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Clean Energy Projects Get 4-Month Deadline Extension
24 Aug
Summary
- Renewable projects commissioned after Feb 28 get four-month extension.
- Force majeure relief granted due to West Asia war supply chain issues.
- Developers protected from penalties for missed project deadlines.
A government advisory issued on August 21 by the Ministry of New and Renewable Energy (MNRE) grants a four-month extension for renewable energy projects. Projects scheduled for commissioning on or after February 28 are eligible for this relief. This measure addresses supply-chain challenges stemming from the West Asia war, enabling agencies to provide force majeure relief.
This provision safeguards clean energy developers from various penalties, including the encashment of bank guarantees and payment of extension fees. The relief comes after industry representations highlighting the impact of the West Asia conflict. The Department of Expenditure previously clarified that the situation should be treated as a war, permitting a time extension of up to four months.
Industry stakeholders have welcomed the advisory, emphasizing its role in providing certainty and protecting project viability. However, some express hope for further support, particularly regarding the extension of ISTS waivers and connectivity for the extended period. This development occurs as raw material prices for solar components have risen due to the war, potentially increasing project costs.
