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Home News

Time Extension in Scheduled Commissioning Date of Renewable Energy Projects: MNRE

Urja Daily by Urja Daily
May 14, 2021
in News
Reading Time: 2 mins read
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ReNew Power Announced the Commissioning of 105 MW Solar Generation Project
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Ministry of New and Renewable Energy has extended the scheduled commissioning date of renewable energy projects considering disruption due to the second surge of COVID-19. The decision has come out after the ministry had received representations from project developers and stakeholders to grant them with extra time as Covid-19 affected the project development badly.Agencies having their Scheduled Commissioning Date (SCD) on or after 1st April 2021 will only be eligible to claim time-extension for completion of their project activities.

Also, provided such time-extensions will not be used as a ground for claiming termination of Power Purchase Agreement (PPA) or for claiming any increase in the project cost, the ministry quoted. The actual quantum of time-extension shall be decided in due course depending on the COVID-19 related developments that take place in the coming weeks.

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In view of above, the undersigned is directed to state that:
  • RE projects, being implemented through Implementing Agencies designated by the MNRE or under various schemes of the MNRE, having their Scheduled Commissioning Date (SCD) on or after 1 st April 2021 after considering the time extension can apply to the concerned implementing agency for claiming time-extension in project commissioning.
  • While applying for such time-extension, RE developers shall undertake that the time extension shall not be used as a ground for claiming termination of Power Purchase Agreement (PPA) or for claiming any increase in the project cost, including Interest During Construction (IDC) or upward revision of tariff.
  • If the conditions above are satisfied, then no other supporting documents will be required for granting time-extension.
  • On receipt of an application for time-extending, implementing agency shall not initiate any coercive action on the project for recovery of penalty on delayed commissioning, till the time-extension request is decided upon.
  • Within the extended time provided for commissioning, intermediate milestones of RE projects, scheduled for completion on or after 1st April 2021 after considering the time extended shall also be commensurately extended.
  • Developers shall pass on the benefit of time-extension to other stakeholders down the value chain including EPC contractors, material/ equipment suppliers, OEMs, etc

Tags: Ministry of New and Renewable EnergyRenewable EnergyRenewable Energy Projects
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