India wants to move faster with clean energy deals

India's power minister has proposed a rule that will require distribution companies to act faster after signing agreements to purchase power from clean energy sources.

According to the draft rule of June 25, distribution companies are required to seek official approval within 30 days after signing a deal with a third party, such as an agency that implements renewable energy.

This is an important step, as the industry has been highlighting delays by power distribution companies that have slowed the start-up of solar, wind and other renewable energy project.

India is aiming to install 500 gigawatts (roughly triple its current capacity) of clean energy by 2030.

Several obstacles are preventing the sector from achieving its goals, including a lack of demand for tenders and land acquisition, delays with power purchase agreements, project cancellations, and a weakening in demand.

The power ministry's proposal stated that if the approval by a regulatory committee takes too long - more than 60 or 120 days following the application, the company building the projects will be given extra time to finish the project.

The ministry is asking for feedback from the stakeholders on the proposed changes by July 9. Sethuraman N R; Sonia Cheema, Editor.

(source: Reuters)