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As part of its long-term planning to address the coal problem and future energy demands, the Andhra Pradesh government has decided to purchase 7,000 MW of solar electricity from the Solar Energy Corporation of India (SECI) for 2.49 per unit, compared to the current market exchange price of 12-16.
In September 2024, the SECI will start supplying 3,000 MW in the first phase, 3,000 MW in the second phase in September 2025, and 1,000 MW in the third tranche in September 2026.
The state government has chosen to purchase power from SECI at a more cost-effective rate than market pricing, according to state Energy Minister Peddireddi Ramachandra Reddy.
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