Discover and read the best of Twitter Threads about #ElectricityAct
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Offtake risk has become a blanket term that scares investors away from #power sector projects in India. We break it down to understand why that is? 1/n 
Offtake risk is the risk posed by the off-taker (also called credit risk, counterparty risk or risk on receivables). In India, the counterparty is almost always a discom or a central government offtaker (SECI/NTPC) buying on behalf of the discoms. 2/n
The power purchase agreement (PPA) is the contract between the power generator and the purchaser (discom/SECI/etc) For RE the PPA mandates that all power generated must be purchased/paid for as per the must run clause. Exceptions are allowed only if there is technical trouble 3/n
