September 9, 2020 Read More →

India’s Andhra Pradesh state government readies 10GW tender for new solar capacity

Mint:

In a surprise move, the Y.S. Jagan Mohan Reddy-led Andhra Pradesh government is expediting efforts to float India’s largest solar tender for setting up 10 gigawatt (GW) capacity, said three people aware of the development.

Interestingly, the mega tender accounting for 14% of India’s green energy capacity to supply electricity to the farmers is in the works, even as 5.2 GW of solar and wind energy projects are hanging fire, due to the state government’s decision to reopen renewable energy contracts inked under the previous N Chandrababu Naidu government.

State energy secretary N. Srikanth confirmed the mega solar tender development and said that Andhra Pradesh Green Energy Corporation Ltd (APGECL) is the nodal agency for the same.

This proposed mega contract also comes at a time, when India’ solar power tariffs have touched a record low of ₹2.36 per unit at an auction conducted by state-run Solar Energy Corporation of India Ltd. Falling clean power tariffs putting an already awarded 16.8 GW solar and wind energy capacity in limbo, as fund starved state electricity distribution companies (discoms) are unwilling to sign contracts for these previously awarded projects at a comparatively higher tariff, Mint reported earlier. Also, the Punjab government is seeking to renegotiate clean energy contracts for operational projects.

Andhra Pradesh has around 7.7 GW of solar and wind projects and is home to India’s second-largest installed capacity of clean energy, accounting for around 10% of the country’s green energy capacity, with investments of ₹60,000 crore. The state has 4,092 MW of installed wind power projects awarded through feed-in tariffs. Also, the resource-rich state has 3,230 MW of solar power projects awarded through competitive bidding.

Clean energy projects comprise more than a fifth of India’s installed power generation capacity. India has 34.6 GW of solar power and seeks to produce 100 GW from solar projects by March 2022.

[Utpal Bhaskar]

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