Andhra utilities to buy 300 MW from Solar Energy Corp FY26, source says
This story was originally published at 17:28 IST on 9 December 2024
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--Source: Three Andhra discoms set to buy 300 MW from Solar Energy Corp FY26
--Source: AP discoms submitted annual requirement to state power commission
--CONTEXT:Solar Energy Corp to buy power from Adani Green to give AP discoms
--CONTEXT: Solar Energy in pact with Andhra to supply 7,000 MW over 25 yrs
By Narayana Krishna
HYDERABAD - Three power distribution companies in Andhra Pradesh are all set to buy nearly 300 MW of power from Solar Energy Corp. of India Ltd. in 2025-26 (Apr-Mar), according to the filings by the state utilities with the AP Electricity Regulatory Commission. Solar Energy Corp. will source power from Adani Green Energy Ltd. and supply it to the Andhra Pradesh power utilities.
The power distribution companies — Southern Power Distribution Company of AP Ltd., Eastern Power Distribution Company of Andhra Pradesh Ltd. and Andhra Pradesh Central Power Distribution Corp. Ltd. — have submitted their Aggregate Revenue Requirement and Tariff Proposals to the state power regulator for FY26 on Nov. 30.
In 2021, Andhra Pradesh entered into a power sale agreement with Solar Energy Corp. to buy 7,000 MW of power over 25 years at a cost of INR 2.49 per unit. The agreements signed under the then-chief minister Y.S. Jagan Mohan Reddy became controversial after the current government led by N. Chandrababu Naidu raised concerns about the agreement.
Amid speculations that Naidu might scrap the pact with Solar Energy Corp., the state utilities cleared the air by submitting their plans to procure the power. Andhra Pradesh power distribution companies have set up a special purpose vehicle, AP Rural Agriculture Power Ltd., to source the power from Solar Energy Corp.
According to the Adani Green Energy website, the company has 11,184 MW of operational capacity as of October, which it is supplying via the National Grid to various states. Most of the capacity is sold via Solar Energy Corp. as its trade partner. In the case of Andhra Pradesh, Adani will get INR 2.42 for every unit it supplies, while Solar Energy Corp gets 7 paise as a trade commission.
When contacted, top officials of Andhra Pradesh energy department declined to comment. But a senior official of a distribution company said it is now clear that the agreement with Solar Energy Corp. and Adani is in force. The total deal size, after completion of the contract period of 25 years, and subject to fulfilment of committed capacity supply, is estimated at INR 1.05 trillion.
As per the agreement, Solar Energy Corp. had to begin the supply of solar energy to the tune of 3000 MW from October 2024, in the first phase. The company is to begin the supply of another 3000 MW in the second phase from October 2025 and the balance 1000 MW from October 2026, a senior official of the state energy department said.
Andhra Pradesh’s power sale agreement with Soar Energy Corp. and Adani Green Energy was also in the news after a US court indicted Adani Group Chairman Gautam Adani and others for alleged bribing of government officials to secure solar energy supply contracts. On Nov. 27, Informist reported quoting Andhra Pradesh finance minister Payyavula Keshav that that state was unlikely to scrap the power pact with Solar Energy Corp., considering the legal and financial consequences.
Between 2021 and 2022, the Adani Group obtained solar power supply contracts from Solar Energy Corp. for supplying solar power to states, including Odisha, Tamil Nadu, Chhattisgarh, and Andhra Pradesh.
On Monday, shares of Adani Green Energy ended at INR 1216.95 on the National Stock Exchange, up 0.5% from its previous close. End
Edited by Saji Geroge Titus
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