Andhra Energy Minister Iterates Plans To Purchase of 7000 MW of Solar Power Through SECI

Andhra Pradesh energy Balineni Srinivasa Reddy has repeated his government’s plans to procure 7000 mega watts (MW) of solar power from the Solar Energy Corporation of India (SECI) to ensure free power to 18 lakh farmers for nine hours until 2046. That would seem to imply supplies starting this year for the next 25 years. The purchases, as reported before, are at a price of Rs 2.49 per unit, including components from the solar manufacturing linked tenders of SECI possibly. Interestingly, the price matches the bids the state had received in its own auctions, subsequently cancelled. That makes it a politically acceptable option for the state too.

The move to purchase power by the Andhra government follow the cancellation of its own plans for solar tenders of 6.4 GW, after it disputed solar tenders awarded earlier. The energy is meant to power the state’s green corridor for its farmers, to provide them with power for agriculture, for at least 9 hours in a day for free.  The state had planned to set up 10 GW of solar projects on its own.

“There will be absolutely no burden on existing Discoms for purchasing this power and all the cost will be borne by Government of AP. This scheme comes with an ISTS waiver for 25 years compared to setting up the project in AP where central grid charges will have to be paid for 25 years,” said Reddy.

The minister also claimed that the central government is giving exemption of central grid charges for power from outside the state.

The quantum of procurement will be decided by Andhra Pradesh Electricity Regulatory Commission (APERC) as per the Electricity Act.