India to Blacklist Renewable Energy Developers for Project Delays


The Ministry of New and Renewable Energy (MNRE) in India has issued an order stating that any renewable energy project not completed by its scheduled date of completion will result in the developer being blacklisted and their bank guarantee encashed. The blacklisting will be for a period of three to five years,” read order issued by the MNRE on February 15.


“If any renewable energy project is not completed by the prescribed date of completion, then its bank guarantee should be encashed and the developer blacklisted after asking to show cause,” the order issued by the new and renewable energy ministry said.


This is the first time the Indian government has taken action against renewable energy developers for delays in project completion.


Several solar power projects have been halted or delayed due to equipment disruptions, including modules, cells, and wafers. The government has imposed a 25% basic customs duty on imported solar cells and 40% on imported modules from April 2022 to support domestic manufacturing, as almost 85% of India’s solar capacity is built on imported cells and modules, mostly from China.

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India aims to achieve 500 gigawatts of renewable energy generation capacity by 2030 and needs to add over 40 gigawatts of capacity annually to meet this target. The country’s renewable energy installed base is almost 175 gigawatts.

The new order from the government is an effort to boost the development of renewable energy projects in the country, as delays have caused a hindrance in achieving the targets.

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