“Sumant Sinha told he has doubts about the situation in Andhra Pradesh, where it is building 700 MW of projects, after chief minister Jaganmohan Reddy tried to review wind and solar energy contracts.”
ReNew Power, the first renewable energy company in India to commission over 5,000 MW of capacity, is still worried about the situation in Andhra Pradesh, where power purchase contracts face uncertainty even after a court order, chairman Sumant Sinha said.
Sinha told ET he has doubts about the situation in Andhra Pradesh, where it is building 700 MW of projects, after chief minister Jaganmohan Reddy tried to review wind and solar energy contracts.
Although the high court had directed the state’s distribution companies not to curtail power purchases and to clear pending dues, the predicament continues, Sinha said.
“The situation in Andhra Pradesh is as bad as it was earlier. The Andhra government is not basically being cooperative on any of these issues. So curtailments continue, disconnection stays despite the high court order. Payments are a problem as well,” Sinha alleged.
A senior government official did not immediately respond to a text message seeking comment.
ReNew, backed by investors including Goldman Sachs, Tokyo-based JERA Co., Abu Dhabi Investment Authority, and Canada Pension Plan Investment Board, operates 2,000 MW of solar energy plants and 3,200 MW of wind energy projects.
Although the wind industry faces problems such as aggressive ceiling tariffs, unwillingness of certain state governments to provide land and transmission issues, Sinha is confident that projects won by ReNew will be commissioned.
“There are challenges galore in implementing projects in India, but now with the extensions we will be able to get, we will be able to commission within timelines,” he said.
ReNew’s commissioned capacity is expected to reach 8,000 MW by 2021.