RENEWABLE ENERGY

Centre asks states not to stop payment of renewable energy generators

The central government has asked states to continue to buy power from renewable energy producers and clear their dues “on a regular basis as was being done prior to the lockdown”.

The Ministry of New and Renewable Energy on April 1 wrote to all states and electricity distribution companies after renewable energy producers complained that some states were curtailing purchase and payment for electricity generated from sources such as solar energy.

In the letter, the ministry said the power ministry has recently issued instructions providing for a moratorium to distribution companies or discoms for making payments to electricity generating companies in the wake of COVID-19 outbreak and the following nationwide lockdown.

Some state discoms, however, used that order to start curtailing renewable energy power terming the prevailing situation a ‘force majeure’ condition.

The ministry, according to the letter reviewed by , directed the discoms to accept invoices and billing through emails and make payments to renewable energy generators as per their power purchasing agreements (PPAs).

“Renewable energy generating stations have been granted ‘must-run’ status and this status of ‘must-run’ remains unchanged during the period of lockdown,” it said.

Solar and wind electricity generating stations have been granted a place in the “essentials” list exempted from the lockdown, and they will be allowed to continue to function during the lockdown period.

Source
ET Energy World
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