The Ministry of New and Renewable Energy specifies stiff penalties for breaching solar power purchase agreements
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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.
