Reneging on contracts

Discoms renegotiating PPAs is a worrying trend

The central government has set ambitious targets for renewable energy generation in India. It has said that by 2022 India will have 175 GW of renewable energy installed, and that by 2030, 40 per cent of power will come from non-fossil fuel sources. The constantly falling unit price of renewable energy – partly as a consequence of technological innovation – has led to considerable investment in the sector, and an expansion of purchase of power from renewable energy sources by distribution companies (or discoms). However, there is a darker side to the price fall as well. Some discoms are attempting