Promise of free electricity powered AP-Adani deal

The erstwhile Andhra Pradesh government under Jagan Reddy had sought regulatory approval for the controversial Adani Green solar power project in 2021, while proposing to offer 7 gigawatt (Gw) of the procured power "for free" to rural areas and agriculture sector, according to filings and submissions reviewed by Business Standard.

- SHINE JACOB & SHREYA JAI

The regulatory filings made by the state government to the Andhra Pradesh Electricity Regulatory Commission (APERC) and Central Electricity Regulatory Commission (CERC) between 2021 and 2024 reveal the terms of the power sale-purchase agreements which stated rural areas in Andhra would get nine hours of free electricity from the said project.

The Andhra government spokesperson did not respond to an emailed query on the fiscal impact of providing 7 Gw of free power to rural areas.

The power sale agreement (PSA), originally signed by the Andhra government with Adani Green and Azure Power, said: "The primary objective of procurement of solar power under the terms of this tripartite PSA is to provide nine-hour daytime free power to farmers envisaged under the policy of the government of Andhra Pradesh June 2020 while also contributing towards the target of realising 500 GW renewable energy fixed by the Government of India."

The tripartite PSA is between the Andhra Pradesh government, Adani Green and Solar Energy Corporation of India (SECI), which is a public sector company under the new and renewable energy ministry.