Acciona Halts Work in Indian States Where Payments Are Delayed
Acciona SA, the Spanish renewable-energy developer in over 30 countries, said it’s holding up further work in some states in India because local electric utilities aren’t paying their bills on time.
The company with 86 megawatts of wind power in India and another 78 megawatts under development is the latest investor to complain that some Indian power retailers are stifling investment and undermining Prime Minister Narendra Modi’s green-power ambitions.
The power distribution companies, called discoms, are months in arrears in some places and are seeking to limit the amount of renewable energy they buy because electricity from fossil-fuel generators is cheaper.
“If the discom risk wasn’t there, we could have easily built about 400 to 500 megawatts of additional wind projects,” Glen Reccani, managing director of Acciona’s Indian unit, said in an interview. “How do you fit that into your business model?”