable energy players is impacting the viability of investments in the sector according to a report by WWF-India.
The report titled, “The Rise of Renewables: Are You REDE?” said, “The fall in Renewable Energy (RE) prices, as a result of economies of scale and reverse bidding led to a series of events where many Discoms across the country have started reneging tariffs as against the spirit of PPAs (Power Purchase Agreements) signed with RE generators and sanctioned by the regulators.”
“This directly affects the financial viability of projects set-up by generators/investors. For example, Discoms in Andhra Pradesh, Karnataka and Uttar Pradesh went on reneging contacts with investors.
