Renewable energy contracts renegotiation will jeopardize investments: Minister

New Delhi: Oil and steel minister Dharmendra Pradhan today expressed concern over Andhra Pradhesh’s decision to renegotiate existing renewable energy contracts with companies saying the move may jeopardize future investments in the sector.He was speaking at Bloomberg New Energy Finance (BNEF) summit here.

“Our Government has requested state governments to reconsider their decision, as this will jeopardize future investment in not only the concerned state but also the country as a whole,” Pradhan said.Andhra Pradesh had last month announced its decision to renegotiate renewable energy contracts signed by green energy companies with the previous regime, drawing strong protests from developers. The Andhra Pradesh High Court last week issued a stay order on renegotiation of solar and wind pats, which is valid till August 22. Since then, the discoms of the state have been curtailing renewable power.

Moreover, the central government has asked states to ensure that the “must-run” status of renewable energy plants is honoured and that if supply from these units is curtailed, the reason must be given in writing to generating companies. Pradhan said that the government is mindful of the difficulties being faced by renewable energy developers in states where contracts are being renegotiated.

He added that one of the main goals for the country is to achieve 40 per cent electricity generation capacity from non-fossil fuel based energy sources by 2030.“In fact, CEA, the central planning agency for electricity in India, in its recent draft report on Optimal Generation Capacity Mix for 2030 has projected 65% electricity generation capacity from non-fossil fuel sources by 2030,” Pradhan said.

Pradhan added that one of the pillars which will help the country to increase its electricity generation from renewable energy sources will be the goal set by the government to achieve 175 Giga Watt of renewable energy capacity by 2022 and 500 GW by 2030. 

“We are on track to achieve the 2022 targets with installed capacity base of 80 GW, around 25 GW of capacity under implementation and strong bid roadmap of 40 GW for 2020,” Pradhan said.Pradhan added that the government has taken various initiatives to propel renewable energy capacity in the country by setting up 40 GW solar parks, waiver of interstate transmission charges for solar and wind till 2022, green transmission corridors, pilot projects on solar storage and policies for new technologies like offshore wind and wind-solar hybrid projects. 
 [Courtesy: Bilal Abdi    ETEnergyWorld  ]