PPAs of 21 wind projects of Suzlon, Axis Energy face headwinds

V Rishi Kumar Hyderabad | Updated on July 27, 2019

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APSPDL knocks at APERC for their withdrawal

Twenty-one projects of wind energy company Suzlon and Axis Energy and their clients in Andhra Pradesh, of total capacity of 776.9 MW are likely to face turbulence and possible withdrawal.

In a memo filed with the Andhra Pradesh Electricity Regulatory Commission (APERC), Andhra Pradesh Southern Power Distribution Company (APSPDCL), has sought the regulator’s permission to withdraw the Power Purchase Agreements (PPAs) entered into with these wind energy companies and their clients.

The Chief General Manager of APSPDCL in the memo stated “in view of the precarious financial position of AP discoms and consequent inability to bear the additional financial burden involved in purchasing power from 21 wind developers, they have decided to withdraw the PPAs entered with various wind power projects clients of Suzlon and Axis Energy Ventures India.”

The APSPDCL further submitted that since the PPAs are not yet approved, the same is not enforceable and APSPDCL is at liberty to withdraw the same.

Hence, it requested permission to withdraw 21 PPAs entered into with various wind power projects clients of Suzlon and Axis Energy.

This follows a letter from the Chief Engineer Andhra Power Coordination Committee (APCC) and resolution of a meeting on June 19, 2019.

At the APCC meeting held on June 19 this year, it was decided to file a petition before APERC for withdrawal of these 21 PPAs entered with Suzlon, Axis Energy Ventures for total capacity of 776.9 MW by APSPDCL.

The APCC has sought regulator’s consent for withdrawal of these PPAs .

It may be recalled that the YS Jagan Mohan Reddy government has decided to review the PPAs entered with various renewable energy companies and accordingly notices were served on them.

The matter relating to renegotiation of PPAs has now moved on to several forum including APTEL and AP High court, and both have stayed the operation of the AP move to renegotiate PPAs.

Published on July 27, 2019

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