Andhra Government to purchase 7,000 MW solar electricity from SECI

03 May 2022 CW Team

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 against the current market exchange price of 12-16 as part of its long-term planning, enduring the coal problem and future energy demands.

The SECI will begin providing 3,000 MW in the first phase in September 2024, 3,000 MW in the second phase in September 2025, and 1,000 MW in the third tranche in September 2026.

Peddireddi Ramachandra Reddy, state Energy Minister, told the media that the state government has opted to purchase power from SECI at a more cost-effective rate compared to market pricing.

Reddy said that this is to ensure that the agriculture industry, economy's backbone, has access to power.

He said that their ultimate goal is to deliver reliable electricity 24 hours a day, seven days a week. Simultaneously, the state would boost the electricity sector for the state's overall economic growth.

The expense of obtaining this power will be met by the state government, thus there will be no hardship on discoms.

If the project is located outside of the state, Andhra Pradesh will not be responsible for the costs of power evacuation, substation network construction, and so on.

SECI is a firm of the Ministry of New and Renewable Energy, Government of India. It is set up to enable the execution of the National Solar Mission.

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Also read: SECI floats tender for Standalone Battery Energy Storage System

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