The latest report by the Central Electricity Authority (CEA) claims that three projects with a total capacity of 750 MW in Andhra Pradesh are delayed due to multiple reasons.
SB Energy, Sprng Soura Kiran Vidyut, and Ayana Renewable Power had won the tender auction to set up grid-connected solar power generation projects of 250 MW each, at the Kadapa Solar Park in Andhra Pradesh, by June 20, 2020.
These projects come under the Ministry of New and Renewable Energy’s (MNRE) 5,000 MW Viability Gap Funding (VGF) program. However, the CEA report claims that Andhra Pradesh Solar Power Corporation Private Limited (APSPCL), the entity formed to set up solar parks in the state, has not awarded the land.
Most of the land earmarked for the project is government land, yet the solar park developers have not received a No Objection Certificate (NOC) or subleasing permission.
The report also states that APSPCL is yet to award the contract for the construction of the grid substation and transmission lines. The tariff adoption for the projects was delayed as the state government chose to renegotiate all tariffs, which led to a public hearing by the Andhra Pradesh Electricity Regulatory Commission (APERC).
However, the Appellate Tribunal for Electricity (APTEL) overruled APERC. The process took more than a year, and the solar park developers sought an extension in the Power Purchase Agreement (PPA).
In March, APTEL had also issued a tariff adoption order for 750 MW of solar projects in Ananthapuramu solar park auctioned by NTPC. This was in response to the petition filed by solar developers against Andhra Pradesh DISCOMs, who sought tariff renegotiation through APERC.
The Solar Energy Corporation of India (SECI) wrote to the state distribution companies (DISCOMs) for the extension of Power Sale Agreement (PSA) timelines, since there are back to back PSAs with the DISCOMs for these projects.
The report further commented that a unilateral extension of PPA would not serve any purpose, and despite several reminders, there was no positive response from the state government.
According to the CEA report, of the total 18 GW of tendered solar power projects, 13 GW were allocated. Of the total 18 GW, PSAs were not signed for around 10 GW of projects, and PPAs have not been signed for 8 GW of projects.
