Renewable power producers have raised the issue of states like Andhra Pradesh and Punjab reneging on power purchase agreements (PPAs) and asked that the Punjab Governor veto a Bill that would allow renegotiation of existing PPAs in the state.
The Andhra Pradesh government is currently in a legal battle with renewable energy producers with the aim of renegotiating contracted power tariffs and the Punjab Assembly has passed a Bill to renegotiate tariffs under existing PPAs. Solar power tariffs have fallen drastically over the past 5 years leading to power purchased under earlier solar PPAs being significantly more expensive than prices under more recent PPAs.
