According to a government order seen by Reuters, India would place renewable energy companies on a three- to five-year blacklist if they fail to satisfy project completion dates.
The decision from the new and renewable energy ministry, “if any renewable energy project is not completed by the set date of completion, then its bank guarantee should be encashed and the developer blacklisted after asking to provide cause.”
According to the order, the blacklisting will last between three and five years.
The government order stated that the blacklisting was in compliance with the government’s General Financial Regulations and would apply to all tenders, but India has not yet excluded any companies from renewable energy generation contracts due to delays.
India’s energy needs:
To meet its goal of 500 gigawatts of renewable energy generation capacity by 2030, India has to install more than 40 gigawatts of capacity each year. The installed base of renewable energy in the nation is close to 175 gigawatts.
Due to equipment supply problems brought on by high import levies on solar equipment, the rate of installation is currently less than 15 gigawatts per year.
The ministry issued multiple extensions as a result of the pandemic, the most recent of which was an order in December 2022 that extended the project’s completion date by one year, to March 2024.
Reasons for delay:
Due to high import levies on solar equipment, renewable energy installations have recently experienced equipment supply problems, according to industry officials. There are 46.85 GW of big hydro projects and 6.78 GW of nuclear projects, for a total capacity of 411.65 GW, including thermal.
The thermal capacity of the energy-starved nation, which includes coal- and gas-fired generators, makes up 236.47 GW, or 57.4% of all installations.
Nirmala Sitharaman, the finance minister, included a number of programmes relating to the production of green energy in the Budget 2023.
“This Budget includes Rs 35,000 crore for priority capital investments towards energy transition and net zero targets, as well as energy security by the Ministry of Petroleum and Natural Gas,” the finance minister stated.
