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Renewables

Dear Jagan Reddy: 5,000MW of renewable capacity is at stake. It’s no more a who-blinks-first game.

Defying the Centre, Andhra Pradesh has decided to revisit solar and wind power purchase contracts. Given the weak funding atmosphere, any misstep such as renegotiation of contracts will not only unsettle the renewable-energy sector but also magnify project risks.
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15 Jul 2019 6 Mins Read 3 comments
The state's renewable projects are in limbo owing to a drastic decision by the new government; courtesy of Greenko
The state's renewable projects are in limbo owing to a drastic decision by the new government; courtesy of Greenko
The Narendra Modi government’s ambitious push for renewable energy has hit a stiff hurdle, with Andhra Pradesh — which accounts for nearly 20% of the country’s renewables capacity — pulling the plug on all solar and wind projects commissioned by the state’s previous government. Defying the Centre, on July 1 chief minister YS Jagan Mohan Reddy’s newly elected government
forced to mark down these assets as non-performing, creating further stress for the lending sector. The onus is on the Reddy government to decide if its foremost priority is to protect the sanctity of contracts or carry on with this who-blinks-first game, which in all likelihood will culminate in a prolonged legal battle. ( Graphics by Sadhana Saxena)
The Narendra Modi government’s ambitious push for renewable energy has hit a stiff hurdle, with Andhra Pradesh — which accounts for nearly 20% of the country’s renewables capacity — pulling the plug on all solar and wind projects commissioned by the state’s previous government. Defying the Centre, on July 1 chief minister YS Jagan Mohan Reddy’s newly elected government forced to mark down these assets as non-performing, creating further stress for the lending sector. The onus is on the Reddy government to decide if its foremost priority is to protect the sanctity of contracts or carry on with this who-blinks-first game, which in all likelihood will culminate in a prolonged legal battle. ( Graphics by Sadhana Saxena)

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