Attempts by India’s state-owned power distributors to renegotiate power-purchase agreements (PPAs) for renewables could delay wind and solar projects, leaving the door open for gas-fired developments.
State government-owned utilities, known as ‘discoms’, in Andhra Pradesh, Karnataka and Uttar Pradesh have recently attempted to renegotiate or cancel the PPAs they have signed with wind and solar power developers, which could affect private sector investment in renewables.
The discoms are price-sensitive, and they are well-placed to seek the cheapest possible tariffs given their monopolies in most towns and...
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