Centre Extends Green Energy Projects Deadline By 4 Months

The Ministry of New and Renewable Energy has issued an advisory to grant up to four months’ extension to renewable energy projects affected by disruptions due to the West Asia situation. This decision comes under the Force Majeure provisions, which include 'war' as a force majeure event.

The Department of Expenditure, Ministry of Finance, clarified that the West Asia situation should be treated as war, providing for a time-extension of up to four months. The advisory, issued on August 21, applies to projects whose scheduled supply or commissioning dates fall on or after February 28.

Renewable energy implementing agencies, including Solar Energy Corporation of India, NTPC, NHPC, and SJVN, may grant extensions in the Scheduled Commencement of Supply Date or Scheduled Commissioning Date for affected projects. The extension can be granted under the force majeure provisions contained in the power purchase agreements, with the concerned agencies following the applicable contractual procedure.

The advisory states that while dealing with requests from renewable power developers seeking time extension for implementation of their renewable power projects, citing delay in implementation due to disruptions on account of the West Asia situation, the Renewable Energy Implementing Agencies and State/UT Governments and Agencies thereunder, are advised to take into consideration the order dated 29th April 2026 issued by the Department of Expenditure, Ministry of Finance.

The Ministry of New and Renewable Energy has examined the matter and decided that the Standard Bidding Guidelines for procurement of renewable power provide for time-extension on account of force majeure events. The advisory is a relief to renewable energy projects affected by the West Asia crisis, allowing them to complete their projects within the extended timeline.

The West Asia situation has caused disruptions in the supply chain, affecting the completion of renewable energy projects. The extension granted by the Centre will help these projects to get back on track, ensuring that India meets its renewable energy targets.

In recent years, India has been focusing on increasing its renewable energy capacity, with a target of achieving 500 GW of installed renewable energy capacity by 2030. The extension granted to renewable energy projects will help the country to achieve this target, despite the challenges posed by the West Asia crisis.

The decision by the Centre to grant an extension to renewable energy projects is a positive step towards promoting the growth of the renewable energy sector in India. It will help to boost investor confidence and ensure that the sector continues to grow, despite the challenges posed by global events.

In conclusion, the Centre's decision to grant a four-month extension to renewable energy projects affected by the West Asia crisis is a welcome move. It will help to ensure that these projects are completed within the extended timeline, promoting the growth of the renewable energy sector in India.