Adani Green Energy Ltd’s controversial 7 gigawatt manufacturing-linked solar power project in Andhra Pradesh has received regulatory clarity over the transfer of 2.3 gigawatts of capacity from Azure Power. The Central Electricity Regulatory Commission (CERC) has refused to intervene in the substitution of agreements.
The transfer of assets rests with the project award agency, Solar Energy Corporation of India (SECI). Originally, the 2.3 gigawatt of PPAs were awarded to Azure Power, which was awarded 2.3 gigawatts of PPAs. The transfer of assets rests with the project award agency, in this case, the Solar Energy Corporation of India (SECI).
Issue, citing it does not fall under tariff regulations of the Electricity Act 2003 Adani Green Energy Limited (AGEL) has achieved a significant milestone for its 7-gigawatt (GW) solar power project in Andhra Pradesh, as the Central Electricity Regulatory Commission (CERC) has declined to intervene in the transfer of 2.3 GW capacity.
This decision provides the much-needed regulatory clarity for the project, which had been under scrutiny due to allegations of bribery involving Adani Group chairman from Azure Power to AGEL Gautam Adani by signing supplemental power purchase agreements (PPAs) and power supply agreements (PSAs) with AGEL and Andhra.
Background of the Project
The 7 GW manufacturing-linked solar power project was initially awarded to both AGEL and Azure Power, with AGEL allocated 4.667 GW and Azure Power 2.333 GW. However, Azure Power withdrew from the agreement, leading to the transfer of its share to AGEL. The Solar Energy Corporation of India (SECI) facilitated this transfer.
by signing supplemental power purchase agreements (PPAs) and power supply agreements (PSAs) with AGEL and the Andhra Pradesh government. SECI then approached CERC to acknowledge these supplemental agreements Pradesh the government. SECI then approached CERC to acknowledge these supplemental.
CERC’s Stance
In its recent order, CERC stated that it does not have the jurisdiction to intervene in the substitution of agreements, as this matter does not fall under the purview of agreements tariff regulations outlined in the Electricity Act 2003. The commission emphasized that the transfer of assets and agreements rests with the project award.
Agency, in this case, SECI. This clarification means that the project will not require additional regulatory approval, allowing AGEL to proceed without further legal AGEL allocated 4.667 GW and Azure Power 2.333 GW. However, Azure Power withdrew from the agreement, leading to the transfer of its hindrances SECI This clarification.
Implications for AGEL and Andhra Pradesh
With the regulatory uncertainty resolved, AGEL can now focus on the execution of the project, which is expected to play a crucial role in meeting India’s renewable energy targets. For Andhra Pradesh, the project promises to enhance the state’s power supply and support its commitment to sustainable energy development.
Ongoing Investigations
Despite this regulatory clarity, the project remains under the shadow of international investigations. U.S. prosecutors have indicted Gautam Adani and other executives for allegedly paying $265 million in bribes to secure solar energy contracts in India. AGEL has denied these allegations further.
The CERC’s decision marks a pivotal moment for AGEL’s solar project in Andhra Pradesh, providing the regulatory certainty needed to advance the project. While legal challenges persist, this development is a positive step towards achieving implications for AGEL and its operations India’s renewable energy goals.
Regulatory and underscores the importance of clear regulatory frameworks in facilitating large-scale infrastructure project Adani Green Energy Limited (AGEL) has received regulatory clarity for its 7 GW solar power project in Andhra Pradesh after the Central Electricity Regulatory Commission (CERC) declined to intervene.
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