APSPDCL Seeks APERC Approval For 400 MW Wind-Solar Hybrid Project To Boost Renewable Energy In Andhra Pradesh

The Southern Power Distribution Company of Andhra Pradesh Limited (APSPDCL) has filed a petition before the Andhra Pradesh Electricity Regulatory Commission (APERC) seeking approval for four Power Purchase Agreements (PPAs) with Axis Energy Ventures India Private Limited and its subsidiaries. The agreements pertain to a 400 MW Wind-Solar Hybrid Power Project under the Andhra Pradesh Wind-Solar Hybrid Power Policy, 2018.

APSPDCL and Axis Energy Ventures initially entered into discussions regarding the project, which aims to enhance renewable energy generation and ensure round-the-clock power supply through a hybrid model. The project comprises four separate agreements, each covering a 100 MW capacity, to be implemented by Axis Renewable Energy Park (Andhra Pradesh) Pvt. Ltd., Axis Renewable Energy Park (Penna) Pvt. Ltd., Axis Renewable Energy Park (Krishna) Pvt. Ltd., and Axis Renewable Energy Park (Tungabhadra) Pvt. Ltd.

The petition outlines the procedural steps taken so far, including the submission of a Detailed Project Report, consultations with KPMG consultants, and approvals from the Andhra Pradesh Power Coordination Committee (APPCC) and the New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP). The agreements were initially executed on November 24, 2022, following the directions of the Government of Andhra Pradesh and a judgment from the Andhra Pradesh High Court.

The project faced multiple regulatory hurdles, including an earlier rejection of the PPAs by APERC due to concerns regarding project viability, tariff structure, and the lack of transparency in the approval process. The regulatory commission had raised questions about the justification for the procurement of wind-solar hybrid capacity and the rationale behind offering a fixed tariff rate. Consequently, APSPDCL was directed to provide further clarifications before seeking fresh approval.

In response to these concerns, APSPDCL has now formally approached APERC, requesting consent for the agreements. The petition emphasizes that the project aligns with government policy objectives and will help meet the state’s renewable energy targets while ensuring grid stability through hybrid generation. The petition also highlights the government’s previous directives mandating the execution of these agreements to facilitate the project’s implementation.

APSPDCL has also sought adjustments for the filing fees from a previously paid amount and submitted relevant financial documents to support its case. The company has reiterated that the agreements have been approved by multiple state agencies, including APTRANSCO and NREDCAP, and that they comply with regulatory norms.

The outcome of this petition will be crucial in determining the future of the project. If approved, it could pave the way for increased investment in renewable energy infrastructure in Andhra Pradesh, further strengthening the state’s commitment to clean energy. However, if APERC raises additional concerns, APSPDCL and Axis Energy Ventures may need to undertake further revisions to address regulatory requirements.

The final decision by APERC is expected to have significant implications for both the companies involved and the broader renewable energy landscape in Andhra Pradesh.