Government of India Secretary (New and Renewable Energy) Anand Kumar has purportedly written a letter to Chief Secretary L.V. Subrahmanyam, suggesting to him to apprise Chief Minister Y.S. Jagan Mohan Reddy of the fact that revisiting the Power Purchase Agreements (PPAs) in the solar and wind energy sector would shake the confidence of investors and adversely affect the future bids and investments in the State and in the country.
The letter referred to media reports that the State government is contemplating revisiting the PPAs, wherein the tariffs were either fixed by the State Electricity Regulatory Commissions (SECRs) in line with the Central Electricity Regulatory Commission guidelines or are arrived through open competitive bidding. In both cases, the SERCs conduct public hearings before adopting the tariffs.
The GoI has set a target of installing 175 Gigawatts of Renewable Energy (RE) capacity by 2022 (100 GW solar, 60 GW wind, 10 GW biomass and 5GW from small hydro projects). If the PPAs were revisited, it would affect the national RE programme, Mr. Kumar stated, seeking the facts to be brought to the notice of the Chief Minister.
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