Aftermath of PPAs review: Power Projects in Andhra in a state of quandary

The State government’s resolve to go for review of the Power Purchase Agreements (PPAs) has stalled grounding of new power projects proposed to add close to 3,310 MW both in private and government sectors.
While the work on 1000 MW solar power project being implemented by the NTPC at Nambulapulakunta near Kadiri in Anantapur district got stalled due to a row over the amount of compensation to be paid to land owners, another 160 MW of Hybrid (100 MW solar + 60 MW wind) project proposed in Ramgiri, also to be grounded by NTPC, seems to be getting delayed due to uncertainty over the PPA. 
While 250 MW portion of the 1,000 MW N.P. Kunta project is completed, the work on remaining 750 MW being executed by foreign companies is not progressing at the desired pace.
While the Anantapur district has added 2,539.05 MW of wind power production capacity in five years from 2014-15 to 2018-19, work on about 2,400 MW capacity addition was to be grounded in 2019-20 with an investment of about ₹14,400 crore, but after the government decided to review the PPAs, all the projects have been scrapped. 
Fate of all the future projects hangs in balance till a decision is taken on the power purchase agreements. Anantapur district, one of the focal areas for investments in solar and wind power projects, attracted ₹22,953.13 crore over five years from 2014 to 2019 adding an installed capacity of 3531.25 MW out of which solar power projects accounted for 992.20 MW with an investment of ₹6449.30 crore.
The New & Renewable Energy Development Corporation of Andhra Pradesh Ltd., in association with Renewable Energy Service Company (RESCO), will add 1 MW of solar power production capacity on Sri Krishnadevaraya University campus very soon and a memorandum of understanding will be signed between the NREDCAP and SKU, NREDCAP project director G. Harinath Babu said.
Under the RESCO tie-up, all government institutions utilising 100 KW and above have been identified and under the first phase, the Government General Hospital, Anantapur, will get 650 KW of solar power plant on top of its buildings meeting almost entire need of the hospital.  
“Net metering is done in such cases with the institutions being charged at ₹3.99 per unit and any excess production sent to the power grid. SKU, which is buying power at ₹8 to ₹9.20 per unit, will save 50% of its monthly power bill of ₹3 lakh. Other beneficiaries identified are JNTU, Anantapur, Govt. Polytechnic College, area hospitals at Tadipatri, Hindupur, Kadiri, and Guntakal with each hospital getting 100 KW to 150 KW solar units," Mr. Harinath Babu added.

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