SECI Releases Payments of ₹4.92 Billion for Solar and Wind Power Procured in December 2021

The Solar Energy Corporation of India (SECI) disbursed ₹4.92 billion (~$65.85 million) to solar and wind power generators for the power purchased in December 2021. The disbursed amount accounted for 86.59% of the total amount paid by the nodal agency for December 2021.

SECI released a total of ₹5.68 billion (~$76.1 million) for the month, including solar and wind power purchases, developer reimbursements, duties, and other remunerations.

ReNew Wind Energy, Green Infra Wind Energy, SB Energy Four, ReNew Power, Adani Wind Energy, and Solar Edge Power & Energy were the primary beneficiaries of the payments for December 2021.

The monthly payment by the nodal agency is a considerable relief for solar and wind developers constrained by the unpredictable schedule of distribution companies (DISCOMs) for paying dues.

According to the data released by the Ministry of Power, DISCOMs owed ₹141.42 billion (~$1.89 billion) to renewable power generators, excluding disputed amounts, in overdue payments at the end of January 2022. The figure reported for January was 27% lower than ₹194.52 billion (~$2.61 billion) posted at the end of December 2021.

The nodal agency reimbursed ₹108.40 million (~$1.45 million) to solar energy developers against Goods and Services Tax (GST) and safeguard duty claims as per the annuity method.

SECI released ₹37.54 million (~$501,265) as a subsidy for the rooftop solar program. The primary beneficiaries under the rooftop solar program were Fourth Partner Energy, Mundra Solar, HighGround Energy, SDSL Electronic, and Sukhbir Agro Energy. The agency released ₹383.11 million (~$5.13 million) as subsidy under the viability gap funding program and ₹32.64 million (~$435,795) toward transmission charges.

It also paid ₹115.20 million (~$1.54 million) as a refund of extension charges and ₹82.52 million (~$1.10 million) as a payment to contractors and service providers.

SECI also paid ₹910,049 (~$12,514) as open access charges.

For November 2021, the nodal agency disbursed ₹5.52 billion (~$74.13 million) to solar and wind power developers for the green energy procured. The disbursed amount accounted for 91% 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.