MNRE to Give 3 Months Extension to Wind Energy Projects

MNRE to Give Three Months’ Relief in SCD of Wind Energy Projects

By Subhash Yadav/ Updated On Wed, Mar 23rd, 2022

Highlights :

The Ministry said that the extended relief is in addition to the relief period that ended 15 June, 2021 and is given due to disruptions brought by the second wave of Covid-19 and monsoon.
The extension may be considered on a case to case basis after due diligence of the specific circumstances of a case.

MNRE to Give Three Months’ Relief in SCD of Wind Energy Projects

The Ministry of New and Renewable Energy (MNRE) has decided to give an extra three months relief to wind power developers whose projects could not be commissioned in time due to the second wave of Covid-19 and also the onset of monsoon.

Earlier, the MNRE allowed the period of disruption from April 1, 2021 to June 15, 2021 for time extension to renewable energy projects that are being implemented through agencies designated by MNRE or under various schemes of MNRE. The ministry had said that this was being done in order to facilitate the ease of doing business and as a measure of relief to the renewable energy projects so that they can deal with difficulties arising out of the restrictions imposed on account of the second COVID-19 surge.

The MNRE has said in its fresh order that it has received various representations from wind industry requesting additional time extension for wind power projects as a special case, considering supply chain disruption due to second COVID-19 surge followed by monsoon related disruptions.

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“Manufacturing of wind turbine requires large number of components. Also installation of wind turbine requires transportation of heavy/ large components such as nacelle, tower, blades, etc as well as movement of construction machinery at the site. The broad disruption period considered by MNRE during second Covid-19 surge ended on 15 June 2021,” said MNRE. The Ministry also held that the second wave of Covid-19 was immediately followed by monsoon season in various parts of the country, during which the movement of heavy machinery required for installation of wind turbines became a constraint.

The Ministry said that the wind power projects for which the PPA was signed and orders for WTGs placed before 15″ June, 2021, the implementing agencies can allow an additional time extension. The three months’ relief will be in addition to the extension period ending June 15, in the Scheduled Commissioning Date (SCD).

MNRE has also said that the extension may be considered on a case to case basis after due diligence and careful consideration of the specific circumstances of a case.