Weekly Power Sector Round up: 28th August 2021

Payment delays, signing PPAs key challenges for RE sector: ICRA

Delays in payments to renewable energy (RE) developers and the slow pace in the signing of power purchase agreements (PPAs) are some key challenges faced by the RE sector, according to ICRA Ratings.

Investment is likely to remain strong with the Govt target of 450GW by 2030. 40GW of projects are already in the pipeline.

Demand outlook for domestic solar OEMs remains good with strong policy support through the imposition of a basic customs duty (BCD) on imported cells and modules, notification of the production linked incentive (PLI) scheme and PSU tenders requiring usage of domestic modules.

2744 MU traded in green term-ahead market in the first year at IEX

The green term-ahead market at IEX saw a cumulative 2744 million units of renewable energy traded in its first year, comprising of 1267 MU of solar and 1477 MU of non-solar power.

Average price was Rs 3.75 per unit with average solar price being Rs 3.48 per unit and average non-solar price being Rs 4.06 per unit.