Andhra Pradesh discoms fight for big cuts to existing PPA prices - report

Wind park in India. Featured Image: Regien Paassen/Shutterstock.com

October 14 (Renewables Now) - In petitions filed with the Andhra Pradesh Electricity Regulatory Commission (APERC), the state’s electricity distribution companies (discoms) are requesting cuts of up to 60% in the purchase prices agreed for wind and solar power in contracts signed in 2012-2017, Indian daily Business Standard reports.

The discoms are also demanding a reduction of the power purchase agreement (PPA) terms for wind and solar to 5-10 years, instead of 20-25 years, the article says.

Earlier this year, the new Andhra Pradesh government, led by YS Jagan Mohan Reddy, announced that it would terminate certain wind and solar power contracts unless their prices were renegotiated. It said it believed corruption might have led to higher rates in PPAs signed during the term of Chandrababu Naidu. Since then, state utilities and renewable energy producers have been locked in a fierce battle over green power pricing.

One of the discoms’ petitions with the APERC seeks to cut the rate paid to certain solar parks to INR 2.44 (USD 0.034/EUR 0.031) per kWh from INR4.75-6.45 per kWh in existing contracts. For wind PPAs, the discoms are seeking a revision of the tariff to INR 2.43/kWh from INR 4.7/kWh, according to the report.

The Andhra Pradesh discoms say they are unable to bear the additional cost of purchasing renewable electricity.

(INR 100 = USD 1.41/EUR 1.28)

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