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Green Developers in AP Lost Rs 1.4k cr since August

Green Developers in AP Lost Rs 1.4k cr since August

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​​“Out of the 7,307 mw of renewable energy installed in Andhra Pradesh, 20-25% of solar power and 50-60% of wind power is being curtailed,” said one of the executives, who did not wish to be identified. This is despite the Andhra Pradesh High Court having directed distribution companies in September not to curtail renewable power.

Bengaluru: Renewable energy developers have lost revenue of Rs 1,400 crore due to curtailment of wind and solar power in Andhra Pradesh since August last year, said industry executives.

“Out of the 7,307 mw of renewable energy installed in Andhra Pradesh, 20-25% of solar power and 50-60% of wind power is being curtailed,” said one of the executives, who did not wish to be identified.

This is despite the Andhra Pradesh High Court having directed distribution companies in September not to curtail renewable power.

“The situation has gotten out of hand. They are violating the order of the court,” a leading developer said on condition of anonymity. “They are not following the must-run guidelines for renewable energy laid down by the Centre.”

All the large independent power producers of the country have filed contempt petitions over this issue. They did not want their companies to be named given the sensitivity of the matter. “We have filed a contempt petition against the distribution companies naming officials of the discoms and other senior officials including the energy secretary,” said another developer.

According to developers, the state sources more than 60% of its demand from short-term open access through the energy exchange, an implication that long-term contracts have no value for Andhra Pradesh discoms.

International investors feel dissuaded, said the leading developer. “When you are sitting in Europe or US or Japan, you don’t think about individual states, you think of India. It has reached a stage where the adverse impact is going beyond renewable energy and beyond Andhra because of all the negative tactics the state is resorting to,” said the person.

A text message and an email sent to the energy secretary, Srikant Nagulapalli, remained unanswered till press time on Thursday.

The latest hearing on the curtailment issue was held earlier this week. The matter has been adjourned to January 23.

A text message and an email sent to the energy secretary, Srikant Nagulapalli, remained unanswered till press time on Thursday.

The latest hearing on the curtailment issue was held earlier this week. The matter has been adjourned to January 23.

The issue erupted in July last year soon after YSR Congress-led state government started to renegotiate wind and solar power purchase agreements signed by the previous administration, claiming the rates were higher than those in other states.

Source: economictimes.indiatimes
Anand Gupta Editor - EQ Int'l Media Network

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