Payment delays by distribution utilities to wind power projects in the country is posing a major threat to the feasibility of the projects. These delays are hurting liquidity of the projects and also delaying payment to lenders. Discoms in Tamil Nadu, Maharashtra, Madhya Pradesh and Rajasthan have found it difficult to pay wind power producers on time. Discoms in Maharashtra, Tamil Nadu, Madhya Pradesh and Rajasthan have delayed payments to generators of wind power by as much as 8-10 months, putting their cash flows under tremendous pressure and sending negative signals for developers and investors, which in turn can turn the tide towards development of small scale wind power projects catering to the need of specific chunk of consumers.
Some trivial and yet complex questions associate with open access mechanism which needs to addressed through a pan India study which should prove to be a path finding guide for the project developers as well buyers to felicitate the same.
Key Queries Resolved
- Which state has least regulatory barriers or least cross-subsidy surcharge (CSS) applicable to bulk buyers?
- Whether the tariff discovered in third-party power sales agreements sustainable for long-term i.e. for a period of 10-15 years?
- What are the various power procurement models which shall be most beneficial given the current regulatory paradigm and policy environment in India?
- What are the various incentives/benefits to the consumers/generators to wheel power through open access?
- Which region is most suitable for affecting the open access transactions having the largest cluster of industries, corporates and bulk consumers?
- Which region has more penetration of short term transactions through wind power?
- Which transaction i.e. bilateral or collective is preferred for wind?