Acme Solar withdraws petition to cancel PPAs signed for Rajasthan projects

Acme Solar has withdrawn its petition concerning the termination of power purchase agreements (PPAs) agreed with the Solar Energy Corporation of India (SECI) for solar projects set up to sell electricity at Rs 2.44 per unit, the lowest solar tariff observed in 2018 auctions. The development closely follows Norwegian renewables player Scatec declaring last week that it has signed a contract with Acme Solar for a 50% stake in the latter’s forthcoming 900 megawatts (MW) power generation assets in Rajasthan. The assets in which Scatec is investing include a 300 MW unit of Acme that asked for PPA termination with Seci. The report of proceedings at the Central Electricity Regulatory Commission showed that the contract is not frustrated, and the petitioners (Acme Solar subsidiaries) are not attempting discharge from the contract. The filing added that the petitioners are withdrawing the petitions which were filed earlier for termination of PPA. Acme wanted to cancel the PPAs in May last year, due to the force majeure events such as the consequence of the coronavirus pandemic, land procurement-related problems and delay in building associated transmission network. Seci has already lengthened the commissioning dates of the projects by 481 days, which are now anticipated to be built by March 2022. However, the Power Grid Corporation of India has allowed an extension for only five months and requires collecting relevant transmission charges from the projects from March 2021 itself. Power from the solar units in question is scheduled to be provided to Bihar, Delhi, Puducherry and Haryana. Image Source Also read: Power Grid buys two transmission projects in Rajasthan to evacuate solar Also read: PGCIL to invest Rs 22.20 bn in power transmission network