Andhra Pradesh to procure 7000 MW solar power from SECI

The Andhra Pradesh government is looking to buy 7,000 megawatts (MW) solar power in three phases from the Solar Energy Corporation of India (SECI). This will be applicable from 2024 at the cost of Rs 2.49 per unit.

Accordingly, the A.P. Green Energy Corporation Limited (APGECL) has been instructed not to go ahead with the first phase of infrastructure augmentation required for 10,000 MW capacity addition, for which a sum of nearly Rs2,261 crore was sanctioned last year, and to utilise the land in its possession for any other purposes required by the government.

The Andhra Pradesh government has planned 10,000-MW solar power capacity addition to supply to 18.37 lakh agricultural consumers for nine hours during daytime for a period of 25 years. Between the two options of generating power within Andhra Pradesh and purchasing it from States such as Rajasthan, where solar irradiation was the highest, through SECI’s manufacturing-linked tendering system, the state has preferred to purchase solar power through SECI. 

The state government is at present procuring power, predominantly thermal, from the Discoms at Rs 4.36 per unit (and supplying it to the farmers free of cost). It will have to shell out a far lower price on solar power through SECI.

A major incentive for the State to go for power purchase through the SECI is also the waiver of inter-state charges on the transmission of power from projects outside the state commissioned before June 30, 2023, which amounts to about Rs1,000 crore per annum.

Moreover, the power purchased from the SECI would release the need to go for reverse tendering, or judicial preview, and that the proposals would be duly submitted to the A.P. Electricity Regulatory Commission (APERC). The State government and the SECI would sign the PPA only after the project gets the nod from APERC.

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