Kolkata: The Andhra Pradesh government’s latest move to renegotiate its agreements to purchase solar and wind power will affect generators’ operating cash flows and is likely to face strong challenges from RE operators. Normally state-owned distribution companies in the state delay payments to generators and that may eventually lead to a significant drop in generators’ operating cash flows, the latest report from Fitch Ratings has suggested.
Earlier this month, the state government had formed a negotiation committee to renegotiate wind and solar PPAs in the state, citing the high tariffs that state distribution firms pay under the contracts.
