The Solar Energy Corporation of India (SECI) disbursed payments to the tune of ₹5.56 billion (~$73.60 million) to solar and wind power generators for the power purchased in February 2022. The disbursed amount accounted for 87% of the total amount paid by the nodal agency in the month.
The nodal agency disbursed a total amount of ₹6.37 billion (~$84.28 million) during February, which included solar and wind power purchases, reimbursements to developers, duties, and other remunerations.
Wardha Solar (Maharashtra), Singereni Collieries Company, Azure Power Forty Three, Renew Wind Energy (AP2), and EDEN Renewable Cite were the primary beneficiaries of the payments made in February.
The monthly payment by SECI is a considerable relief for solar and wind developers constrained by the unpredictable schedule of distribution companies (DISCOMs) for paying dues.
DISCOMs owed renewable generators ₹205.17 billion (~$2.68 billion) in overdue payments (excluding disputed amounts) at the end of February 2022, according to the data released by the Ministry of Power. The figure reported for February was 45% higher than ₹141.42 billion (~$1.89 billion) registered for January 2022.
The Union Power Minister R.K. Singh recently outlined the various steps taken by the government to help improve the financial health of the distribution companies (DISCOMs). The steps were to help DISCOMs clear their dues on time and build a payment security mechanism into the power purchase agreements.
SECI reimbursed ₹116.73 million (~$1.54 million) to solar energy developers against Goods and Services Tax (GST) and safeguard duty claims as per the annuity method.
SECI released ₹20.32 million (~$268,763) as a subsidy for the rooftop solar program. The primary beneficiaries under the rooftop solar program were Sukhbir Agro Energy, Sri Avantika Contractors, Fourth Partner Energy, Bosch, and Advit Ventures. The agency released ₹115.94 million (~$1.53 million) as subsidy under the viability gap funding program and ₹16.97 million (~$224,443) toward transmission charges.
It also paid ₹30.42 million (~$402,427) to contractors and service providers as payments during February.
The agency released ₹112.95 million (~$1.49 million) as a refund of extension charges and paid ₹1.20 million (~$15,869) as open access charges.
For January 2022, the nodal agency disbursed ₹5.43 billion (~$74.13 million) to solar and wind power developers for the green energy procured. The disbursed amount accounted for 78% of the overall amount paid by the nodal agency for the month.
Mercom had earlier reported that the Central Electricity Regulatory Commission (CERC) 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.
Arjun Joshi is a staff reporter at Mercom India. Before joining Mercom, he worked as a technical writer for enterprise resource software companies based in India and abroad. He holds a bachelor’s degree in Journalism, Psychology, and Optional English from Garden City University, Bangalore. More articles from Arjun Joshi.