May 30, 2024

Andhra Pradesh Secures 7000 MW Solar Power Deal

The Andhra Pradesh Electricity Regulatory Commission (APERC) has finally given its consent to AP Green Energy Corporation (APGECL), for making a procurement of solar power from the Solar Energy Corporation of India (SECI), to create history. This important development will transform the energy scenario of the state and will modernize its agriculture.

Sustainable Energy in Andhra Pradesh


APGECL has been authorized to purchase 7,000MW of solar power from SECI. Together, this represents the biggest step yet in becoming energy independent. Power generation will be propelled largely with the help of renewable energy companies like Adani Green Energy and Azure Green Energy.

All the 7000 MW power capacity will be directed to agriculture sector to increase productive capacity of agriculture and reduction conventional energy dependency.

This sustainable energy boost will target essential agricultural infrastructure such as pumping water to the fields and cold storage.

The Power Purchasing Agreement (PPA) is signed between APGECL and SECI for a 25-year period, whose faithfulness and predictability will signpost the energy supply for the government.

The long-term commitment is an issue of concern for many. However, the permanent returns on investment help establish a strategic approach to planning and ensure investment security.

Through its contract with Adani and Azure ( Solar Energy Provider), APGECL is required to pay an annual service charge of Rs 38.32 crore that would enable the plant’s business viability due to the financial attractiveness of such services.

Over the life of the project (i.e., the next 25 years) an estimated amount of Rs 958 crore is to be allocated by the government to ensure continuity of this endeavor.

Andhra Pradesh's Solar Future


Besides the abundant sunshine, what has fueled the expansion of solar energy to try to keep up with Andhra Pradesh’s growing power needs is efforts to deliver power from the sun in a manner that marks a sustainable path for the future.

The solar power purchase agreement is an announcement which marks a milestone to turn Andhra Pradesh a greener state. At present, Andhra Pradesh stands number five in solar power capacity in the country.

It has a cumulative solar power capacity of 4,552.12 MW, according to the ‘All India Solar Power Capacity (MW)’ issued by the Ministry of New and Renewable Energy. Andhra Pradesh has already accorded approval for a 6,400 MW solar power project.

This would provide baseload liberalizes power to farming during the day, taking the pressure off government subsidies, and making the sector financially sustainable.

Buying 7,000 MW solar power from the Solar Energy Corporation of India (SECI) via the state government, ostensibly to provide unbroken power to 18.37 lakh agricultural consumers during daylight hours for 25 years.

It is to say that the state’s solar policy , which was introduced in 2018 by Andhra Pradesh with the intention to increase solar capacity to a minimum of 5,000 MW over the next five years – a policy that favors environmentally conscious development by meeting the state’s energy demand.


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