India bars states from independently exiting, modifying solar projects
India has barred state authorities from unilaterally cancelling or modifying solar power purchase agreements (PPAs) after six state governments in last two months pushed developers to lower tariffs, threatening to derail projects worth $7.5 billion.
Narendra Modi’s government aims to raise solar power generation capacity nearly 30 times to 100 gigawatts (GW) by 2022. The capacity has already more than tripled in three years to more than 12 GW.
The government said it will impose a minimum penalty of 50 percent of the tariff if the purchase agreement is arbitrarily scrapped by the state or the developer, an official notification said late last week.