India’s 175 GW renewable energy (RE) targets by 2022 are ambitious, to say the least. While this is a positive step, it ignores a fundamental challenge: A “perfect” contract is only on paper. What happens when utilities don’t buy the power as they promised, despite a PPA? Yet, one doesn’t often hear of developers declaring defaulters, because doing so effectively severs the relationship, leaving few alternatives for the power projects. For starters, stakeholders, especially developers, need to know quanta of backing down, along with a reason (if declared).

Source: Mint February 20, 2017 18:11 UTC