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Governments mulls on honouring contractual to rebuild investor faith in renewable segment

Andhra Pradesh move to revisit agreements of solar and wind hydro projects has hurt sentiments and faith of investor in renewable space. Disinterest shown by investors is evident in recent renewable energy tenders where number of participants reduced exponentially. Developers and investors are shying away to invest further due to uncertainty in renewable segment. To rebuild investors faith government must instill commitment towards energy security and take every effort to build atmosphere for investment to become friendlier. Power Minister and Finance Minister has also stressed on compliance of contractual commitments under renewable energy agreements in view of stumbling investor faith in Indian renewable space that arouse due to Andhra Pradesh decision to review all older solar and wind PPAs.