Cash-crunched discoms hinder growth of renewable energy projects

Said banks charge high interest due to projects built in high-risk states known for payment issues

Distribution companies' (Discoms') payment delays continue to pose a challenge for the growing renewable energy sector in India as it tries to achieve 175 gigawatts (Gw) of installations by 2022, said Mercom India in its latest report. The tariff in both solar and wind power projects fell to a historic low recently. 

The recent Rewa Solar Park auction recorded the lowest solar tariff in the country — Rs 3.30 ($0.494)/kWh (levelized tariff over 25 years). 

Whereas, in its first project bidding held for wind energy sector, the lowest tariff received was Rs 3.46 per unit for a 1,000 megawatt (Mw) project.