Falling module prices, foray of large foreign players and Indian conglomerates, declining Interest rates, stronger payment security, improving infrastructure and drop in the return expectation of players led to competitive bidding.
 
Credit quality of competitively bid solar projects to be supported by lower counterparty risk and lower capital costs.
 
Building a robust network, scheduling of RE power and flexibility in other conventional sources critical to support expansion; further timely execution and implementation, to be key monitorable.
 
Downward revision of PPA tariffs would adversely impact the returns of solar projects. A 10 paise/unit reduction in tariff impacts equity internal rate of return by by 150-160 bps for solar power.
 
Contract termination is not legally allowed if there is no delay in project commissioning.
Even globally, for instance in Germany, despite, a fall in feed-in-tariff, there has been no instance of such renegotiations on long term contracts.
 
Further precedence is on contrary as an attempt of reneging ~960 MW of PPA contracts by GUVNL was struck down by APTEL in 2013.

 

https://www.slideshare.net/NehaBarangaliSolarQu/tariff-cloud-over-solar-projects-82028712

 

 

 

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