SECI releases payment of Rs 4.9 billion for solar and wind power

SECI pays Rs 4.2 billion for Solar and Wind Procurement for December Month

By Subhash Yadav/ Updated On Fri, Feb 4th, 2022

Highlights :

The pay to power generators is a considerable relief from SECI as the payment irregularities from DISCOMS continue to loom large.
Key beneficiaries are Adani Wind Energy, ReNew Wind Energy, ReNew Power, Green Infra Wind Energy, Solar Edge Power and Energy and SB Energy Four.

SECI pays Rs 4.2 billion for Solar and Wind Procurement for December Month

Solar Energy Corporation of India (SECI) has released a payments of about Rs 490 crores to just solar and wind power generators. This disbursement is meant for the renewable energy procured from the two power sources for the month of December 2021.

As far as the total amount released by SECI for the said month for renewables is Rs. 568 crores and the solar and wind segment accounts for over 86 per cent of it. The payment is in lieu of power purchases, developer reimbursements, duties and related remunerations.

The solar generating companies have been under immense pressure due to constraints in payment from the DISCOMs. To that extent, the timely payment from SECI come as a considerable relief to the renewable power generators.

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Some of the big players in the renewable sector are key beneficiaries of this pay release by SECI. Adani Wind Energy, ReNew Wind Energy, ReNew Power, Green Infra Wind Energy, Solar Edge Power and Energy and SB Energy Four have largely benefited from this.

The Ministry of Power informed that at the end of the last month – January 2022 – the DISCOMs cumulatively owed more than 14000 crores to the renewable power generators. There was a 27 per cent decline from the previous month of December 2021. The disputed amounts are not included in this.

SECI has also paid towards subsidies. The nodal agency released about Rs. 37 cores towards the rooftop solar subsidy. Players who benefitted largely from it are Mundra Solar, Fourth Partner Energy, SDSL Electronic and Sukhbir Agro Energy. SECI also paid Rs. 32 crores towards transmission charges and Rs. 38.3 crores as subsidy under the head of viability gap funding (VGF) program. Payments are also made for open cess charges.