The Ministry of New and Renewable Energy issued a comprehensive notification regarding solar power purchase that imposes stiff penalties on contractual parties, whether purchasers or producers, who breach power purchase agreements (PPA). The notification stipulates that if a purchaser ignores a ‘must-run’ status clause the producer will be owed 50 percent of the tariff for the hours of back-down. If the purchaser terminates a PPA, the purchaser must either purchase the power plant at 150 percent of cost or pay the purchaser six months of tariffs as a penalty.

Source: Economic Times Go to
In Detail: Notification Go to