InAugust electric grid. In January 2016, further changes

InAugust 2014,suffering from the effects of the global economic crisis and investments that
oversaturated the solar sector after its 2010 campaign, the GCSPA became too expensive for the
new Government exchequer. Between 2014 and 2016, Sahare amended the GCSPA to decrease
the rate of the feed-in tariff, added certain technical requirements, limited the operating hours
subject to the feed-in tariff, and imposed an additional charge for access to the grid. In
September 2014, Sahare enacted two additional laws targeting this regulatory scheme. These laws
had a substantial impact on the scheme and, inter alia, removed the feed-in tariff to generators
after the fifteenth year of the solar plant’s life, reduced the number of operating hours of
generators, and charged Rs. 40 per megawatt for access to the electric grid. In January 2016,
further changes in the GCSPA were adopted, including a 10 % tax on the amount of energy fed
into the grid; replacement of the original plan with a system based upon remuneration measured

against hypothetical standard costs, and subsequently a regime based upon investors receiving a reasonable return based upon a hypothetical efficient photovoltaic plant. This move according
to the investors undermined or even destroyed the profitability of the projects, as they had
proceeded on the basis of the previous legislative frameworks.

Up to March 2016, RPP Phase II had still not been installed. LPL demanded an extension of
time from the Government, stating that the delay was caused due to problems with Sahare’s
economy, changes in laws by the Government and increased input costs. However, the
Government refused to grant such extension, stating that the direct reason was not the economy
or legislation, but fraud and mismanagement within LPL.