Latest Covid curbs hitting solar projects

- India 4th largest in the world in solar PV deployment

- Its installed solar power capacity is 62 GW

- The solar tariff is also quite competitive

- India achieved grid parity

- However, global disruptions affecting the sector

New Delhi: Supply chain disruptions, primarily triggered by the lockdowns and Covid eruption in China, have delayed the projects in the renewable energy (RE) sector in India. The Ministry of New and Renewable Energy (MNRE) has agreed to the requests from the implementing agencies and their associations that they be given more time to complete their projects.

India is the 4th largest in the world in solar PV deployment. Its solar power installed capacity is around 62GW. The solar tariff is also quite competitive, having achieved grid parity. However, global disruptions are affecting the sector.

The Indian Renewable Energy Development Agency Ltd (Ireda), a statutory and autonomous organization under the MNRE, sought extension of timelines for projects on account of supply chain disruptions in the solar PV sector. The Ministry examined the issue, and found that the demand was not without merit, official sources told Bizz Buzz.

The Ministry decided that Ireda may extend the scheduled commissioning date till September 30, 2024, of those solar PV power projects whose scheduled commissioning date (including time extensions already granted, if any) is before September 30, 2024. The MNRE has also been allowed to commensurately extend other associated intermediate milestones.

Solar Energy Corporation of India Limited (SECI), a public-sector undertaking (PSUs) under the MNRE, two other PSUs, NTPC and NHPC, and industry associations also petitioned the MNRE for time extensions for the same reason.

The MNRE examined the issue and decided that the three PSUs may extend the scheduled commissioning date till March 31, 2024, (and commensurately extend other associated intermediate milestones) of such solar PV and solar PV-wind hybrid power projects wherein the last date of bid submission was on or after April 10, 2021, and whose scheduled commissioning date (including time-extensions already granted, if any) is before March 31, 2024, and who wish to avail such time extension.

This extension would not be available to those projects where the power purchase agreements, or PPAs, were not signed before October 1, 2022, as such projects would most likely be having their scheduled commissioning date beyond March 31, 2024.