Andhra Pradesh to buy solar power from Kadapa plant

- Advertisement -
- Advertisement -

Akey state utility has reversed its stand and will buy solar power from a large project, although at a lower rate than initially proposed, giving a boost to the renewable energy sector, which was being derailed by monopolistic distribution companies arm-twisting developers to lower tariffs. 

solar power, Andhra Pradesh, Kadapa plant, India
(Image for representational purpose only)

Andhra Pradesh has agreed to buy electricity from Kadapa Solar Park, where a subsidiary of France’s Engie won a 250 MW solar auction held by NTPC seven months ago without any buyer for the output. “We’ve reached an agreement with NTPC to buy power from its proposed 250 MW plant at Kadapa provided it is bundled with 125 MW capacity of thermal power so that the tariff is lower than the Rs 3.15 per unit NTPC had initially proposed,” said Ajay Jain, principal secretary for energy in Andhra Pradesh to ET.

He did not disclose the revised tariff. Neither NTPC nor Engie were willing to comment on the latest development. Plunging prices of renewable energy had led distribution companies in states including Andhra Pradesh, Uttar Pradesh, Jharkhand and Tamil Nadu to look for ways to pay the most recent record-low tariff to plants that were built when costs were much higher.

- Advertisement -

SolaireDirect, the subsidiary of Engie, won the auction in April with a bid of Rs 3.15 per unit, which was a record low at the time. NTPC expected discoms of Andhra Pradesh, the state in which the auction had been held, to buy the power as a matter of course.

However, the tariff fell to Rs 2.63 and thereafter to Rs 2.44 per unit in auctions at Rajasthan’s Bhadla Solar Park conducted by the Solar Corporation of India in the following month. The development spurred Andhra Pradesh to reject the Kadapa power at the offered price. The New & Renewable Energy Development Corporation of Andhra Pradesh agreed in July to waive transmission charges from Kadapa if NTPC found a buyer.

A factor that may have changed Andhra Pradesh’s mind was that global solar module prices, which had been in free fall for some months, had started inching up, an official revealed. Solar prices at forthcoming auctions are unlikely to fall further.

Engie has yet to receive a letter from NTPC confirming allotment of the project. Usually, power purchase agreements with auction winners are signed within two months of the auction. In this case, the PPA with Engie has yet to be signed and now with the matter resolved, an agreement is expected in the coming week.

Engie has about 360 MW of commissioned solar projects in India and 100 MW under construction. Uttar Pradesh and Jharkhand have sought to renegotiate solar PPAs, while Tamil Nadu cancelled an auction held in January after getting lower prices at a sale conducted in July.

- Advertisement -

Related Artcles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Exclusive

“More Chargers Provide Security And Confidence To Customers, Encouraging EV Adoption”

0
With an agenda to transform the EV industry, EarthtronEV has established 250+ charging stations on major highways across India. The company aims to interconnect...

5G RedCap To Transform IoT Module Shipments

0
Over 60% of IoT module shipments will originate from the Asian & Oceania region. Automotive sector is expected to be a significant driver. The...
XR Headset Quest 3, Meta

Global XR Headset Shipments See A Major Decline, Sony Rises

0
Sony grabbed a market share of 24% in 2023 up from 1% in 2022. Bulky form factor, and lag, hinder adoption by serious...

Buzz

Tenstorrent- RISC V cores

MosChip Collaborates With Tenstorrent For Advanced RISC-V Cores

0
Tenstorrent has selected Moschip due to their tape out expertise in design services. India’s MosChip Technologies has announced partnership with computing company Tenstorrent and to...

BYD Aims For 20% Increase In Yearly EV Sales

0
The company is targeting sales of 500,000 vehicles internationally this year, over twice the amount sold last year, and aims to increase that figure...

RRP Electronics To Invest ₹5000 Cr In OSAT and R&D In Maharashtra

0
Cricket legend Sachin Tendulkar is investing in this semiconductor facility. Such celebrated personalities investing in the sector could be a great asset to the...

Important Sectors

“More Chargers Provide Security And Confidence To Customers, Encouraging EV Adoption”

0
With an agenda to transform the EV industry, EarthtronEV has established 250+ charging stations on major highways across India. The company aims to interconnect...

BYD Aims For 20% Increase In Yearly EV Sales

0
The company is targeting sales of 500,000 vehicles internationally this year, over twice the amount sold last year, and aims to increase that figure...

RRP Electronics To Invest ₹5000 Cr In OSAT and R&D In Maharashtra

0
Cricket legend Sachin Tendulkar is investing in this semiconductor facility. Such celebrated personalities investing in the sector could be a great asset to the...

Subsidy Cuts Push E2W Makers Towards Budget Models

0
Electric two-wheeler manufacturers face reduced government subsidies and growing competition from established petrol vehicle brands in the upcoming fiscal year. These challenges compel them...

Nissan To Invest In Renault’s Ampere For EV Roadmap

0
The alliance aims to introduce both five-seater and seven-seater models for each brand in India. Japan's Nissan Motor has committed to investing in Renault's electric...

Manufacturing

JLR To Hire 250 Electrical Technicians For Future EVs

0
These new roles, part of a £15 billion investment, are in addition to 300 positions created last year by the British car maker. Jaguar Land...

Altmin India Partners With WMG To Advance Battery Tech

0
Altmin and WMG will collaborate to strengthen their global battery materials supply chain position by optimizing cathode materials and developing diverse cell designs across...

EVs To Cost Less Than Gas Vehicles by 2027, Says Gartner

0
Gartner predicts a faster decline in production costs compared to battery costs, which represent the most significant expense in an electric vehicle, accounting for...
MG

MG Motor To Set Up Battery Assembly Unit At Halol Facility

0
The company plans to investigate battery cell production in collaboration with external partners. Automaker MG Motor India is actively exploring the possibility of assembling and...

Servotech Boosts India’s EV Charging Infrastructure With Manufacturing Facility

0
The new facility is poised to start with an annual production capacity of 24,000 power modules and plan to scale up to 2.4 lakh...