Thursday, June 17, 2021

Andhra Pradesh High Court quashes state's 6.4-Gw solar project tender

 Adani Green Energy in February won five mega solar power projects of 600 megawatts each under the tender


The Andhra Pradesh High Court on Thursday held that the state had awarded solar power tenders in contravention of the Electricity Act, 2003, and quashed the request for selection (RfS) and power purchase agreement (PPA) for procuring 6.4 Gw of solar power projects.

Tata Power Renewable Energy had moved the HC challenging the RfS and PPA issued by the Andhra Pradesh Green Energy Corporation (APGECL) in January 2021.

Adani Green Energy (AGEL) in February won five mega solar power projects of 600 megawatts (Mw) each under the tender. State-owned NTPC won 600 Mw in the auction, quoting the lowest tariff of Rs 2.48 per kWh (unit). The lowest tariff discovered in the whole auction process was Rs 2.47 a unit by Torrent Power for a 300 Mw solar project. The award of tender was put on hold.

Sources said the bidding process might undergo revision as both the RfS and PPA were quashed. A copy of the order was not available till the time of going to press. “The High Court has now advised the government of Andhra Pradesh that in case it wishes to procure power, the bidding documents must be in accordance with the Act as well as the guidelines framed thereunder and in case of any deviation, such deviations must be approved by APERC,” said a senior lawyer.

Industry sources said the PPA by APGECL mentioned that any dispute regarding the project would be settled by the state government, as against the legal requirement of moving the state or central electricity regulator. The APGECL had continued with the tendering process despite the legal challenge.

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