Apparently, the mega tender accounting for 14% of India’s inexperienced vitality capability to provide electrical energy to the farmers is within the works, at the same time as 5.2 GW of photo voltaic and wind vitality tasks are hanging hearth, as a result of state authorities’s choice to reopen renewable vitality contracts inked underneath the earlier N Chandrababu Naidu authorities.
State vitality secretary N. Srikanth confirmed the mega photo voltaic tender growth and mentioned that Andhra Pradesh Inexperienced Vitality Company Ltd (APGECL) is the nodal company for a similar.
Underneath flak from the Union authorities and world buyers resembling Goldman Sachs, Brookfield, SoftBank, Canada Pension Plan Funding Board, Caisse de dépôt et placement du Québec, JERA Co. Inc., GIC Holdings Pte Ltd, International Infrastructure Companions, CDC Group Plc, EverSource Capital and World Financial institution’s Worldwide Finance Corp., the federal government has mandated state-owned APGECL to name for this mega photo voltaic bid that may entail a ₹35,000 crore funding.
These marquee corporations had invested in Indian firms, together with ReNew Energy, Greenko, Adani Energy, PTC India Ltd, SB Vitality, Mytrah and Hero Future Energies which have arrange tasks in Andhra Pradesh. The state authorities’s controversial choice not solely drew criticism from the Centre, but additionally from the governments of France, Canada and Japan for the reason that investments had invested in Indian firms made by their corporations within the state’s clear vitality area.
“We’ll name bids based mostly on land preparing,” mentioned a senior state authorities official cited above requesting anonymity.
This proposed mega contract additionally comes at a time, when India’ solar energy tariffs have touched a document low of ₹2.36 per unit at an public sale carried out by state-run Photo voltaic Vitality Company of India Ltd. Falling clear energy tariffs placing an already awarded 16.eight GW photo voltaic and wind vitality capability in limbo, as fund starved state electrical energy distribution firms (discoms) are unwilling to signal contracts for these beforehand awarded tasks at a relatively larger tariff, Mint reported earlier. Additionally, the Punjab authorities is in search of to renegotiate clear vitality contracts for operational tasks.
“The RFP (request for proposal) for 10,000 MW shall be floated shortly,” mentioned a second individual conscious of the event cited above who additionally didn’t need to be named.
Andhra Pradesh has round 7.7 GW of photo voltaic and wind tasks and is dwelling to India’s second-largest put in capability of unpolluted vitality, accounting for round 10% of the nation’s inexperienced vitality capability, with investments of ₹60,000 crore. The state has 4,092 MW of put in wind energy tasks awarded via feed-in tariffs. Additionally, the resource-rich state has 3,230 MW of solar energy tasks awarded via aggressive bidding.
“The state authorities is making an attempt to resolve the issues related to the sooner clear vitality PPAs,” mentioned the second individual.
The state discoms diminished the contractually authorized tariff underneath the facility buy settlement (PPA) to ₹2.44 per unit for photo voltaic tasks and ₹2.43 per unit for wind tasks since July 2019; and knowledgeable the builders that within the occasion of them not agreeing to the revised tariffs, the PPAs can be terminated.
This tariff renegotiation by the AP authorities was challenged by the builders and the dispute is at present earlier than the Andhra Pradesh excessive courtroom. Whereas setting apart the state authorities’s order, the excessive courtroom directed the discom to make cost on the diminished interim tariff of ₹2.44 per unit for wind tasks and Rs. 2.43 per unit for photo voltaic tasks respectively, till the difficulty is resolved by the Andhra Pradesh State Electrical energy Regulatory Fee.
The state authorities’s transfer led to the Centre pitching to arrange an Electrical energy Contract Enforcement Authority to make sure that circumstances in PPAs are adopted, via the draft amendments to the Electrical energy Act, 2003. The Centre has been looking for an answer to the difficulty. These embody state-run NTPC Ltd providing to purchase 300 MW of inexperienced energy from Andhra Pradesh to dealer a truce, as reported by Mint on 2 January.
The mega tender additionally comes at a time when the Centre plans to take strict motion in opposition to inexperienced vitality corporations and their promoters feigning the covid-19 as an excuse to exit tasks that they have been awarded. This comes within the backdrop of some wind-energy builders in search of ‘low-cost exit choices’ i.e. termination of their PPAs with out encashment of financial institution ensures, for unviable tasks. The federal government plans to not solely blacklist such firms, but additionally censure their promoters, stopping them from participating in future tasks.
Clear vitality tasks comprise greater than a fifth of India’s put in energy technology capability. India has 34.6 GW of solar energy and seeks to supply 100 GW from photo voltaic tasks by March 2022.