Andhra Pradesh problem could hit India’s renewable energy target,says ReNew

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Andhra Pradesh problem could hit India’s renewable energy target,says ReNew

On Thursday, the 31st of October 2019, Chairman of the leading US lender Goldman Sachs-backed ReNew Power, Sumant Sinha said that investors were increasingly getting discouraged over the South Indian state of Andhra Pradesh Government’s troubled relationship with renewable energy companies.

In point of fact, an ambitious attempt to generate 40 per cent of its total capacity through renewable energy by 2030 was grievously hurt by troubled relationship of Andhra state government of YSR Congress with renewable energy companies as beforementioned alongside central government of PM Narendra Modi following a 2019 election.

Aside from that, although Andhra and Tamil Nadu, both of which had difficult relationship with the central government, had been the largest adopter of renewable energy alongside Goldman Sachs-owned ReNew Power in India with targets of generating 500 gigawatts of renewable energy by 2030, the states were restricting power procurement from renewable energy companies reportedly backed by the Central Government, pushing for new suppliers quoting higher prices and breaking off older contracts.

Meanwhile, expressing sheer disappointment on Andhra Pradesh state government’s troubled contracts with suppliers, Sinha told to a press agency on Thursday (October 31st), “There are questions on what this means for sanctity of contracts in India.

That has made investors jittery. The longer the issue carries on, the less likely (the renewable energy) target will be met. ”