ACME decides to cancel PPA with SECI for Rajasthan project

ACME Solar has decided to cancel the PPA with Solar Energy Corporation of India (SECI) to supply solar power at Rs 2.44 per unit, the lowest tariff discovered in auctions so far, citing force majeure. In 2018, the firm won the 600 MW solar project at Fatehgarh Rajasthan at a historically low rate of Rs 2.44 per unit. In a recent petition to CERC, the company sought a termination of the agreement, owing to status quo orders by the Rajasthan High Court land on which Fatehgarh substation was to be constructed; the outbreak of Covid-19 and its adverse impact on manufacturing facilities of suppliers since December 2019, including lockdown in China and India; and delay in the commissioning of associated transmission network elements by other transmission service providers. The company urged the CERC to prevent SECI and Powergrid from encashing the bank guarantee and letter of comfort submitted for the project. The project had already been delayed by 15 months and a further delay is expected on account of uncertainty due to Covid-19 lockdown.