SECI power to AP cheaper than Tamil Nadu price 

Similarly, the State need not earmark land for a power plant if power is purchased from outside.
Image used for representational purpose only.
Image used for representational purpose only.

VIJAYAWADA: Andhra Pradesh would be buying power from the Solar Energy Corporation of India (SECI) at a cheaper rate than neighbouring Tamil Nadu and the power purchase agreement made with the corporation need not be referred to the Judicial Preview as the provider is a Central government entity, Energy Secretary N Srikanth said on Sunday.

Amid the controversy raging over power purchase agreements made by the State, the Energy Secretary said the proposed solar power purchase from SECI would be more affordable to take forward the initiative to provide free agriculture power for nine hours in the day time for the next 25 years on a sustainable basis.

Speaking to the media on Sunday, Srikanth said procuring power from SECI is far more beneficial to the State than other available options, as the government is currently purchasing power at Rs 4.36 per unit and providing it to 18.37 lakh farmers free of cost. “By purchasing power from the Solar Energy Corporation of India, we would be saving at least Rs 1.87 per unit,” the Energy Secretary said and added that this would lead to a total saving of Rs 2,400 crore per year for the State. 

“The government had planned to bring in a solar power project of 10,000 MW through AP Green Energy Corporation Limited (GECL) to get power at Rs 2.49 per unit for the next 25 years,’’ he said adding that with the SECI offering to provide the power at the same cost under its manufacturing-linked initiative from 2024, the State agreed the same to meet the demand of 18.37 lakh farmers. 

“The agreement was done after the approval of Andhra Pradesh Electricity Regulatory Commission (APERC) and the question of Judicial Preview does not arise as the provider is a Central government agency,’’ he said. Srikanth added that the state government would take a decision and then put up a proposal before the Electricity Regulatory Commission. Only after the APERC approves it, a final agreement would be entered with the SECI.

Srikanth said the tariffs proposed by SECI are the lowest in the country. “Tamil Nadu is buying power from SECI at Rs 2.61 per unit since September,’’ he pointed out.Further, Srikanth said change of law in Power Purchase Agreements, State transmission charges, and Central transmission charges would affect the State solar project initiative. “But by purchasing power through SECI, the State could save an amount of Rs 2, 260 crore, including the power evacuation infrastructure cost. With the strengthened One Nation-One Grid, any state can purchase power from anywhere, which makes dealing with SECI easier,’’ he stressed.

Similarly, the State need not earmark land for a power plant if power is purchased from outside. He said the land acquired for GECL would remain with the State government and can be utilised for setting up other projects which would lead to provision of more jobs. Srikanth said the cost of power keeps on fluctuating for every 15 minutes. During peak hours, the cost would be more.

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