Discoms Owe Renewable Energy Producers Rs 6,871 Crore
Dues owed by discoms to renewable producers rose even as the nation targets clean energy capacity of 175 gigawatts by 2022.
Dues owed by Indian electricity distribution companies to renewable energy producers has risen even as Asia’s third-largest economy targets clean energy capacity of 175 gigawatts by 2022.
Distribution companies, or discoms, owe Rs 6,871.6 crore to renewable energy assets with capacity of 17,897 MW, according to data available on the Central Electricity Authority’s website. Andhra Pradesh and Telanagana owe the most. State-run producer NTPC Ltd., too, figured among the debtors.
Discoms owe renewable energy producer Renew Power Ltd. the most, at Rs 1,731.6 crore, followed by Azure Power Ltd. and Tata Power Company Ltd.
This is the first time the government is compiling data for pending receivables of renewable energy companies—a practice already in place for thermal power producers. That comes as solar producers in Telangana, Andhra Pradesh and Karnataka are battling unpaid dues and revenue and generation losses on the back of unscheduled and prolonged grid curtailments.
Earlier this month, the Central Electricity Authority had asked renewable firms to submit details of pending dues to be included in power ministry’s Praapti portal—which contains details of power purchase transactions made between generators and discoms.
The government had mandated discoms to offer letters of credit as a payment security mechanism that would help clear mounting unpaid dues from Aug. 1. State-run discoms will also have to pay a fixed charge to renewable energy firms if they don’t draw scheduled power and also don’t maintain letters of credit.