Andhra Pradesh Secures 7000 MW Solar Power Deal: Transforming Energy and Agriculture
In a significant move for India’s renewable energy landscape, the Andhra Pradesh Electricity Regulatory Commission (APERC) has officially approved a large-scale power procurement plan. The state’s distribution companies (DISCOMs) will acquire 7,000 MW of solar power through a tripartite Power Sale Agreement with the Solar Energy Corporation of India (SECI) and the state government. This landmark deal is poised to provide long-term energy security and specifically aims to revolutionize the state’s agricultural sector.
The core objective of this initiative is to supply uninterrupted power to over 1.8 million agricultural consumers. Under the 25-year agreement, the procured solar energy will ensure farmers receive nine hours of free electricity during daylight hours. This commitment is expected to enhance crop yields, power critical infrastructure like irrigation pumps, and significantly reduce the operational burden on the state’s farming community, thereby promoting greater financial stability in the sector.
Details of the Phased Procurement Plan
The deployment of the 7,000 MW capacity will be executed in a structured, multi-year rollout. The plan schedules the integration of 3,000 MW in 2024, followed by an additional 3,000 MW in 2025, with the final 1,000 MW coming online in 2026. This phased approach allows for the gradual scaling of infrastructure to support the massive influx of clean energy.
A key aspect of the agreement is the highly competitive tariff of ₹2.49 per kWh, which was determined through SECI’s competitive bidding process and approved by the Central Electricity Regulatory Commission (CERC). This fixed rate ensures cost predictability over the agreement’s 25-year term, safeguarding the state and its consumers from price volatility. The total annual energy supply under this deal is capped at 17,000 million units (MU).
Bolstering Andhra Pradesh’s Green Ambitions
This massive solar power deal significantly accelerates Andhra Pradesh’s renewable energy goals, far exceeding the target set by its 2018 solar policy to install at least 5,000 MW within five years. Currently ranking fifth in India for solar capacity, the state is cementing its position as a leader in the nation’s transition to sustainable energy. By reducing reliance on conventional power sources, this project marks a major step towards a greener, more self-sufficient future for Andhra Pradesh.
Sources
- Andhra Pradesh signs an agreement with the Solar Energy …
- Andhra Pradesh to Acquire 7000MW of Solar Energy from SECI
- APERC Approves 7000 MW Solar Power Agreement And Addresses …
- Andhra Pradesh govt to procure 7,000 MW solar power from SECI
- AP to procure 7 GW solar power for Rs 2.49 per unit from 2024
- APERC Approves Tripartite Power Sale Agreement for 7 GW Solar …
- Andhra DISCOMs Get Regulatory Approval to Procure 7 GW of Solar …
- Power Regulator Backs Off as AGEL Gets Andhra Solar Project
