Andhra Pradesh High Court has ordered a stay on the 6.4 GW solar project across 10 locations in the state. The YSRCP government was trying to establish that disputes with developers and investors were over and the Chief Minister was hoping to project his ability to attract investments to the state. However, the case filed by Tata Power Renewable Energy is a big blow to the government’s plans that were carried out in haste.
After coming to power, Jagan Mohan Reddy issued an order on July 1, 2019, directing a high-level committee to renegotiate power purchase agreements (PPAs). Later that month on July 25th, the Andhra Pradesh High Court stayed the state government’s order in a case filed by renewable energy companies against renegotiation of all power supply contracts. In February 2020, the AP High Court directed the Union New and Renewable Energy Ministry to form an expert committee to look into whether the Jagan Mohan Reddy government has been curtailing wind and solar power in the state.
The YSRCP government set up a special firm called the Andhra Pradesh Green Energy Development Corporation (APGEDCL) for the 6.4 GW project. On Wednesday, the High Court directed the state not to enter into any agreements for the solar park project until the next hearing which is scheduled for February 15th, 2021.
Tata Power has requested the Court to quash requests for selection (RfS) and draft PPAs issued by the APGECL for the solar project. The company argued that the RFS and PPAs were contrary to the provisions of the Electricity Act, 2003, and the Competitive Bidding Guidelines of 2017 issued by the Union New and Renewable Energy Ministry. Certain clauses in the tender documents sought to create a parallel regulatory body and indicated that contract-related disputes would be settled by the YSRCP government rather than the regulatory commission.
This article is a follow-up to an article on the oversubscription of solar bids in AP. You can find it at https://aptruth.in/andhra-pradeshs-6-4-gw-solar-project-oversubscribed/