The Andhra Pradesh government has finalized the tenders for developing a 6.4 GW solar park in 10 different locations in the state. The project is aimed at providing free daytime electricity to farmers in the state. However, the project is expected to add a burden of Rs. 10,000 crore in revenue gap to the distribution utilities. The tendering process has resulted in the government securing nearly 14,000 million units of power every year at a tariff of Rs. 2.48/kWh. This is the lowest tariff in a solar auction in the state to date.
From the outset, however, there have been certain issues with the project. When the tenders were floated and the deadline was set for a month, various stakeholders had asked for an extension.No such extension was given and the bidding process continued. The tender was oversubscribed by 8.5 GW. Five bidders – Shirdi Sai Electricals, HES Infra, Adani Group, Torrent Power, and NTPC, had placed bids for 14.9 GW in total. The tariffs discovered were as such:
such:
| Location | L1 Bidders | Bid Capacity (MW) | Capacity Won (MW) | Final Tariff (Rs. /kWh) |
| Chakrayapet Ultra Mega Solar Park, Chakrayapet Mandal, YSR Kadapa District | NTPC Limited | 600 | 600 | 2.48 |
| Thondur Ultra Mega Solar Park, Thondur Mandal, YSR Kadapa District | Shirdi Sai Electricals Limited | 400 | 400 | 2.49 |
| M.Kambaladinne Ultra Mega Solar Park, Mylavaram Mandal, YSR Kadapa District | Adani Renewable Energy Holding Twelve Limited | 600 | 600 | 2.49 |
| Pendlimarri Ultra Mega Solar Park, Pendlimarri Mandal, YSR Kadapa District, | Adani Renewable Energy Holding Twelve Limited | 600 | 600 | 2.49 |
| Rudrasamudram Ultra Mega Solar Park, Donakonda Mandal, Prakasam District | Adani Renewable Energy Holding Twelve Limited | 600 | 600 | 2.49 |
| CS Puram Ultra Mega Solar Park, CS Puram Mandal, Prakasam District | Adani Renewable Energy Holding Twelve Limited | 600 | 600 | 2.58 |
| Uruchintala Ultra Mega Solar Park, Tadipatri Mandal, Anantapuram District | Shirdi Sai Electricals Limited | 600 | 600 | 2.48 |
| Kambadur Ultra Mega Solar Park, Kambadur Mandal, Anantapuram District | Torrent Power Limited | 300 | 300 | 2.47 |
| Shirdi Sai Electricals Limited | 600 | 600 | 2.48 | |
| HES Infra Private Limited | 600 | 300 | 2.49 | |
| Mudigubba Ultra Mega Solar Park, Mudigubba Mandal, Anantapuram District | Adani Renewable Energy Holding Twelve Limited | 600 | 600 | 2.49 |
| Kolimigundla Ultra Mega Solar Park, Kolimigundla Mandal, Kurnool District | Shirdi Sai Electricals Limited | 600 | 600 | 2.48 |
It is important to note that the Letter of Award (LoA) will be awarded based on the outcome of the writ petition filed by Tata Power Renewable Energy on January 6th, 2021. The company had argued that RfS and PPAs for the 6.4 GW project were in violation of the provisions of the Electricity Act, 2003. The PPAs by APGECL mentioned that any dispute regarding the project would be settled by the state government, as against the norm of moving the State or Central Electricity Regulator. On January 8th, 2021, the High Court stayed the project until the next hearing.
