The Andhra Pradesh Electricity Regulatory Commission (APERC) has approved the AP Green Energy Corporation (APGECL)’s procurement of solar power from the Solar Energy Corporation of India (SECI), a significant milestone for the state’s energy sector. This move is set to modernize the state’s energy landscape and revolutionize its agricultural sector.
Sustainable Energy in Andhra Pradesh
APGECL has been authorized to purchase 7,000 MW of solar power from SECI, a major step toward energy independence. This collaboration with renewable energy companies like Adani Green Energy and Azure Green Energy will further accelerate the state’s transition to clean energy.
The 7,000 MW of AP solar power will be allocated directly to the agriculture sector, aiming to boost productivity and reduce dependence on conventional energy sources.
Image: Collected
This influx of sustainable energy will target critical agricultural infrastructure, including irrigation pumps and cold storage facilities. A 25-year Power Purchase Agreement (PPA) between APGECL and SECI ensures a reliable and predictable supply of solar power to the agriculture sector.
While long-term commitments can be a concern, the potential for sustained returns on investment makes this approach strategic. The Power Purchase Agreement (PPA) with Adani and Azure ensures the financial viability of the solar power plants through an annual service charge of Rs 38.32 crore.
Over the next 25 years, the government plans to allocate approximately Rs 958 crore to ensure the long-term sustainability of the project.
Andhra Pradesh’s Solar Future
Beyond abundant sunshine, a drive to adopt sustainable practices has fueled the expansion of Andhra Pradesh solar projects to meet the state’s growing power needs. The recent solar power purchase agreement is a major step in the state’s journey towards a greener future. Currently, Andhra Pradesh ranks fifth in solar power capacity in India.
According to the Ministry of New and Renewable Energy, Andhra Pradesh has a cumulative solar power capacity of 4,552.12 MW. The state has also approved an additional 6,400 MW solar power project, which will further boost its renewable energy capacity and reduce reliance on traditional power sources. This will provide reliable and affordable power to the agriculture sector, reducing the need for government subsidies and promoting financial sustainability.
Purchasing 7,000 MW of solar power from SECI will enable the state government to provide an uninterrupted power supply to 18.37 lakh agricultural consumers during daylight hours for the next 25 years.
The state’s solar policy, introduced in 2018, aimed to increase solar power capacity to at least 5,000 MW within five years. This policy underscores the state’s commitment to sustainable development and its strategy for meeting energy demands.
