RENEWABLE ENERGY

ReNew Power wants to exit TN wind project due to delay in land allocation

ReNew Power, one of India’s leading renewable energy companies, wants to exit an agreement to build a 265 MW wind power project in Tamil Nadu, citing “force majeure events”. The company has petitioned the Central Electricity Regulatory Commission (CERC) to terminate the power purchase agreement (PPA) it signed with the government of India-owned SECI in September 2018.

ReNew Power won the project in SECI’s fourth round of wind capacity auctions on April 2018, quoting a tariff of ₹2.52 a kWhr.

In its petition, ReNew said it is unable to implement the project because of delay in allocation of land for the project and delay in commissioning of the transmission system to evacuate the power. It has further cited “delay in adoption of tariff by SECI and Covid-19” as reasons.

Bank guarantee
ReNew Power has taken a stand that if a force majeure event has continued for more than nine months, it is entitled to terminate the PPA. It has requested CERC to tell SECI to return the bank guarantee.

Source
the hindu businessline
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