Flexible solar projects delayed by coronavirus
If developers are able to prove that they have been impacted after coronavirus hit supplies from China, India might extend their deadlines for completing solar energy projects. This will defend developers like Aditya Birla Renewables and SB Energy against stiff penalties imposed by the Indian government. According to CRISIL, about three gigawatts of solar power projects worth US$ 2.24 billion could be at risk of penalties for missing a July 2020 completion deadline
This is critical for the solar industry as 80% of the solar modules used in India is sourced from China and looking for other sources of supply would mean cost escalation of about 15-20%. In order to mitigate the global health contagion, China has shut down some factories, restricted transport and implemented other measures to combat the spread of the virus.
“We will definitely consider the applications of developers for an extension of timelines provided there is evidence (to prove that the project has been affected due to coronavirus), stated Anand Kumar, India’s renewable energy secretary.