Andhra Pradesh DISCOM’s to Renegotiate Power Purchase Agreements


The Andhra Pradesh Southern Power Distribution Company (APSPDCL), a state distribution company, has decided to renegotiate power purchase agreements (PPAs) it had signed with wind project developers. The PPA’s were signed before India’s first wind power auction conducted by Solar Energy Corporation of India (SECI), which saw the tariff drop to Rs.3.46 (~$0.054)/kWh (as reported by Mercom). The state now wants to renegotiate these PPAs which it had signed with 41 developers covering 832.4 MW of wind capacity, at a tariff of Rs.4.8 (~$0.075)/kWh.

Prior to the auction, the Andhra Pradesh Electricity Regulatory Commission (APERC) had set the feed-in tariff for wind power for 2016-17 at Rs.4.8 (~$0.075)/kWh. The discom signed PPAs with a host of wind developers at the same tariff, most of which have since begun work on their projects. But the chief general manager of APSPDCL had requested APERC not to consider the PPAs still pending and return those to the discom without approval, which the regulator had duly done.

Developers are already considering going to court if the APSPDCL formally cancels the earlier PPAs. Among the developers with PPAs pending approval, the ones building the big projects are Orange Uravakonda Wind Power (100.8 MW), Ais Wind Energy (105 MW) and Axis Wind Farm (105 MW), according to the Economic Times.

Sampath KrishnaSampath has been part of the Mercom India research and news team since the company’s inception. He currently oversees all data and research relating to news published on the platform. Sampath received his Bachelor’s of Commerce Degree from Kuvempu University and Post Graduate Diploma in Management, from Indira Gandhi National Open University. More articles from Sampath Krishna.