APSPDCL Finalizes Amended Agreements For 400 MW Wind-Solar Hybrid Power Project In Andhra Pradesh

The Southern Power Distribution Company of Andhra Pradesh Limited (APSPDCL) based in Tirupati has submitted four amended Power Purchase Agreements (PPAs) to the Andhra Pradesh Electricity Regulatory Commission (APERC). These agreements are with various Special Purpose Vehicles (SPVs) of Axis Energy Ventures India Private Limited. They are related to the establishment of a 400 MW Wind-Solar Hybrid pilot project aimed at demonstrating the Bundling, Balancing, and Banking scheme.

Originally, the PPAs were signed on 24th November 2022. However, due to several changes in policy and unforeseen circumstances, including the withdrawal of certain benefits that were earlier available to renewable energy projects, the developer could not proceed with the project as planned. As a result, the developer approached the High Court of Andhra Pradesh, which directed those previous agreements and commitments be honored. Following this, APSPDCL and the developer decided to amend the existing agreements to align them with the current policies and regulations.

The revised PPAs address the inclusion of energy storage technology. APSPDCL has indicated that APTRANSCO is unable to handle the balancing of renewable energy, making it necessary for the developer to set up appropriate storage systems. The amendments specify that the total installed capacity of the project will be 259.6 MW, which includes 159.6 MW of wind power and 100 MW of solar power. However, the contracted capacity for sale to APSPDCL will remain at 100 MW.

The price payable for the power generated under the amended agreements has been fixed at ₹4.60 per kWh. This rate will be applicable for the entire operational life of the project, which is set for 25 years from the date of commercial operation. Additionally, the developer must ensure that at least 90 percent availability of the contracted capacity is maintained during two peak periods—between 6:00 am to 10:00 am and 6:00 pm to 10:00 pm—by using energy storage systems.

The revised agreements also specify the penalties for non-performance. If the Capacity Utilization Factor (CUF) falls below the agreed level of 60 percent, there will be reductions in the payment per unit of energy supplied. A detailed table outlines the payment reductions corresponding to each percentage drop in CUF. Furthermore, if the power supply falls below 90 percent of the contracted capacity during peak hours, an additional penalty equal to 1.5 times the PPA price will be levied for the shortfall.

Any surplus generation beyond 125 MW may be sold first to APSPDCL, which holds the Right of First Refusal. If APSPDCL does not purchase the surplus power, the developer can sell it to third parties or through power exchanges without requiring additional approval.

The agreements also confirm that the energy injected into the grid before the commercial operation date will be paid at 75 percent of the PPA tariff. Payment terms include late payment surcharge provisions in line with the latest government guidelines.

The agreements reflect APSPDCL’s commitment to renewable energy projects while ensuring that the costs are kept within reasonable limits for consumers. They also emphasize the need for reliable and balanced power supply through the use of modern energy storage technologies.