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Andhra Pradesh has announced receiving bids for 6,400 megawatts of solar power plants at a low tariff of 2.48 per kWh through reverse tenders, claiming to have ensured savings of 3,800 crore in the first year.
In a recent statement, the AP government said it expects to save as high as Rs. 50,000 crore during the project’s concession period of 30 years, helping it to successfully meet the subsidy burden towards the supply of free power to farmers. Adani group has bid for six projects aggregating to 3,000 megawatts, while other companies that submitted bids include
Disclosing the details of the bids, the government said the tariff of 2.48 per kilowatt an hour (kWh) is “significantly lower than the tariff at which AP Distribution Utilities are procuring power”.
Pointing out that it was incurring nearly 10,000 crore as subsidy to meet the revenue gap of distribution utilities, the government said the prevailing power purchase costs were prohibitively high, causing the burden. Accusing the previous regime of executing power purchase agreements at exorbitant tariffs, the government said the current average power procure cost amounts to 5.2 per kWh.
The government said apart from estimated savings of 50,000 crore due to low tariffs during the lifetime of this 6,400 MW of solar plants over 30 years, the power generation assets being awarded on a build, operate and transfer (BOT) basis will also get transferred to the government after the concession period. |
