Coronavirus company news summary – US scraps rent holiday for solar and wind – Tata Power mulls options to improve liquidity

18 May 2020 (Last Updated May 18th, 2020 09:12)

18 May

The US Government has scrapped a two-year rent holiday for solar and wind projects operating on federal lands even as the power sectors struggles to cope up with the crisis created by the coronavirus outbreak. According to Reuters, Avangrid has been served with a bill for more than $3m for two years of rent on its 131MW wind project near San Diego. Two other renewable projects also acknowledged that they had received retroactive rent bills.

Mexico has introduced new regulations to govern the electricity sector that is expected to reduce the role of renewable energy amidst the Covid-19 health emergency. The move is expected to impact 28 solar and wind projects that were ready to go online, and another 16 under construction, with a total of $6.4bn in investments.

The State Grid Corporation of China (SGCC) has said that it will adhere to its schedule of work in Egypt, in spite of the prevailing coronavirus pandemic. Implementation of the Marsa Alam power transformer station has already been completed by the company, apart from the work on the Berenice – Marsa Alam – El Quseir 220kV power line project.

Tata Power is reportedly planning to issue non-convertible debentures, bonds or other debt securities on a private placement basis to bolster its liquidity position. Its board of directors is expected to meet on 19 May to take a final call. The move is said to be in response to a dip in demand for electricity in the wake of the Covid-19 outbreak that has increased the risk of distribution companies delaying payments.