Pipelines, Storage & Power

Indian power contract spat could help boost gas

India’s state-owned utilities want to renegotiate their contracts with renewables suppliers, creating an opportunity for gas India’s state-owned utilities want to renegotiate their contracts with renewables suppliers, creating an opportunity for gas.
By Garima Chitkara 8 September 2017 0 27498
Solar panels in India An Indian solar plant. (Flickr/Bart Speelman)

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...