SECI Paid ₹6.52 Billion for Solar and Wind Power Purchased in August

The Solar Energy Corporation of India (SECI) paid ₹6.52 billion ($86.7 million) to solar and wind developers for the power purchased in August 2021. The disbursed amount accounted for 97% of the total amount paid by the agency in August 2021.

The total disbursement in August was ₹6.7 billion (~$89 million), which accounted for solar and wind power purchases, reimbursements to developers, and duties, and other reimbursements, among other things.

ReNew Wind Energy, ReNew Power, Adani Wind Energy, Green Infra Wind Energy, Clean Solar, and Orange Sironj Wind Power were among the primary beneficiaries of the payments in August 2021.

The payments have come as a relief for developers who have mounting unpaid bills by the state distribution companies (DISCOMs). At the end of September, DISCOMs owed ₹154.83 billion (~$2.09 billion) to renewable energy generators (excluding disputed amounts) in overdue payments at the end of September 2021, according to data released by the Ministry of Power.

The figure reported for September was 6% higher than ₹146.07 (~$1.97 billion) spread over 259 invoices at the end of August 2021.

Under the annuity method, the nodal agency reimbursed ₹101.75 million (~$1.4 million) to solar power developers for Safeguard Duty, and Goods and Services Tax (GST) claims.

Meanwhile, the SECI released ₹11.31 million (~$150,547) as a subsidy under the rooftop program, and ₹35.18 million (~$468,280) was also released for transmission charges.

The main beneficiaries under the rooftop solar program were ReNew Solar Energy, Ultimate Sun Systems, ZIVAH International, and Smart Roof Solar Solution.

SECI paid ₹29.70 million (~$395,336) to contractors and service providers in August.

The agency had paid ₹6.6 billion (~$89.3 million) to solar and wind developers for the power it had purchased in July 2021.

In August this year, the Central Electricity Regulatory Commission reiterated SECI’s proposal for a 10.41% discount rate on annuity payments towards the additional expenses incurred by solar power developers on account of ‘Change in Law’ events. The Commission directed solar power developers to pay all statutory taxes, duties, levies, and cess on monthly annuity payments as per the terms of power purchase agreements.