ACME cancels pact to supply power at record low tariff.
ACME Solar, one of the largest solar power developers in India, has decided to cancel a contract with government agencies to supply power at the country’s lowest tariff, with the Covid-19 crisis taking a heavy toll on the economy.
The firm won the 600 MW project in Rajasthan at a historic low rate of Rs 2.44 per unit in 2018. In its petition to the Central Electricity Regulatory Commission (CERC), the company cited the pandemic as one of the reasons for terminating the agreement. The company urged the CERC to prevent Solar Energy Corporation of India (SECI) and Power Grid Corporation of India (PGCIL) from encashing the bank guarantee and letter of comfort submitted for the project.
ACME had signed a power purchase agreement (PPA) with SECI and a long-term access agreement with PGCIL. ACME Solar said it had terminated the PPA dated December 2018 executed with SECI “on account of the force majeure events”.