Solar projects of 750 MW in AP may not see the light of the day

Twesh Mishra New Delhi | Updated on August 25, 2020

Solar power projects of 750 MW in Andhra Pradesh are unlikely to come up because of multiple disputes between the developers and the State.

SB Energy Seven, Sprng Soura Kiran Vidyut, Ayana Renewable Power were to set up 250 MW (each) of grid connected solar power generation projects in the Kadapa Solar Park.

These projects were awarded through a tender called by the Solar Energy Corporation of India (SECI) on August 30, 2018.

They were being offered support under the 5000 MW Viability Gap Funding Scheme of the Ministry of New and Renewable Energy. After the bids, SB Energy Seven, Sprng Soura Kiran Vidyut had bagged the projects at a tariff of ₹2.70 per unit while Ayana Renewable Power had secured it at ₹2.71 a unit.

The Original Scheduled Commissioning Date for these projects was June 29, 2020.

According to a Central Electricity Authority (CEA) report, these projects in Andhra Pradesh are unlikely to ever come about because the State has not yet awarded land for these projects.

“The Solar Power Park Developer has not handed over the land. As most of the land earmarked for this purpose is government land, State government’s approval is required for subleasing of land to the Solar Project Developer (SPD). Till date, no subleasing permission has been given to the park developer yet,” a CEA official monitoring the progress of renewable energy projects told BusinessLine.

But this is not the only impediment for these projects, the Andhra Pradesh Solar Power Corporation is yet to award contract for construction of Grid and related transmission line.

“Initially the tariff adoption for the Projects got delayed due to State government’s stand of renegotiating all the tariff and thereafter a public hearing in the Andhra Pradesh Electricity Regulatory Commission (APERC),” the CEA report said.

“Subsequently, the Appellate Tribunal for Electricity overruled APERC decision and considered the adoption of tariff at discovered tariff only. During this process more than one year was lost and accordingly SPDs have sought extension of time-line of Power Purchase Agreement (PPA).” the report said.

“Since there is a back-to-back Power Supply Agreement with the Andhra Pradesh Power Distribution Companies (APDISCOM) for these Projects and unilateral extension of PPA would not have served any purpose, SECI has written to APDISCOM for extension of PSA time-lines. Despite several reminders to the State over these issues, no positive response or tangible progress is seen in these issues,” it added.

Published on August 25, 2020

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