Lockdown 5.0: Restrictions continue to disrupt wind power project development India

On 30 May, the Ministry of Home Affairs (MHA) issued an order to further extend the lockdown until 30 June 2020, their will be an ease of lockdown restrictions under the country’s re-opening strategy, beginning with Unlock Phase 1. All activities that were prohibited  previously will be opened in areas outside Containment Zones in a phased manner. 
 
The Wind Energy OEMs Vestas /Suzlon/Inox/SGRE /Senvion/Nordex, including the SCM companies have resumed operations at all their manufacturing sites across the country, in compliance with all safety guidelines and directives issued by the Central and State Governments and local administration to safeguard the employees and all other stakeholders to prevent the spread of COVID-19. Nevertheless, the production level is still at 25-30%.
 
Ramping up production is challenging as most of the inward raw materials from suppliers or the components have not reached the facilities due to persisting inter-State transport challenge or logistic movement. However, inter-state and intra-state movement of people and goods will be permitted from 1 June without any permission or e-pass. The workforce, who have returned to the rural areas/hometown during the lockdown period, have not returned to the manufacturing facilities, which also adds additional constrain in the manpower production planning. 
 
Aside from challenges on the supply side, project development planning is also disrupted in India. This is due to challenges faced in movement of Heavy machinery from one state to another or at project sites themselves. Wind technical engineers reaching the sites due to restrictions under the containment zone areas will further delay the project schedules and O&M activities. Moreover, SECI has, again, extended bidding deadlines for its 2 GW wind tenders from 26 May 2020 to 11 June 2020.
 
To revive the COVID-19 hit economy, the Government of India announced a INR Rs 20 lakh crore stimulus package, representing around 10 per cent of the country’s GDP. Included in this package is a Rs 90,000-crore liquidity injection into power distribution companies, or Discoms, who have been facing liquidity issues due to a significant drop in energy demand during the lockdown. This stimulus will be important for the energy sector, as will revive the liquidity of Discoms to increase their ability to pay power generators and create a healthy energy sector.
 
Additionally, Central Power Minister Mr. R.K. Singh highlighted that Central Public Sector Undertaking (PSU) generators are asked to waive fixed charges against power not drawn by Discoms. The power generators will also benefit from this package, with the option to pay these charges in three equal installments without any interest.