“There will be some penalty,” said S.B. Patil, senior executive of solar and wind at the state-run Gujarat Energy Development Agency, in an interview with Bloomberg reporter Natalie Obiko Pearson.
So far, five of six projects slated to start operating in the fourth quarter of 2010 have been delayed, Patil said.
The state of Gujarat state has awarded licenses for 959 MW to developers seeking a foothold in a state-subsidized renewable energy market. Of that, the first 48.5 MWs were required start operating by 31 December 2010, according to Bloomberg News.
Gujarat’s response to the delays sets a precedent for India’s Solar Mission, a nationwide program that calls for 20,000 MW of capacity by 2022.
The Solar Mission awarded its first 620 MW of capacity in December.
Companies agreed to penalties that were laid out in their power purchase agreements, Patil said.
“They will be charged accordingly,” he said. The penalties for delays in beginning operations are 10,000 rupees (about $222) a day per MW for the first 60 days and 15,000 rupees thereafter, according to the state power company that contracted to buy the electricity.”
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