The development closely follows Norwegian renewables player Scatec announcing last week that it has signed an agreement with Acme Solar for a 50% stake in the latter’s upcoming 900 megawatts (MW) power generation assets in Rajasthan.
Acme Solar has withdrawn its petition for the termination of power purchase agreements (PPAs) signed with the Solar Energy Corporation of India (Seci) for solar projects scheduled to sell electricity at Rs 2.44/unit — the lowest solar tariff discovered in 2018 auctions.
The development closely follows Norwegian renewables player Scatec announcing last week that it has signed an agreement with Acme Solar for a 50% stake in the latter’s upcoming 900 megawatts (MW) power generation assets in Rajasthan. The assets in which Scatec is investing include a 300 MW unit of Acme which sought PPA termination with Seci.
“The contract is not frustrated and is the petitioners (Acme Solar subsidiaries) are not seeking discharge from the contract,” the record of proceedings at the Central Electricity Regulatory Commission showed. “The petitioners are withdrawing the petitions which were filed earlier for termination of PPA,” the filing added.
Acme wanted to cancel the PPAs in May 2020, because of force majeure events such as the impact of the coronavirus outbreak, land acquisition-related issues and delay in building associated transmission network.
Seci has already extended the commissioning dates of the projects by 481 days, which are now expected to be set up by March 2022. However, the Power Grid Corporation of India has granted an extension for only five months and wants to collect relevant transmission charges from the projects from March 2021 itself.
Power from the solar units in question is scheduled to be supplied to Delhi, Haryana, Bihar and Puducherry. The Acme deal marks Scatec’s foray into India’s renewable energy space and expects the country “to be a key market in the years to come”.