On the behalf of Andhra Pradesh government, Energy Secretary N. Srikant announced that the government of Andhra Pradesh has decided to buy 7,000 MW solar power. It will be done in 3phases from Solar Energy Corporation of India (SECI) at ₹2.49 from the year 2024.

Compared to the project planned to be set up by the A.P. Green Energy Corporation Limited (APGECL) the option of buying the power is an effective option.

APGECL has sanctioned ₹2,261 crores last year for augmentation for 10,000 MW capacity. The land allotted to APGECL will be utilized for any other purposes required by the government.

The 10,000 MW solar capacity was to be supplied to 18.37 lakh agricultural consumers for a period of 25 years during daytime for 9 hours. To distribute the government had 2 options in front of them. Either purchase power from states which have high solar irradiation throughout the year like Rajasthan or generate power within Andhra Pradesh state. The option of buying the power through the SECU manufacturing linked tendering system proves to have many advantages over the first one.

N. Srikant, Energy Secretary, Andhra Pradesh

At present, the state is procuring thermal power from Discoms at ₹4.36/unit and supporting farmers by supplying it free to them.

A major incentive for the State to go for power purchase through the SECI was the waiver of inter-State charges on the transmission of power from projects outside the State commissioned before June 30, 2023, which amounts to about ₹1,000 crores per annum.

Reference: The Hindu