Andhra Pradesh’s solar plans hit as HC cancels 6,400 MW auctions

really feel that the brand new auctions, if any, will doubtless uncover greater tariffs because of rise in value of photo voltaic modules and upcoming import restrictions which is able to drive up gear prices. (Consultant picture)

The Andhra Pradesh Excessive Court docket has cancelled the auctions held by the state authorities in February for creation of 6,400 mega-watt (MW) solar energy capability, denting the coastal state’s ambition to cut back energy tariffs by constructing low-cost renewable vitality items. Ruling on a petition filed by Tata Energy Renewable Vitality, the courtroom said the entire tendering and public sale course of ‘considerably deviated’ from the provisions of the Electrical energy Act, 2003, and the rules for aggressive bidding.

The courtroom allowed the state to ask recent bids to construct the capability, after aligning the bidding situations with the Act and the related phrases. Analysts really feel that the brand new auctions, if any, will doubtless uncover greater tariffs because of rise in value of photo voltaic modules and upcoming import restrictions which is able to drive up gear prices.

That is for the second time the state’s solar energy plans hit the judicial hurdle. Instantly after assuming energy in 2019, the YS Jagan Mohan Reddy authorities had sought to revise the photo voltaic and wind energy buy agreements (PPAs) signed by the earlier authorities, saying these have been “abnormally priced” and might need been linked with “mala fide intentions”. The HC subsequently struck down the federal government’s order to renegotiate PPAs, and directed the discoms to pay greater than 7,500 MW of wind and photo voltaic crops at a provisional price of Rs 2.43 per unit — in opposition to the Rs 4.84 per unit tariffs they have been receiving earlier — until the authorized disputes are resolved.

As FE reported earlier, the state had obtained the bottom bid of Rs 2.47/unit in opposition to tenders invited in December 2020; Adani Group, Torrent Power and state-run NTPC have been among the many lowest bidders, with Adani providing essentially the most aggressive charges for 3,000 MW. The photo voltaic crops have been to be constructed within the districts of Kurnool, Ananthapuramu, Prakasam and Kadapa.

Tata Energy Renewable Vitality contended within the courtroom the assertion within the bid doc that the state authorities will tackle payment-related disputes, as a substitute of the electrical energy regulator, is legally untenable. The HC had earlier ordered the state authorities to not signal any contract concerning the public sale till additional hearings on the matter, and the state was to problem letters of award to the winners solely after the decision of the case. “That is good Judgment and a step in proper route,” mentioned Shri Venkatesh of SKV Regulation Workplaces which represented Tata Energy, including that “Electrical energy Act, 2003, is a whole code and points reminiscent of aggressive bidding should be by way of Act and the regulator has an intrinsic position to play in such transactions”.

In keeping with sources, NTPC had quoted the bottom tariff for 600 MW, Torrent Energy for 300 MW and civil contractor agency HES Infra positioned the bottom bid for 300 MW beneath the moment auctions. Kadapa-based transformer producers and EPC contractor Shirdi Sai Electricals was the bottom bidder for two,200 MW. The tariffs vary between Rs 2.47/unit and Rs 2.58/unit.