Wind Companies Take Andhra Government To Court

Wind energy companies, led by the Indian Wind Power Association, have filed a writ petition in the Andhra Pradesh High Court, challenging the state’s decision to review power purchase agreements they have already signed.

The industry is agitated over the state’s new chief minister Jagan Mohan Reddy’s decision to form a committee to review all solar and wind power purchase agreements (PPAs) signed by the previous government.

The July 1 order issued by the state’s energy department said the committee would review the contracts and negotiate with developers in order to bring down prices.

A stay on the July 1 order and any and all proceedings of the high-level negotiation committee has been asked for by the court.

The industry is also seeking a stay on another order issued on July 12 by distribution companies of Andhra Pradesh, which said the wind PPAs entered after 2012 have caused a huge burden on the state and thus tariffs would have to be lowered or else PPAs would be terminated.

Union power minister R K Singh has also written to Andhra chief minister urging him against such renegotiation of signed agreements.

We will have to wait to see how this saga unfolds…

This is a Syndicate News-Feed