Karnataka Stops New Solar Energy Projects

Karnataka, one of the India’s top state in terms of installed solar capacity, has stopped the construction of new solar energy projects as per industry report. This was done in command to balance its renewable power purchase obligations and financial health of the power distribution companies (discoms).

“In month of April, the Karnataka Electricity Regulatory Commission said there will be no further bidding to procure solar energy from large-scale projects till further orders,” as reported. The decision was conversed by the commission to the Karnataka Renewable Energy Development -- body that issues tenders for bulk renewable energy procurement for its discoms -- in a letter dated 7 March.

The commission, in the letter, detected that the state will have to limit procurement from high-cost sources, given Karnataka’s power-surplus situation. It further that the discoms have already contracted to procure adequate power from solar energy sources, which has enabled them to meet their renewable purchase obligations not only for financial year 2019-2020 but for another couple of years as well.