AP electricity regulatory board allows purchase of 4,000 MU from SECI
The State government had earlier established APRAPL to channelise the solar power procured from SECI for the purpose of free supply to agriculture consumers
By Newsmeter Network Published on 21 Feb 2025 6:21 PM IST
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Amaravati: The Andhra Pradesh Electricity Regulatory Commission (APERC) has allowed the purchase of over 4,000 million units of power from Solar Energy Corporation of India (SECI) for the next fiscal year after State DISCOMs asked the regulator for permission.
The controversy over power purchases with SECI
The SECI Power Sale Agreement (PSA) with Andhra DISCOMs became contentious after the US Department of Justice charged Adani Group chairman Gautam Adani with participating in a multi-year scheme to allegedly pay $250 million in bribes to Indian officials, including those from Andhra Pradesh, in exchange for favourable solar power contracts totalling 7,000 MW in 2021 when the YSRCP was in power.
The Indian conglomerate and the opposition AP party separately denied the allegations.
According to an APERC ruling on āTariff for Retail Sale of Electricity during FY 2025-26ā released on Friday, the commission consented to the PSA with comprehensive reasons, subject to the outcome of the current PILs before the AP High Court regarding the agreement.
The Andhra Pradesh electricity distribution firms had committed to buy more than 4,000 million units of power from Solar Energy Corporation of India, out of a total of 17,000 MU (7000 MW), beginning in the next fiscal year.
As a result, utility firms have approached regulatory authorities for clearance. The SECI previously announced that 1,000 MW would be delivered beginning January 15 of this year, 3,000 MW in 2025-26, and the remaining 3000 MW in 2026-27.
Purchases on behalf of AP Rural Agriculture Power Limited
According to the filings, Aggregate Revenue Requirement and Tariff Proposal for the Retail Supply Business for FY 2025-26 by Southern Power Distribution Company of AP Ltd (SPDCL), Eastern Power Distribution Company Of Andhra Pradesh Ltd and Andhra Pradesh Central Power Distribution Corporation Ltd (CPDCL), on November 30, the utilities informed the APERC that they intend to purchase power on behalf of AP Rural Agriculture Power Limited (APRAPL).
The State government had earlier established APRAPL to channelise the solar power procured from SECI for the purpose of free supply to agriculture consumers. The entity is in the process of obtaining a license and fulfilling the other establishment activities. According to the earlier filings, all three Discoms have proposed to purchase 4191 million units during the next financial year.
Refuting the bribery allegations, the YSR Congress Party has said the agreement was between the State government, Discoms and SECI which is a Central government organisation and there is no third-party involvement. Chief Minister N Chandrababu Naidu last month said the state government cannot scrap power purchase agreements with the SECI without obtaining solid proof of bribery allegations.
