The Andhra Pradesh government on Thursday finalized the power purchase agreements with 10 solar power producers with a total installed capacity of 6,400 megawatts of power that would supply 14,000 million units of power to the state at the lowest-ever tariff of ₹2.48 per unit.
Out of these 10 solar power projects, four would be set up in Kadapa, three in Anantapur, two in Prakasam and one in Kurnool districts.
The bidders who won the projects include big players like National Thermal Power Corporation (NTPC) and Adani group.
The official note said the average tariff at which these power plants would supply to the Andhra Pradesh government is ₹2.48 per unit, which is significantly lower than the tariff at which power distribution companies in the state are procuring power from other power generators.
The present tariff of Rs. 2.48 would result in a savings of nearly ₹3,800 crores in the very first year and this saving is likely to increase over the years as the tariff would remain the same.
“The present value of benefit accruing to the Andhra Pradesh Government exchequer over the life of this project can conservatively be estimated at ₹50,000 crore. Since these solar power projects are Build-Own-Transfer (BOT) projects, they would be transferred to the state government after 30 years,” the note said.
This is a Syndicate News Feed; edited by Clean-Future Team