Green energy projects can apply for extension, again

Frequent delays to hurt 175-Gw RE capacity target of next year

Developers now get more time to complete renewable energy (RE) projects which are under construction or were awarded and could not start construction owing to the Covid-19 pandemic and localised lockdowns.

The Ministry of New and Renewable Energy (MNRE), in an official notice to the project developers, said: “RE projects being implemented through implementing agencies designated by the MNRE or under various schemes of the MNRE, having their scheduled commissioning date (SCD) on or after April 1, 2021, will be eligible to claim time extension for completion of their project activities.”

It said the actual quantum of time extension would be decided in due course depending on Covid-related developments in the coming weeks.

This is the second extension in a year. In August 2020, MNRE granted a blanket five-month extension to all RE projects which were under implementation on March 25, 2020, the day after national lockdown was announced. Close to 7 Gw of RE power projects extended their scheduled commissioning through this extension.

The Centre in March 2020 had also granted blanket approval for any project facing delay due to Covid to apply for extension under the Force Majeure clause.

Now MNRE has said while there is no nationwide lockdown, several states/uts have taken various measures like night curfew, imposition of section 144, weekend lockdown, etc “which may have affected RE projects”.

However, the ministry said the current time extensions cannot be used by project developers as a ground for claiming termination of Power Purchase Agreement (PPA) or for claiming any increase in the project cost.

Last year, several companies had moved the electricity regulator to cancel their existing PPAS.

ACME Solar, Renew Power, Mytrah Energy have petitioned the Central Electricity Regulatory Commission for cancellation of projects, citing delay due to Covid and lack of transmission network.