Andhra Pradesh signs wind power PPAs, does U-turn, wants 25 pct price cut now

Andhra Pradesh signs wind power PPAs, does U-turn, wants 25 pct price cut now

Andhra Pradesh’s electricity distribution companies (discoms) signed power purchase agreements (PPAs) with various wind power generators at between Rs 4.76 and Rs 4.84 per unit in 2015, at tariffs that looked competitive then. But now that, two years later, Solar Energy Corporation of India (SECI) managed to get bids as low as Rs 3.46 per unit  SECI invited bids for 1,000 MW  the Andhra Pradesh discoms want their PPAs to be revised down to these levels. In addition, the discoms also want various central-government incentives for wind energy firms to be passed on to them.

The discoms have approached the state’s power regulator unilaterally seeking a lowering of the tariffs under a host of existing PPAs with wind power generators. The discoms’ bid to virtually dishonour the PPA terms would put wind power projects of around 1,000 MW in a bind and could set a bad precedent, analysts said. Read More…

 

Credit By : The Financial Express

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