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.
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.
Under flak from the Union government and global investors the government has mandated state-owned Andhra Pradesh Green Energy Corporation Ltd (APGECL) to call for this mega solar bid that will entail a ₹35,000 crore investment.
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 are 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.
The RFP (request for proposal) for 10,000 MW will be floated shortly.
State energy secretary N. Srikanth confirmed the mega tender development and said that APGECL is the nodal agency for the same.
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.
Reference- livemint, Economic Times, Financial Express, Mercom India