Clogged pipeline of green power to get mega clean-up

The Union power ministry has flagged off a major cleanup of India's massive green energy pipe line, ordering state-owned power procurers to scrap awarded renewable energy contracts where critical agree ments have stalled.

- Utpal Bhaskar

The ministry has asked Solar Energy Corp. of India (SECI), NTPC Ltd, NHPC Ltd and SJVN Ltd to cancel awarded contracts by November end in cases where it's not feasible to sign power purchase agreements (PPAs) and power supply agreements (PSAs), according to two people aware of the development and a document reviewed by Mint.

These state-run firms, referred to as the Renewable Energy Implementing Agencies (REIA), are intermediaries in the renewable energy chain, signing PPAs with project developers on one end, and PSAs with power distribution companies (discoms) on the other. However, many dis coms have chosen to wait for lower tariffs rather than sign PSAs straightaway, holding up the whole process.

A power ministry meeting on 17 October chaired by Secretary Pankaj Agarwal decided to cancel the contracts, the people cited above said on the condition of anonymity.