APERC Approves 400 MW Wind-Solar Hybrid Projects, Boosting Renewable Energy Ambitions In Andhra Pradesh

The Andhra Pradesh Electricity Regulatory Commission (APERC) has issued an order approving the amended Power Purchase Agreements (PPAs) entered into by the Southern Power Distribution Company of Andhra Pradesh Limited (APSPDCL) with four Special Purpose Vehicles (SPVs) of Axis Energy Ventures India Private Limited (AEVIPL). These agreements are for procuring 100 MW of power each from their respective wind-solar hybrid pilot projects, totalling 400 MW. This decision follows a directive from the Government of Andhra Pradesh (GoAP) on 24 September 2024, instructing the Commission to grant consent to the PPAs under Section 108 of the Electricity Act, 2003.

These projects are part of the state’s larger vision to generate 72.30 GW of renewable energy by 2030, contributing to India’s national target of 500 GW. The projects fall under the Bundling, Balancing, and Banking (BBB) scheme and offer a high capacity utilization factor of over 60%. The agreements promise stable tariffs based on average power purchase cost (APPC), a 50:50 benefit-sharing on Renewable Energy Certificates (RECs), and local economic advantages. These projects are being implemented in line with the state’s 2018 renewable energy policy, which supports wind-solar hybrid systems and ensures efficient use of transmission infrastructure and better grid stability.

The original PPAs were signed on 24 November 2022. APSPDCL then submitted a petition on 22 November 2024, seeking the Commission’s approval. The Commission held a public hearing on 4 April 2025 where stakeholders, including representatives from political parties, civil society, renewable energy associations, and company executives, expressed their views.

The GoAP had earlier signed a memorandum of understanding in 2018 and a scheme implementation agreement in 2019 with AEVIPL for the development of 10,000 MW of renewable energy. The four SPVs involved in this current case are part of this broader plan. The policy framework and associated benefits offered by the 2018 policy were instrumental in shaping this decision.

By approving these PPAs, the Commission has reinforced the state’s commitment to renewable energy, honored the GoAP’s assurances to the High Court, and sent a strong message to investors about the state’s reliability in honouring contracts. This initiative is also expected to help the DISCOMs meet their renewable purchase obligations (RPOs) and support the overall clean energy transition.