State utilities are shying away from signing PPA hampering green power growth

State utilities are shying away from signing PPAs (power purchase agreements) and are imposing various charges on green power producers, hampering the growth of green power share. The utilities reject the accusation.

Amidst rising pollution levels in India’s cities, a shift toward cleaner sources, but unfortunately a large number of states aren’t buying green energy. That’s raising tariffs for green energy and threatening the country’s ambitious capacity addition target.

A large number of states utilities are levying cross-subsidy charges on companies that are directly tying up with clients for supplying power. This can be as high as Rs 2 per unit of power supplied, thus levelling the price differential advantages between utilities’ tariff and green power prices.

The utilities reject the argument and say green energy is just too costly.